Contents

Title.............................................................................................................................................................1

1.0 Introduction...........................................................................................................................................1

1.2 Background...........................................................................................................................................2

1.3 Statement of the Problem.......................................................................................................................2

1.4 Research Objectives..............................................................................................................................3

1.5 Research Questions...............................................................................................................................3

1.6 Significance of the study.......................................................................................................................4

1.7 Scope of the Study.................................................................................................................................4

1.8 Limitation of the Study..........................................................................................................................4

1.9 Research Assumptions...........................................................................................................................5

1.10 Definition of Key terms.......................................................................................................................5

1.11 Preliminary Literature Review.............................................................................................................6

1.11.1 Service Delivery...........................................................................................................................6

1.11.2 Benefits of inventory management in service delivery.................................................................7

i. High quality goods and services..................................................................................................7

ii. Ensures continuity in the production activities............................................................................8

iii. To decouple operations............................................................................................................8

iv. Enhance efficiency...................................................................................................................9

v. Enhances specialization.............................................................................................................10

vi. Reduction of waste.................................................................................................................12

vii. Safety and Health...................................................................................................................13

1.12 RESEARCH DESIGN.......................................................................................................................13

1.12.1 Research Strategy.......................................................................................................................14

1.12.2 Methodological Choice of the study...........................................................................................14

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 3.4.3 Time Horizon................................................................................................................................14

1.13 Work Plan..........................................................................................................................................15

Title: An assessment of the impact of inventory management on service delivery in public

controlled institutions: A Case of Central Vehicle Registry.
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1.0 Introduction
In business, the quality of products and services are determined by several managerial aspects
within the supply chain (Frazelle, 2002). Inventory management is one of the managerial aspects
that is a crucial determinant of the quality of goods and services. Maintaining inventories is
necessary to every business because without inventories the operating cycle of the firm cannot
continue (Kanagaraju P, 2007). Several inventory management and holding techniques and
control systems have been made available to business people (Zipkin, 2000).

In Zimbabwe in the Government controlled institutions, specifically in Central Vehicle Registry,

business activities are being carried out inefficiently due to improper and irregular inventory
management methods or techniques (Chiri 2015). This has been witnessed due to production
delays that are being initiated by improper inventory management which have resulted because
of stock outs of materials, supplies and spare parts (Cohen, 2005). Chiri (2015) supported that
the anomaly has been being instigated by poor inventory management as she enunciated that, it
was taking longer than usual to get a driver’s licence processed which have resulted in a backlog
of 52 606 unprocessed driver’s licence discs as applicants were spending up to three years for a
licence disc which can be processed in a month.

So, vehicle registration activities seem to be a small portion in the country’s business activities
but if not taken seriously in terms of quality of service through inventory management, the
economic disturbances are significant. The vehicle registration authorities cannot make it without
proper inventory management which sustains continuous production and delivery efficiency. It is
vital that proper inventory management be instigated at the Central Vehicle Registry to ensure
that its mandate is well accomplished. This therefore legitimizes this research as it looks at
unpacking the necessary measures that ensures inventory availability in the institution and hence
other Government controlled institutions.

1.2 Background
The inventories of an organisation are critical to the management of any organisation because of
their direct influence on the goals and objectives of the firm. Effective management of

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inventories is essential for the organisation in order to reduce cost as well as winning the
confidence of the customer sand also fulfilling their expectations. Heizer and Render (2014)
further reveal that modern management do appreciate that a regular inventory review can reduce
the level of capital tied up in a firm’s stock without hampering the cost and customer’s goodwill
and consequently the firm overall performance. Hence an organisation which overlooks the
management of its inventories will have challenges relating to long-term success and and
delivery of its services to meet customer expectations. Equally, a well-managed inventory can
decrease the levels of inventories significantly without adversely affecting the business smooth
running, while the inventory surplus may lead to additional cost, hence decreasing returns
(Pujari, 2004). Therefore, the primary goal of management of inventory is to achieve an
optimum level of stock that avoids too much or too little stock that will lead to interrupted
production and sales. A firm’ inventory management practices are concerned with the recording
and monitoring of level of inventory, projecting demand in the future as well as making decision
when to order and how it should be ordered, (Adeyemi, 2010). As explained by Miller (2010),
stock control is concerned with all actions aimed at guaranteeing a customers access a specific
product or service. These activities will include purchasing, manufacturing along with
distribution so as to meet the marketing needs of ensuring that products are availed to a
consumer.

