FACTORS AFFECTING STOCK LEVEL OF MANAGEMENT OF

MATERIAL IN THE PUBLIC SECTOR ORGANIZATION IN

KENYA: A CASE STUDY OF KAJIADO COUNTY
GOVERNMENT.

BY

SAMPERO VIOLET PILANOI

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE AWARD
OF DIPLOMA IN SUPPLY CHAIN MANAGEMENT TO THE
KENYA INSTITUTE OF MANAGEMENT.

JULY 2022
 DECLARATION

Declaration by the student

This research proposal is my original work and has not been presented to any other
Examination body. No part of this research should be reproduced without my consent or that of
The Kenya Institute of Management.

Name ……………………………….. sign …………………… Date

…………………………………

Registration Number

KIM/59008/18

Declaration by the supervisor

This Research Proposal has been submitted for my defense with my approval as the Kenya
Institute of Management supervisor.

Name ………………………………………. sign………………… Date

………………………………

Lecturer supervising

For and on behalf of The Kenya Institute of Management

Name ……………………………………. sign………………….. Date

………………………………

Branch Manager- Kitengela Branch

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 DEDICATION

I dedicate this work to almighty God, for providing me this opportunity to further my studies
and granting me the ability to proceed with my studies.I would also like to thank my family,
my husband Mr. Wilson Kipees, my children Leon and Joel for support and encouragement
through the entire writing.

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 ACKNOWLEDGEMENT

I would like to express my debtedness to my supervisor Mr. Justus for the guidance and
encouragement to carry on with the study and complete in time, constructive criticism and
pieces of advice. I further wish to acknowledge the KIM for granting me this opportunity to
pursue this diploma. Finally, I acknowledge my lecturers who dedicated their time in offering
relevant knowledge necessary for my study.

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 ABSTRACT
This study examined the factors that affect stock level management in the public sector; a case
study of Kajiado County Government. The specific objectives of the study were: to investigate
the effect of ICT, to establish the effect of stock level management planning, to find out the
effect of suppliers choice and to examine the impact of time lead on stock level management in
kajiado county government. The research will be of benefit to the management of kajiado
county government as it will help in understanding the factors affecting stock level
management in the county and in developing systems/ procedures that will safeguard
inventory levels to achieve accuracy in terms of inventory records, trends, inventory at hand
with optimum inventory levels and demand forecasts. Finally academic researchers who may
wish to pursue further research on stock level management will also benefit from this research.
The study adopted a descriptive survey method. The targeted population was 160 employees of
kajiado county government. A stratified random sampling was used to select 80 employees as
respondents. Primary data was collected using semi-structure questionnaire containing both
closed and open-ended questions. The collected was analyzed by both quantitative and
qualitative techniques and the presented using frequency tables, charts and graphs. The study
found out that the majority (76%) of the respondents agreed that ICT affected the stock level
management in public sector while (24%) said it had no effect. The majority (70%) agreed that
stock level management planning affects stock level management while (30%) said it had no
effect. The majority (80%) agreed that supplier choice affects the stock level management in
the public sector while (20%) said it had no effect. Further , the study found out that the
majority (74%) said time lead affects stock level management in public sector while (26%)
said had no effect. The study recommended that the county should embrace ICT and invest in it
as a strategy to successful stock level management. The county should endorse stock level
management planning as part of the county culture. County should also be able to concentrate
on their supplier choice process, objectives, capacity and quantity among other factors to be
able to meet the county requirements in the time and also the county should manage the time
lead efficiently to ensure that products get to the market in good time.

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 TABLE OF CONTENT

DECLARATION……………………………………………………………………………………….i

DEDICATION………………………………………………………………………………………… ii

ACKNOWLEDGEMENT…………………………………………………………………………… iii

ABSTRACT…………………………………………………………………………………………… iv

TABLE OF CONTENT………………………………………………………………………………..v

LIST OF TABLES……………………………………………………………………………………viii

LIST OF FIGURES……………………………………………………………………………………ix

LIST OF ABBREVIATIONS/ACCRONYMS……………………………………………………….x

OPERATIONAL DEFINATION OF TERMS………………………………………………………xi

CHAPTER ONE………………………………………………………………………………………. 1

INTRODUCTION TO THE STUDY………………………………………………………………… 1

1.1 Introduction

………………………………………………………………………………………….1

1.2 Background of the

study……………………………………………………………………………..1

1.3 Statement of the

problem…………………………………………………………………………….4

1.4 Objectives of the

study……………………………………………………………………………….6

1.5 Research

Questions…………………………………………………………………………………..6

1.6 Significance of the

study……………………………………………………………………………..6

1.7 Limitations of the

study……………………………………………………………………………...8

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1.8 The scope of the

study……………………………………………………………………………….9

CHAPTER TWO…………………………………………………………………………………….…9

LITERATURE REVIEW……………………………………………………………………………...9

2.1 Introduction…………………………………………………………………………………….…….9

2.2 Theoretical Literature Review……………………………………………………………………….9

2.3 Review of Critical Literature……………………………………………………………………….18

2.4 Summary and Gaps to be filled by the study……………………………………………………….19

2.5 Conceptual Framework……………………………………………………………………………..21

CHAPTER THREE…………………………………………………………………………………...23

RESEARCH DESIGN AND METHODOLOGY…………………………………………………...23

3.1 Introduction ………………………………………………………………………………………..23

3.2 Research Design……………………………………………………………………………………23

3.3 Target Population…………………………………………………………………………………..23

3.4 Sampling Methods and Procedure………………………………………………………………….24

3.5 Data collection Procedures…………………………………………………………………………25

3.6 Data analysis………………………………………………………………………………………..27

REFERENCES…………………………………………………………………………………………28

APPENDICES

Appendix I : Questionnaire

Appendix II : Work plan

Appendix III : Budget

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 LIST OF TABLES
Table 3.1 Target population………………………………………………………….24
Table 3.2 Sample Size………………………………………………………………..25

