i

A RESEARCH REPORT

ON

‘’STORES ACTIVITIES; RECEIVING AND ISSUING PROCESSES

IN ENSURING VALUE FOR MONEY IN THE

ORGANISATION’’

A CASE OF TANZANIA NATIONAL ROADS AGENCY (TANROAD)

KILIMANJARO

BY

MUSA A. KELYA

BBA-PLM III 2010/2011

A RESEARCH REPORT TO BE SUBMTTED TO THE FACULTY OF

COMMERCE AS PARTIAL FULFILMENT FOR THE

REQUIREMENT OF BARCHELOR OF BUSINESS

ADMINISTRATION IN PROCUREMENT AND LOGISTICS

MANAGEMENT OF MZUMBE UNIVERSITY,TANZANIA

JUNE 2011

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Table of Contents

LIST OF TABLES ........................................................................................................................................ v

COPYRIGHT ............................................................................................................................................... vi

DEDICATION ............................................................................................................................................ vii

DECLARATION ....................................................................................................................................... viii

ACKNOWLEDGEMENT ........................................................................................................................... xi

ABSTRACT ................................................................................................................................................ xii

CHAPTER ONE ........................................................................................................................................... 1

INTRODUCTION AND BACKGROUND OF THE STUDY .................................................................... 1

1.0 Introduction .................................................................................................................................... 1

1.1 Background of the Organization .................................................................................................. 1

1.2 Background of the study ............................................................................................................... 1

1.3 Statement of the problem .............................................................................................................. 2

1.4 Objectives of the study ................................................................................................................... 3

1.4.1 General objective ........................................................................................................................... 3

1.4.2 Specific objectives .......................................................................................................................... 3

1.5 Research Questions ........................................................................................................................ 4

1.6 Significance of the study ................................................................................................................ 4

1.6.1 To the researcher ........................................................................................................................... 4

1.6.2 To the organization ........................................................................................................................ 4

1.6.3 To the public ................................................................................................................................... 4

1.6.4 To Mzumbe University .................................................................................................................. 4

1.7 Limitation of the study .................................................................................................................. 5

1.8 Scope and delimitation of the study ............................................................................................. 5

CHAPTER TWO .......................................................................................................................................... 6

REVIEW OF THE RELATED LITERATURE ........................................................................................... 6

2.0 Introduction .................................................................................................................................... 6

2.1 Definition of Store .......................................................................................................................... 6

2.2 Inspection ........................................................................................................................................ 6

2.3 Picking ............................................................................................................................................. 8

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2.4 Definition of Receiving .................................................................................................................. 9

2.4.1 Receiving Process ......................................................................................................................... 10

2.4.2 Problems due to poor receiving .................................................................................................. 11

2.4.3 Types of receipt ............................................................................................................................ 12

2.4.4 Documents involved in receiving ................................................................................................ 13

2.5 Issuing ........................................................................................................................................... 14

2.6 Records involved in Issuing ......................................................................................................... 15

2.7 Problems that may arise due to improper issuing process ....................................................... 15

2.8 Empirical literature review ......................................................................................................... 15

CHAPTER THREE .................................................................................................................................... 18

RESEARCH METHODOLOGY ................................................................................................................ 18

3.0 Introduction .................................................................................................................................. 18

3.1 Study Area. ................................................................................................................................... 18

3.2 Research Design. .......................................................................................................................... 18

3.3 Sampling Techniques. .................................................................................................................. 18

3.3.1 Sampling Unit. .............................................................................................................................. 18

3.3.2 Sample size .................................................................................................................................... 18

3.3.3 Sampling Method ......................................................................................................................... 19

3.4 Data Collection ............................................................................................................................. 19

3.5 Types of Data ................................................................................................................................ 19

3.6 Data Collection techniques. ......................................................................................................... 20

3.6.1 Interview; ...................................................................................................................................... 20

3.6.2 Observation; ................................................................................................................................. 20

3.6.3 Questionnaires; ............................................................................................................................. 21

3.6.4 Documentation. ............................................................................................................................ 21

CHAPTER FOUR ....................................................................................................................................... 22

PRESENTATION OF FINDINGS ............................................................................................................. 22

4.0 Introduction .................................................................................................................................. 22

4.1 Finding from Observation ........................................................................................................... 22

4.2 Receiving procedures from the supplier to the organization. .................................................. 24

4.2.1 Documents Involved In Receiving Process ................................................................................ 25

4.3 Issuing Procedures ....................................................................................................................... 26

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4.4 Challenges facing Tanroads during receiving and issuing process ......................................... 26

4.5 Weaknesses To Some Stores Activities....................................................................................... 27

CHAPTER FIVE ........................................................................................................................................ 31

CONCLUSSION AND RECOMMENDATION ........................................................................................ 31

5.0 Introduction .................................................................................................................................. 31

5.1 Conclusion .................................................................................................................................... 31

5.1.1 Receiving and Issuing procedures ............................................................................................. 31

5.1.2 Documents involved in receiving and issuing procedures ........................................................ 32

5.1.3 Strength and weaknesses of stores activities. ............................................................................. 33

5.2 Recommendations ........................................................................................................................ 35

References ................................................................................................................................................... 37

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LIST OF TABLES

3.1Samplingdistribution…………………………………………………………………… 23

vi

COPYRIGHT

©KELYA, MUSA A.2010-2011{MZUMBE UNIVERSITY}

All right reserved. No part of this report may be reproduced or transmitted in any form or by any

means, electronic and mechanical including photocopying, recording or any information storage

and retrieval system except for academic purposes without prior permission in writing from the

researcher or the university

vii

DEDICATION

This report is dedicated to my lovely family of the following members ;My father Ali Kelya,

My mother Secilia Lema, My aunt Mariam Mushi, My father‟s Yusuf Kelya ,My sincere

brothers Athuman Hassan, Ibrahim Kelya and all other members of my family since it hard for

all to appear without forgetting My fellow students Jakonyango Geofrey, John Moshiro, Ali

Kijembe, Mohamed Suleiman and all other members of BBA-PLM III 2010-2011 for their

sincerely support and assistance during studying and pursuing of my bachelor degree and

preparation of this report. THANKS TO YOU ALL

viii

DECLARATION

I, KELYA MUSA A, declare that this research report is my own work and that it has not been

copied or presented to any higher learning institution within or overseas for the award of

Bachelor Degree or equivalent professional qualification

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Name of student,

……………………………………………………………

Signature:

…………………………………………………………..

Date: ………………………………………………….

Name of major supervisor

……………………………………………………………

Signature

…………………………………………………………..

Date

……………………………………………………………

Name of external supervisor

……………………………………………………………..

Signature

……………………………………………………………

Date

…………………………………………………………..

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LIST OF ABBREVIATION

BBA-PLM Bachelor of Business Administration in Procurement and

Logistics Management

DN Delivery Note

GRN Goods Received Note

LPO Local Purchasing order

MU Mzumbe University

PMU Procurement Management Unity

PPA Public Procurement Act

PPRA Public Procurement Regulatory Authority

SKU Stock Keeping Unit

SRN Stores Requisitions Notes

SV Stock Verifier

WB Weigh Bridge

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ACKNOWLEDGEMENT

I admit that it was not an easy task to undertake this report without the help, view, and ideas

from the committed people, who sacrificed their valuable time and participate fully during the

preparation of my report.

First of all, I thank GOD for giving me good health and for guiding me throughout the entire

field work duration and above all for making it possible for me to accomplish this proposal.

My special appreciation should go to Mr. Njovu for his tireless support whenever I faced

problem during the preparation of this report I had sought for his professional suggestions,

critics and comments on my paper. However, any errors and deficiencies remain entirely my

responsibility. , blessings are upon him

Further my sincere gratitude should go to Tanzania National Roads Agency, Moshi for granting

me the chance to carrying out my research in their organization.

