(online) = ISSN 2285 – 3642

ISSN-L = 2285 – 3642

Journal of Economic Development, Environment and People
Volume 13, Issue 1, 2024

URL: http://jedep.spiruharet.ro
e-mail: [email protected]

DEMYSTIFYING DEMAND MANAGEMENT TO ENHANCE SUPPLY CHAIN

MANAGEMENT PERFORMANCE IN THE SOUTH AFRICAN PUBLIC SECTOR
Authors: H Zitha 1 and Shikha Vyas-Doorgapersad2
1
Post-Doctoral Research Fellow, School of Public Management, Governance and Public Policy, College of Business and
Economics, University of Johannesburg, South Africa, Email: [email protected], ORCID ID: 0000-0002-2615-7386

2
Professor, School of Public Management, Governance and Public Policy, College of Business and Economics,
University of Johannesburg, South Africa, Telephone: 011 559 5115/ 072 463 8685, Email: svyas-
[email protected], ORCID ID: https://orcid.org/0000-0002-8146-344X

Abstract: One of the phenomena brought about by the genesis of supply chain management (SCM) in the South African
public procurement sector arena is demand management (DM). If properly implemented, departments may be able to
plan their procurement activities and has the potential to convert a procurement office from a mere reactive function
into a fit for purpose office which will be responsive to the needs of its stakeholders in a more efficient and effective
manner. Despite its glorious intensions, many government departments are still grappling with the implementation of
DM function. The guiding question is: what are the obstacles preventing demand management functions from being
implemented successfully?

To find answers, the study applies a qualitative research approach, and information is obtained from literature
review. Conceptual analysis is considered to analyse the data. The study aims to demystify the concept and provide a
practitioner’s perspective regarding the implementation of DM. The motivation of the study is that the findings may
assist procurement officials on how to implement DM effectively serving the needs of SCM. It may also serve as
springboard in the body of knowledge, thus being used as a point of reference and continue to illuminate public
discourse in the public sector procurement environment.

Key words: Demand Management, qualitative, supply chain management, public sector, procurement, South Africa.

JEL code: J2, L25

How to cite: Zitha, H. and Vyas-Doorgapersad, S. (2023). Demystifying demand management to enhance
supply chain management performance in the South African public sector. Journal of Economic
Development, Environment and People, 13(1). doi: https://doi.org/10.26458/jedep.v13i1.821

1. Introduction
Demand Management (DM) is a phenomenon which has since dominated the boardroom
discussions as well as the Auditor-General’s report. It is viewed as the foundational element that must
support the purchase of products, services, and projects. Fourie (2015), National Treasury (2003) and
Mkhize (2004) indicate that the implementation of an integrated supply chain function (SCM) was intended
to address the shortcomings on how government manages its contracts, inventory/assets, as well
management of redundant items. According to National Treasury (2003), the goal of supply chain
management policy was to replace the entire government's outmoded procurement processes, enhance

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Journal of Economic Development, Environment and People
Volume 13, Issue 1, 2024

URL: http://jedep.spiruharet.ro
e-mail: [email protected]

financial management and alignment with international best practices. It is the researchers’ view that
Supply Chain Management was in response to the 2001 Joint Country Procurement Assessment Report
(CPAR) by the World Bank (WB) and National Treasury. Weaknesses pertaining to governing, interpreting,
and carrying out of the Preferential Procurement Policy Framework Act (PPPFA) and its accompanying rules
were noted in the assessment, which was intended to analyze how the government procures products and
services, (National Treasury, 2005).

It is the researchers’ view that the concept DM in South African, in the public sector procurement
space in particular traces its origin in 2003 when SCM was introduced. Ambe and Badenhorst-Weiss (2012)
gave context to the above assertion by indicating that SCM was designed to improve all aspects of the
purchasing process, from demand to disposal management. Mkhize (2004) argues that the effectiveness
and efficiency in government financial management has been a center of conern hence the decision to
migrate from the traditional procurement methods into integrated SCM. Ambe and Badenhorst-Weiss
(2012) argue that since procurement was handled through tender boards, the systems of procurement and
provisioning were not cohesive. It is crucial to emphasize that the introduction of SCM has not proven to be
a panacea for solving all the problems preventing its successful implementation in the South African.

