The role of supply chain management in improving affordable housing delivery in the Western Cape

Abstract

The persistent shortage of affordable housing in the Western Cape continues to place significant pressure on low- and middle-income households, exacerbating socio-economic inequalities and limiting access to adequate living conditions. Within this context, Supply Chain Management (SCM) has emerged as a critical enabler of effective housing delivery, particularly in its role of ensuring the efficient procurement, coordination, and management of resources throughout the housing development lifecycle. Despite this centrality, there remains a noticeable knowledge gap concerning the specific contribution, limitations, and operational dynamics of SCM in the affordable housing sector in the province. This study therefore seeks to explore, in depth, the role of SCM in enhancing the provision of affordable housing in the Western Cape, with a focus on its effectiveness, institutional challenges, and potential strategic interventions to improve service delivery outcomes. Using a qualitative document analysis approach, the study reviewed legislative frameworks, institutional reports, policy documents, audit findings, and academic literature to generate insights into SCM practices within the housing delivery context. The findings reveal that, although SCM has the potential to significantly strengthen housing service delivery, its contribution is constrained by a range of persistent systemic and operational challenges. These include poor procurement processes that compromise value for money, along with enduring governance and compliance deficiencies that weaken accountability and transparency across the supply chain. Furthermore, gaps in policy interpretation and inconsistent implementation hinder the translation of housing policies into effective practice. Capacity and skills deficits within key SCM functions further limit operational efficiency and decision-making capabilities. In addition, the study identifies procedural delays, bureaucratic bottlenecks, and slow administrative processes as major barriers to the timely delivery of housing projects. These challenges are compounded by instances of financial mismanagement and non-compliance with regulatory requirements, which undermine institutional integrity and performance.