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 1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.5 1.6 1.6.1 1.6.2 1.6.3 1.6.4 1.7 1.8 Introduction .................................................................................................................................... 1 Background of the Organization .................................................................................................. 1 Background of the study ............................................................................................................... 1 Statement of the problem .............................................................................................................. 2 Objectives of the study................................................................................................................... 3 General objective ........................................................................................................................... 3 Specific objectives .......................................................................................................................... 3 Research Questions ........................................................................................................................ 4 Significance of the study ................................................................................................................ 4 To the researcher ........................................................................................................................... 4 To the organization ........................................................................................................................ 4 To the public ................................................................................................................................... 4 To Mzumbe University .................................................................................................................. 4 Limitation of the study .................................................................................................................. 5 Scope and delimitation of the study ............................................................................................. 5

CHAPTER TWO .......................................................................................................................................... 6 REVIEW OF THE RELATED LITERATURE ........................................................................................... 6 2.0 2.1 2.2 2.3 Introduction .................................................................................................................................... 6 Definition of Store .......................................................................................................................... 6 Inspection ........................................................................................................................................ 6 Picking............................................................................................................................................. 8

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2.4 2.4.1 2.4.2 2.4.3 2.4.4 2.5 2.6 2.7 2.8

Definition of Receiving .................................................................................................................. 9 Receiving Process ......................................................................................................................... 10 Problems due to poor receiving .................................................................................................. 11 Types of receipt ............................................................................................................................ 12 Documents involved in receiving ................................................................................................ 13 Issuing ........................................................................................................................................... 14 Records involved in Issuing......................................................................................................... 15 Problems that may arise due to improper issuing process ....................................................... 15 Empirical literature review ......................................................................................................... 15

CHAPTER THREE .................................................................................................................................... 18 RESEARCH METHODOLOGY ................................................................................................................ 18 3.0 3.1 3.2 3.3 3.3.1 3.3.2 3.3.3 3.4 3.5 3.6 3.6.1 3.6.2 3.6.3 3.6.4 Introduction .................................................................................................................................. 18 Study Area. ................................................................................................................................... 18 Research Design. .......................................................................................................................... 18 Sampling Techniques. .................................................................................................................. 18 Sampling Unit. .............................................................................................................................. 18 Sample size.................................................................................................................................... 18 Sampling Method ......................................................................................................................... 19 Data Collection ............................................................................................................................. 19 Types of Data ................................................................................................................................ 19 Data Collection techniques. ......................................................................................................... 20 Interview; ...................................................................................................................................... 20 Observation; ................................................................................................................................. 20 Questionnaires;............................................................................................................................. 21 Documentation. ............................................................................................................................ 21

CHAPTER FOUR ....................................................................................................................................... 22 PRESENTATION OF FINDINGS ............................................................................................................. 22 4.0 4.1 4.2 4.2.1 4.3 Introduction .................................................................................................................................. 22 Finding from Observation ........................................................................................................... 22 Receiving procedures from the supplier to the organization. .................................................. 24 Documents Involved In Receiving Process ................................................................................ 25 Issuing Procedures ....................................................................................................................... 26 iii

4.4 4.5

Challenges facing Tanroads during receiving and issuing process ......................................... 26 Weaknesses To Some Stores Activities....................................................................................... 27

CHAPTER FIVE ........................................................................................................................................ 31 CONCLUSSION AND RECOMMENDATION ........................................................................................ 31 5.0 5.1 5.1.1 5.1.2 5.1.3 5.2 Introduction .................................................................................................................................. 31 Conclusion .................................................................................................................................... 31 Receiving and Issuing procedures ............................................................................................. 31 Documents involved in receiving and issuing procedures ........................................................ 32 Strength and weaknesses of stores activities.............................................................................. 33 Recommendations ........................................................................................................................ 35

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

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LIST OF TABLES 3.1Samplingdistribution 23

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

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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 fathers 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

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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 GRN LPO MU PMU PPA PPRA SKU SRN SV WB Delivery Note Goods Received Note Local Purchasing order Mzumbe University Procurement Management Unity Public Procurement Act Public Procurement Regulatory Authority Stock Keeping Unit Stores Requisitions Notes Stock Verifier Weigh Bridge

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 cant complete this proposal without granting special appreciation to my fellow PLM III student, its 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

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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.

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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 Ministers 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)

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).

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.
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 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 informations 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.

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:

(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.

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

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.

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
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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
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 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.
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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 Suppliers 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. Carriers 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 Suppliers 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

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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

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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
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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, roundtrip 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 stationssaving 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.
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 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 organizations 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 its 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.

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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 01 02 03 04 Section. Stocktaking team Stores Purchasing Unit. Accounts section TOTAL Population. O8 06 05 09 28 Sample size. 05 04 04 04 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

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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.
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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 organizations 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
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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 organizations 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 organizations 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 organizations 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.
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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 its 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 its 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

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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. Its 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 its 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 theres 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, theres 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
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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 suppliers car to the consignment destination. And this dangerous to a storekeepers and the consignment they carried. Due to poor consciousness its the only factor behind for not using loading facilities but its 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 theres 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

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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 its 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

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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 cant 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 dont 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 Organizations assets. Controlling of the organizations 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
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from those purchased even if those available at the organizations 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.

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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 researchers objectives was to identify different procedures that are applied by TANROADS Kilimanjaro during receiving. As its discussed in chapter four receiving procedures as observed in TANROADS Kilimanjaro consist

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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 suppliers vehicle to stores and within the stores layout. And its 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
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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

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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

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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 cant 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.

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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

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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 suppliers 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.................. Receiving Issuing...... 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
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44