To support this assertion, Selomo and Govendor (2016) malpractices in the SCM industry include,
among others, poor governance which compromised the realization of section 217(1) of the Constitution.
This suggest that need analysis and spend analysis were either not done or not properly executed. Evidence
of the above assertion is expressed in the Auditor-General’s report of 2019/20 financial year, which
reported an estimated loss of R983 million linked to non-adherence with procurement processes resulting
in goods and services procured at exorbitant price (Auditor-General, 2020). According to Matloko and Alers
(2022), the South African Police Services experience numerous challenges, such as the absence of
integrated planning, failure to implement SCM prescripts efficiently several industries are still experiencing
significant challenges regarding understanding the concept as well as striking a balance between demand
and supply (Coker & Helo, 2016; Supply Chain Market, 2018). It is therefore against this background that
this conceptual paper seeks to demystify the concept demand management and provide practical
perspectives that will play an important role to help Demand Managers on the implementation thereof.

2. Research Methodology
This study deployed a qualitative research methodology. Zondo (2021:225) and Mutandwa (2023)
indicate that this method's main goal is to generate descriptive data. To analyze the data, meticulous
techniques for coding, transcribing, and identifying themes and patterns were utilised. The goal of the
study is on exploring the concept of DM and its impact on SCM performance. Through the use of a

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e-mail: [email protected]

qualitative research methodology, researchers were able to gain a thorough grasp of the conceptual and
contextual elements of DM, which are discussed in this study.

The study utilized publicly available secondary data gathered through a literature review. The
literature review was premised to update the researcher on recent advancements in the field of study,
identify areas where more information is needed, highlight limitations in previous research, and evaluate
the advantages and disadvantages of various research methods (Bless and Smith 2011:24, in Nhlapo,
2020:41). A literature review is a helpful tool that provides background information for readers to better
understand the ideas and concepts that influence how specific research is organised (Dudovskiy 2021:1;
Soga, 2022:50, in Vyas-Doorgapersad, 2023: 141).
Through conceptual analysis, the data was examined. Maxwell (2005) proposed a conceptual analysis,
which Nyikadzino and Vyas-Doorgapersad (2020) and Vyas-Doorgapersad (2022) have adopted, considers
conceptual analysis to be a collection of concepts, presumptions, expectations, hypotheses, and beliefs that
act as a framework for investigation. Petocz and Newbery (2010:126, in Nyikadzino, 2020:28) supported
and further explained that The process of conceptual analysis involves examining ideas, words, variables,
constructions, definitions, claims, hypotheses, and theories to determine their clarity and coherence. This is
achieved by closely examining their logical relationships and identifying any underlying assumptions or
implications. Auriacombe (2016:8, in Nyikadzino, 2020:28) explains that when conceptualizing a study,
finding a pertinent and studyable problem is crucial, as is coming up with an acceptable research plan and
conceptual framework. The purpose of this is to simplify the ideas, structures, and interactions between
different variables within the theories being studied. As such, conceptual analysis is a critical component of
the study design.

3. Theoretical Framework
According to Backlund and Mantysalo (2013) the Comprehensive-Rationalist Planning Theory
(CRPT) was instrumental after Finland second World War in 1914 is based on the belief that societal
development can be achieved through gathering of data and thorough analysis. The comprehensive-
rationalist planning theory assumes that there must be clear objectives, full costing of identified strategies,
implementation of identified strategies as well as detailed monitoring of the identified strategies (Lawless,
1986). According to the Environment (2012), comprehensive-rationalist planning theory comprises of two
fundamental dimensions which is rationality and comprehensiveness. According to Grant (1985), rationality
entails having certain abilities that can be mastered, administrative knowledge, sufficient artistic awareness
for the planner to study, and the ability to provide a workable answer to those in charge of making
decisions. Furthermore, Marios (1979) posits that comprehensiveness involves the desire to analyze all
feasible options that have been provided, attempt to satisfy all the interest of various groups, achieve the
general goals of the public interests, having a comprehensive view of the ideal situation. Hobbs and Doling
(1981) indicate that advocates of rational comprehensive planning makes the case that better planning

