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.
Appointment of a Panel Of Attoneys to Assist Sedibeng District Municipality with Legal Related Matters on an Ad Hoc Basis. 2019-01-08 12:00 8/2/1/2-2018
Appointment of service provider to provide security services at Buffalo City Metropolitan Municipality – Silver Crown Old Age Home for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0037
Provision of Short Term Insurance for the Period From 01 July 2019 to 30 June 2022 2019-01-18 12:00 FIN 01/2019/20
Consulting engineering services for the routine road maintenance of national route N2 section 8 km 80.08 to section 10 km 73.50 and national route R62 section 6 km 36.76 to section 8 km 2019-02-04 14:00 X.003-030-2019/1F
Consulting engineering services for the routine road maintenance of national route N2 section 12 km 0 to section 13 km 103.56 and national route R67 section 2 km 0 to km 36.19 2019-02-04 14:00 X.003-032-2019/1F
Appointment of service provider to provide security services at Buffalo City Metropolitan Municipality – Enoch Sontonga Rehabilitation Center for the Department of Social Development, Eastern Cape for a period of three (3) years 2019-02-04 11:00 SCMU4-18/19-0036
Leasing of Premises for Customer Care Centres For uMgungundlovu District Municipality 2019-02-04 12:00 39/2018
Upgrading of the Kleinbrak 66/11kv substation 2019-02-08 12:00 TENDER 51-18/19
Appointment of Communication Service Provider to Assist the Department to Design, Develop and Edit a Publication on the Success Stories of the Environmental Programmes Branch of the Department of Environmental Affairs 2019-01-11 11:00 E1496
Spesialisdienste van Afrikaanse Taalkundige word verlang vir projek om Historiese gemarginaliseerde Afrikaanse varieteite te onsluit (Oranjerivier Afrikaans) 2019-02-12 11:00 ATM 017/2018-2019
Appointment of the service provider to conduct an Implementation evaluation of the Environment and Culture Sector within the EPWP 2019-01-11 11:00 E1497
Supply and delivery of gloves to PetroSA, GTL refinery (call of contract) 2019-02-15 11:00 CTT20907
Redesign, fabrication and installation of lifting platform main beams at Syncrolift dry dock in the Port of Cape Town 2019-02-19 10:00 TNPA 783/CIDB
Supply and Instal 4 Air Conditioners at NHLS Doran Nginza - Port Elizabeth 2018-12-28 11:00 RFQ 1469498
Supply, Deliver & Installation of Furniture at Gonubie Resort 2018-12-19 12:00 RFQ/DCS/2018-19/285
Supply and Delivery of Faltering Acid to BCMM Stores, Chiselhurst, East London 2018-12-19 12:00 RFQ/SCM/2018-19/283
Overhaul Bauer K 14 Upright Compressor 2018-12-19 12:00 RFQ/HPS/2018-19/281
Supply, Delivery & Installation of Storage Containers for Traffic Services 2018-12-19 12:00 RFQ/HPS/2018-19/280
Period Tender for Manufacturing and Installation of Transformer Fire Protection 2019-01-31 10:00 194Q/2018/19
Supply and Delivery of HTH Chlorine to Bcmm Stores, Chiselhurst, East London 2018-12-19 12:00 RFQ/SCM/2018-19/282

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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