The objective of the study was to develop a management framework for internal logistics in the
Department of Education in Gauteng. For the purpose of this study internal logistics was defined as the
complete process of obtaining goods and services from the compiling and processing of requisitions to
the payment of invoices and the record keeping of all transactions to achieve organisational objectives.
Internal logistics entails purchase planning, specification development, supplier research, contract
administration and quotations, ordering and inventory control.
The management of internal logistics can enhance productivity and performance within the value chain,
improving service delivery, the outcome of the audited financial statement and ultimately the optimal
spending of the allocated budget per financial year. For three consecutive financial years (2006/2007,
2007/2008, 2008/2009) GDE received a qualified audited financial statement. For financial years
2009/2010 and 2010/2011 GDE succeeded to receive an unqualified audited financial statement. To
maintain this achievement and ultimately receive a clean audit financial statement, it is necessary to
evaluate all the business processes, specifically within supply chain management, contributing to the
audit findings.
Supply Chain Management (SCM) is in some way the completion of the circle of financial management.
It is important for GDE to develop a uniform internal logistics framework that would enable them to also
gain the maximum from its annual allocated budget. It is also critical that the internal logistics are
attended to as soon as possible to have a positive input towards the audited financial statement.
A literature study was done on the concepts of the value chain, supply chain management and the
management of knowledge. A questionnaire was designed, based on the findings in the literature, and
used to measure the efficiency of the internal logistics in the District offices. The state of the internal
logistics at the District offices was assessed through survey questionnaires to extract the data. It became
evident that certain gaps and problems exist in relation to internal logistics at the District offices and that
knowledge management is related to these gaps and problems.
Internal logistics has a link with the elements of supply chain management as investigated in the literature
study. The elements of supply chain management can to be broken down into clear activities for the
management of internal logistics.
The key area of concern is that the internal logistics within SCM are not acknowledged and therefore not
properly managed in the District offices. The result of this is that the allocated budget is not optimally
utilised and also receives qualifications from the audited financial statement.
A practical framework to manage internal logistics is proposed for the Department of Education to assist
with the problems, and to bridge the gaps found after analysing the questionnaires. The findings of the
empirical study were used as the basis of the framework. Finally, conclusions and recommendations are drawn and rendered in order to improve the logistics management of the Department of Education in Gauteng. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2012.
| Identifer | oai:union.ndltd.org:NWUBOLOKA1/oai:dspace.nwu.ac.za:10394/7270 |
| Date | January 2011 |
| Creators | Viljoen, Marinda |
| Publisher | North-West University |
| Source Sets | North-West University |
| Detected Language | English |
| Type | Thesis |
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