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 LIST OF FIGURES

Figure 1.1 KCG Organizational structure……………..……..……………………….4

Figure 2.1 Conceptual Framework…………………………………………………...21
Figure 2.1 Response rate……………………………………………………………..29

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 LIST OF ABBREVIATIONS/ACRONYMS

APPs Annual Procurement plans

EOQ Economic Order Quantity

ERP Enterprise Resource Planning

FG Finished Goods

GDP Gross Domestic Production

IAIC Inter-American Investment Corporation

KCG Kajiado County Government

KCC Kenya Cooperative Creameries

KIM Kenya Institute of Management

MD Managing Director

MRP Material Requirement Planning

NMES Nigerian Manufacturing Enterprise Survey

OLS Ordinary Least Square

PPDR Public Procurement and Disposal Regulation

USA United States of America

WIP Work in Progress
SLM Stock Level Management

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 OPERATIONAL DEFINITION OF TERMS

Communication It is the exchange of information by speaking, writing or using other

mediums. It is a two-way process of reaching mutual
understanding, in which participants not only exchange
information, news,ideas and feelings but also create and share
meaning. Communication is complete when feedback is received.

Information Is data that has been processed, interpreted, organized, structured or

presented so as to make it meaningful or useful such that it can be
used to make a decision or conclusion.

Stock level management This involves ordering, storing, tracking and monitoring stock
levels. It is used to know how much stock you have at any one time
and how to keep track of it.

Time - lead Is the period between ordering and receiving of goods by an

organization.

Telecommunication Refers to communication over a distance by cable, telegraph,

telephone or broadcasting and is made up of two or more stations
equipped with transmitter and receiver devices. It may also refer to
the exchange of information by electronic and electrical means over
a significant distance.

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 CHAPTER ONE
INTRODUCTION TO THE STUDY
1.1 Introduction
This chapter consists of the following eight sections: The background of the study;
statement of the problem; the objectives; research questions, significance of the study,
limitations and the scope of the study.

1.2 Background of study

Stock level management is the supervision of the storage, supply and accessibility of
items to ensure an adequate supply without excessive oversupply. In the past, stock
level was not to be necessary. In fact, excess stock were considered indication of
wealth. Management by then considered over stocking beneficial, but today firms
have started to embrace effective stock level management control. Managers now
more than ever before, need reliable and effective stock level in order to reduce costs
and remain competitive (Miller, 2010).

In study undertaken in USA, indicates that stock level materials from 20% to 60% of
the company’s total assets and the cost for the carrying stock increases operating
expenses and decreases profit Visich (2010). Further research carried out in other
western countries shows that there has been a decline in performance of the
manufacturing industry in Australia and as a result, its contribution to the total
Australian GDP is less than half of what it was four decades ago. This was attributed
to poor strategic stock level management leading to increased cost of production
resulting to the gross operating profit margin for manufacturing firms to fall from
9.5% in the year 2013 to 7.8% in the year 2014 (Anthony, 2014). In a study carried
out in Nigeria indicates that there was decline in performance of the manufacturing
firms that resulted in the decline in GDP from 9.6% in the year 2016 to 5% in the year
2013. This was attributed to high cost of production especially in the oil and gas
sector and inappropriate investment in equipment and machinery due to poor strategic
stock level management, (NMES,2013). Studies undertaken in Tanzania indicate that
the aim of stock level management of materials to hold stock at lowest possible cost,
given the objectives to ensure uninterrupted supplies for ongoing operations. This

1
means that when making decisions management has to find a compromise between
different cost components (Mpwanya 2010).

Further , organizations including public and private face great challenges in managing
stock, poor stock level management may result in under stocking, overstocking as
well as a stock level cost. In order for the county government to manage stock level
effectively there is need to employ control methods such EOQ model to obtain
reasonable ordered quantities for its raw materials ( Mwansele, 2011). kagashe et.,
(2012) points out that poor stock level management of material is as a result of
negligence of the personnel responsible for control who in most cases are not
competently trained and so do not know specific methods to be used in the control.

In Kenyan perspective stock level management has been indicated as a cause that
made most manufacturing organizations treating stock as necessary evil and not asset
requiring management (Temeng, 2010). Salawati (2012) indicated that in the 1980’s
stock of raw materials, WIP components and FG were kept as buffer against the
possibility of running out of needed items. However , large buffer stock consume
valuable resources and generate hidden costs (salawati, 2012). Nyabwanga (2012)
also observed that too much stock consumes physical space, creates a financial burden
and increases the possibility of damage, spoilage and loss.

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1.2.1 PROFILE OF KAJIADO COUNTY GOVERNMENT
The promulgation of the constitution of Kenya, 2010 ushered in a fundamental
paradigm shift in development of the country. It introduced devolution, which is a
model of decentralization that saw the creation of the forty seven counties.
Consequently, substantial power and authority on governance was vested on County
Governments. This laid the foundation for a people centered and people driven
development. Kajiado county is one of the forty seven Counties pursuant to Schedule
one of the Constitution of Kenya (2010).
Kajiado County was formed after the successful implementation of Kenya’s
constitutional referendum of 2010 which yielded the 47 counties in the counties in the
Country. The county covers an approximated area of 21900.9 square kilometers.
Kajiado county consists of a number of administrative constituencies which are
Kajiado central, Isinya, Loitokitok, Magadi, Mashuru, Namanga and Ngong. Kajiado
county is adjacent to the capital city of Kenya, Nairobi. Kajiado’s county neighbours
included counties of Machakos, Makueni, Narok, Taita Taveta and Kiambu counties.
Here are few towns found in the county- Ngong. Kitengela, Ongata Rongai, Kiserian,
Kajiado. Loitokitok, Namanga, Isinya, Sultan Hamud and Ilbisil.

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Figure 1.1 K.C.G Organizational structure
MINISTER

CHIEF OFFICER

CHIEF PROCUREMENT OFFICER

STORES

PROCU
REMEN
T
FINANC
E
PROJE
CT
DEPAR
TMENT

HR

Figure 1.1 Organizational Structure

Source : HR Office of Kajiado County Government, (2022).

