| Summary: | Supply Chain Management is a well recognized managerial tool and government initiative, primarily aimed at improving all the aspects of the procurement activities in government organizations or any type of the sector. It focuses on meeting the needs of the service providers as well as of the customers. In 1994, South African Government came up with new initiatives to manage its budget and finance resources to meet the needs of the people. One of the new initiatives that the new Government introduced was the Supply Chain Management (SCM). The Constitution of the Republic of South Africa, Act No.108 of 1996, as amended regulates procurement through Section 217. The statutes states that “217(1) when an Organ of State in the national, provincial or local sphere of government, or any institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective The procurement reform processes were supported by the introduction of a number of legislative measures, including the adoption of the Public Financial Management Act (PFMA) and the Preferential Procurement Policy Framework Act (PPPFA). Public Finance Management Act (PFMA) is a financial act that was developed in 1999 to reform the public financial management of South Africa. The Act promotes the objective of good financial management in order to maximise delivery through the efficient and effective use of limited resources. Public Financial Management Act (PFMA) emphasizes on efficiency, transparency and economic utilization of public funds. The Treasury Regulations 16.5.3 states that, ‘when procuring goods and services, the procurement procedures must be in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Even though government departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. There are some deficiencies in tender award systems, ineffectiveness of SCM training materials, lack of communication between management and SCM or implementing staff as a result the implementing staff is not aware of the organization’s goals regarding supply chain management activities. Lack of monitoring, evaluation and reporting is also another challenge. Due to these challenges, the Head Office of the Eastern Cape Department of Health had incurred some expenses in trying to address these yet the Supply Chain Management has little impact in improving the service delivery. The key research objective of this study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in Head Office of Eastern Cape Department of Health. The study intends to establish and highlight the challenges that the Head Office of the Eastern Cape Department of Health is presently faced with in regard to implementation of the Supply Chain Management and the impact it has in service delivery. Data gathering techniques which include interviews and questionnaires had been used. The objectives, methodology and results of the study are presented. The conclusions and recommendations had been made with the basis that they will assist the department in improving the implementation of the Supply Chain Management which will have a positive impact in the service delivery. Further steps needs to be taken by the Provincial Treasuries in assisting department to improve in the implementation of the Supply Chain Management. Further research conduct is recommended for all the institutions of the department of Health as this study was focusing on Head Office only.
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