Not only that but also am indebted to my family Ali kelya and Secilia Lema and my family as

whole for their entire support in my life up to the time am preparing this documents. And all

members of my family, I love them

I can‟t complete this proposal without granting special appreciation to my fellow PLM III

student, it‟s hard to mention all but in few my mate Jakonyango, John, Mohamed, and all others,

am regretting for those who would not appear in this document but we are together my brothers

and sisters

xii

ABSTRACT

The purpose of this research would be to make an overview of the stores activities on giving the

main consideration on receiving and issuing procedures in ensuring the value for money in the

organization and how it can contribute to the organization to attain its objectives at a lowest

minimum cost at the same time to provide higher customer service rate to the customers in

TANROADS Kilimanjaro as well in other public organization and private sector

The following were the specific objectives of the research, to identify different processes which

are used in receiving and issuing of items, to show different documents which are used in the

receiving and issuing of goods, to assess strength and weaknesses of stores activity mainly on

consideration of receiving and issuing process

This paper has been organized in five chapters of which; the first chapter contains the

background information. Chapter two deals with literature review, chapter three consist of

research methodology, chapter four deals with research findings and data analysis, and lastly is

chapter five deals with conclusion and recommendations.

The stores activities receiving and issuing procedures at TANROADS Kilimanjaro aims at

providing the maximum customer service to his customers at a lowest minimum cost.

And Data was collected through interview, questionnaires, and observation on the side of

primary data collection. Secondary data was also used; the researcher has used documentation

and literatures as the source of secondary data.

1

CHAPTER ONE

INTRODUCTION AND BACKGROUND OF THE STUDY

1.0 Introduction

This chapter in brief gives an overview of the research study, covering the background, the

statement of the problem, the research objectives the significance of the study, the limitations

and delimitation of the study

1.1 Background of the Organization

The Tanzania National Roads Agency (TANROADS) is an Executive Agency under the

Ministry of Infrastructure Development, established under section 3(1) of the Executive

Agencies Act (Cap 245) and came into operation in July, 2000.

The agency is responsible for the maintenance and development of the trunk and regional road

network in Tanzania Mainland, to facilitate the implementation of the responsibilities; the offices

of the agency have been region wise distributed throughout the country. Regional Managers are

the Accounting Officers responsible in regional offices, while Chief Executive is the head of the

entire agency (TANROADS) whose office resides at TANROADS headquarters; Zain house,

Dar es Salaam. The office of the Regional Manager TANROADS Kilimanjaro located in the

complex of the ministry of infrastructure Kilimanjaro along Oldmoshi road and Uhuru road.

Classified Road Network

The total classified road network in Tanzania Mainland is estimated to be 86,472 km based on

the Road Act 2007. The Ministry of Infrastructure Development through TANROADS is

managing the National road network of about 29,847km comprising 10,601km of Trunk and

19,246km of Regional roads. The remaining network of about 56,625 km of Urban, District and

Feeder Roads is under the responsibility of the Prime Minister‟s Office Regional Administration

and Local Government (PMO-RALG).

1.2 Background of the study

This idea of receiving and issuing is to ensure that, all incoming goods and materials are well

managed. Receiving and inspection are important flow control activities in materials and goods

management chain (Dobler 1995)

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Stores operations are clerical because receiving, inspection and issuing when operated by non

professional result into delayed procurement, stock, obsolescence, poor procurement planning

and issuing plays a great rule to the purchasing control of documents. Most problems in stores

operations should come to light during receiving handling and issuing of items (Menon, 1991)

Jessop (1998), goods may be received from outside suppliers, from production departments or

from stores within the organization. This statement indicates that, receiving could be internal,

and before goods are accepted into warehouse/stores should be inspected.

Morrison and Jessop (1994) indicate that; goods may be received in the storehouse from outside

suppliers, production shop or other storehouses within the organization, and must be properly

looked after when they arrive. They added that the extent of physical examination, weighing and

counting of goods received should be arranged in the most economical way to avoid unnecessary

delay of expense

Dobler, Burt and Lee pointed out that, poor receiving and issuing process need to be supervised

by a person who is reasonably familiar with physical characteristics of the material

l and who is capable of exercising sound judgment in situation where a choice of alternative must

be made

For the stores activity to work effectively and effectively staff must be trained on to set

procedures of receiving and issuing of materials by checking on the quality and quantity

information .The receiver should have documents brought with the materials. The function of the

receiving is of a wide and varying in scope performed by the personnel to control quality and

quantity of materials.

1.3 Statement of the problem

Many organizations have stores functions in their operations. The objectives of the stores

operations is to provide services at the minimum cost with the higher customers service level

and these activities may include the following such as to provide the organization with right

goods and services from the right supplier, at the right quality, at the right price, at the right

place and with the right authority (C.P Tesha, 1991).

3

Morrison (1990) defines receiving as "the process of accepting goods or materials from outside

suppliers, production, shop or from other storehouses within the same organization. It is the

process of accepting from all sources, all materials and parts which are used in the organization

by considering quality, quantity, and the price of the materials".

Poor receiving and issuing within the organization can lead to problems in all departments within

the organization. The problems which can be created due to poor receiving and issuing are as

follows;

Receiving of unwanted materials,

Receiving of less quantities,

Double issuing of materials to various departments

Receiving of low quality goods ·

But all these problems may arise due to Poor Corporation among the user department in making

specification, also inspection team and stores personnel due to their negligence may cause this

problem to arise.

Due to the prevalence of these problems in mostly of the organisation on Tanzania the

researcher has decided to make a research on stores activities mainly based on receiving and

issuing procedures and come up with the resolution to solve the above problems and enhance the

value for money in the stores activities.

1.4 Objectives of the study

This is what intended to be done by the researcher throughout his work, and it is dividing into

general and specific objectives as I show below

1.4.1 General objective

The general objective of the study was to assess stores activities; receiving and issuing processes

in ensuring value for money in the organization

1.4.2 Specific objectives

The following were the specific objectives of the research;

. To identify different stores activity

· To identify different processes which are used in receiving and issuing of items.

4

· To identify different documents which are used in the receiving and issuing of goods

· To assess strength and weaknesses of stores activity, mainly on consideration of receiving and

issuing process

1.5 Research Questions

What are the stores activities?

What are the processes involved in receiving and issuing?

What are the documents involved in receiving and issuing of items in the stores ?

What are the strength and weaknesses of receiving and issuing processes?

1.6 Significance of the study

The research is important to the researcher, to the organization, to the public and to Mzumbe

University at large as follows:

1.6.1 To the researcher

This study helped the researcher to integrate theories learnt with practical knowledge.

This research report will also helped the researcher to prepare a research report, that would

enable him fulfill the requirements for Bachelor degree in Business Administration (Procurement

and Logistics Management) of Mzumbe University.

1.6.2 To the organization

To the organization of research will help to show the weaknesses and strength experienced in

stores activities and provide measures that could help to improve the performance of the

organization in the stores activities. And this will contribute a lot to the improvement of the

efficiency in stores operation.

1.6.3 To the public

The findings of the research could be used by the members of the society, by make it available to

all members of the e society, Example by place it to regional libraries

1.6.4 To Mzumbe University

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The research report prepared by the researcher may also be used as a reference to researchers and

other professionals who would like to probe or research on the same field or topic.

1.7 Limitation of the study

The study had facing the following limitations:

Lack of enough and relevant data which affect the study.

Time was also being another problem as the time given was very limited for the

researcher to have acquired all necessary and accurate information needed.

Privacy of the organization; some important information‟s was not disclosed to the

researcher due to privacy, security, and policy of the organization.

1.8 Scope and delimitation of the study

Due to limited amount of time and insufficient funds the research has only be conducted to the

TANROADS and focuses on the stores activity; receiving and issuing process in ensuring the

value for money in the organization.

