Read the following and answer the questions that followed. The following question was
posted to an AI Tool on 6 July 2023: Describe and discuss eight supply chain
management challenges in the South African public sector. Answer by the AI Tool:
SCH4801/assignment 03/2024 Supply chain challenge...
1.1 Identify Two Challenges Correctly Identified by the AI Tool
The AI Tool highlights several challenges facing supply chain management in the South
African public sector. Two key challenges correctly identified from the AI Tool’s
description include:
1. Procurement Inefficiencies: As stated, the public sector often struggles with
inefficient procurement processes due to lengthy bidding and a lack of transparency.
2. Corruption and Fraud: The persistent issues of corruption and fraud severely
undermine procurement integrity, leading to substantial financial and operational
challenges.
To support these points with external sources:
• For Procurement Inefficiencies:
Source: KPMG’s “Public Sector Procurement Practices in South Africa.”
(KPMG, 2021). This report discusses how laborious procuremen t processes
have led to bottlenecks in public service delivery.
• For Corruption and Fraud:
Source: Transparency International’s report on corruption in South Africa
(Transparency International, 2022) highlights the prevalence of unethical
practices in public procurement, which hinders efficient supply chain
operations.
1.2 Sub-Questions
(a) Identify Two Public SCM Challenges Not Addressed in the Prescribed Book
The following two public supply chain management challenges were identified by the AI
tool but were not specifically addressed in the prescribed book:
1. Limited Technology Adoption: This challenge involves the slow integration of
technology in the public procurement processes, leading to inefficiencies.
2. Skill Shortages and Capacity Gaps: The lack of trained supply chain professionals
in the public sector results in inadequate management and decision -making.
(b) Discussion: Real Public SCM Challenges
To illustrate that the challenges of limited technology adoption and skill shortages are
indeed real, consider the following examples:
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