Supply chain reforms target spending inefficiencies

DAR ES SALAAM: THE government is seeking to improve efficiency in public spending and reduce resource wastage through reforms aimed at strengthening supply chain management across public institutions.

The National Supply Chain Management Policy, 2025, promotes an integrated approach to procurement, customs clearance, receipt, storage, distribution, utilisation and disposal of public assets to ensure resources deliver maximum value.

The approach seeks to move institutions away from managing individual supply chain activities in isolation towards a coordinated system linking planning, acquisition and utilisation of goods and services.

Effective supply chain management is critical to controlling operational costs, preventing losses and ensuring public institutions obtain the goods and services required to deliver services to citizens.

At the procurement stage, the policy emphasises value for money, requiring purchasing decisions to consider quality, actual needs, costs and expected benefits rather than price alone.

Aligning procurement plans with institutional priorities can help prevent unnecessary expenditure, delayed deliveries and inefficient use of public funds.

The policy also highlights efficient customs clearance, particularly where delays in releasing imported goods can increase costs and disrupt the availability of equipment needed for government operations.

Beyond acquisition, proper management of goods after delivery is equally important. Effective receiving, recording, storage and utilisation procedures can keep supplies in good condition and ensure they are used for their intended purposes.

Poor storage practices can cause damage, deterioration and losses, forcing institutions to spend additional funds replacing goods that could otherwise have remained usable.

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Strengthening warehouse management can help institutions maintain accurate records of goods received, items issued and stock remaining.

Such information is essential for identifying shortages, anticipating future requirements and avoiding unnecessary purchases of goods already available. Distribution is another critical link in the supply chain.

Timely delivery depends on coordination between procurement units, warehouses and departments requiring supplies.

Weak coordination can cause delays, excess stock in some locations and shortages in others, undermining service delivery.

The policy also addresses the management and disposal of public assets, emphasising compliance with applicable procedures for items that have reached the end of their useful lives or are no longer required.

Tracking assets from acquisition to disposal can strengthen accountability, minimise losses and help prevent unauthorised use. It can also give institutions a clearer picture of their assets and how effectively they are utilised.

Technology is another important element in improving supply chain performance. Information and communication technology systems can simplify record-keeping, support stock monitoring and improve access to information for planning and decisionmaking.

With accurate and timely data, institutions can identify needs, monitor expenditure and make procurement decisions based on actual requirements.

However, digital systems require reliable information, trained personnel and effective implementation to deliver their intended benefits.

Environmental protection and climate change considerations also form part of the policy’s broader approach.

Taking environmental impacts into account during procurement, utilisation and disposal can encourage more responsible decisions about public goods and assets. Good governance remains essential.

Transparency, accountability and compliance with established procedures can reduce opportunities for misuse of public resources and strengthen confidence in the management of government funds and assets.

Ultimately, the policy’s success will depend on how effectively public institutions translate its objectives into daily operations.

Closer coordination among procurement, finance, supply chain management, warehousing and end-user departments, alongside staff capacitybuilding and access to accurate information, will be essential.