The service delivery level of an institution determines its customer satisfaction. Government
controlled institutions in Zimbabwe have a gap as far as inventory management is concerned.
Often, most customers fail to get their desired service as a result of lack of stock. The Central
Vehicle Registry in this study is failing to satisfy its customers due to lack of proper management
of number plates among other required products to accomplish its service delivery mandate.

1.3 Statement of the Problem

One of the most important components of inventory management is operation management,
discipline and consequently to the firms operations. The ability of a firm to increase their
customer’s level of satisfaction is dependent upon their ability to deliver the goods and services
that are needed by their customers in a manner that meets the expectation of the customer. Heizer
and Render (2014) argue that the duty of inventory management should be to change firms’

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overall trade goals into functioning activities in day-to-day inventory management and at the
same time raid a stability involving inventory investment as well as customer care. Inventory
management affects also the service delivery ability of a firm. Consequently, inventory
management is not the order of the day looking at Government controlled institutions in
Zimbabwe. This study therefore seeks to find out where Zimbabwe Government controlled
institutions are failing in inventory management and how this is affecting service delivery with
the aim of coming up with ways to be implemented to improve inventory management to
enhance customer satisfaction. The Central Vehicle Registry will be used as a case study where
the service delivery in the drivers’ licence production and vehicle registration is currently
unsatisfactory since it is subject to unreliability and delays due to improper or irregular inventory
management.

1.4 Research Objectives

The overall purpose of the study is to find out the impact of inventory management on service
delivery in public controlled institutions. However, the study specifically seeks to accomplish the
following:
1. To identify inventory management techniques used by the Central Vehicle Registry.
2. To evaluate inventory management techniques available for enhancing better service
delivery.
3. To determine challenges encountered in implementing inventory management in service
delivery.
4. To come up with ways of ensuring proper inventory management for public institutions in
Zimbabwe so as to improve service delivery.

1.5 Research Questions

1. What are the inventory management techniques used by the Central Vehicle Registry?
2. How does inventory management enhance better service delivery?
3. What are the challenges involved in implementing inventory management in service
delivery?
4. How can you ensure proper inventory management for public institutions in Zimbabwe
so as to improve service delivery?

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1.6 Significance of the study
In every service provision, the provider of the service should ensure quality provision whilst the
consumer of the service should be satisfied by it. This is not the case looking in the Zimbabwean
case and also in some related countries. Therefore, this research is essential as it is meant to
accomplish the following:
i. The study will help Government institutions as it illustrates how inventory management
is essential to service delivery.
ii. Provide evidence to Government controlled institutions on how Government institutions
can conduct proper inventory management.
iii. Will drive Government institutions to have the customer at heart when delivering
services.
iv. Add to Literature in the area of inventory management as a tool to better service delivery.

1.7 Scope of the Study

The research will consider the impact of inventory management on service delivery for the
Central Vehicle Registry in Zimbabwe focusing on how Government institutions can improve
service delivery to enable customer. The study will look on customers’ view of the Central
Vehicle Registry in Harare.

1.8 Limitation of the Study

The research is mainly limited by time the research is supposed to be completed and can only be
confined in Harare representing the entire population which might compromise the intended
results being sought. A research that would include most areas outside Harare where inventory
issues often arise as the Head Office is Harare would have been idle in contributing to the results
of this study. The researcher also does not have a strong financial support to move around all
corners of the country to interview how the vehicle registry services are distributed to those who
are far away from the registering offices.

1.9 Research Assumptions

The researcher assumes the following in this research:

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 i. That the respondents will be open up to share their experiences hence giving sincere
responses.
ii. The sample of the population to be used in the study will be enough to represent their
entire population and banks.
iii. That the outcome of this study will be valid if government policies tailored in line with
the recommendations that would be made.
iv. Economic condition and security of the country does not change drastically.

1.10 Definition of Key terms

Inventory – refers to those stocks or items used to support production (raw materials and work
in progress) supporting activities (maintenance repair and operating supplies) and customer
service (finished goods and spare parts) (Kerber et al, 2011).