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e-mail: [email protected]

results from a more thorough examination of the circumstances. Hobbs ad Doling (1981) further argue that
the planner-analyst is viewed as a non-partison observer of the problem with the capability to formulate,
analyse and provide valid knowledge of the prevailing problems and predict a credible long-term solution
to the problem.
Like any other theory, comprehensive-rationalist planning theory has its own critics. Firstly, Berry
(1974) argues that setting goals by presuming a stable and broadly agreed set of values is not a good idea.
Furthermore, agreeing on common goals by all the people is not always possible since people perceives
things differently and have different interests. Human beings have different perspectives on one planning
aspect (Lindblom, 1959). A planner cannot always acquire all the information and take into account all the
factors. Lastly, Grant (1985) postulates that other critics of the theory argue that decisions are taken based
on assumptions and without considering future implications, and that rapid changes and known
expectations that occur between decision-making and implementation are beyond the control of planners.
Reunanen, (1996) and Stenvall (2000) argue that the task of defining the public interests using rational
planning techniques is given to public administrators by the comprehensive rationalist planning ideology.
Faludi (1986) views planning as a decision-making process designed to handle some of the many issues that
face planners. He holds a view that planning can be regarded as rational if such planning is able to evaluate
comprehensively all the possible action considering their consequences; and ensuring that at the centre of
the considerations are alternative goals geared towards addressing existing challenges. This paper holds the
view that despite the above-mentioned critics, the constructs of Comprehensive-Rationalist enabled the
study to provide a broader perspective regarding demand management which will assist procurement
practitioners in the implementation stage. This theory resonates well with demand management which is
the first and the planning phase of all elements of supply chain management. In this element, prior
advertising a bid or inviting quotations, Demand Managers are required to conduct a comprehensive
planning exercise which involves extensive research. The planning exercise amongst others include
thorough need analysis, the spend analysis as well as broader understanding of the market. The goal of the
planning exercise conducted in demand management is to provide decision makers with the appropriate
procurement strategy geared towards addressing the socio-economic imperatives of the country. Demand
Managers who are not conducting a thorough comprehensive and rational planning pose a major risk to
government which must be avoided at all costs. Firstly, without a thorough comprehensive and rational
planning, the realisation of section 217(2) of the Constitution will remain a pie in the sky. Secondly, it
compromises government’s position towards the realisation of value for money. It is against this backdrop
that the comprehensive-rationalist planning theory was adopted to provide the theoretical underpinning of
this study.