4
1.3 Statement of the problem
Its of importance for the county in the public sector to come up with most and
efficient ways of controlling stock given that stock hold up to 70% of the county’s
total assets. Stock level effects business performance and therefore measures should
be put in place to make sure that stock are controlled accurately ( Nyabwaga & Ojera,
2012). Dobler (2010) argues that well and efficiently controlled stock can contribute
to the effective operations of the firm and hence the firm overall profit. For many
organizations there is no doubt that stock level enhances their operations hence there
is need for proper stock level ranging from raw materials to finished goods ( Dobler,
2010). Despite having Syspo in place KCG still experience
inventory ,fluctuation,overstocking,stock shortages and losses which the county is yet
to figure out the root cause.

The county has usage restrictions on the stock level systems due to cost
implications;access to the advanced provisions on the systems requires an increment
on system subscriptions fee which is costly for the county.this makes it difficult to
utilize the Syspro stock level system. According to Adeyemi and salami,[2010 stock
out cost include lost contributions through the lost sale caused by the stock out,loss of
future sales because customers may go else where,cost of production stoppages
caused by stock out of work-in-progress and raw materials,and extra costs associated

5
with urgent,often small quantify,replenishment orders.it is further asserted that stock
out cost may be difficult.The avoidance of stock out is the basic reason why stock are
held in the first place.this in effect eventually affect the effectiveness of operations of
the organizations due to inaccurate stock plans,delayed deliveries due to prolonged
lead time,poor supplier selection processes. This scenario has brought confusion in
the county since profit have started dropping;the board has convened meetings to
resolve the issues of stock level management in order to help manage the situation.
This therefore was ration-able behind study to analyze the factors affecting stock level
in the public sector a case study of kajiado county government to bridge the gap.

Many of the studies undertaken in this area have concentrated their case studies in
government sectors thus making it difficult for researchers to borrow any
contributions to help solve such issues in county government. Further , most of these
studies have mainly focused stock level in all organizations in general but no studies
have been conducted on the factors affecting stock level public organizations. Thus
this study therefore sort to bridge this knowledge gap by investigating the factors
affecting stock level management in the public sector industry in Kenya with specific
reference to Kajiado County Government.

1.4 Objectives of the study

1.4.1 General Objectives

The main objective of this study was to investigate the factors affecting stock level in
public sector in Kenya with specific reference to Kajiado County Government.

1.4.2 Specific Objectives

i. To investigate the effect of ICT on stock level management in public sector in

Kenya.
ii. To establish the effect of stock level management planning on inventory control
in the public sector in Kenya.
iii. To find out the effect of supplier choice on stock level management in the public
sector in Kenya.

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iv. To examine the effect of time -lead on stock level management in the public
sector in Kenya.

1.5 Research Questions

i. Does stock level management affect stock level in the public sector in Kenya?
ii. Does supplier choice process affect stock level management in the public sector
in Kenya?
iii. Does time-lead affect stock level management in public sector in Kenya?

1.6 Significance of the study

1.6.1 Management of Kajiado County Government

The findings of the study will be crucial for the management of Kajiado county
government in determining ways through which they can improve efficiency on stock
level management process and ways through which the county can ensure optimum
stock levels through out the year.

1.6.2 County Government Organizations.

The findings will enable the public sector organizations in formulating appropriate
strategies and policies in handling their stock to achieve efficiency in manufacturing
processes.

1.6.3 Consumers and Suppliers

Consumers are the main reason why organization exists and therefore everything that
the organization does is in the interest of the consumers. Consumers also benefit since
increased efficiency in the stock level process will eventually lead to reduced costs of

7
products and increased efficiency in deliveries hence constant supply. The products
will be easily accessible at any time.

1.6.4 Supply & Demand Forecast Department.

The supply/Demand forecast department will gain from this research as it has
information on how to exploit the cost saving aspects in the various functional areas
and how to ensure optimum inventory levels. This will be a guide in their weekly and
long-term stock planning. The findings of the study provide a better understanding of
the factors that affect stock level management in the kajiado county and how they can
be utilized.

1.6.5 The General Public.

Anyone in the general public who would like to gain knowledge on the stock level
management will benefit from this research as it provides insights on the topic.

1.6.5 Other Researchers.

The research findings will be of benefit to other researchers who wish to do more
research on stock level management in the public sector. It will help other researchers
to do more on the same topic by refining or carrying out in depth research related in
the area of study.
1.7 Limitations of the study
1.7.1 Confidentiality
Some useful information in most organizations is regarded as confidential and this
would have been a setback in the total release of such information by the respondents.
However, this was solved by giving the organization authority the research letter that
was given to the researcher by KIM college.

1.7.2 Lack of co-operation

8
Respondents were reluctant to participate in the study due to ignorance of the need to
be involved in the study. The respondents advanced various reasons of being busy and
unavailable to participate in the study. The researcher solved this limitation by
explaining to them that the investigation was purely on academic reasons and thus
they agreed to participate.

1.8 The scope of the Study

The aim of the study was to establish the factors that affect the stock level
management of material process and issues relevant to the stock control function of
the organization. The study was confined to Kajiado County Government of Kenya.
The study took six months to complete and it was carried out in the months of January
to June of the year 2022.

CHAPTER TWO

LITERATURE REVIEW
2.1 Introduction

This chapter summarizes the information from other researchers who have carried
out their research in the same field of study. It also contains literature analyzed from
several sources including textbooks and manuscripts closely related to the theme and
objectives of study. The literature review takes a critical look at the existing research
that is significant to this study. This chapter covers theoretical literature review,
review of critical literature, chapter summary and gaps to be filled and the study
conceptual framework.

2.2 Theoretical Literature Review

2.2.1 Digital Literacy

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According to Melody (2010), the term Digital literacy is used to the convergence of
audio-visual and telephone networks with computer networks through a single cabling
or link system. The 21st century want to grasp itself for Digital literacy likewise a
standout among st those crashing constrains at the back of increased of enterprise
boom inside the globe (Attom, 2013).