Supply chain - is the network of facilities (warehouses, factories, terminals, ports, stores, and
homes), vehicles (trucks, trains, planes, and ocean vessels), and logistics information systems
(LIS) connected by an enterprise’s supplier’s suppliers and its customer’s customers (Frazelle,
2002)

Supply chain management - encompasses the planning and management of all activities
involved in sourcing and procurement, conversion, and all logistics management activities.

Management - is the implication of planning, organizing, leading and controlling business

resources and activities with the idea of achieving set objectives (Griffin, 2000).

Service delivery - means wherever, when as well as a way a product or service is delivered to
clients (Wanyonyi, 2016).

1.11 Preliminary Literature Review

1.11.1 Service Delivery

Schindler (2012) claims that customer service delivery is one of the most important factors of
success in any business. He argues that the level of customer service defines how loyal
customers will be and whether they will be able to do a repeat purchase. One of the ways through
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which an organisation can enhance customer service delivery is through creating business to
customer loyalty. A business requires knowing its customers well and having a close relationship
with them. This makes customers feel important stakeholders of the business. Personalised
customer service is very important in ensuring superior business to customer loyalty.
Zimbabwean public institutions should tape from this phenomenon by ensuring that the services
they deliver goes a long way in ensuring that customers remain loyal to them and also to build
themselves better brands through distinguished customer services.

According to Hanks (2010), customer service delivery may be easily measured using four basic
attributes. The first attribute that can be used to measure customer service delivery is service
accessibility. Accessibility of services can be enhanced through use of information
communications technology such as mobile applications and use of customer flow management
technology. The other measure of customer service delivery is quality of service. The quality of
service will be determined by value addition and accuracy of the services being provided. The
quality of service can be enhanced through integration and enhancement of internet and web
enabled applications. Effectiveness is also among the measures of customer service delivery. The
cost involved in delivering timely and useful services is important. Customers are more
interested in accessing timely services as and when they need them.

Hanks (2010) further assert that customer service experience involves the measurement and
ensuring improvement of five main areas. The first area is the identification of the product or
service the customer seeks to buy or access from the organisation or business. Businesses need to
enhance and improve their products in order to meet customer needs. The other area is the person
or team that is involved in providing the service. The process used to deliver the service is also
very important in ensuring better service delivery. The atmosphere and location of the service is
also important to the customer as far as service delivery is concerned. The last area relates to the
confidence and reassurance felt by customers whenever they access services. Public institutions
in Zimbabwe should have customers at heart when planning for service delivery so that they are
able to deliver the desired services, this can result in customer satisfaction and continuous
consumption of the service by customers.

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Inventory management can be game changer in ensuring better service delivery by Government
controlled institutions, the Central Vehicle Registry being included.

1.11.2 Benefits of inventory management in service delivery

i. High quality goods and services

Frazelle (2002), if money makes the world go ‘round, inventory makes logistics go ‘round. The
planning, storing, moving, and accounting for inventory is the basis for all business activities.
Inventory availability is the most important aspect of customer service. Inventory management
leads to production of high quality goods and provision of well-organized services if executed
with enough expertise. High quality goods and services are a result of timeous and well
calculated production processes without any bottlenecks that may come from shortage of raw
materials and other inputs (inventory). Failure to manage inventory will lead to production
bottlenecks which result from stock outs. Stock outs will also lead to desperate sourcing (hand to
mouth procurement) which may compromise good or service standardization as well as quality
of the final product.

Holding enough inventories makes it easy for the organisation to standardize the final product or
service to be delivered to the consumer or the taxpayer. For instance, inventory of machinery
components and oils have direct impact on production as well as output. The researcher agrees
with Frazelle that inventory management has impact on the quality of goods and service delivery
hence the need to pay particular attention to inventory management activities.

ii. Ensures continuity in the production activities

Cook (2007), determination of safety stock or buffer stock make it ensures consistency and
reliability in production of goods and delivery of services. Well managed inventory avoids or
reduce production bottlenecks and by so doing ensures consistent supplies of the goods or
services rendered. When inventory is exhausted, production is disrupted and the consequences
are failure to meet demand and to offer the required services on time.