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CHAPTER TWO

REVIEW OF THE RELATED LITERATURE

2.0 Introduction

This work is consisting of the work done by other researchers and authors concerning the

research study. It includes stores activities such as receiving, issuing, and dispatch of items.

2.1 Definition of Store

Generally a Store/warehouse is a central building for the purpose of storing raw materials,

received, and/or for the storage of manufactured goods or imported goods, that the main

objectives is to ensure a balanced flow of materials needed to keep the organization running, And

the following are some of the stores activities, unpublished documents.

2.2 Inspection

Inspection is the art of comparing materials, product, or performance with specification provided

or with the established standards of comparison .And there could be no intelligent inspection

without definite specifications or standards. And in accordance with The public procurement

(goods, works, non-consultant services and disposal of public assets by tender) regulations,

2005

Section 126 and 127 provided the significance and procedures of inspections as shown below

Section 126. (1) Goods delivered shall be inspected, sampled and tested by the receiving

ministry, department, region or parastatal body and they shall not be accepted unless they

comply with the stipulations of the contract. Contracts shall contain a clause that the supplier

shall be responsible for all costs and expenses incurred due to a justified rejection of his goods

on the ground that they do not comply with the stipulations of the contract.

Procedure for Inspection of Goods

Section 127. The Accounting Officer shall appoint a goods inspection and acceptance committee

which shall act as follows:

7

(a) Inspect the goods at the office of the procuring entity or, user, or at the site specified in the

contract and any inspection at any other site, in writing, must be with a prior consent of the

procuring entity;

(b) Inspect and count the goods in order to ascertain whether they are correct and complete in

accordance with the agreement. In case of a technical or scientific test or experiment, an expert

or qualified person in respect of the goods may be invited for consultation or the goods may be

sent to a qualified person;

(c) When the goods have been found correct and complete, they shall be accepted, and the

supplier shall be regarded as having effected delivery on the day the goods were brought to the

place of delivery. After the acceptance, the goods will be handed over to the responsible officer

who shall be appointed by the procuring entity. At least two signed acceptance certificates shall

be issued one copy for the supplier and the other for the responsible officer to enable the

processing of payment, and to make a report to the procuring entity;

(d) In cases where the supplier delivers the correct goods but deficient in number, or free from

deficiency in number but not altogether correct, if the contract does not provide otherwise, only

the correct ones shall be inspected and accepted in accordance with sub-paragraph (c), and this

must be promptly reported to the procuring entity who in turn shall notify the supplier within

three (3) working days from the date of the finding thereof provided that this shall not deprive

the procuring entity of the right to impose a fine on the supplier for the incomplete and incorrect

delivery;

(e) Inspection and acceptance of the goods which come in a set or unit, any missing component

part of which would render the use thereof incomplete, in which case the supplier shall be

deemed not to have delivered the goods shall be promptly reported to the procuring entity who in

turn shall notify the supplier within three working days from the date of the finding thereof,

(f) If any member of the goods inspection and acceptance committee refuses to accept delivery

by making a dissenting opinion, the committee shall submit it to the head of the procuring entity

for consideration and decision.

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g) If the head of the procuring entity agrees with acceptance of delivery, the committee shall

proceed in accordance with subparagraphs (c) and (d);

(h) The inspection and acceptance of the goods shall be completed within the time specified in

the contract

The picking process involves both a means for selecting the items to be picked and a procedure

for effecting the actual transaction of the picked items from stores, and will include the

following criteria:

2.3 Picking

The picking process involves both a means for selecting the items to be picked and a procedure

for effecting the actual transaction of the picked items from stores, and will include the

following criteria:

Ending pick date It is assumed that all open sales orders or work orders are available for

picking. This entry is compared against the “scheduled” ship or start dates of the orders being

picked.

• Shipping warehouse, each pick list is confined to a specific warehouse.

• Report Selection Criteria A user can select one or more of the following options to be

included in the pick list within the specified dates:

All or specific sales orders

All or specific freight codes

All or specific sales order class codes

All or specific customer classes

All or specific ship customers

9

Inventory

The word 'inventory' can refer to both the total amount of goods and the act of counting them.

Many companies take an inventory of their supplies on a regular basis in order to avoid running

out of popular items. Others take an inventory to insure the number of items ordered matches

the actual number of items counted physically. Shortages or overages after an inventory can

indicate a problem with theft (called 'shrinkage' in retail circles) or inaccurate accounting

practices.

Restaurants and other retail businesses which take frequent inventories may use a 'par' system

based on the results. The inventory itself may reveal 10 apples, 12 oranges and 8 bananas on the

produce shelf, for example. The preferred number of each item is listed on a 'par sheet', a master

list of all the items in the restaurant. If the par sheet calls for 20 apples, 15 oranges and 10

bananas, then the manager knows to place an order for 10 apples, 3 oranges and 2 bananas to

reach the par number. This same principle holds true for any other organization business with a

number of different product in supply

2.4 Definition of Receiving

According to Tesha (1991), receiving is the process of accepting delivered goods by the

organization after they have been found suitable and for the purpose intended by the organization

during inspection stage

Receiving of goods and materials is one of the most important duties and responsibilities of any

warehouse, and goods may be received from three main points such as

Outside suppliers and customers

production department

Other warehouse of the same organization.

Tesha (ibid) continues to clarify that, after the materials received have met the necessary

condition of the organization requirement as examined during the inspection stage, the delivered

goods and or materials have to be accepted and stored for the future use.

10

2.4.1 Receiving Process

Dobler, Burt and Lee (op cit) explained the following procedures during the receipt of

materials;

a) Unloading and checking of the shipment, The number of containers unloaded from the

carrier's vehicles should be checked against the carrier's manifest (freight bill) to make certain

that the full consignment has been delivered. All containers should also be inspected for any

damage by the carrier's representative and noted on the receipt which the receiving clerk

signs.

b) Unpacking and inspecting the materials A receiving clerk is held responsible for three

verifications. First he/she should check the materials against the seller's packing slip and

against a copy of the firm's purchase order, to verify that the correct items have been shipped.

Secondly, the quality of the shipment is verified in the same manner; and finally the clerk

inspects the general condition of the Materials to determine if there is any external damage

that has occurred during the shipment.

c) Completion of the receiving report In most companies, a document known as a 'receiving

report' is prepared as a byproduct of the purchase order. Upon completion of this inspection

the receiving clerk completes this report, checking off what he/she has received, by indicating

which items if any of the order remains open.

Generally, four groups require notification that materials have been received. The requisition

(the inventory control section in the case of stock materials), the procurement department, the

accounting department and the inspection department. All these are responsible in case of any

technical inspection required.

d) Delivery of the materials In the case of non-stock materials, the receiving department is

usually responsible for delivering them for requisitioning or leasing them to an internal

delivery service that transports them. In the case of inventory materials, the practice varies. In

some firms, the receiving is responsible for internal deliveries, where in others this function is

performed by an internal transportation service. In still others, store clerks are responsible for

packing up their own materials. The delivery system depends upon relative location of the

11

receiving and the stores areas. Upon delivery of the materials, the recipient customarily signs

the receiving report, relieving the receiving clerk for any further responsibility of the

materials.

Morrison A argues that, apart from the procedures associated with receipts of goods and their

placement in store to check for quality, a great deal of attention is being paid to qualify in

industry today, and there seems to have been a realization that, getting the right product is a

paramount concern for any organization operating in a competitive environment.

