SUPPLY CHAIN MANAGEMENT POLICY 
         
              APROVAL DATE 31 MAY 2019 
                        SC 02/05/2019 
         
         
         
         
         
         
         
         
         
         
           
              
              
              
              
             The Municipal Manager of the Ngaka Modiri Molema District Municipality (hereinafter 
             referred  to  as  “the  Municipality”),  being  responsible  for  managing  the  financial 
             administration of the Municipality hereby, in terms of the provisions of section 62(1)(f)(iv), 
             read with section 111 of the Local Government: Municipal Finance 
           
             Management Act, Act 56 of 2003 (hereinafter referred to as the “MFMA”), and in order 
             to give effect to section 217(1) of the Constitution of the Republic of South 
             Africa, 1996 (hereinafter referred to as “the Constitution”), establishes the Supply Chain 
             Management  Policy  of  the  Municipality  (also  hereinafter  referred  to  as  “the  SCM 
             Policy), as approved by its Council and which came into operation on and is to be 
             implemented as such from the date of acceptance by the Council. 
           
             The SCM Policy of the Municipality will be one of the Municipality’s budget related 
             policies, as referred to in the provisions of regulation 7 of the Municipal Budget & 
             Reporting  Regulations,  2008  and  section  17(3)(e),  section  21(1)(b)(ii)(bb),  section 
             22(a)(i)  and section 24(2)(c)(v) of the MFMA, and accordingly the Municipality will 
             annually  revise  this  policy  and  this  policy,  or  any  amendments  thereto  will  be 
             approved by the Council of the Municipality during the process in terms of which the 
             Municipality adopts its budget, as described in section 24 of the MFMA. 
                                                           
                                                                                                                                                                                                                                 TABLE OF CONTENTS 
                                                           
                                                                                  (FOR EASE OF REFERENCE THE CORRESPONDING REGULATION NUMBER 
                                                                                  IN THE “MUNICIPAL SUPPLY CHAIN MANAGEMENT REGULATIONS” – 
                                                                                              WHERE APPLICABLE – HAS BEEN INSERTED IN BRACKETS BEHIND THE 
                                                                                                                                                                                                                                                                                                     “ITEM”) 
                                                           
                                                                                                                                                                                                                                    CHAPTER 1 
                                                           
                                                                                ESTABLISHMENT AND IMPLEMENTATION OF THE SCM 
                                                                                                                                                                                                                               POLICY 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                 NO                                                                                                                                                                                                                   ITEM                                                                                                                                                                                                                  PAGE 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   NO 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                     1.                                 DEFINITIONS                                                                                                                                                                                                                                                                                                                                                                                                  11 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                     2.                                 INTRODUCTION                                                                                                                                                                                                                                                                                                                                                                                                 24 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                     3.                                 TITLE AND APPLICATION OF THE POLICY                                                                                                                                                                                                                                                                                                                                                                          25 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                     4.                                 AIM AND PURPOSE OF THE SUPPLY CHAIN MANAGEMENT SYSTEM                                                                                                                                                                                                                                                                                                                                                        26 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                     5.                                 OBJECTIVES OF THIS POLICY                                                                                                                                                                                                                                                                                                                                                                                    26 
                                                                                     6.                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                        DELEGATED AUTHORITY OF SUPPLY CHAIN MANAGEMENT POWERS                                                                                                                                                                                                                                                                                                                                                        28 
                                                                                                                        AND DUTIES 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                        6.1                                  SUB-DELEGATIONS                                                                                                                                                                                                                                                                                                                                                         30 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                        6.2                                  OVERSIGHT ROLE OF THE MUNICIPALITY                                                                                                                                                                                                                                                                                                                                      32 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                        6.3                                  SUPPLY CHAIN MANAGEMENT UNITS                                                                                                                                                                                                                                                                                                                                           33 
                                                                                     7.                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                        COMPETENCY AND TRAINING OF SUPPLY CHAIN MANAGEMENT                                                                                                                                                                                                                                                                                                                                                           33 
                                                                                                                        OFFICIALS 
                           SCM POLICY C60/ 2017 
                     
                     
                     
                                                                                                                                                                               
                              8.          DUTIES AND RESPONSIBILITIES                                                                                                               34 
                                                                                                                                                                               
                                          8.1                            GENERAL RESPONSIBILITIES OF THE OFFICIALS OF THE                                                           34 
                                                        MUNICIPALITY 
                                                                                                                                                                               
                                          8.2          RESPONSIBILITIES OF THE MUNICIPAL MANAGER                                                                                    34 
                                                                                                                                                                               
                                          8.3            RESPONSIBILITIES OF THE DIRECTORS/MANAGER APPOINTED IN                                                                     35 
                                                       TERMS OF THE PROVISIONS OF SECTION 56 OF THE MSA 
                                                                                                                                                                               
                                          8.4          RESPONSIBILITIES OF THE CHIEF FINANCIAL OFFICER                                                                              36 
                                                                                                                                                                               
                                          8.5          RESPONSIBILITIES OF THE SUPPLY CHAIN MANAGEMENT UNIT                                                                         37 
                                                                                                                                                                               
                              9.          COMMUNICATIONS                                                                                                                            39 
                     
                     
                     
                     
                                                                                                CHAPTER 2 
                                                                       FRAMEWORK OF THE SCM POLICY 
                                           ESTABLISHMENT                       AND           IMPLEMENTATION                        OF         SUPPLY               CHAIN  
                             10.           MANAGEMENT SYSTEM                                                                                                                        40 
                             11.           DEMAND MANAGEMENT (REGULATION 10)                                                                                                        40 
                             12.           ACQUISITION MANAGEMENT (REGULATION 11)                                                                                                   43 
                                           12.1         RANGE OF PROCUREMENT PROCESSES (REGULATION 12)                                                                              46 
                                           12.2                GENERAL PRECONDITIONS FOR CONSIDERATION OF WRITTEN  
                                                       QUOTATIONS OR BIDS (REGULATION 13)                                                                                           47 
                                           12.3 CENTRAL SUPPLIERS DATA BASE                                                                                                      
                                                                                                                                                                                    48 
                                           12.4         PETTY CASH PURCHASES (REGULATION 15)                                                                                        50 
                                           12.5                   WRITTEN QUOTATIONS (REGULATION 16)                                                                                51 
                                           12.6         FORMAL WRITTEN PRICE QUOTATIONS (REGULATION 17)                                                                             52 
                                           12.7                      COMPETITIVE BIDS AND PROCESS FOR COMPETITIVE BIDS  
                                                       (REGULATION 19 & 20)                                                                                                         54