Improving inventory management in public sector organizations. A case study of the Ghana prisons service

Many firms within the public sector are faced with unique challenges when it comes to inventory management. Some crucial aspects they face include long procurement lead time for materials, goods, services and works. It is believed that most public institutions do not place premium on inventory management, especially those that keep substantial inventory. This research study therefore sought to find out the extent of application of effective inventory control systems in public sector organizations in Ghana with particular reference to Ghana Prisons Service. By this, the research sought to identify techniques and system of inventory management in the Ghana Prisons Service, identify inventory control challenges and also provide solutions to develop and improve inventory management at the Ghana Prisons Service. The researcher used questionnaires and a descriptive research approach in investigations and subsequent findings. In addition to administering questionnaires which included closed ended questions, a participant observation approach was also very useful in the gathering of data for this research. Two hundred (200) officers out of the total of two hundred and eighty-five (285) officers were selected as sample size for the research and the analysis and interpretation of the data received was presented in a descriptive form using Tables, frequencies and percentages. The research revealed that, the institution stock finished goods, which are in forms of uniforms, maintenance & repairs, ammunitions among others. It was discovered by the study that; the institution uses First in First out (FIFO) as an inventory technique to control inventory. It was also discovered from the study that, the institution faces enormous challenges in controlling inventory, which ranges from poor infrastructure, long duration of lead time, theft, high cost of storage, transportation cost, lack of preservation facilities, over stocking and under stocking, under staffing to less qualified staff. These challenges have impacted heavily on the organization’s cost of operation, as overstocking has led to lock up capital and under stocking led to reduction in service quality. The findings, implications and conclusion of the study logically led to recommendations, which if implemented, will aid in improving inventory management in the public sector and the Ghana prisons service for that matter. The study recommended the Adaptation of other inventory control management tools such as, Economic Order Quantity, ABC/pareto analysis and others. Adequate funds should be provided to the institutions for the provision of stores facilities. Also, Staff with requisite inventory control qualification should be employed into the store unit of the institutions to ensure effectiveness and efficiency and should not be often transferred and regular in-service training in inventory management for the staff should be encouraged. The study further recommended regular unannounced stores auditing and inspection in the stores to ensure enough supervision as management ensures effective cooperation between the stores unit and other relevant units, such as, Procurement, Accounts, Audit, Technical and others, to ensure that the right materials are ordered and delivered at the right time, in the right quality and quantity, of the right price and stored and preserved under the right conditions.

Source: KNUST