Browsing by Author "Maila, Z’nakile"
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- ItemSupply chain management in complex organisations : a case study of JB Marks Local Municipality(Stellenbosch : Stellenbosch University, 2020-04) Maila, Z’nakile; Burger, Johan; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.ENGLISH SUMMARY: Considering the high levels of demand for accelerated quality service delivery and relating challenges faced by the public sector – in particular municipalities – post-1994, the public sector is required to investigate and address its organisational challenges in order to ensure required efficiencies for service delivery. This research investigates the nature of local government operations to evaluate whether or not local government is, by its nature and operations, a complex organisation. Specific reference is given to JB Marks Local Municipality (JBMLM) and its supply chain management (SCM) functions. The evolutionary phenomenon of the organisation does not exclude public sector organisations, such as local government, which must adapt and evolve in order to survive internal and external environment challenges. The research reveals that municipalities experience the same challenges as other public sector organisations. Factors external to municipalities impact the functioning of local government as an organisation and the functioning of its SCM units. Therefore, one responsibility of local government should be to ensure an in-depth understanding of its environment, including challenges such as those arising from a lack of adequate legislative framework. All efforts must be made to respond to these challenges to prevent external factors from having a detrimental impact on service delivery in local government. The overall mandate of reviewing local government’s legislative framework is aimed at ensuring its resilience and relevance, as this process will enable local government to adopt survival, evolutionary and developmental approaches. The research investigates SCM practices and determines the effect of complexity on the functioning of organisations such as JBMLM, in particular its supply chain functions, and makes recommendations on how to address these challenges. The study follows a quantitative approach, and data collection is conducted via a self-administered questionnaire. The questionnaire, which was designed based on the literature review, addresses several aspects relating to SCM, complexity and complex organisations. The purpose of the questionnaire is to determine perceptions, experiences, beliefs and expectations of municipal employees, municipal councillors, a representative from the Office of the Auditor-General and community members, with a view to establish the most significant challenges to the optimal functioning of SCM and its associated complexity. In this regard, recommendations are made to empower JBMLM and the general body of local government in South Africa. Results of the study indicate that local government, as a creature of statute, is a complex organisation with characteristics inherent to all complex organisations. The environment of municipalities characterises a heterogeneity and diversity that impacts on their functioning. The uncertainty, instability, chaos and emergence of new patterns and structural challenges within local government explain its complexity and affects its functioning, including departmental subdivisions, sections and units. The ever-changing local government environment, including the instability within and outside its operating environment, contributes to the volatility, uncertainty, complexity and ambiguity experienced by this sphere of government and affects its total functioning. SCM is an important factor in and contributor to gross domestic product. Its importance within the internal and external environment of the organisation cannot be overemphasised. The study reveals that a nexus exists between SCM functioning and service delivery within local government and, therefore, failure of SCM has serious implications for municipal service delivery. The results of the study confirm that SCM is influenced by the external environment within which municipalities operate. Considering complexity in organisations, SCM has become a complex function influenced by various factors such as uncertainty brought about by the internal and external environment. The study reveals that there is a bullwhip effect in the SCM of local government, brought about by the effect of the external environment on the SCM process, such as through reliability of suppliers, actions of competitors, quality of products, demand regarding quantities, timing and increased flexibility requirements. A bullwhip effect refers to a SCM phenomenon wherein changes in demand cause challenges within the whole supply chain network. The study identifies that the two elements of the supply chain management framework –demand management and acquisition management – are directly incompatible withthe complex organisation phenomenon. The study recommends that, in order for SCM to succeed, it must adopt some flexibility in responding to internal and external environment challenges. In addition, the study reveals that the regular amendments to the SCM policy directives and legislative framework are indicative of the complexity of SCM as a support and cross-sectional function within the organisation and local government in general. The literature review indicates that SCM literature is dissimilar to public sector and local government SCM. Public sector SCM aims to ensure total compliance with the prescripts of national government objectives while SCM literature focuses on ensuring efficiency and effectiveness within the supply chain and its processes. The supply chain has been part of local government since 2005, when the legislative framework on SCM was introduced. The study reveals that after 13 years in local government SCM is still in a developmental phase and requires constant adjustment to its founding legislation in order to ensure it addresses all unanticipated challenges. Local government is therefore required to adopt a survival, evolutionary and developmental approach to ensure that it remains relevant. It must continuously address its challenges, including its complexity as an organisation.