A recent study conducted in Forester Research indicates that USA manufacturers are
increasingly dependent on the benefits brought about by Digital literacy to: improve
supply chain agility, reduce cycle time. Grover et all. (2012), suggest that the decision
to use Digital literacy within the stock level management could encourage the
commitment of establishing relational behaviour. Sweeney , (2015) emphasizes on
how stock level has gained increasing prominence in recent years. Stock level is an
approach which is being viewed by organizations and companies in many sectors as a
key source of competitive advantage. Sweeney, (2015) defines supply level
management and outlines the role of information and communication technology
(ICT) as key enabler of the process. Study carried out in France in regards to the
effect of organization innovation on organizational performance indicated that
innovation in both financial and human resource markets fosters an organization to
grow, prosper and transform in synchronization with changes in the environment,
both externally and internally. Mugane ,(2015). Counties have witnessed radical
changes of late, based on many innovations in products, processes, services, systems,
business models, technology, governance and regulation. The pervasive influence of
Digital literacy has revolutionaries in public organization (kumar, 2011).

Studies undertaken in Nigeria indicate that stock level in pivotal in powerful and
efficient in an enterprise (Abdulrahim, Yahaya, & Isaak, 2011). According to
Kumar(2014), he suggests that there are four important focuses of Digital literacy
employs which are business computer network and database management, facts
security, business software development and technology help. The first goal of stock
level includes hosting on equalization for that clashing economics for no more
needing to preserve an unreasonable sum from claiming stock ( Abdul Raheem,
Yahaya, & Isaak, 2011). According to the Chitiga and Choga (2016) studied the role
of ICT in stock level. The study revealed that utilization of computer systems in stock
level is constrained to very few functions.

10
Research studies in various manufacturing industries in Tanzania indicates that
Digital literacy has been used to manage stock level of material which has facilitated
better evaluation and has contributed to a more trusted layer in stock. When looking
after coherence clinched alongside benefits of the business exercises by expanding
aggregate offers. This subsequently helps in expanding and reusing of stores. This
also helps in generating higher profitability for an organization leading stability in
performance. As towards this, if control proves inefficient in stock control, it results
into better stock conversion duration, high fees of stock, leading to reduced recycling
of price range, in the long run effecting profitability and liquidity of the organizations
(Madishetti & Kibona, 2013). Various Studies in Kenya have indicated that Digital
literacy is crucial in stock level system that encompasses all elements of managing a
firm’s stock: buying , shipping, receiving ,monitoring, warehousing and garage,
turnover and recording (Kithinji, 2015). A great deal of interest in supply chain
management stems from the availability of information and the methods to analyze
this information to reach meaningful results. (Haag & Stephen, 2010) assert that
increasing importance of electronic budding brings new opportunities and the
widespread use of internet makes Digital literacy tools a source of competitive power
for many companies.
Further, Digital literacy has been adopted in stock level management processes by
firms as a competitive edge and to build strategic long term relationships along the
supply chain.

2.2.2 Stock Level Management

Planning is critical when it comes to achieving optimum stock level ( Mattson, 2011).
It has a direct effect to the company finances: therefore planning is important and
should be done to determine forecast, demand, production capacity, profit margins,
and whether the county has the required funds. Stock level management refers to
procedures or processes that a firm puts in place in order to determine optimum stock
levels and to align such plans with the projected sales and the firms capability. This
aspect of planning covers material requirement planning as stock level management
system that manages the manufacturing processes.

11
In studies undertaken in Pakistan it has been pointed out that organizations need to
adopt stock level management procedures to proactively make the quarterly/ annual
inventory projections which should be communicated throughout the organization as
well as the concerned suppliers. Suppliers should be involved in stock level
management planning to prepare them for future demands and to avoid shortages
from the supplier. The main objective of stock level management planning are listed
below: customer satisfaction through enhanced customers orders fulfillment as
planning helps managers to take proactive measures by optimizing on stocks that are
fast while reducing on slow-moving items. Forecasting needs as it illustrates the
demand forecasts which allow the business to make strategic decisions on the
production schedule where the cost and demand are met(Ivanov, 2010).
In studies across South African industries it was recommended that stock level
management should be made a priority and therefore be part of stock level
management that involves supervision of supply , storage and accessibility of items
in order to ensure adequate supply without oversupply,that is , firms can only
purchase in line with the plan. The process involves deciding the maximum and
minimum levels of stock levels, the reorder quantity, and the categorization of the
stock by ABC analysis where A refers to valuable stock while C the least valuable,
( Ravi, 2014). I n Tanzania, Mamiro (2010) sites poor stock level management
planning of the process as the major challenges facing public stock level management
processing in Tanzania. He explains in his research on public stock level process that
lack of a clear identification, definition , unrealistic budget estimation , unskilled
procurement personnel, and non-conformity to procurement plans were the main
factors contributing to failure in public stock level and needed to be reformed. This
can be improved if organizations adhere to making annual procurement plans as a
guide to the procurement team to reduce procurement costs and to avoid unnecessary
emergence procurement. A number of procurement costs such as communication and
documentation costs can be avoided if planning is done proactively and assigned a
budget in Kenya, the Public Procurement Oversight Authority released the industry
manual (2015) on Public Procurement & Disposal Regulation (PPDR) to make the
public procurement process to e more transparent and to ensure accountability and to
discourage wastage of public resources by making sure that procurement is done as
per the stock level available and budget.