2.4.2 Problems due to poor receiving

According to Tesha If procedure for receiving goods and materials are inefficient and ineffective

three problems may arise, these are

Delay

Delay may lengthen internal lead-time and also arise the re order level and thus inflate

stockholding. Delay may also result in a loss result in a loss of validity for any claims on the

suppliers if stipulated days for notifying of damages and respective claims are exceeded. Delays

can also cause holds ups in production .To avoids delays therefore it necessary that

Sense of urgency in staff is cultivated thus also improving job satisfaction

Liaison of receiving staff and progress staff is ensured

Procedures should be streamlined and simplified

Suitable measuring and counting equipment should be provided prompt movement of

materials to their destination

Loss

Loss misdirection and failure to ensure prompt movement of materials to their destination can

arise from various causes such as lack of means of identification of goods or of indication of

destination or lack of receiving disciplines e.g. staff of various department may help themselves

from goods received or the area may be congested and untidy due to lack of allocation of space.

It is therefore important to

Ensure that suppliers quote order on all documents

12

Provide own labels with orders

Ensure adequate intake area is provided

Restrict access to intake area to authorized staffs

Plan and provide for intake and storage when the orders are first placed

Clerical cost

Clerical cost may be excessive and flow poor, therefore

Form design should be improved

Lighting and writing facilities must be improved

Staff should be given at least some clerical training should be improved

2.4.3 Types of receipt

Goods and materials from outside suppliers

These always comprise the highest proportion of intakes; They should pass into store as quickly

as possible. Any delays in clearing them may add to the overall lead time and thus raise stock

levels, besides congesting the intake area incurring further delay and possibly loss.

Transfers

These may come from other warehouses or stockyard within the same parameters or outside

from or branches or main stores. Such internal transaction may involve special paperwork. This

is documented by a transfer note prepared by issuing storekeeper, normally in four copies to

receiving storekeeper (first two copies), store accounts section (third), and retain fourth copy. A

damage or shortages report is prepared in a normal way

Generally, supplies received by the store will be found to fall into one of the three main

categories

Items held in stock and debited to a stock account. Issued only against requisition for specific

jobs and charged out directly against specific jobs

Items not going into stores but either issued direct to job or to a functional division against whom

they are charged to the user.

13

2.4.4 Documents involved in receiving

Documents are necessary in the whole materials management cycle from provisioning, ordering,

receiving, inspection, issue and dispatch, and control of stock in warehouses

Supplier’s Advice Note,

This is usually prepared and sent by the suppliers to the buyer in advance, informing the latter

when he should expect to receive the goods and what goods and quantities to expect. The store

manager can then arrange in advance the storage facilities required.

Delivery Note,

This is prepared and sent by the suppliers when he delivers the goods to the warehouse. It shows

what actually has been delivered by the supplies.

Carrier’s Consignment Note,

It sometimes happens that a supplier fails to transport goods himself to the buyer. He may then

negotiate with another transporting organization to transport the same .E.g. Tanzania Railway

Corporation, Abood Bus Services, Alatan International Moshi. In such a case the transporting

organization prepare Carriers Consignment Note which informing the buyer of the incoming

goods

Supplier’s Parking Notes,

This is prepared by the suppliers with a view of giving much more details about the contents and

how the goods are packed.

Goods Received Note,

When receiving goods, it is important for the receiving officer to compare first the above four

documents with the copy of purchase order, before physically verifying the goods actually

delivered. After this it is important that materials received are recorded not only to relieve the

consignor of the responsibility but also to make the receiver become accountable for the goods n.

Furthermore receipt of such goods in most cases entails financial commitment on the party of the

14

organization store receiving them .As such their receipt should be properly evidenced so that the

company does not pay for the goods not received.

The main record when receiving goods is goods received note which evidenced receipt of goods

and contains information as shown below.

Damages/Shortages

Where a store keeper receives goods which are damaged or where he receives less quantities

than those shown in various documents such as delivery notes, he prepares Damages or Shortage

Note, and indicate goods found damaged and or those short-landed, so that the buyer and the

supplier take appropriate steps

Rejection Report

Where goods received do not conform to the specification of the order, a Rejection report may

be prepared.

2.5 Issuing

An Issue Process is a set of procedures that help you manage issues as they occur. And actually

it originates from authorized person such as head of department to his member on his/her

department to the area of destination here refers as stores, According to Lines of authority in

issuing are very important to consider once a manager or head of department wants to authorize

something to be issued from store. And a store keeper is needed needs to be very carefully on

observing the signs of signatories.

According to Mhina 2009 in his study An assessment of effectiveness of receiving and issuing

procedures in ensuring satisfactory services in public organization, comment that „‟ The

service given by the stores department to other departments becomes effective at the point where

the storekeeper makes issues of goods, and users will naturally judge the efficiency of the

organization stores by the standard of services provided to them.‟‟

And in making sure that issuing is going in a straight line there are some document involved on it

as I give some little description below

15

2.6 Records involved in Issuing

Stores Issue Note

When the materials has been requisitioned for by a requisition note which has been authorized by

a responsible personnel ,the store keeper will now record issue note to evidence that materials

has been issued. In most cases the mentioned requisition note is combined with issue note so that

the documents is called Requisition and issue note. It has two column of quantity required and

issued .The requisitioned will enter the first column with quantity required and the storekeeper

enters the actual quantity issued in the quantity issued column

Materials Transfer Note,

When materials are transferred from one branch to another or from a central store to a sub store,

internal documents called Materials Transfer Note is prepared by the issuing storekeeper and

sends copies to the receiving storekeeper and accounts section

Materials Return Note,

When materials are to be returned to the main store from a sub store or from operating units and

work centers Material Return Note is prepared by the person returning the goods. He indicates

the quantity returned and the reason for the returning the good

2.7 Problems that may arise due to improper issuing process

Loss to the organization, It is experienced that many people have the tendency of pilfering in

loosed system, so such employee may use such a loophole to do such an evil event to the

organization, so in doing issuing a good system should be designed tom prevent such issues

2.8 Empirical literature review

In this section the researcher tried to look on the report done by other researcher concerned and

related with the topic under the study

The warehouse had a receiving procedure in place and members in the receiving department

understood it and complied with it. The receiving procedure was found to be relevant to the

physical execution of the receiving process. A shortcoming observed by the researcher in the

16

receiving procedure was that it did not cover the aspect of inspection of items of a technical

nature by a technical inspector in terms of quality and conformance to standards on receipt .A

case from South Africa Daferco Steel Processing (Diergaardt 2007)

The warehouse had a receiving procedure in place and members of the receiving department

understood it and complied with it. The receiving procedure was found to be relevant to the

physical execution of the receiving process. The procedure was found to be adequate in covering

all the operational aspects of the receiving process. South African Port Operation (Diergaardt

2007)

The issuing department had an issuing procedure in place and warehouse personnel understood it

very well. The issuing procedure was relevant to the physical execution of the issuing process

and the procedure was found to cover all the operational aspects of the issuing process, Namakwa

Sands Ltd. (Diergaardt 2007)

A common practice for warehouse operations is to print batches of labels for incoming goods at a

central IT office after receiving an advance ship notice (ASN) from a supplier. The labels are

stored in the office and retrieved by a receiving worker when the shipment arrives. This process

requires receiving dock staff to undergo time-consuming round trips between the dock and the

office, and creates the possibility of incorrect label attachment to the shipment. Mobile label

printers enable productivity gains and accuracy improvements by eliminating this manual, round-

trip process. For example, workers can use forklift-mounted mobile printers to apply bar code or

RFID labels on incoming materials immediately as they are unloaded from the receiving dock.

This procedure ensures items are prepared for scanning and other automated processing systems

within the facility. Labeling items at the receiving area also ensures that incoming materials

receive labels so that check-in, put away, conveyor, and other automated applications provide

maximum benefits. Because mobile printers can work in a variety of environments, large freight

warehouses can receive and label large, bulky items and cargo containers in the receiving yard,

port dock, or other outdoor locations. As a result, warehouse operations benefit from fewer trips

between cargo and stations—saving time and operational costs and ensure value for money

stores activities (Zebra technology White Paper 2000 South Africa)

Also on the study of Johannes Godfree Diergaardt at the Cape Peninsula University of

Technology has tried to show some problem that may arise due to poor inventory control:

“An increase in the number of stock-outs” over a period of time.