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Chopra and Meindl (2003), holding adequate inventory relieves the pressure on the production
activities to get the goods and services out. Whilst the procurement personnel are sourcing for
other raw materials or inputs, the production flow is not disturbed and high quality inputs are
likely to be sourced and procured due to adequate sourcing and acquisition period. This causes
longer lead times, which permit production planning for smoother flow and lower-cost operation
through larger lot-size production. High setup costs, for example, favor producing a larger
number of units once the setup has been made.

Service delivery in the vehicle registration sector require a constant flow of operations and or
production to avoid bottlenecks and unreliable services. Well managed inventory intends to
bridge the gap between acquisition and registration of vehicles and backlog as it is currently.
Attempts to clear backlog and offer reliable and efficient services can be put in place through
ensuring supply of adequate inventory at all times of operation.

iii. To decouple operations

Kobert (1992), the buffers permit other operations to continue temporarily while the problem is
resolved. Firms have used buffers of raw materials to insulate production from disruptions in
deliveries from suppliers, and finished goods inventory to buffer sales operations from
manufacturing disruptions. Solving problems whilst producing and issuing something to
customers brings trust and customer loyalty. In such cases, machine breakdown and raw
materials’ shortage are covered by the buffer or safety stock which will have impact on the
production targets inside the business whilst meeting outside demand by customers. The burden
of inventory shortage is not therefore passed on to the customer citizens in the respective
industry or sector.

Stock and Lambert (2001), decoupling stock enables business organisations to offer reliable
response in terms of goods and services despite obstacles in inventory movement or flow. This
contributes towards overall success to business activities as well as meeting customers’
expectations at any given time.

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Decoupling stock enables the registration sector participants to offer or deliver the best quality
products and deliver the optimum and acceptable standard of service if all components and
resources are found at the right time to quench thirst in the production process. Inventory
management through stock decoupling serves to cushion service delivery against production
irregularities and this makes inventory management a very important aspect of al performance
and service delivery to the public.

iv. Enhance efficiency

Rushton et al (2000), inventory management enhances efficiency in both production and
provision of goods and services through economies of scale in purchasing, transportation and
warehousing or storage of inventory. Schonsleben (2000), warehousing and storage of inventory
are subsidiaries of inventory management and contributes much to the total or final cost of
production and distribution of services. Purchasing economies of scale are obtained from
consortium buying after the economic quantities are well defined. Purchasing economies are
realized through bulk buying and discounts allowed by suppliers for those large volumes of
materials or components. Acquisition or procurement of inventory has direct impact to the total
costs hence the need to determine the most economic quantity when ordering and holding
inventory.

Goodwin (2015), inventory management brings ensures consistency in service delivery whilst
minimizing costs through capacity utilization. Managing inventory through warehousing and
storage makes it easy to identify, quantify and pack inventory in the most efficient way which
maximize capacity utilization. The efficiency is realized when the quantity of inventory held per
interval is increased or maximized against a fixed rental or storage cost as illustrated on an
imaginary sketch graph.

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Figure 2.1:

Transportation of inventory (raw materials, finished goods and components) yields more
efficiency when the transported or distributed less frequently and when consolidated. Proper
inventory management makes it easy to determine regular ordering intervals as well as estimated
distribution quantities and makes it easy to consolidate orders of raw materials when transporting
them to the vehicle registration authorities and when distributing the products and services to the
public. Transportation economies of scale are more likely to be realized in this particular sector
since some of the components and materials used are obtained abroad. Economies of scale are of
importance to most business activities and aids to efficiency in operations.

v. Enhances specialization
Cook (2007), inventory enables specialization in manufacturing. Inventory makes it possible for
each of a firm’s plants to specialize in the products that it manufactures. By holding standardized
inventory units, it will be easy for the manufacturing firm to engage into standardized production
where all personnel in the production line specialize in a specific activity. For instance, stores
personnel will be specializing in receiving, handling and issuance of inventory to the relevant
personnel who will also specialize in the production activities and processes. The more an
individual repeats the same activity, they will be most likely to come up with more brilliant ways
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to carry out the activities they specialize in due to experience and meditation of the task over and
over again.

