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.
Supply: Medical supplies 2018-08-23 15:00 GF11900117
The MBDA invites suitably qualified service providers to provide Sanitary Services at the The Science & Technology Centre for a 6 month period with the possibility of renewing it for a further 6 months, on a rental basis. 2018-08-28 11:00 BDA0818588
First aid level 1 training. 2018-08-24 09:00 SM11900032
The MBDA seeks quotes from suitable service providers for Cleaning Material 2018-08-28 11:00 BDA0818587
Provision of 50kg DPC trolleys for the platforms at cape town station quantity of 50. 2018-09-04 16:00 RFQ163/2018
Supply & deliver Envelopes Manilla B5 250 X 176mm 2018-08-28 11:00 SQ08181255
Supply & deliver Lever Arch Files Pvc A4 70 X 1450mm 2018-08-28 11:00 SQ08181255
Supply and Delivery of Furniture 2018-08-28 11:00 GQ08181883
Supply and delivery of radio wireless. 2018-08-23 11:00 GK11900069
Supply non-sterile exam gloves 2018-08-29 10:00 GA11900171
Mandlakazi Rwss: Construction of 19.8km Water Reticulation Network – Package 3C 2018-09-20 12:00 ZDM043/2018
Construction of Mandlakazi Phase 5.5 Bulk Water Supply: 44km of Bulk Gravity Mains, Associated Reservoirs, Pumpstation and Rising Main 2018-09-20 12:00 ZDM055/2018
Supply Clothing 2018-08-28 10:00 GA11900168
Bid for the appointment of a training provider to conduct an accredited technical trades & operator’s training to municipal officials for each identified programme as and when required from the date of appointment until 30 June 2021. 2018-09-07 12:00 8/2/5/84 (2018-2021)
Ceza Stand Alone Water Supply Phase 2: Reservoirs and Weir 2018-09-06 12:00 ZDM 094/ 2018
Ceza Stand Alone Water Supply Phase 2: Reticulation 13 2018-09-06 12:00 ZDM 093/ 2018
Supply and installation of fault indicators on The 33KV AC Network. 2018-09-10 12:00 23/2018/CTN/INFRA
Ceza Stand Alone Water Supply Phase 2: Reticulation 12 2018-09-05 12:00 ZDM 092/ 2018
Ceza Stand Alone Water Supply Phase 2: Reticulation 11 2018-09-05 12:00 ZDM 091/ 2018
Supply and installation of fault indicators on The 33KV AC Network. 2018-09-10 12:00 23/2018/CTN/INFRA

Pages

7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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