17

“Lack of storage space” due to overstocked situations.

An “excessive increase in inventory carrying cost compared with previous or

budgeted figures”.

An “increase in obsolete inventory” and not dealing with the problem.

A warehouse which operates without proper policies and procedures in place does not have

proper control of its operations, And any failure of a warehouse to control on its activities is the

failure of the organization to archive its goals to attain value for money procurement due to big

amount money spent on procurement of item. So warehouse should be carefully managed to

archive the organization‟s goals

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CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This part of the research gives details on how research wall be conducted. It has included the

study area, research design, data collection methods, sampling, data analysis, techniques and the

challenges/problems of the study.

3.1 Study Area.

The candidate took TANROADS as the case study area where research was conducted on the

due course of the procedures applied in the stocktaking process. The aim was to assess the

effectiveness of the procedures applied when conducting the exercise and to suggest some

solution to the problem. The responses from the staff forms primary data while written materials

forms secondary data. TANROADS is a government organization in which it‟s headquarter is at

Dar-es-salaam and its branches are distributed allover Tanzania but the researcher conducted his

research in Moshi Kilimanjaro regional office. The researcher chooses this area of Kilimanjaro

due to limited time and financial constrains.

3.2 Research Design.

The research design in this study is the case study design, because the findings were not

generalized to other organization of the same kind.

3.3 Sampling Techniques.

The researcher will use both quantitative and qualitative research approach as he intended to deal

with figure and explanation on the process and activities of stores; receiving and issuing process

within the organization.

3.3.1 Sampling Unit.

In this study the sampling unit had consist of stuff who were responsible within the stores

department, stocktaking team and the purchasing section particularly those concerned with stores

activities.

3.3.2 Sample size

These refer to the number of participants in the study area.

19

The sample size in this study depended much on the number of stuffs who were working at store

department, purchasing department, stocktaking team and accounts section. The sample size do

not exceed ten (20) stuff in total of this organization. The table below shows how the candidate

has selects the sample size to work with.

Table 3.1 Sampling Distribution

S/No Section. Population. Sample size.

01 Stocktaking team O8 05

02 Stores 06 04

03 Purchasing Unit. 05 04

04 Accounts section 09 04

TOTAL 28 17

3.3.3 Sampling Method

Simple random sampling technique, this is the method in which each item within the population

had an equal chance of being selected in a sample frame. Under this technique the population

was divided into strata, within each stratum, each element had an equal chance of being chosen.

The researcher divided the population into three strata which were stocktaking team, stores and

procurement unit whereby all the members of the three departments had an equal chance of

being selected.

3.4 Data Collection

Data will be collected from primary and secondary sources.

3.5 Types of Data

Two types of data have been collected.

a) Primary data

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These are data which have been collected from the study area. The candidate has obtained these

data through observation or interview or questionnaires from the people within organization.

b) Secondary data

These are data which the candidate has obtained through different organization document, by

internet surfing or by studying other information facilities within an organization.

3.6 Data Collection techniques.

In this study different techniques have been used by the candidate to obtain the needed

information.

Primary data

Techniques used include the following.

3.6.1 Interview;

This is the verbal interaction between the candidate and the respondent; it is designated to seek

information, views and opinions from the respondents. The candidate interviews the selected

staff in order to get primary data. It will help the candidate to get information on the procedures

applied in conducting the stores activities: receiving and issuing process, different ways of

receiving stock items and issue them

3.6.2 Observation;

The information is sought by way of investigators own direct observation without asking the

respondents, Kothari CR (2004). Non participant observation was adapted by the researcher to

enable him to observe how work is done within the study area.

In these techniques the candidate observed some of the activities performed by the people within

the enterprise. With this technique the candidate use to observe how the stocks will be issued

within the stores and how such activities will simplify the exercise of stores activities

21

3.6.3 Questionnaires;

This consist of a number of questions printed/ typed in a definite order on a form or set of forms,

Kothari CR (2004). The list of short and clear questions will be designated in advance to obtain

more data.

In this technique, a set of question was prepared by the candidate to be answered by the

respondent within the enterprise. The questions were open ended and close ended questions. The

questionnaires were provided to the stores team. The researcher applied this method to

complement the weakness of other methods such as interview and observation, this method avoid

bias and ensure more clarity of work.

Secondary data

3.6.4 Documentation.

This is the method that needs the researcher to review different enterprise document/records

relate to the study, for example official journals, non confidential reports and magazine.

Here various literatures related with stores activities process has been read from books, journals

and internet by the candidate

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CHAPTER FOUR

PRESENTATION OF FINDINGS

4.0 Introduction

This chapter presents the data collected during the study, analyses and the findings from the field

of study. The research findings were analyses and interpreted in relation to the purpose of the

study. It presents the findings on the basics of the specifics objectives and related research

question of the study. It therefore discuses the research findings, focusing on the stores activity

mainly in receiving and issuing processes in ensuring the value for money in the organization

herein the value for money we refer the goods and services bought by the organization should

match with the paid amount to such services or goods brought to the organization.

4.1 Finding from Observation

Due to the fact that the researcher has positioned in stores department and procurement

department he had managed to observe the following information

In the first concern the researcher managed to reveal all stores activity which are conducted in

Tanroads stores during his trainee at stores, the stores activity which the researcher able to reveal

including the following activities

Receiving of items and goods, mostly items which are received at Tanroads store are MRO and

product material like stationeries and temporary storage of materials from engineers and

technician.

And all these items are stored after follow all the stores procedures which are described in the

stores regulation of Tanroads stores as described below,

Materials and goods from suppliers are received after followed all the transaction procedures, the

supplier brought material and goods at Sores premises and make sure that the material are

delivered safely. And after delivering process take place the store keeper brought them to the

storage area and ready for consumption to the user departments.

Another store activity which observed in Tanroads stores is storage of goods and engineering

materials. The mainly goods which are stored includes stationeries and consumables for office

use, and these goods are being ordered after reaching the replenishing point or ordering points.

23

And these goods are being stored in according to their nature of consumption and nature of use

e.g. stationeries are being kept separate from construction materials and food items.

It was further observed that Inventorying of items done in stores, all item code number are kept

in stores to help in the control of organization‟s assets to be used in appropriate manner. And it

was done seriously in such a way that inventorying of item is done after every two weeks and is

done purposely to ensure that public assets are being used in the proper way as instructed by the

organization.]

Also Ordering is another activity which is conducted in Tanroads stores .This is usually done by

the store keeper after the order of the Head of account and administration who is the head of

stores too. The order is being placed to the supplier on the basis of the nature of such item. And

the store keeper has being delegated to order items which are within his authority. Ordering

process is done after the store keeper getting the cheaper prices from a certain supplier. And the

cheaper price supplier is obtained after a store keeper bring three quotation documents which

will be filled by three different suppliers, The one with lower price will be selected and

ordering process will start take place.

Also it has been observed that receiving and issuing is done so manually in such a way a person

can enter in store and revising any data which he/she is intended to act on it. That the document

and records are kept so manually for instance once an item was issued to somebody it has been

recorded in Material Requisition Note, and this document it needs everybody issued an item to

him or her to sign on it as evidence later.

And in the case of receiving, mostly items which are received in TANROADS stores include of

stationeries, spares from supplier, temporary goods from technician and engineers, food item,

MRO, and broken items from user department. And concerning receiving the item are being kept

very carefully and their records are also kept very carefully in such a way that its difficulty for

anybody to access it and if in coincidence a person come across it s/he cannot do a forgery on it

because the documents is in a good system of recording.

In case of items from external supplier Store keeper is basing in the documents of transaction

like delivery note and invoice during delivery of such item in stores premises and make a

comparison between what is written in the delivery note and in the invoice and that of ordering

24

document and if all documents match the store keeper allow delivering of items to take place.

