The objective of applying the strategic sourcing process across the South African public sector is to maximise the benefits by:
- Using the size and value of spending on commodities commonly purchased across the government to leverage the state’s buying power.
- Greatly reducing duplication of effort
Currently, numerous tender processes for similar goods and services take place across procuring institutions.
- Reducing inconsistency in prices between the private and public sectors and between government procuring institutions
In some cases, procuring institutions buy the same product or service from the same suppliers at different prices.
- Encouraging common government policy positions on certain commodities and services
It will, for example, point the relevant authorities towards a common position on broadband or software licensing.
- Encouraging the development and use of standardised specifications of common commodities.
Examples are school furniture, office equipment and IT hardware. This will discourage end-users from over-specifying, insisting on “the best” when a more modest alternative may be adequate for service needs.
- Increasing government efficiency by providing information on the government’s spending patterns
This will help better and more informed decision-making from the product, quality, cost, and socio-economic perspectives.
- Creating expertise about commodities among procurement officials and reducing complexity for end-users.
- Encouraging the use of a thorough understanding of the specialised commodities.
- within the environment that Government supply chain practitioners operate, these practitioners generally manage administrative functions.
- Improve vendor performance
As the clarity of requirements increases, relationships with suppliers tend to improve and they are encouraged to identify new and innovative solutions.
- Ensuring that competition for government business increases, and contract-structuring and performance management systems to measure vendor performance improve.
