An analysis of the effectiveness of the inventory management and control system in councils: a case study of Nchelenge town council.
Date
2025
Authors
Ngoma, Alipo
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
This study examines the effectiveness of the inventory management and control system at Nchelenge Town Council, focusing on its operational efficacy, challenges, and potential improvements. The research is driven by the need to address significant issues such as data inaccuracies, stockouts, and demand forecasting difficulties, which have hindered the council's ability to efficiently manage its inventory and ensure consistent service delivery. The primary objective is to assess the current inventory management system, evaluate its effectiveness through key performance indicators (KPIs) such as accuracy rates, order fulfillment times, costeffectiveness, and stockout rates, and propose actionable recommendations to enhance its functionality. Employing a qualitative research design, the study utilizes semi-structured interviews and focus group discussions (FGDs) with 24 key personnel from various departments within the council. These data collection methods provide in-depth insights into the strategic and operational dimensions of the inventory management system. Thematic analysis is employed to identify recurring patterns and themes, ensuring a comprehensive understanding of the system's strengths and weaknesses. The findings reveal that while the council has implemented a robust infrastructure with advanced technological tools such as inventory tracking software, barcode scanners, and RFID tags, significant challenges persist. Data inaccuracies and forecasting difficulties are identified as major impediments to the system's effectiveness, leading to operational inefficiencies and service disruptions. However, the study also highlights successful strategies such as Just-In-Time Ordering and Cycle Counting, which have proven effective in reducing excess stock and improving inventory accuracy. Based on the findings, the study recommends several measures to enhance the inventory management system at Nchelenge Town Council. These include the implementation of stringent data validation protocols, the adoption of advanced demand forecasting models, seamless system integration, continuous staff training and development, and the exploration of IoT and RFID technologies for real-time inventory tracking. These recommendations aim to improve the accuracy, efficiency, and responsiveness of the council's inventory management practices, ultimately leading to better service delivery and resource utilization. The implications of this study extend beyond Nchelenge Town Council, offering valuable insights for other local government councils facing similar challenges. By adopting the proposed strategies and leveraging technological advancements, councils can significantly enhance their inventory management systems, reduce operational costs, and improve their capacity to meet community needs effectively.
Keywords: Inventory Management, Local Government, Data Accuracy, Demand Forecasting, Just-In-Time, IoT, RFID.
Description
Thesis of Master of Science in Operations, Projects and Supply Chain Management.