The Effect of Inventory Management Practice on Electric Service Delivery: the Case of Ethiopian Electric Utility

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Melese, Bimrew

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Addis Ababa University


The research objective was to assess the impact of EEU inventory management practices on service delivery. The study was a descriptive research design. The target populations for the study were employees working at head office and 3 regions in Addis Ababa. Simple random sampling techniques were applied to select a sample size of 110 employees from both managerial and non managerial positions. 97 employees (88.18%) response rate was obtained. Primary data was mainly collected using self- administered questionnaires consisting of both open and closed ended questions with 5 point Likert Scale. Data were also collected through documents overview, interview and observation guide. The collected data were quantitatively analyzed using SPSS to produce descriptive statistics and regression analysis. The key findings from the study revealed that: The utility was not effective in practicing modern inventory management techniques instead there is poor inventory management system that results under stocking, overstocking, high cost, high customer complaints and poor service delivery. The study discovered that poor procurement planning, purchase of unnecessary materials and bulk purchase practices result the availability of excess amount of obsolete and non moving items. The study also revealed that lack of adequate qualified and well trained staffs (i.e., skill gaps and awareness) impede in implementing effective inventory management techniques. Moreover, Lack of up to date inventory policy and procedure, poor recording and documentation practice, poor communication, poor decision making among user departments, and poor inventory revaluation system all aggravate poor service delivery of the utility. The researcher recommends that there is need for EEU management to emphasize applying Optimized Inventory Management Techniques, Implementing Integrated and Automated Inventory Management System, Recruiting adequate and qualified staffs, Developing Employees Capacity, Implementing Proper Disposal System, Developing Up-to-date Inventory Management Policies & Procedures. The study also suggests that further study should be conducted to assess the Role of Management in adoption of integrated and computerized inventory control systemKey words: Effectiveness, Inventory, Inventory management practices, Service Delivery, Obsolete and Inactive inventories, Staff Skills, Inventory Record Accuracy, documentation



Effectiveness; inventory; inventory management practices; service delivery; obsolete and Inactive inventories; Staff skills; inventory record accuracy; documentation.