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| Factors Affecting the Effectiveness of Inventory Control System in Selected Tanzanian Local Government Authorities |
Muhsin M. Danga, Mwajuma Juma Kaudunde and Peter B. Kadilikansimba
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Abstract:
The purpose of this study was to assess the Effectiveness of Inventory Control System in three selected LGAs using Exploratory Sequential Design. The sample size of the study constituted one hundred and fifty-two (152) respondents from the selected councils. Purposive sampling procedure was adopted for getting the full picture of inventory control practice in LGAs. The study was conducted in Singida Region where three councils were involved. These were; Iramba DC, Singida MC and Manyoni DC. The study revealed that there was ineffective inventory control system in LGAs since most of the decisions are made without adhering the PPA and PPR directives and procedures. Further, many respondents disagreed with the way councils handle Customer's demand forecasting, the keeping of inventory records, pricing inventory, and timely delivery of the requirements. .It was also found that the councils used manual system instead of electronic system which is more effective and efficient in handling inventory control systems. Additionally, the study found that councils failed to attain effective inventory control due to lack of qualified personnel. It was further noted that insufficient store facilities were one of the factors that impaired the effectiveness of inventory control system in LGAs. Generally, they way councils handle inventory control system is largely ineffective as evidenced by the inadequate preparation and implementation of annual procurement plans and inadequate knowledge and skills on stores functions. To get rid of these challenges, the study recommends that, there should be sufficient allocations of funds, employment of qualified staff, placement of appropriate stores equipments, presence of procurement registry and regular tailor- made trainings to council personnel. In addition to the government should endorse regulations that will limit political interference which has been one of the obstacles for implementing annual procurement plans in LGAs. Furthermore, the councils are advised to use reliable internet providers to attain effective inventory control system rather than upholding traditional manual inventory control systems which has been found to be both inefficient and ineffective.
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