4. Overview of Demand Management and its relationship with Supply Chain

Management

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It is critical to have a comprehensive grasp of how DM is positioned in South Africa, especially in the
context of the SCM environment in the public sector, to debunk the idea.
There are various scholars who provided their contribution in defining the concept DM. Matloko
and Alers (2022) regard DM as a anticipation, planning, and management of demand for goods, services,
and works, as well as for mobile and immovable assets. According to the University of Pretoria (2022), DM
is the initial component of public sector SCM which provides the blue-print for all inherent SCM activities.
Similar assertion is echoed by National Treasury (2004) which indicates that DM is the first face of SCM
which sets the whole procurement function in motion. Furthermore, Croxton, Lambert, Garcia-Dastuque
and Rogers (2002) and Lambert (2008) define DM as a technique that focuses on striking a balance
between client demands and supply chain capacity. This entails planning for demand and balancing it with
available resources for production, sourcing, and distribution. Mentzer and Moon (2005), regard DM as the
technique of creating a steady demand flow between the supply chain's players and their individual
marketplaces. They view DM as a component of SCM that includes marketing and its coordination with the
internal and external agents in the supply chain as well as demand planning. Melo and Alacantara (2014)
regard DM as a phenomenon where operations and marketing are coordinated with the aim of
comprehending the market and planning activities in accordance with the organization's strategy,
manufacturing capabilities, and end-user requirements. According to Bizana, Naudé and Ambe (2015), DM
can be thought of as the decision-making processes that let public entities buy things at the right time,
place, and price. DM is the company's vital connection to its clients, partners in the supply chain, and
suppliers (Benton, 2014). Rainbird (2004) considers DM to be a process that entails knowing what
customers want now and, in the future, what the market is like, and what alternatives are out there and
this knowledge is obtained through operational processes. From the above definitions, the researcher
deduced some key pointers. Firstly, defining demand management can be influenced by the environment
or the focus area of the author (whether private or public). Secondly, most of the authors defined demand
management with more focus on the private sector except for Bizana, Naudé and Ambe (2015) and
National Treasury (2004). Lastly, although the definitions are coming from various scholars and influenced
by their respective environment, there are some dotted lines depicted in all the definitions which forms the
basis of researchers’ conclusion that DM is the driving force of SCM.

A succinct description of SCM was provided to by several academics. According to Ambe and
Maleka (2016) and the Council of Supply Chain Management Professionals (CSCMP, 2007) SCM focusses on
planning and management of all sourcing and procurement, conversion, and logistics management
activities. It concerns itself with the collaboration and strategic coordination amongst all participants in the
procurement value chain. SCM is defined by the Institute for Supply Chain Management (2014) as the
process that entails locating, acquiring, gaining access to, positioning, and managing the resources and
innate skills necessary for an organization to be able to accomplish its intended strategic objectives.
According to Basuki (2021) SCM is a dynamic upstream to downstream distribution system that focuses on
providing consumers with services and products of exceptional value at the lowest possible cost. SCM is
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defined as a technique of controlling, managing, and improving the flow of products and information from
suppliers to end customers which is done through the coordinated efforts of a network of organizations
(Jaklic, Trkman, Groznik & Stenberger, 2006). SCM can be regarded as the coordination of traditional
business tasks through planned and rigorous means (Nakov, Acevski and Zareski (2014) which according to
Barraza, Davila and Gracia (2016) facilitate both internal business operations and the customer distribution
network. Lambert and Enz (2017) in Adegoke, Cheng, Abredu, Ndafira, Amoateng and Owusu-Gyan (2021)
describe SCM as integration of crucial business operations that provide goods, information, and services to
a variety of stakeholders. They regard SCM as a company's supply chain, conventional business operations
and strategies that are deliberately and thoughtfully linked across business divisions with the primary goal
of enhancing the outputs of that excellent organization and its supply chain.

