ASSESSMENT ON INVENTORY MANAGEMENT AND STOCK CONTROL PRACTICES: THE CASE OF ETHIOPIAN ELECTRIC UTILITY, ADDIS ABABA REGIONS

Abstract

As stocks are a substantial portion of the assets of organizations, they can (and should) be seen as a potential factor in the optimization of public resources used, and in cost reduction. The inventory management aims to optimize the investment by maintaining adequate and satisfactory levels of materials capable of meeting the needs of customers . This study assess the current practice of inventory management and control, evaluate the inventory and stock control handing tools, examine the contributions of inventory management practices, assess inventory controlling practices, evaluate the existing warehouse policy and procedure that guides the flow of activities, and identify problems those influence the inventory management and control practices in the company. Descriptive research design was employed in this study. Interview and observation were used for further assessment. The target population of the study which directly related to the issues under discussion was 96 staff employees and 4 managers. Using purposive sampling, 24 staff employees from EEU –Gofa Central Store and 72 staff employees from Addis Ababa regions, were selected as a sample for the study. The key findings of the study revealed that: Weak management and leadership traditions; Lack of competency, knowledge, skill, and experiences; Absence of computer utilization and appropriate technologies; Attempting and focusing to accomplish personal needs rather than company goals and objectives; Absence of assessment and monitoring practices and lack of understanding the real situation of inventory management and control of the company; absence of timely used work manual. The study concluded that inventory management is the backbone to the success and growth of the company. Therefore, it was recommended that improving human resources management; purchasing, store and warehouse management of the company; utilizing modern technologies; conducting training and development programs for employees and managers; developing practicable work manual of the company.