Supply Chain Management
Supply chain management is where public sector audit findings concentrate and where private sector value quietly leaks. The two problems look different but share a cause: a process designed on paper and performed differently in practice, with nobody comparing the two. We review the process end to end against both the regulations and what is actually being done.
1
Review
Policy against regulation
2
Observe
What actually happens
3
Analyse
Deviations and spend
4
Redesign
Process that works
5
Embed
Train and support
How We Deliver It
01
Policy and Regulatory Review
We compare your SCM policy against the applicable framework and flag where it is non compliant, and separately where it is stricter than required. Both cause problems, and organisations frequently cannot tell which requirement came from where.
- Policy assessed against the MFMA or PFMA and regulations
- Provisions stricter than required identified
- Gaps where the policy is silent on a required matter
- Delegation and threshold framework reviewed
02
Process Observation
We follow real procurement through the process rather than interviewing about it. Steps performed out of sequence, approvals obtained afterwards and specifications written after quotes are received all show up in the files.
- A sample of completed procurements walked end to end
- Documentation present at each step verified
- Sequence of approvals checked against dates
- Practice compared against the written policy
03
Deviation and Spend Analysis
Deviations tell you where the process is failing. Emergency deviations that recur annually are not emergencies, and expansions beyond a contracted value are a common source of irregular expenditure.
- Deviation register analysed by reason and frequency
- Recurring emergencies identified as planning failures
- Contract expansions and extensions reviewed
- Spend split analysis to identify threshold avoidance
04
Process Redesign
A process the organisation can actually follow with the staff it has. Controls requiring five approvals in a department of four people get bypassed, and a bypassed control is worse than a simpler one.
- Process redesigned around available capacity
- Controls proportionate to value and risk
- Documentation requirements simplified but sufficient
- Turnaround times set and measurable
05
Embedding and Support
Redesign fails without the people. We train officials and committee members on the new process and remain available through the first cycles, which is when it either takes hold or reverts.
- Training for officials and committee members
- Templates and checklists for each step
- Bid committee support through initial cycles
- Post implementation review against findings and turnaround
What You Receive
- Policy assessment against the applicable regulatory framework
- Process walkthrough findings from real procurement files
- Deviation and spend analysis with patterns identified
- Redesigned process sized to your actual capacity
- Templates, checklists and committee support material
- Post implementation review against findings and turnaround times
Indicative Timeline
A review takes four to six weeks. Implementation and embedding run longer, because the process has to be exercised over several procurement cycles before it can be said to have taken hold.
- Policy and regulatory review: one week
- Process observation and file walkthroughs: two weeks
- Deviation and spend analysis: one week
- Redesign, training and embedding: four to eight weeks
What We Review
The full cycle, from need identification through to contract management after award.
Policy
Compliance with the framework, and provisions stricter than the regulations require.
Thresholds
What each value band requires, and whether splitting is occurring to avoid one.
Bid Committees
Composition, quorum, conflicts and minute keeping, where procedural findings concentrate.
Deviations
Frequency, reason and approval, with recurring emergencies treated as planning failures.
Contract Management
What happens after award, which is where value is most often lost.
Irregular Expenditure
Identification, recording and the consequence management that must follow.
Frequently Asked Questions
Will this stop our SCM audit findings?
It addresses the substantial share caused by process failure and by officials not knowing the requirement. Findings caused by deliberate circumvention need a consequence management response rather than a process one, and we would say so.
Our policy is compliant but we still get findings. Why?
Because compliance is judged on what was done, not on what the policy says. The most common gap is documentation: a sound decision with no evidence of the required step is treated as though the step never happened.
What is threshold splitting?
Dividing a requirement into smaller transactions to stay below a threshold and avoid competitive bidding. It is specifically prohibited and spend analysis reveals it readily, so it is worth finding yourself before an auditor does.
Why do our emergency deviations keep recurring?
Because they are usually planning failures rather than emergencies. A deviation for the same service every year is evidence that the contract was not renewed in time, and auditors treat repeat emergencies accordingly.
Can you sit on our bid committees?
We can provide support and training to committee members, but taking a committee seat would compromise our independence for any assurance work. Support and membership are different roles.
Does this apply to private sector clients?
Yes, though the driver differs. There is no MFMA, but uncontrolled procurement leaks margin through poor pricing, maverick spend and contracts nobody manages after signature.
Related Services
This sits inside our Consulting practice. Related work: Supply Chain Management Training for the officials who apply the process, and Public Sector Audit for the audit perspective on the same requirements.
