Assignment 02
Semester 2 2025
Due September 2025
,PUB1505
Assessment 02
Semester 2025
Due September 2025
Establishing a Supply Chain Management Policy at the Republic of South Africa
National Department of Health
1. Introduction to Supply Chain Management in the Department of Health
As the Accounting Officer for the National Department of Health (NDoH) in South Africa,
developing a comprehensive Supply Chain Management (SCM) policy is critical for
promoting efficiency, transparency, and accountability in the procurement and
distribution of health-related goods and services. The NDoH occupies a central role in
the country’s healthcare system, managing the acquisition of medicines, vaccines,
medical equipment, and consumables that directly influence service delivery across
provinces and facilities.
SCM in this context extends beyond a logistical activity; it represents a strategic function
that underpins broader health policy objectives. It is closely aligned with national
imperatives such as achieving universal health coverage under the National Health
Insurance (NHI) framework and ensuring rapid, coordinated responses to public health
emergencies like the COVID-19 pandemic.
The regulatory landscape governing SCM in South Africa comprises constitutional
provisions, statutory frameworks, and administrative guidelines that collectively
emphasize fairness, cost-effectiveness, and socio-economic transformation. These
instruments require that SCM not only advances efficiency but also addresses the
structural inequities of the past through preferential procurement measures.
, The COVID-19 response illuminated the challenges of fragmented supply chains,
particularly the stockouts of personal protective equipment (PPE). These disruptions
demonstrated the urgent need for a consolidated SCM policy integrating demand
forecasting, risk mitigation, and performance monitoring to safeguard healthcare
resilience. A robust SCM framework must therefore embed six core elements—demand,
acquisition, logistics, disposal, risk, and performance management—ensuring fiscal
compliance while enhancing service delivery.
The 2020–2021 procurement of forwarding and clearing services for PPE highlighted
the operational realities of emergency procurement. While successful in mobilizing
urgent supplies, the process revealed critical planning gaps that delayed distribution.
Such lessons underscore the need for policies that are both compliant with financial
governance frameworks and adaptive to the fluid demands of the health sector.
This introduction sets the foundation for an in-depth discussion of the constitutional,
legislative, and regulatory bases for SCM, followed by a critical analysis of its
operational focus areas.