Stock and Lambert (2001), specialization in inventory management should begin with the first
stage in the supply process and this means from the raising of a requisition, there should be
authorized personnel who specialize in assessing, approving requisitions and even adding and
subtracting features from the specifications where necessary. This makes it easy for
specialization in sourcing and acquisition up to the receiving and usage of inventory materials.
Inventory management, if done with specialization, it yields greater results since everyone in the
production chain will be aware of what they are supposed to do and they familiarize with other
parties they interact with. It makes it easy to relocate inventory for issuance, recording
(stocktaking) as well as trend analysis for the inventory consumption.

By determining who has to what and when creates specialization opportunities when managing
inventory (Ballou, 1999). In an attempt to reduce inefficiencies in inventory management
through damages and accidents in the stores, specialization is the key since staff will be
experienced in the activities they carry out on daily basis. Also in particular, by enhancing
specialization in inventory management, security is guaranteed since stores activities are only
managed by stores personnel rather than every other member in the organisation.

It is important to specialize inventory management processes to obtain maximum utilization of

intellectual property from the competent staff and expertise. Specialization on its own minimize
confusion in business processes at departmental, al and even up to sectorial level. In the vehicle
registration sector there are some illegal activities such as forgery and production of fake
products which needs experienced personnel to differentiate genuine registration documents and
products even from the raw material level up to the finished product. On the same note, there is
need to serialize materials so that those who specialize with stores activities will be aware of
their materials as they are consumed in the daily activities.

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 vi. Reduction of waste
Lowe (2002), inventory management aid to the reduction of waste in the overall operations of
entities in both the public and private sector. Therefore it is vital for firms to control and manage
inventory using the best approaches in relation to the line of business they venture into. Waste is
reduced by avoiding inventory obsolescence by using Just in Time inventory management
approach. Materials are obtained only as and when they are needed and there is no way materials
components can become outdated since they are requested for a production activity and
consumed just in the time they are requested.

Frazelle (2002), damages in the stores are reduced if inventory is well managed in terms of
ordering, handling and storage. If competent personnel are involved in the resource planning and
inventory acquisition activities, they can trace the trend of how inventory has been consumed
over a certain interval and order the economic and efficient quantities using approaches such as
the EOQ. Quantities that minimize costs through ordering also minimize costs through waste
management.

Lu (2011), reverse logistics plays a vital role in control of waste in inventory management.
Reverse logistics is the process of moving goods from their intended destination for the purposes
of reuse of products and capturing value on proper disposal. Inventory suppliers are negotiated
with on the terms that govern inventory in the whole production processes. Firms can work out
well on the procedures for returning goods to the supplier and realize value from potential waste
especially if the inventory can be recycled. This can be achieved by installing automated
inventory management software and engage into Vendor Managed Inventory.

Waste management is one of the key fundamental of sustainable supply chain management or
green procurement. Businesses do not operate in a vacuum and therefore should make efforts to
preserve the environment as well as raw materials and other resources. The registration
authorities should make efforts to minimize waste and obtain the value for money for every
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dollar spent from the taxpayer’s money. Revenue realized from such a sector is equally
distributed in the development of general infrastructure and therefore enhance living standards of
the local citizens or the public.

vii. Safety and Health

Sople V (2004), Safety and Health are regarded as one of the aims of a sound inventory
management system. Most inventory personnel are vulnerable to a lot of danger especially in the
manufacturing sector. Proper inventory management caters for possible risk of holding different
resources in different forms and counter for the possible dangers. For example if a firm uses
toxic chemicals and explosives in its operations, stores area and production areas should be well
secured with fire extinguishers, fire alert alarms and fire detectors to quickly attend to fire
accidents and avoid loss of lives at the workplace.

Toit et al (2010), in management, we hear of motivation and A Maslow outlined that employees
have a hierarchy of needs which influence their motivation and amongst the set of needs, job
security and safety at work are included. Employees perform well when there is safety and the
same applies to inventory management. Stores personnel are equipped enough and given the
relevant security against the associated risks such as safety shoes, work suits and fresh milk to
clean their breathing and or respiratory system. Each function is ensured with resources that offer
safety in their daily activities and fosters sense of belonging and care for employees.

1.12 RESEARCH DESIGN

Generally, the type of this study will be exploratory in nature in the sense that the research will
be regarded as a social research, which is aimed at exploring a certain phenomenon with the
primary aim of understanding the phenomenon or situation. The research will follow the
exploratory path in deriving the outcome of the study. The research design of this study looks on
concentrating on the strategy of the research, the methodological choice to be used in the study
and the time horizon of the study.