From the literature reviewed above, one might infer that the goal of SCM is to link together every
component of the value chain and make sure that clients receive the required goods, services, or labor in
compliance with the agreed-upon requirements. SCM is concerned with performance, coordination, value,
and stakeholder connections within an organisation. Furthermore, one can regard supply chain
management as a phenomenon that is cantered upon coordination, collaboration and integration, value
efficiency and performance of an organisation. The discussion above shows that the objective of SCM is the
same whether it is applied in the private or public sector.
According to National Treasury (2004), the SCM model, which consists of six components including
Demand Management, Acquisition Management, Logistics Management, Disposal Management, Risk
Management, and SCM Performance Evaluation, which Mnguni, 2012 & Moeti, 2014 opine that it serves as
the framework for SCM in South Africa. The researcher posits that the positioning of DM in the SCM model
bears reference to its strategic importance. To support the researchers’ assertion, Matloko and Alers
(2022), indicate that DM is a crucial element of SCM and a prerequisite for creating best practices for
efficient SCM. Furthermore, Ambe and Maleka (2016) hold the view that the aforementioned components
serve as the solid-rock upon which all spheres of government, including municipalities, can establish an
effective SCM system. In echoing the same sentiment, the University of Pretoria (2023) regards DM as the
initial phase of public sector SCM which commands how all SCM tasks must be carried out. Ambe and
Maleka (2016) indicate that demand management focusses on the planning process wherein institutions
must ascertain that prior to starting the real procurement process, it is necessary to ensure that the whole
needs assessment is carried out. Transparency International (2023) argues that it is in this element of SCM
where procuring institutions are expected to conduct needs assessment, describe the products or services
to be purchased, together with the budget, procurement strategy, and bidding process. It is upon this basis
that researchers hold the view the realisation of section 217(1)(2) of the Constitution hinges upon proper
implementation of DM function. This assertion stems from the fact that organs of state must use a system
that is just, equitable, open, competitive, and economical when making purchases of commodities or
services. Moreover, it calls for state agencies to put into practice preferential purchasing guidelines
designed to help or defend those who have been adversely affected by unfair discrimination. This paper
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argues that the above constitutional imperatives can only be achieved when a procurement of goods,
services and works is preceded by a thorough research which is a pure demand management function.
Linked to these constitutional imperatives is the objective of the Preferential Procurement Regulations of
2022 wherein procuring institutions are required to use procurement as a lever towards socio-economic
transformation. It is the researcher’s view that it will remain difficult if not possible for procuring
institutions to head to the constitutional clarion call of addressing socio-economic imbalances of the past
without proper implementation of demand management function. Figure 1 below shows the Supply Chain
Management model.

Figure 1: Position of Demand Management within the SCM Model

Source: National Treasury (2004)

The two concepts demand management and supply chain management, have their origin from the
private sector environment and were both introduced into South African public SCM space in 2003.
Drawing from Figure 2.1 above (the SCM model), one can deduce that by design, DM remains an integral
component of Supply Chain Management. Furthermore, linked to the reviewed literature as discussed in
this paper, one can conclude that if implemented effectively it can enhance SCM performance. To support
the above assertion, Santos and D'Antone (2014) expound that DM plays a pivotal role as a source of
accurate consumer information which is crucial in creating customer prioritization plans, enabling
collaborative activities, and improving customer connections while balancing operational capabilities. It
against this background that the researchers deduce that any attempt to implement supply chain

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management without a proper consideration of demand management, such efforts may not escape the
attention of the Auditor General regarding non-compliance with supply chain management prescripts. This
implies that if demand management is properly executed, it can contribute towards the reduction of
material irregularities reported in the Auditor-General’s auditor reports which are linked to non-compliance
with supply chain management prescripts.