12
According this industry manual, stock level plan is an instrument used for
implementing a budget and it sh0uld be prepared by the user departments with a view
of avoiding or limiting excess vote in entities budgets and for ensuring that
procurement s don’t need to proceed unless there are adequate funds to pay for them.
Thus all stock level management plans should be integrated into the budget process
on the basis of the indicative budget as appropriate and also in conformity with the
procurement law so as to avoid fraud and mismanagement of resources in
procurement process.
Kibet and Njeru (2014) posted that good plans led to effectiveness and efficiency and
thus attainment of projected results. In order to procure right quality goods, detailed
specification and stock level management planning is necessary as it assists in
identifying whats required from the contractor who is expected to bid against the
specifications that have been given in the bid document. Specifications, whether
simple or complex, depends on the nature of procurement (Caldwell, Roehrich &
Davies, 2010).
Poor S.L.M planning is limiting factor to the economic development of Africa as a
number o African countries have not paid enough attention to proper management of
public resources. Further , section 53(2) of the Public Procurement Asset and Disposal
Act (2015) provides that an accounting officer shall prepare an annual inventory plan
which is realistic in format set out in the regulations within the approved budget prior
to commencement of each financial year as part of annual budget preparation process.
Further section 53(4) provides that all asset disposal shall be planned by the
accounting officer concerned through annual asset disposal in a format set out in the
regulations. Moreover , section 53(8)provides that an accounting officer shall not
commence any procurement proceeding until satisfied that sufficient funds meet the
obligations of the resulting contract are reflected in it’s approved budget estimates.
Additionally, section 53(9) provides that an accounting officer knowingly commences
any procurement process without ascertaining whether the item or service is planned
and budgeted for: commits an offence under this act. It has been pointed out that in
developed and developing countries have efficient and effective service delivery due
to the contribution of stock level planning at the central and local government. These
findings were confirmed in Kavuva and Ngugi (2014) whose study showed a
significantly positive association between stock level planning and stock level control
local government procurement systems in Kenya.

13
Jackline and Ayub , (2017) on the effect of procurement practices S.L.M of public
sugar manufacturing firm in western Kenya: S.L.M planning, which includes stock
level planning is the key stock level control in public sector. Efficient and effective
stock level control can only be achieved when organizations focus on proper
planning. If planning is not done, then firms should expect poor stock level control
and therefor planning should be norm for organizations. Kennard (2010) indicated
that stock level planning had the potential of cutting costs, shortening timescales and
enhancing stakeholder relationships, reducing risks and improving overall stock level
control cycle.
According to Onyango (2014) effective and efficient stock management can only be
achieved by proper stock level control planning and competent staff or else the
institution expects flawed S.L.M. In case where the S.L.M plan is not accurate or
aligned with the organizations central practise, an adjustment needs to be done to
correct the non-conformity. Companies facing problems due to poor stock level
planning need to first determine whether they need strategic stock level control that
need strategic decisions for a solution or tactical stock level control plan (Lodding &
Lochmann, 2012).

2.2.3 Supplier choice

Supplier choice refers to a process, by which firms identify, evaluate and contract
with suppliers (Beil, 2010). According to Beil, this process deploys huge amount of
company's finances and in return, the company expects significant benefit from
contracting suppliers that offer high value. Once organization identifies the need to
procure certain inventory, the supplier choice process can be used to identify the most
viable suppliers. It is always advisable to have the contacts of the second-best supplier
for emergency purposes as a backup supplier.
In china there are various issues in supplier choice across industries that have in one
way or the other affected stock level control. Some of the countless activities used to
evaluate the capabilities of potential suppliers and then to select them to configure a
buyers supply chain for long-term competitive advantage (Choi & Hartley, 2016:
supplier choice is critical (Lao , Hang and Rao) as firm become more and more
dependent on their suppliers; the capabilities of those suppliers serve as key resources
in development of the buyers own capabilities and performance. However a firms
ability to create or enhance its own capability in a strategically important domain such

14
as quality by leveraging supplier capabilities in quality may depend not only on its
ability to select a capable supplier in the quality domain but also on its ability to
successfully integrate the supplier choice has been a source of competitive advantage;
they affect competitive performance of S.L.M in the public sector if effectively
selected. Although scant empirical research has examined the performance effects of
supplier choice (Petersen, Handfield & Ragatz 2010) several studies have investigated
the effects of supplier integration. In some studies, supplier integration is modeled as
construct separate from customer integration or internal integration ( Srannel et al.,
2010; Swink, Narasimhan & Wang 2012), whereas in others it is subsumed into other
integration construct e.g, encompassing internal and supplier integration; (Maloni &
Benton 2010; Nairn & Lalwani 2010). Further , it can be understood construct on
‘’supply chain’’ integration encompasses supplier integration, customer integration
and internal integration. The small number of studies on integration and conflicting
findings indicate that the verdict is still out as to whether integration improves
procurement performance improving economy can be described as achieving the
lowest possible costs. Improving efficiency is getting maximum output from available
resources, and improved effectiveness is all about achieving objectives set. This can
be achieved through improving the level of service to end users. e.g improving
service standards, achieving budget targets and better relationship with internal
customers and suppliers (Petersen et al., 2015)
In the manufacturing industries of Rwanda, it has been indicated that a well managed
and structured approach to supplier selection ensures that the suppliers have the skills
and knowledge to do job and that they are developed to their full potential and this
helps to boost S.L.M. The institution will benefit from this through cost saving
improved quality effectiveness and efficiency.i.e financial cost, mitigating delay
costs e.g when work cannot be done because of lack of equipment necessary for the
job and reputation costs. Effective supplier choice can also ensure that supplier
understand the aims, objectives and strategies which will cascade into their personal
aims and objectives. From practitioner standpoint, the issue of selection and its
relationship to integration in fostering buyer capability has become increasingly
important (Krause et al.,2011)
Additionally , when considering the case of Sun micro-system which has repeatedly
tapped into the expertise of Imation, a well known developer of tape storage
technology, to obtain leading edge product and process technologies ( leading to

15
numerous enhancement to Suns products). In early 2006, the companies announced
partnership agreement to develop and launch an extension to drive platform and their
strategic collaboration continued to expand in areas of supplier choice in order to
effectively asses S.L.M areas for purpose of achieving organizational strategic
operations (Carter & Carter 2010).
In studies done in Kenya on American firms an approach was put in place to evaluate
dynamics of supplier choice and part it played in S.L.M and it was suggested that a
business process level unit of analysis for examining competitive advantage. It was
also pointed out that procurement performance involves allocation of sufficient
resources financial, personnel, time, and establishing a chain of command or
organizational structure. It involves assigning responsibility of specific tasks or
processes to specific individuals or groups. It also involves managing the process.
This includes monitoring results, comparing to benchmarks and best practices ,
evaluating the efficiency and efficacy of the process, controlling for variances and
making adjustments to the process as necessary. Procurement performance is an on
going , never ending , integrated process requiring continuous reassessment and
reformation (Olson et al., 2015).

