Factors Influencing Inventory Management in Public Sector

Abstract

The aim of this study was to investigate the factors influencing inventory management at the public sector from which the researcher settled on Kajiado District Hospital. The various factors investigated were broken into Procurement procedure, lead time, supplier selection and e- procurement. The objectives were to; determine how procurement procedures influence inventory management, to determine how e-procurement influences inventory management at Kajiado County Hospital. The study used thirty percent of the target population consisted of officers from various departments who are directly responsible in inventory management to ensure that the customer demands are effectively and efficiently met. Information was collected from forty five (45) of the targeted one hundred and fifty (150) respondents using structured and semi structured questionnaires. Data was quantitatively analyzed using SPSS version 22 which presented frequency tables, graphs and the necessary measures of variance for effective interpretation. The key findings in the research indicated several challenges in inventory management such as limitation of scope from which suppliers are selected, lack of transparent supplier appraisal process, lack of transparent tender awarding process and pre- qualification of supplier not made public. Delays was another challenge which was caused by the process of initiating a request of supplies to the supplier, non-availability of some pharmaceuticals from the Kenyan market or in the global market, legislation issues also come in to play as these products had to be authorized to be used in Kenyan market hence delays while awaiting approval and other logistical issues. Lack of e-procurement which could have been fast and reduce the delays. The study was of great importance to Kenyan government and donors it assisted in identifying areas of improvement in procurement process of such activities. To researchers the study formed basis for future research.