Content area
Full Text
Received August 24th, 2023; First Revision January 6th, 2024; Second Revision February 11th, 2024; Third Revision April 1st, 2024; Accepted April 3rd, 2024
ABSTRACT
Risks within the supply chain management environment arise from interaction among constituents across the supply chain. This article discusses factors associated with the risk of supply chain management in South Africa's local government. Supply chain management (SCM) is a key component of financial management, which seeks to ensure that there is proper and expeditious flow of service delivery in procurement processes. Supply chain management risk factors are critical to service delivery performance of local government because whether the interferences to supply chains are "regular, unplanned or intentional" they progressively distort supply chain execution and create scope for corruption and resources wastage. It is crucial to study supply chain management riskfactors to understand risk mitigation as well as reduce undue interferences in service delivery. The article is a conceptual desktop literature review of the supply chain management risks in the local government from a financial management perspective. Five risk factors are uncovered as prevalent in South African local government and public sector SCM environments. It concludes that supply chain risk management in the public sector environment entails that municipalities need to have the ability to forecast possible threats, devise appropriate management plans and create steps for resolving emerging risks that the supply chain system may experience. It recommends that a prescribed framework for uniform execution and practice of SCM needs to be devised for the local government and public sector environment in order that municipalities may minimise SCM risks.
Keywords: Financial Management; Supply Chain Management; Local Government; Service Delivery; Risk Management
INTRODUCTION
Copious studies have examined challenges associated with supply chain management (see for example, Peck, 2006; Hamisi, 2011; Ambe & Badenhorst-Wciss, 2012; Bizana, Naude & Ambe, 2015; Lambert & Enz, 2017; Girard, 2018; Ambe et al., 2022). However, there is no strong focus on factors associated with supply chain management risks in local government. This study provides insights into key risks which could potentially prevent supply chain management systems from achieving municipal service delivery goals. It builds on and contributes to work in the field of financial management in South Africa's public sector environment. Supply chain management risks can be...