2.2.4 TIME LEAD

This refers to the time that elapse between stock level order placement and the date of
delivery. Its important for stores personnel to know the exact time as it helps the
company to determine a level at which some stock is left to serve the clients while
waiting for suppliers delivery. The business world continues to be competitive and
with the technological advancement organizations are focusing on strategies like high
customer service levels, lower costs and managed time leads as a competitive
advantage . Organizations have become more customer focused hence putting in
significant efforts to delight customers for survival (Liberatore, 2010).
According to Arnold (2014) in studies done in Singapore it has been said that the
significance of logistics in the procurement sector is greatly influenced by the
consideration of time lead. For those organizations that have considered time lead it
can be noticed that their stock level control management is well taken care of. Further
it has greatly increased the activities required to accomplish various logistical
functions and strategic planning process which include coordination and collaboration
with the channel partners namely suppliers, intermediaries , third party service

16
providers and customers increases. While historically supply efficiency was the
primary concern for businesses, since the 1980s the need for agility and speed to
respond to a demand trend has received increased attention both from industry and
academia.
In an analysis done in Namibia Granville (2012) it was noted that the sphere of
logistics management in terms of time lead in order to have a better stock level
system. In today's just in time world , however , its critical to be able to respond
quickly to customers demand and to be flexible at the same time (Christopher, 2011).
A conflict exists , in that manufacturing systems total time lead are becoming longer
while the demand for shorter delivery time lead is increasing (Blackburn , 2012). As a
result, an overall challenge for management in manufacturing companies is to use
their available resources in the best possible way, to be able to offer both standardized
and customized products to the market, while at the same time delivery within
demanded delivery time lead. If successful, management cab then also fulfil their
fundamental goals: to earn profit and increase shareholders value (Leon, 2016). To
ensure that companies in fact are profitable, managers usually evaluate their resources
based on both financial and operational performance, to analyze if the resources are
contributing with a financial return.
In Rwanda it has been pointed that the time based management beliefs in the
procurement operations depends on time lead reduction in order to make stock level
management viable. This in effect always provides value in the organization though
sometimes challenged where it is instead stated that the impact on value depends on
whether the products are functional or innovative. Supply chains producing functional
products should be designed for cost efficiency rather than for speed. A shorter time
lead, therefore, does not always mean the same as higher profitability (Blackburn,
2012).
In Kenya background a study undertaken revealed that time lead which is a logistic
service tool of performance engenders customer satisfaction, which has links with
customer loyalty and market share. It was identified that planning in a warehouse is
one of the most important factors affecting time lead variability. The other factors that
affect time lead are listing orders, order picking , sorting, packaging and shipping.
The waiting time plays an important role in time lead variability. In this case it is
important to consider the expected waiting role in time lead variability. In this case it
is important to consider the expected waiting time between the orders have a general

17
distribution. In this case the first in , first out (FIFO) system I used. This therefore
leads to variability in time lead (Al- Harahsheh, Al-Ayed, Robinson, Kingman,
Tarawneh & Barranco, 2011).
Further , Bosire ,Kongere,Ombati and Nyaoga (2011) in store keeping management
simplified goes a head and gives more factors like : production breakdown , if the
industry producing this ordered material breaks down due to one reason or the other
then the purchasing department may no get the goods in the required time political
stability. This will make transport of goods from one place to another inn-accessible.
The strategies which are used to manage time lead are just in time technique. It
becomes longer easier for utilization rate this characteristic only holds if the
difference in holding cost between the item produced on the capacitated resource and
the end item is large enough. The holding cost structure plays the leading role in the
determination of the optimal planned time lead. Safety stocks can decrease by longer
planned time leads if the variation in demand and /or the utilization rate is high, but
this is only advantageous if the work-in-process costs do not increase too fast by long
planned time leads.

2.3 Review of Critical Literature

From the view advanced in Haberg et al., (2018), it can be argued out that in order for
a firm to have a competitive advantage, the staff should have the required
competencies in their professional training and also on IT since information and
business is transacted electronically. It is worth noting that capabilities and
competencies are both important. Momanyi & Sanewu (2014), while writing on
Digital literacy’s influence on stock level system indicated that in the present days
business setting both small and medium scale industries now depend on computer
based systems for managing their stock. However , there is little that has been written
about the effect Digital on stock level in the public sector in Kenya, a gap which this
study seeks to bridge.

According to Onyango (2014) effective and efficient stock management process can
only be achieved by proper stock level control planning and competent staff or else
the institution expects flawed procurement process. In cases where the stock level
plan is not accurate or aligned with the organizations central practice, an adjustment

18
needs strategic decisions for a solution or a tactical stock level plan. However, there is
little that has been written about the effect of stock level planning on stock level in
public sector in Kenya, a gap which this study seeks to bridge.

Successful supplier choice is a source for competitive advantage: they affect

competitive performance of stock level management in public sector if effectively
selected. Although scant empirical research has examined the performance effects of
supplier choice ( Petersen, Handfield & Ragatz 2010 is notable exceotion), several
studies have investigated the effects of supplier integration. In some studies, supplier
integration is modeled as a construct separate from customer integration or internal
integration( Scrannel et al., 2010), However, there is a little that has been written
about the effect supplier selection on stock level control in the public sector in Kenya,
a gap which to bridge.
According to Handfield (2010) logistics creates time lead and place utilities in the
product and thereby helps in maximizing the value satisfaction to consumers. By
ensuring quick deliveries in minimum time and cost, it relieves the consumers of
holding excess stock. It also brings down the cost of carrying stock, material handling,
transportation and other related activities of distribution. Time lead is very important
component in customers perception of business performance, it has become an order
qualifier (Rushton, 2014). However, there is little that has been written about the
effect of time lead on stock level management in the county government in Kenya , a
gap which this study seeks to bridge.