And then items are entered in the stores ledger ready for consumption in the offices

Findings from Research Questionnaire

4.2 Receiving procedures from the supplier to the organization.

Questionnaire number 2 (a) intended to assess and reveal the receiving process from the point of

writing an order up to the time the supplier get an order and deliver the materials to the

organization‟s premises. The finding reveals that the small number of respondents fills this

questionnaire. Furthermore the findings indicated the following be the process of receiving of

goods from the supplier to the organization‟s premises as follows

Supplier unloading the materials from his vehicle to the store premises, And this is usually done

by the suppliers laborers until all goods and materials are being delivered safely to the

organization‟s store.

Physical checking and counting of the consignment delivered, And this is usually done by

referring all documents involved in the process of ordering of the material until delivered of the

materials or goods. In physical checking they had make general checking to observe any damage

in goods delivered, and in counting it is purposely to observe any damages and if the material

delivered concur to the goods in ordering documents

Materials storage, handling and preservation, The items delivered should be kept very carefully

to observe safety instruction of the consignment. After delivery of items in the stores premises,

the next steps are to keep them in their location ready for consumption to the user department.

The process of providing these items to the user department is where issuing process start

Received materials entered into the stores ledger and preparation of payment to the supplier, This

is the last stage in the process of receiving of the materials from the supplier. Records are entered

into the stores ledger purposely for the control of items and prevent scrupulous employees to

abuse those materials to his personal benefits.

25

The respondents was further explained that after all the above process completed what next is

Preparation of payment to the supplier to end p the ordering process, and the supplier would be

funded accordingly

4.2.1 Documents Involved In Receiving Process

In question 2 c, It was stated that what are the documents involved in receiving processes, in this

question asked the respondents to provide data concerning all the documents involved in the

receiving process. With the regard of the above question the respondents provide the following

data as presented below,

Quotation, A documents that is used purposely to obtain reasonable price supplier to supply

material to the organization, its principle should be three documents to three different suppliers,

this documents could be traced during the receiving process as an evidence behind the delivery

of the right quantity and right quality to the organization. And this is due to the fact this should

be attached in the order documents

Purchase request Form, It was been observed that this documents was used to please

authorization from the Regional Manager to allow ordering process take place. It is very

potential documents in tracing the delivered of the goods in comparison on what was been

ordered to the supplier and what has been delivered and what has been paid for if it match with

what ordered.

Purchasing Order and Purchasing Requisition Form, these two documents almost work the

same because all these are useful during the payment of the delivered item. No payment should

be made until the delivered of the item in the organization premises made too. For payment to

take place what is received is what should be paid for and not otherwise.

Delivery Note, the researcher also revealed that this documents though it‟s used in the transfer of

title from supplier to the organization also has been used as among the documents used in

receiving process and its included because it‟s the only documents that is used the actual quantity

of goods delivered, for it to be valid it should be signed by the store keeper to show that the

goods are delivered safely

26

Invoice, the researcher was further noted that this document was used to show the amount of

goods and materials delivered and what amount should be paid for such quantity of goods

delivered. It‟s mainly purpose was to request payment for the delivery goods and materials.

4.3 Issuing Procedures

The performance of any stores organization is measured on its turn overate that is how much you

receive and how you issue materials to the user department. The respondent indicated the

following be procedures of issuing in TANROADS store

Initiation of issuing documents, Always during issuing process you should have to observe that

the documents was coming from the authorized personal, who is eligible to allow issuing process

to take place with his/her signature. And it‟s should have to indicate the name of the item,

quantity and the signature of the authorized personal.

Issuing of the item in the stores ledger, To prove that the materials has already issued from the

stores stock it should be removed from stores ledger which shows all the stock available in the

store, And this done purposely to control the stock which is available at the store and helpful to

observe stock quantity and reorder level.

Physical issuing of the item, the store keeper after proving that all the issuing information are

clear s/he should provide such an item to the one concerned. Before taking such an item s/he

should sign to the materials requisition note to prove that the materials are already issued and

where it goes.

4.4 Challenges facing Tanroads during receiving and issuing process

Right time delivery, The researcher reveals that there‟s a problems of suppliers to deliver items

in the right time. And always this led to the stoppage of service in the organization something

reduce the performance of the organization .And though the supplier has a tendency to delay the

delivery of the consignments, there‟s no any serious action taken to them rather than oral

warning.

Right quality delivery, This is a serious problem that faces Tanroads during the receiving of the

items. Some of the suppliers do not want to conform to the specification provided in the

27

quotation documents. Furthermore the researcher reveal that these supplier they really know

what they supposed to supply but due to their rigid behavior they supply materials of low quality

which will not stay for a long time something cost an organization twice.

Delay in returning Delivery Note and Invoice from suppliers, The respondents was further

reveal that there are some suppliers who do not know the important of bringing back the delivery

note and invoices, as respondents blame that these are so important documents during the

receiving and payment because they actually show the actual amount delivered and its price and

what amount should Tanroads paid for.

Loading facilities, Loading facilities are usefully to make movement within the store premises.

In Tanroads stores the researcher found that no availability of loaders rather the store keeper use

his hands and cheap labor to shift materials from the supplier‟s car to the consignment

destination. And this dangerous to a storekeepers and the consignment they carried. Due to poor

consciousness it‟s the only factor behind for not using loading facilities but it‟s important to use

damages to the consignment and proper handling of the material also safety to the carrier of the

consignment

Communication between supplier and the storekeeper, Its vividly proven that proper

communication between one person and another is very important in business because once

loosen it may led to the loss in business in that particular matter. It was been noted by the

researcher that there is no good communication between supplier and the store keeper. There is

one case that a supplier has come to deliver the goods which the store has no information of that

delivery will take place at that time, but its good luck that a storekeeper accept that goods

because there‟s space available.

4.5 Weaknesses To Some Stores Activities.

It has been observed that there are some stores function that do not perform well as respondents

explained to the researcher, in the questionnaire most respondents indicated different stores

activities with lots of weaknesses as presented below by the researcher

28

RECEIVING OF MATERIALS

In the interview of the selected samples of staff the researcher noted that there are some

challenges that the stores departments always meet during the receiving of items in store. The

respondents goes far and reveal that during receiving process the stores personnel had received

items without any vivid documents rather than oral negotiations, but in regulations and legally it

supposed to follow the procedures enacted by the law organs such as PPRA so as to act in

accordance with the PPA 2004 and its Regulation so as to enhance the value for money and

increase transparent, check and balance and accountability in the organization. As it‟s supposed

to be done by the stores personnel they need to have invoice, quotation documents in order to

make proper checking of the delivered item from supplier and to make comparison between

delivered items and those ordered in the quotations and local purchasing order.

ISSUING OF MATERIALS

As it observed by the researcher the issuing of item in TANROADS Kilimanjaro stores there are

issuing of two types which include of internal and external issuing. As it referred in

TANROADS stores Internal issuing involved issuing of items within the TANROADS premises

and external issuing involved issuing of items to TANROADS WEIGH BRIDGE (W.B)

Kilimanjaro. Issuing of item within TANROADS offices has got a little weakness as the

researcher observed that there is a bureaucracy in making issuing follow-up, but in observing of

issuing authorization from top management the researcher observed that their very clear and

transparent in making the authorization of issuing by following all the procedures which allow

issuing to take place. Further the respondents explained that there is a long red tape to allow

issuing of the physical item from stores but they did not want to reveal what are the reasons

behind this scene, but there could be so many factors behind.

Back to second type of issuing that external issuing, external issuing in TANROADS

Kilimanjaro stores is from stores to weigh bridge Njia panda Himo. The great challenge the

researcher observes is the bureaucracy in allowing issuing to take over. And this is because there

is only one officer appointed to authorize the issuing of Weigh Bridge. The disadvantage of it is

that during the absence of this personnel there has been the big problem in allowing issuing

process to take place

29

STORAGE OF MATERIALS

Random storage of materials, If the materials are kept everywhere without any plan there is

dangerous of losing such item in the future, this is one of the disadvantages randomly storage.

