Procurement’s contribution towards socio-economic objectives within the commuter bus industry

Abstract

In South Africa, procurement, seen as a strategic tool for socio-economic development, is guided by the Supply Chain Management Policy Framework developed in 2003 (Ambe, 2016:280). Each government entity is driven by its own SCM which is unique to its operations. However, the commuter bus industry is complex and its operations are not in line with the recommended regulations. Procurement in the industry is marred by a lot of challenges, such as the fact that to date no new contracts have been concluded since 2001 (Walters & Manamela, 2016:3). The Small Bus Operators (SBOs) cannot participant in the government contracting system. This paper explores procurement’s contributions towards socio-economic objectives within the commuter bus industry in South Africa. The paper is both descriptive and exploratory in nature, and employs a mixed-method research approach. The data were collected from a sample of 18 respondents who are key stakeholders directly involved in the procurement of subsidised commuter bus services in Gauteng. Face-to-face interviews and a semi-structured questionnaire were used. The findings of the study reveal the role of the procurement function within the commuter bus industry, including the development of small, medium, micro enterprises and its contribution to the country’s Gross Domestic Product (GDP).