2.4 Summary and Gaps to be Filled by the Study

The staff ought to be equipped with the necessary skills for enhanced controls. If the
staff lacks core competence professionally, they will not be able to address stock level
management controls appropriately hence there might be losses incurred due to
poorly managed stock.

If an organization has not enhanced Digital literacy, it will not be able to control
S.L.M to expectations of the shareholders because in automated stock system, an
entity can only succeed if the employees understand the systems put in place. The
study shows that Digital literacy is an important factor that affects stock level in the

19
public sector in Kenya. The study shows that Digital literacy has a significant
influence on stock level in the county government in Kenya. This implies that
increasing level of Digital literacy would increase the levels of stock level in the
county government in Kenya. This shows that Digital literacy has a positive influence
on stock level practices in the public sector in Kenya.

The study shows that supplier choice is an important factor that affects stock level
management in the public sectors in Kenya. This implies that increasing levels of
supplier choice support would increase the levels of S.L.M in Kenya. This shows that
suppliers choice has positive influence on stock level control in the public sector in
Kenya.

From the analysis of the literature on factors affecting S.L.M the researcher identified
that most of the research has been done on the factors affecting stock level in public
sector , a gap which this research intends to fill by investigating the factors affecting
S.L.M in the county government.

2.5 Conceptual Framework

Independent Variables Dependent variable

Digital literacy

Stock level
management

Record control

20
 Suppliers choice

Time lead

Figure 2.1 Conceptual Framework

Source; Author ( 2022)

2.5.1 Digital Literacy
Digital literacy has been conceptualized by a number of researchers as electronic
machines, devices and their applications that have both computing and
communication capabilities. Digital literacy refers to technologies and their
applications which combine data - processing and storage powers of computers with
the distance- transmission capabilities of telecommunications. In effect there is a need
for organizations to employ technology to help boost record control in public sectors.

2.5.2 Stock Level Management

21
Planning is done so that key stakeholders are in copy of county inventory
requirements. This can be done annually, quarterly and monthly. The plan helps the
county to prepare S.L.M levels in line with sales projections while allowing suppliers
to plan proactively to supply the right quantity in time.

2.5.3 Supplier Choice

Supplier choice is process of selecting a supplier to acquire necessary material to

support the outputs of an organization.

2.5.4 Time Lead

Time lead is defined as the number of minutes or days that must be allowed for the
completion of an operation or process. For this case is the period between order
placement and delivery of goods or services.

CHAPTER THREE
RESEARCH AND DESIGN METHODOLOGY
3.1 INTRODUCTION
This chapter outline the research methodology and procedures that were used in
carrying out the study. It describes the methods that researcher applied in carrying out

22
the study. It details the research design, target population, sampling techniques,
instruments for data collection and data analysis.

3.2 Research Design

Kothari (2012) describes a research design as a plan, structure and strategy of
investigation to obtain answers to research questions and control variance.
Additionally , a study design in the plan of researcher adopts for answering the
research questions and it sets up the framework for study or is the blueprint of the
researcher. The study adopted a descriptive research design. Descriptive research
design is employed to describe the present situation, what people currently believe
and what people are doing at the moment( Baumgartner et al., 2012). according to
Kathori(2014), descriptive research design includes surveys and fact-finding inquiries
of different kinds. The major purpose of descriptive research design is description of
the state o affairs as it exists at present (kathori, 2014). Descriptive studies are
essential in many situations especially in many situations especially when using
qualitative data in understanding the phenomena. This kind of survey design
attempted to help collect data by administering questionnaires to a sample of
individuals (Orodho,2013). The researcher inferred information about a population
based on responses of a sample drawn from the population.

3.3 Target Population

Target population as defined in kathori (2012) is a universal set of study of all
members of real or hypothetical set of people, events or objects to which a researcher
wishes to generalize the results. The target population of this study carried out at
KCG was picked from departments of ; marketing, production, sales and supply
chain. The target population was preferred since they are working on areas that were
of interest to the researcher. This is indicated in the table 3.1;

Tables 3.1 Target Population

Category Target population Percentage

23
 Administration 15 9

Marketing 4 3

Production 100 63

Sales 31 19

Supply chain 10 7

Total 160 100

Source : KCG (2022)

The targeted population composed of 160 respondents from various departments that
were of interest. The respondents were asked to provide information by filling in
questionnaires. The target population enabled the researcher to obtain accurate and
variable information from all the departments as targeted.

3.4 Sampling Methods and Procedure

A sample is a portion of target population that is representative of whole population
from which it is drawn in order to generalize the research findings (Orodho, 2013).
The main advantage of sampling is that it helps to reduce costs and time related to
observing the entire population. Babbie (2010) defines a sampling technique as a
strategy through which the researcher will arrive at the most qualified respondents to
the study questions. Since the population was divided into various categories of
Administration, marketing, production, sales and supply chain, a stratified random
sampling was used to collect data from the various strata of the respondents. A sample
of 80 employees was selected which represents 50% of the total population. This
technique ensured fair representation of all respondents and eliminated the aspect of
biasness. Stratifying the entire population will help ensure a sample that accurately
reflects the population that was being studied (Zinkmund et al., 2012).