During the research the respondents reveal that keeping materials randomly in Tanroads store

has costing a lot, because its occupying a lot space and does not utilizing the space accordingly

something left some materials hanging about.

Storage of obsolete and obsolescence items, Items and materials which have no longer in use to

keep them in the store is to keep item that can‟t add value at all. The researcher noted that there

are lots of obsolete computers and printers that are kept in store, and all these are consume space

for nothing because they don‟t know when they could go out of store. There are so many ways of

avoiding obsolescence like sold of item in cheap price to the employee, sell by auction, and give

to charitable organization

Poor storage layout, The physical appearance of the storage area is very important in making

picking process to work effectively. Layout of the storage also important to allow access for

other store functions to take place. The respondents blamed that poor layout of the storage area is

the among the factors make storage of other consignment difficult, a storekeeper need to work

accordingly on the layout in such a way that fast moving item should stay nearer to the door and

the same to moderate flows item and slow moving item to be far from the door

INVENTORY CONTORL

As it known inventory management is an art or science of controlling the amount of inventory to

be held in various forms such as raw material, finished goods and maintenance repair and

operating supplies within an organization to meet economically the demand of the organization.

From the research the respondent has revealed that the inventory was not well managed as

researcher present below

Recording of Organization‟s assets. Controlling of the organization‟s asset is very important as it

cost a lot of money in purchasing of these assets. In Tanroads there is no strong commitment in

recoding of these assets as researcher observed that there are some materials bought by

organization and entered into the organization without coding or coded after a certain time. Apart

30

from those purchased even if those available at the organization‟s premises are not well managed

by some of the employees. And this is dangerous when its disappear there will be no any

document to make follow-up of it

Managing of safety stock, For an organization to keep up to date with the stock they held it needs

to have very well skillful labor who knows how to control stock. From the respondents the

researcher has revealed that the organization had always out of stock to some stores. There are so

many reasons to be out of stock but mainly is bureaucracy in ordering the goods and delay to

make initiation from user department are the reason behind to be out of stock. During the

discussion with the in charge of store researcher further revealed that the other reason behind to

be out of stock is delay in delivery of the materials from the supplier also the reason to be out of

stock because the store keeper will bring the order to the supplier but the supplier make delay to

act on order.

ORDERING

Respondents interviewed indicated the suppliers do not cared much about lead time they had

agreed before the placing of an order. But the researcher also observes that there is also a

bureaucracy of internal lead-time that is from the point of initiating the needs from the user

department to the authorization and approval from the top managements up to the purchasing

unit.

31

CHAPTER FIVE

CONCLUSSION AND RECOMMENDATION

5.0 Introduction

This chapter covers the summary of the research findings, conclusion and recommendations of

the research basing on the presented, analyzed and discussed data.

This research was conducted with an objective of assessing the stores activities based on

receiving and issuing process in ensuring value for money in the organization at TANROADS

Kilimanjaro. More precisely it was intended to assess how best these activities ensure the value

for money is achieved at stores activities.

The observation made during the study and the opinion of the sampled staff has provided

reasonable response to the researcher questions and therefore, they have enabled the researcher

to archive the research objectives. Generally there are so many factors which challenged

TANROADS Kilimanjaro during the time they performing some stores activities especially

inventory control and ordering procedures and therefore improvements should be done so as the

value for money may be archived in all of the stores activity

5.1 Conclusion

Based on the findings in chapter four the researcher ascertains the factors and challenges

TANROADS Kilimanjaro face in performing the stores activities mainly receiving, inventory

control, inspection, ordering and issuing processes. Such factors originally stem from stores

personnel themselves, poor cooperation from staff and members of the user departments in

making ordering and controlling of inventory at stores.

From the findings presented and analyzed in chapter four in which TANROADS was the study

the following conclusion could be drawn

5.1.1 Receiving and Issuing procedures

Receiving

With regard to receiving procedures the aim of the researcher‟s objectives was to identify

different procedures that are applied by TANROADS Kilimanjaro during receiving. As it‟s

discussed in chapter four receiving procedures as observed in TANROADS Kilimanjaro consist

32

of the following procedures Supplier unloading the materials from his vehicle to the store

premises, Physical checking and counting of the consignment delivered, Materials storage,

handling and preservation, Received materials entered into the stores ledger and preparation of

payment to the supplier, after all the above process completed what next is Preparation of

payment to the supplier to end up the ordering process

Further the researcher observes that during receiving of item in store, the stores personnel did not

use any documents to make verification of the delivered item with those ordered and those

delivered. Also receiving of item was done so manually in such a way that there was no any

loading equipment available to make handling of the materials from the supplier‟s vehicle to

stores and within the stores layout. And it‟s something that makes movement and handling of

materials so difficult, something that could reduce the performance of the stores to its customers

and hence the value for money could not be achieved.

Issuing

With regard of issuing procedures the researcher observes that the rate of issuing within the

organization is very potential to the performance of the organization objectives and all activities

of the organization. Further the researcher observes that the issuing procedures at TANROADS

stores were conducted at a considerable point. The store keeper observes well the rules and

regulations of issuing, and something that will enhances the accountability and responsibility in

implementing the duties as instruction enacted to control the stores activities. And at last you can

see how the value for money is achieved in performing well the organization objectives

However during issuing process the researcher has observed some weaknesses in issuing

processes. Mainly these problems as observed by the researcher were arrived from the top

management during authorization of issuing. That is head of department can call to store and

order the stores personnel to make an issue to somebody without any vivid documents.

5.1.2 Documents involved in receiving and issuing procedures

Receiving Documents

In regard with the receiving procedures the researcher reveal that the documents involved may

include the following documents Quotation, Purchase request Form, Purchasing Order and

Purchasing Requisition Form, Delivery Note and Invoice. The researcher observes that these

documents of receiving had been enhanced well however to some extent the researcher observes

33

that the stories keepers ignoring the follow-up of these documents and this was revealed during

the discussion between the researcher and one of the staff of the accounting section, further

during conversation with the respondent from accounting section provide confidence to the

researcher to conclude that the use of the receiving documents enhance very much accountability

and transparency in the transaction process and provide no room for bribe or corruption and

hence value for money could be achieved easily

Issuing documents

As it was observed from the research the documents involved in issuing procedures at

TANROADS Kilimanjaro has been done in a very proper way but to some extents provide a

loophole for scrupulous employee to corrupt the system .This was vivid from the conversation

with respondents from stores department, and she was further continued to reveal that unfaithful

employee may initiate a need for his/her self and brought to stores for issuing, and this is because

the issuing system is not well systematized to control it from the user departments to stores in

allowing issuing to take place.

5.1.3 Strength and weaknesses of stores activities.

As each and every operation in its acting should have its strength and challenges during the

operation. And because the researcher consider both during presentation in chapter four its also

important to consider both in the conclusion. The researcher provides conclusion to some of the

stores activities conducted in TANROADS stores as presented below. The conclusion is made in

accordance to the presentation in chapter four above.

Receiving

Basing on the findings in chapter four the researchers reveal the factors and challenges

TANROADS Kilimanjaro facing in implementing the stores activities. The researcher observes

that there is a weakness both in the side of suppliers and stores personnel. For the side of

supplies there is a tendency of delivering item without any legal documents that allow

transaction and shift of title and ownership of an item from the supplies to the organization, the

researcher did not realize either the suppliers did this accidentally or they purposely intended to

do this.

On the side of the stores personnel the researcher observes that the materials and item are

received so manually that there was no loaders to load material from the supplies vehicle to

34

stores premises. To handle materials manually is very dangerous because some materials are

poison and irritant to the human body.

