The purchase and sale of goods and services is the lifeblood of any economy. South Africa is no different with a unique emphasis on activities in the Public Sector in an effort to bolster a flagging economy no longer isolated from the knock-on effects of global economic recession. In this unique environment it is the mandate of Government that all processes addressing the procurement or disposal of goods and services is seen to be above reproach.

To this end Ability Solutions in conjunction with FlowCentric and key stake holders in both the private and public sector have developed a workflow driven business process template to address the supply chain management lifecycle in accordance with Municipal Finance Management Act No 56 of 2003, Public Finance Management Act No 1 of 1999, and generally accepted corporate principles.

Regardless of Private or Public sector, the underlying principles of an organisations supply chain management must be fair, equitable, transparent, competitive and cost-effective. Abilty’s Procurement Lifecycle Template delivers on these principles while still being able to respond to individual organisational demands and changes to legislation etc.

1. Implications of the MFMA and PFMA

Traditionally the procurement lifecycle within organisations has been manual and paper based with varying degrees of compliance to corporate guidelines re BBBEE spend etc. Our own exercises in the area of Supply Chain Optimisation within companies consistently highlights off book expenditure to expedite procurement processes as being a major area of concern due to the lack of formal controls, checks and balances.

In terms of both the MFMA and PFMA :

• Each entity must have and implemented a supply chain management policy which gives effect to the provisions of the Act

• The supply chain management policy must be fair, equitable, transparent, competitive and cost effective and comply with a prescribed regulatory framework .

• It is the responsibility of the Accounting Officer to implement the supply chain management policy

• It is the responsibility of the Accounting Officer to take all reasonable steps to ensure that proper mechanisms and separation of duties in the supply chain management system are in place to minimise the likelihood of fraud, corruption, favouritism and unfair and irregular practices.

• No person may impede the Accounting Officer in fulfilling theses responsibilities.

Ability’s workflow enabled Supply Chain Management Lifecycle solution fully addresses these legislative requirements in a modular fashion ensuring visibility and audit ability of the complete procurement lifecycle.

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