5. Need to demystify the concept of Demand Management

This study is born out of a plethora of reviewed literature from various scholars and other sources
of information from government records. This was critical in providing a broader perspective of the concept
and in providing practical guide on its implementation. Mentzer and Moon (2005) indicate that supply
chain agents have a limited understanding of DM and the idea of demand. They argue that many
businesses are unaware that attaining chain coordination requires a thorough understanding of demand.
Adebanjo (2009) indicates that ineffective service delivery, ineffective customer service, inappropriate
management of assets and inventory are all consequences of failing to effectively identify and capture the
demands of customers. DM is still a new topic in SCM which focuses on integrating supplier demands as
quickly and effectively as possible to strike a balance and strategically match supply chain demand with
operational capacity. (Melo & Alcantara, 2014; Matloko & Alers, 2022). They however indicate that the
absence of credible information and inadequate customer service are amongst the growing problems with
demand alignment in a supply chain, which has an impact on service delivery. Some authors discuss the
need for DM in SCM; however, fail provide guidance for its implementation (Esper, Ellinger, Stank, Flint &
Moon, 2010; Voluntary Interindustry Commerce Solutions, 2010). Business leaders frequently have the
wrong idea about DM, hence it has the biggest performance disparity. Maintaining a balance between
supply and demand is essential for organizations, yet many companies in all industries still struggle to do so
(Coker & Helo, 2016; Supply Chain Market, 2018). Selby (2022) posits that when businesses cannot keep up
with consumer demand for goods and services, it poses a serious problem. Practices in demand
management improve an organization's capacity to manage product demand from customers and forecast
demand going forward. According to Coker and Helo (2016), DM concerns itself with planning on how best
to satisfy the demand of end-users in an organisation.
It is also important to indicate that the reviewed literature revealed that there is extensive
research that has been done regarding procurement planning in Africa, however the research does not
show how procurement planning is linked to demand management. Agaba and Shipman (2016) assert that
one of the major impediments to Africa's economic progress has been poor procurement planning (the
core of DM), and it is argued that numerous African nations have not given due attention to the
management of public resources. Arsene, Joseph and Gamariel (2021) posits that the lack of procurement
bodies to do market research on price prior to setting budgets for the bids, which undermines the value for
money concept is among challenges confronting Rwanda Public Procurement Authority. Shwarka (2019)
indicates that construction professionals in Nigeria spend the money generated by hard-working taxpayers
and invest it in public projects without using suitable planning methods. Basheka (2009) in Munyawera,
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Mulyungi, and Ismail (2018) indicate that public procurement is nevertheless tainted by subpar work, low
quality commodities, and services despite the established regulations, and the efforts by development
partners like the World Bank and governments of developing nations like Kenya work to enhance the
performance of the procurement function.
Moreover, Čudanov, Jovanović and Jaško (2018) claim that the principal factors affecting Primary
Health Care (PHC) facilities' success in terms of quality in Serbia are poor planning, disregard for the
procurement strategy, and delayed procurement. Asiimwe and Mayanja (2022) indicate that 40% of the
procurement in Uganda, Wakiso district in 2016, for various contracts were executed without prior
planning which was an indication that procurement plans were not in place thus compromising value for
money. Majority of the respondents (58%) in According to a study by Kebede (2016) that assessed the
practice of procurement planning and the preparation for its implementation, it is not common practice to
identify needs early on, prepare specifications, determine prices, and consolidate procurement needs.
Nuwagaba, Nduhura, Molokwane and Tshombe (2021) indicate that creating a procurement strategy,
which establishes a timeframe for the acquisition of goods based on the department's budget, is the first
step in the procurement cycle.
The literature reviewed and the discussion above provided critical revelations that cannot be
ignored. Firstly, there is a limited literature on DM especially within the public sector SCM space, hence
most of the literature discusses DM more from the private sector perspective. Secondly, SCM challenges
linked with failure to implement DM function effectively are not unique to government institutions in South
Africa. Thirdly, in South Africa, public procurement planning is not a stand-alone phenomenon, but a an
integral part of SCM as depicted in figure 1 above. It is on this basis that this paper aims to demystify the
idea of demand management and provide practical perspectives that will play an important role to help
Demand Managers on the implementation thereof.

6. Challenges thwarting successful implementation of Demand Management

Despite the glorious intentions embedded upon the introduction of demand management, there is
consensus that institutions across all the three spheres of government are struggling with the
implementation. Ambe and Badenhorst-Weiss (2012) hold that inadequacy in planning and to the absence
of a synergy between demand and budget is at the centre of hindrances thwarting the implementation of
effective DM thus affecting SCM performance. Therefore, it is crucial for SCM professionals to make sure
they properly relate demand planning to budget. Moreover, Luyt, (2008) expounds that when cohesive
plans are absent, the strategic role of DM is occasionally reduced to a purely reactive function. Some
government organizations do not accurately measure the needs of their end customers or estimate
expenditures. Moreover, they are unable to precisely track, manage, or report on spending. (Luyt, 2008;
Melo & Alcantara, 2014) which is in opposition to what is required for the public sector's good financial
management. The Auditor General of South Africa reported an estimated loss of R285 million linked to
inefficiencies where benefits were not derived from the costs (Auditor-General, 2020). This shows that