Issuing

As presented in chapter in four the researcher observe that there is a very bureaucracy in

authorizing issuing. Issuing was authorized only by the top managements and this was for

internal issuing. For external issuing the researcher observes that issuing was only done by the

single officer. And this was dangerous because on the absence of this personnel the service in

Weigh Bridge could stop and the stoppage of service in Weigh Bridge could result to so many

impacts to the organization and to the nation at large. Also the researcher observe there was a

time when issuing was done only by the order from the top management that is by calling to the

stores personnel to allow issuing to somebody.

Storage

With regard with the presentation and analysis made in chapter four the storage of materials in

TANROADS Kilimanjaro stores was not well performed. Materials are stored too randomly

something create difficulties once an item was needed. Also storage of obsolete and

obsolescence items in the store something makes the consumption of space for nothing. This

could increase space utilization index and show the space was used accordingly but in real sense

the space was used to store obsolete and obsolescence item. Also the researcher observe the

layout of the store was not well arranged because the stores personnel did not follow the rule of

fast moving item to stay at door of the store and moderate moving item to be at mid of the store

and the lowest moving item to be at the back of the warehouse

Inspection

During receiving process inspection is very important as advised in PPA 2004 Section 126 and

127. Also the Regulation of the public procurement G.N 97 Section 128 sub 2 provide further the

explanation of the important of inspection team to make inspection of the delivered item. The

researcher observes that there is no inspection team of the delivered item as advised by the PPA

2004 and its Regulations. Further the researcher observes that there is only one personnel who is

store keeper during delivering and receiving of the items, and this could make checking of the

accountability and responsibility of the stores personnel difficulty and hence value for money

could be difficult to archive.

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5.2 Recommendations

Based on the above conclusions, some recommendations on how to improves the practices and

approaches to stores activities mainly receiving and issuing process in the public institutions and

private as well

The researcher recommends on the basis of the details provided by the respondents and the facts

observed by the researcher himself.

Receiving of the materials.

As the researcher tries to show some weaknesses during receiving process as discussed in

chapter four, now provide some recommendations to the weaknesses shown and discussed above

There should be strong supervision during receiving of the items and the use of proper

documents which is supposed to be present during receiving process. This could prevent the

delivered of the defects materials to the organization

Also the use of loaders during receiving of the materials from the suppliers to the stores

premises. And this is due to the facts that there are some materials which are irritant to human

body. Also loaders are needed within the stores premises to make the movements of materials so

easily and to enhance the safety of the employee

Issuing

With regard with conclusion made above the researcher could provide the following

recommendation concerning issuing

Top management should create special documents for issuing of items from stores, this will help

much in controlling of the stores item and hence value for money could be achieved.

Top management should make regular use of issuing documents and avoiding oral ordering to

prevent scrupulous employee to play with this loophole

Storage

As it was observed by the researcher storage of materials at TANROADS stores was done so

randomly as discussed in chapter four

Randomly storage of materials should be avoided because was occupying a lot of space since

storage area is too small.

Also storage of obsolescence and obsolete items should be avoided because the its consume a lot

of space in the stores. These obsolescence and obsolete item should provide means of taking out

36

these items like selling by cheap price to the employees, provide them to the charitable

organization, award to the employees and other means of such type

Also layout of the store should be improved in such a way that the fast moving items should stay

nearby followed by the moderate flow items to stay at the mid of the store and the slow moving

items should be at the back of store to improve the movements of item within the store

Inspection

Inspection is very important although some scholars they called it as the postmortem activity.

They really do mean that if you do inspection during delivery can‟t help anything but in

materials management inspection is very important so as to ascertain the defect materials and

look if the supplier supply in accordance with the specification provided, The researcher provide

the following recommendation

There should form inspection team for making inspection during the delivery of materials to the

organization.

37

References

C.P Tesha(2002) , Stores Management Manual, Dar es Salaam. Tanzania

C.P Tesha (2000), Warehouse Management Manual, Dar es Salaam,

Tanzania

Dobler D.W (1995) Purchasing and Material Management, Mc Graw Hill

Co. Ltd

Jessop D and Morrison A (1994) Storage and Stock Control English

Language Book Society and Pitman Press

K living (2009), Assessment of the Challenges Facing Procurement

Entities In Complying with PPA No.21 2004 in Tendering, Research

Report TFDA Heard office

Kivugo J,(1981) Materials Management, Vuga Press Tanzania

Krishnaswami.O.R (2002) Methodology of Research in Social science,

India Himalaya Publishing

Kothari C.R (1990), Research Methodology

Maligwa B (unpublished material) warehouse management and stock

auditing

Morrison A.(1990) Storage and Stock Control English Language Book

Society and Pitman Society

Nair N (1990) Purchasing and Materials Managements, 2nd Revised

Edition

Nassor (2007) effectiveness of the receiving procedure in Government

Schools,

Public Procurement Act No.21 2004 and Public Procurement Regulation

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APPENDIXES

39

Research Questionnaires and Interview Guide

Dear respondents,

The main objectives of this questionnaires/interview guide questions is to assess on stores

activities mainly based on receiving and issuing process in ensuring value for money in

the organization, TANROADS used as a case study

The research is a requirement for partial fulfillment of the award for Bachelor Degree of

Business Administration in Procurement and Logistics Management (BBA-Procurement

and Logistics Management) of Mzumbe University in academic year of 2010/11

Researcher

KELYA Musa A.

P.O.BOX 8860

Moshi

e-mail: musakelya@rocketmail.com

kelyamusa@live.com

phone: 0715873727

0755873727

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Dear respondents,

Thank you very much for accepting to fill this questionnaire. The presented are purely for

academic purposes .The researcher intends to determine the stores activity mainly based

on Receiving and issuing process in the organization in ensuring value for money in the

organization. The researcher will appreciate you by taking a few minutes and completing

the questionnaires and by giving your generic description of your best knowledge of

understanding.

Please respond to the questions below,

1. (a) What are the stores activities conducted at TANROADS stores?

…………………………………………………………………….

…………………………………………………………………...

…………………………………………………………………….

…………………………………………………………………….

(b) Do they performed in the appropriate manner (tick appropriate answer)

YES………..

NO………..

2. (a) What are the receiving processes from the supplier to the organization?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

(b)To what extent do you consider receiving procedures are comply with rules and

regulation enacted to control receiving process (tick appropriate answer)

GOOD………….. NORMAL………

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(c) What are the documents involved in receiving processes?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

3. What are the issuing procedures?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

4. (a ) Do the available issuing documents work effectively (tick appropriate answer)

YES……………

NO……………

(b) If NO could you explain WHY?

…………………………………………………………….

……………………………………………………………..

(c) What are documents involved in issuing process?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

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5. (a) What are the methods used in loading the material from the supplier‟s vehicle to

the storage area (tick appropriate answer)

(i) Manual……………

(ii) Machine…………

(b) What are the weaknesses of it refer „‟a‟‟ above

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

6. (a) Do the available receiving and issuing documents need amendments

(tick appropriate answer)

YES……………

NO…………….

(b) If YES explain where to make amendment

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

7. (a) What are the weaknesses you observed to some store activities (tick appropriate

answer)

Storage….................. Issuing……………………......

Receiving………………… inventorying…………………

(b)Mention weaknesses of the one of the above

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

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8(a) Are there any difficulties you meet in issuing process (tick appropriate answer)

YES……………...

NO……………….

(b)If YES mentions any difficulties you meet.

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

9. What are the challenges facing in TANROADS during receiving and issuing process?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

10. What are your opinions to improve stores activities in TANROADS basing on

receiving and issuing process in ensuring value for money in the organization?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………..

Occupation of the respondent,

…………………………………………………………….

Thank you very much for your cooperation

©KELYA, Musa AMzumbe

University

44