Issue Date: 
Monday, February 2, 2015

5 pillars of Supply Chain Management

By W van Rooyen

www.how2tender.com

2 February 2015

The South African Government introduced the Five Pillars of Procurement. These five pillars were introduced to stimulated and grow Small, Medium and Micro Enterprises. Every good State department’s Procurement Policy will include these five pillars. All Bid Evaluation Committees are to follow and apply these five pillars.

The Five Pillars are:

  1. Value for Money

In short this means that it is not necessarily the tender with the lowest price that is going to win the bid. If the lowest price means an inferior product then the Evaluation Committee will seek for a better product. Ensure that, when you respond to a tender, your product is good value for money.

  1. Open and Effective Competition

Government departments must take care that everybody has a reasonable chance to compete for tenders. They must ensure that their procurement process is transparent and fully understandable. They must make sure that there is no favouritism towards any bidder.

  1. Ethics and Fair Dealing

Government officials must conduct themselves properly without compromising their integrity. When conducting their tender evaluation they must not accept bribes or gifts from potential suppliers. In fact, they must not accept anything of sorts from nobody.

  1. Accountability and Reporting

This is a two way street. You, as potential supplier, must be able to account for your actions and plans. You must ensure that you have good reporting methods build into your bid. Government departments must report to their superiors and must be held accountable for their procurement actions.

  1. Equity

The purpose of the fifth pillar is to promote business with Previously Disadvantaged Individuals (PDI’s). Small, Medium and Micro Enterprises together with PDI’s must player a bigger part in the development of the larger South African Economy. Any good Procurement Policy will address Equity as a main feature in the procurement process.

In responding to a tender or request for proposal it is always good to keep these five pillars in mind. Try to address these five pillars in your tender response and you might just be lucky and win a tender.

Now that you have this knowledge you might just want to invest in our newly revised Tender Manual 2015 that is available on our website www.how2tender.com. The Tender Manual will teach you all you need to know to respond to tenders correctly and hopefully successfully.

Until next time - happy tendering.

Title Closing Date Tender No.
Data Centre Maintenance and Repairs of Air Conditioning System 2017-12-07 11:00 RFP 129
Appointment of a service provider for assessment and valuation of the Legacy Rehabilitation liability cost 2017-12-08 11:00 ALEX RFP 4/2017/2018
Design, Provision and Management of a Wide Area Network for the Eden District Municipality 2017-12-08 11:00 E/04/17-18
Repair to Infrastructure in Tergniet – Stairs at Tidal Pool Kus Road 2017-12-08 12:00 49-17/18
Supply and delivery of tyres (one year contract). 2017-12-08 12:00 SCM/INFR13/2017/2018
Supply and Delivery of a Grader 2017-12-08 12:00 SCM/INFR12/2017/2018
Compilation of the 2017/2018 GRAP Compliant Financial Statements 2017-11-23 13:45 SCM/FS06/201/2018
Port Engineering - Smart Peoples Port Study 2017-12-12 12:00 PEH 135/VB
Port Engineering - Dredging of Small Craft Areas 2017-12-12 12:00 PEH 134/VB
Appointment of a suitable service provider for the training of 25 beneficiaries in basic bookeeping for a period of 12 months 2017-11-29 11:00 7Z - 35406
The construction of 50 sow piggery for Intandela multipurpose and project cooperative at Goodhome under Ntabamhlophe area in ward 14 of Inkosi Langalibalele Local Municipality under Uthukela District Municipality in the Kwazulu-Natal province 2017-12-14 11:00 SS-KZN 7/1/6/3 (642) 000R
Implementation of GRAP 12;16 and 17 assets register for a period of a period of three years 2018-01-02 12:00 SCM/FS05/2017/2018
Construction of Sewer Lines Tarka Mossel Bay 2018-01-12 12:00 45-17/18
Construction of the extension of Taung library 2018-01-02 12:00 SCM/SS06/2017/2018
Supply and delivery of Safety Clothing for the Langeberg Municipality, for the Period of 3 Consecutive Years 2017-12-08 12:00 T 32/2017
The Supply and delivery of 7 x Sealing End 132kv 400SQ CU of D2872 2018-01-23 13:00 DX 756
Supply, delivery and installation of Sewer Pumps Mandela Square Montagu 2017-12-01 12:00 TE 87/2017
Supply: Guard rail 2017-11-27 14:00 GE11800781
Supply Water distribution material 2017-11-30 16:00 GE11800782
Supply Bricks 2017-11-27 14:00 GE11800783

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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