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need analysis and spend analysis were either not done or not properly executed. Another factor hindering
the effective implementation of DM is the lack of accurate information which according to Melo and
Alcantara (2014) is one of the progressive demand alignment issues in SCM that, if uncontrolled, this trend
could lead to poor customer service, inefficient stock rotation, and a high rate of obsolescence, which
would ultimately affect how well the government provides services to the populace. This could be
attributable to not having dashboards that can provide granular details of the required information. Selomo
and Govendor (2016) argue that procurement planning is inadequate and requires improvement prior
departments commence with the process of procuring goods, services or works. Adebanjo (2009) contends
that the insufficient precise and coherent procurement planning has a snowballing effect on the
procurement of goods and services, which eventually has an impact on service delivery. Bendis (2015)
argues that procurement planning which is the pulse of DM frequently relies on previous sales information,
therefore it may be challenging to accurately anticipate future demand without access to such data.
Furthermore, Bendis (2015) consider new product introduction as amongst other challenges thwarting
effective implementation of DM. This assertion is premised on the fact that most newly introduced
products in the market have no previous sales information, therefore, thumb-sucking exercise remains the
basis for demand forecasting. It is the researcher’s view that planning for unpredictable or highly
improbable events such as what the world experienced through COVID-19 pandemic could be among other
challenges that confront effective implementation of DM. The above forms the basis of this study in
demystifying the concept of Demand Management and provide a practitioner’s perspective regarding the
implementation of DM.

6. Conclusion
The discussion above shows that DM remains an integral part of sound public financial management. If
properly implementation it can enhance the delivery of value for money sustainable services to taxpayers.
The discussion above also demonstrated that DM has the power to position procurement as a strategic and
suitable function focused on fulfilling the strategic objectives of the government. Furthermore, it has the
potential to reduce the number of bids cancelled and readvertised due to not having a responsive bidder,
as well as curbing against litigations linked to government failure pay service provider due to shortage of
funds. It is against this background that the paper recommends the following: all procuring institutions
must have a well-resourced unit responsible for implementing DM function. It is important that
procurement planning, which is the pulse of DM, have a connection to the Medium-Term Expenditure
Framework (MTEF) which is a period of three years. The strategic planning of the procuring organization
must incorporate procurement planning. It is in the strategic planning of the procuring institution where
executive management will provide inputs and management buy-in to the plan this easing implementation.
Procurement planning must be made one of the gate-keeping requirements, implying that there must not
be a bid advertisement or invitation for quotations which is not preceded by procurement planning. This
implies that advertised bids must have been expressed in the procurement plan. For DM to serve its

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intended purposes, it must be proactive in nature and not always reactive phenomon. This will result in
changing the narrative that SCM is a bottleneck, and procurement of goods, services and works is based on
a last-minute.com arrangement.
Demand Managers must take note regarding linking the demand to the budget. Firstly, Demand
managers must make sure that the necessary budgetary allocation for financing the spending is properly
observed when procurement plans are being created. Secondly, Demand managers must make sure that
procurement operations are thoroughly planned in advance in coordination with budget planners and
relevant stakeholders to prevent any problems that may hinder implementation. Classic example in this
regard is in situation whereby a service provider halts the delivery of services, goods or works because they
have not been paid since there are no funds. It is the researchers’ view that the confirmation of budget
availability should be over the MTEF period and ensure that such funds are locked for over three years.
It is the researchers’ view that through market research and analysis, Demand Managers may
eventually devise a procurement strategy that maximizes the possibility of receiving bids from the most
qualified suppliers which enhances value for money for the taxpayers. Furthermore, the researchers opine
that through market research and analysis procuring institutions will be able to minimize failed
procurement processes where bids are not awarded due to not having a recommendable bidder which
leads to tenders being cancelled and re-advertised thus wasting taxpayer’s money as well as the time and
money for the bidders.
The qualitative inquiry was based on a desktop analysis, and conducting interviews with procurement staff
in some municipalities may be included in future publications. It is acknowledged that the study has
limitations since other perspectives were not considered. Nevertheless, the primary goal of the study was
to assess the significance of simplifying DM for efficient performance in SCM, was achieved successfully.
Therefore, the research made significant contributions to the body of knowledge in the field of public
administration and governance.

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