1.12.1 Research Strategy

The research strategy which will be used in this study will be the social survey strategy. The
social survey strategy is seen as useful in the study in the sense that it is quite appropriate for

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collecting quantitative information about members in the population and that it is useful when
research participants are asked the same question in as far as possible under the same
circumstance. In addition, the social survey strategy is vital as same questions will be given to all
respondents.

1.12.2 Methodological Choice of the study

The approach to be employed in the study is quantitative as it aimed at determining or
establishing the relationship between one thing and another in a population and given the fact
that the study was formally objective and systematic in the sense that numerical data will be
utilised to obtain the information. The researcher sees this as essential in depicting the impact of
inventory management to service delivery in Government controlled institutions since it can
provide a measure from which the impact can be deduced. However, the study will also
incorporate the qualitative approach a little bit in data analysis as will be derived from the
sentiments on the few open ended questions to be given, as it necessary for the researcher in
making deductive arguments including inputting of relevant meanings discovered as appropriate
in the outcome of this study. This therefore qualifies the methodological choice of the study as a
mono approach, a single technique for data collection to be used.

3.4.3 Time Horizon

The time horizon for this study will be cross-sectional in its nature given the time constraints
associated with academic researches. In addition, the researcher sees it fit for this study given
that cross sectional studies suit well for the survey strategy. Again, the study is aimed at studying
the phenomenon over a short period (I year) and this makes this time horizon suitable.

1.13 Work Plan

Chapter 1 Problem and its setting – 1 month
Chapter 2 Literature Review – 3 months
Chapter 3 Methodology – 1 month
Chapter 4 Data Collection and Analysis –5 months
Chapter 5 Discussions, Recommendations and Conclusion - 3 months

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1.14 References
Adeyemi, S. L. (2010). Inventory management: A tool of optimizing resources in a
manufacturing industry a case study of Coca-Cola Bottling Company, Ilorin plant. Journal of
Social Sciences, 23(2), 135–142. doi:10.1080/09718923.2010.11892822

Ballou, R.H. (1999), Business Logistics Management: Planning, Organizing, and Controlling the
Supply Chain, 4th Edition, Prentice Hall International, London.

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Chiri M, (2015), Parastatals increasingly bleeding economy, The Independent, 27 February
2015. Available from www.theindependent.co.zw/2015/02/27/parastatals-increasingly-bleed-
econmy.

Chopra, S. and Meindl, P. (2003), Supply Chain Management: Strategy, Planning and Operation,
4th Edition, Pearson Prentice Hall, Upper Saddle River, New Jersey.

Frazelle E, (2002) Supply Chain Strategy, McGraw Hill.

Goodwin, (2015), New storage capacity management tools, Essential guide. 275 Grove Street,
Newton, MA 02466.

Hanks, R. (2010), Delivering and Measuring Customer Service, 2nd Edition. Duff Road
Endeavors, Salt Lake City.

Heizer, J and Render, B (2014), Operations Management, Sustainability and Supply Chain
Management, 11th Ed. Pearson

Kanagaraju P (2007) Primax International Journal of Commerce and Management Research

Volume 1, Issue No1, 2007.

Kerber B et al (2011), Lean Supply Chain Management Essentials; A Frame Work For Materials
Managers, Taylor and Francis Group, LLC, United States of America.

Kobert, (1992) Managing Inventory for Cost Reduction. Prentice-Hall.

Lu D, (2011) Fundamentals of Supply Chain Management, Ventus Publishing.

Lowe D, (2002) Dictionary of Transport and Logistics, Kogan Page.

Pujari, D. (2004). Self-service with a smile? Self-service technology (SST) encounters among
Canadian business-to-business, International Journal of Service Industry Management, 15 (2,).
200-219

Schindler, A. (2012), Secrets of Good Customer Service, Schindler Promotions Ltd. Cardston:
Alberta.

Schonsleben P, (2007), Integral Logistics Management, 3rd Edition, Auerbach Publications.

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Sople V. V (2004). Logistics Management: The Supply Chain Imperative. Pearson Education,
Singapore.

Zipkin P.H, (2000) Foundations of Inventory Management. New York: Irwin/ McGraw-Hill.

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