Table 3.2 Sample Size

24
 Category Target population Sample size Percentage

Administration 15 7 9

Marketing 4 3 3

Production 100 50 62

Sales 31 15 19

Supply chain 10 5 7

Total 160 80 100

Source : Author (2022)

3.5 Data Collection Procedures

The researcher was able to measure results of secondary data and primary data
collection. Secondary data was obtained from various sources including books,
newspapers, internet, dissertations and journals articles. A self-administration
Questionnaire was used to collect primary data from the respondents. The researcher
also used both primary and secondary sources to collect data. The primary data was
collected using questionnaires because it is easier to prepare and to cover a wider area
within a short time. Kothari (2012) defines a questionnaire as a method for elicitation,
recording and collecting of information. The researcher used a self- administered
questionnaire method for all correspondents as it is inexpensive and allows the
respondents to complete the questionnaire at a convenient time. A questionnaire is
printed form containing a set of questions for gathering information administered by
researcher or his assistants, or self- administered under supervision or unsupervised.
The questionnaires were answered by each of the individual respondents
independently.

3.5.1 Research Instruments

25
Data was collected by use of structured survey questionnaires. The questionnaires
were distributed to a selected sample with use of research assistant to help in the
distribution and collection of the questionnaires. They were hand delivered and
collected after few days. The questions included both open and closed ended
questions. The closed questions were used to ensure that the given answers are
relevant. The researcher phrased the questions clearly in order to make clear
dimensions along which the respondents analyzed. In open ended question space was
provided for relevant explanation by the respondents, thus giving them freedom to
express their thoughts and suggestions.

3.5.2 Reliability and Validity

Reliability refers the extent that the research instrument yields the same results over a
multiple of trials while Validity refers to the extent that the instrument measures what
it was designed to measure (Chiang,2015). It can also defined as consistency across
time, across items and across researchers while validity is the extent to which the
scores actually represent the variable. To ensure reliability of this study; pretesting of
the questionnaires was done to find out whether the study gives similar results when
repeated. The researcher drafted questions which were pretested to remove ambiguity
and achieve a high degree precision. Permission was obtained from relevant
departmental section of the organization to circulate the questionnaires.
Questionnaires that had eras were discarded. All the units of analysis were
comprehensively studied and the whole population was taken into account.
Validity refers to the judgment of correctness of a measure for specific, decisions and
consequences, ( Muijs 2011). To test for validity, a pilot study was done to identify
the possible flaws such as ambiguous questions and time limitations of the intended
study. Five questionnaires were distributed to the stores and procurement team for
comments and the results scrutinized. This ensured validity as a few adjustments had
to be done on the questionnaire.

26
3.6 Data Analysis
Mugenda (2013), data consist of the figures and facts that relate to a certain
phenomenon under study. On the other hand , data analysis is the complete process
that begins with data collection up to the result interpretation and processing stage of
the study( Kathori, 2014). Before analysis; both qualitative and quantitative data was
edited, coded, classified and tabulated so that they are amenable for analysis. Data
was presented through the use of tables, charts and graphs.

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 Melody ,W. (2010). openness :The central issue in telecom policy reform
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QUESTIONNAIRE
SECTION A: PERSONAL INFORMATION

30
Kindly answer the following questions as accurately as possible. Your individual
response is strictly confidential and anonymous. Your answers shall be used for
academic purposes only. Please tick in the box [ ] corresponding to whatever your
choice is or state briefly where necessary.

Section A: Personal Information

1. Gender
(a) Male [] (b) Female []

vi. Age Bracket

(a) 18–25 [] (b) 26–33 []

(c) 34–41 [] (d) 42- 49 []

(e) Above 50 [ ]

3. Years of service in Kajiado County Government

(a) 8 and below [] (b) 9 – 17 years [ ]

(c) 18 and above years [ ]

4. Highest level of education:

(a) Secondary Education [ ] (b) Certificate []

(c) Diploma [] (d) Bachelor‟s Degree [ ]

(e) Post Graduate []

5. Position in the organization

(a) Top Management []

(b) Middle Management [ ]

31
(c) Operational Staff []

SECTION B: DIGITAL LITERACY

5 Does digital literacy affect the stock level management of material in Kajiado
county government, Kenya? Yes [ ] No [ ]
6. To what extent does digital literacy affect stock level management of material in
Kajiado county government, Kenya?

(a) Very Great [ ] (b) Great [ ] (c) Low [ ] (d) Very Low [ ] (e) No [ ]

Explain;
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
SECTION C: STOCK LEVEL MANAGEMENT

7. Does Stock level management affect management of material in Kajiado county

government, Kenya?
Yes [ ] No [ ]
8. To what extent does stock level management affect management of material in
Kajiado county government, Kenya?

(a) Very Great [ ] (b) Great [ ] (c) Low [ ] (d) Very Low [ ] (e) No [ ]
Explain:
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
SECTION D: SUPPLIER’S CHOICE
9. Does supplier’s choice affect stock level management of material in Kajiado county
government, Kenya? Yes [ ] No [ ]
10. To what extent does supplier’s choice affect stock level management of material
in Kajiado county government,Kenya?
(a) Very Great [ ] (b) Great [ ] (c) Low [ ] (d) Very Low [ ] (e) No [ ]

32
Explain…………………………………………………………………………………
…………………………………………………………………………………………
………
SECTION E: TIME LEAD
11. Does time lead affect stock level management of material in Kajiado county
government, Kenya? Yes [ ] No [ ]

12. To what extent does time lead affect stock level management of material in
Kajiado county government, Kenya?

(a) Very Great [ ] (b) Great [ ] (c) Low [ ] (d) Very Low [ ] (e) No [ ]
Explain:
…………………………………………………………………………………………
…………………………………………………………………………………………

Thank you for your Cooperation

APPENDIX II: WORK PLAN

WORK PLAN IN MONTHS

Task/Activity Details 2022

33
 May June July Au Sep Oct
g

Problem Identification

Literature review

Proposal development

Presentation

Data Collection

Data Analysis

Data Presentation

Corrections if any and

Final Submission

APPENDIX III: BUDGET

Items Total Cost (KES)
Printing Cost 3,000
Airtime 1,000
Binding (Hardbound cover) 1,500
Transport 2,000

34
Miscellaneous 3,000
TOTAL 10,500

35