Analysis and recommendations for a technology system used for procurement and inventory management at Eskom

Abstract

Eskom is South Africa’s national electricity utility company and it generates, transmits and distributes about 40 000 megawatts of electricity nation wide. For this to be possible Eskom has to buy material such as transformers, cables, poles, meters, industrial computers and etc. Other material such as stationery, office furniture, property and services also has to be procured in order to assist with the daily operations of the business. Currently Eskom uses the SAP system for procurement, inventory management, contract management, warehousing and other departments such as human resources. The company wanted to find out if it is using the most efficient and cost effective system on the market currently and to find out which other equivalent systems on the market available. This report is on the analysis done on the procurement and inventory management departments using Industrial Engineering techniques to answer the concerns of the company.