Supplier and stocks management practices at Cocoa Processing Company Limited

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Supplier and stocks management practice continues to be growing phenomena in most cocoa processing companies all over the world. Decision about how many of which products are to be in the warehouse, when to place next the orders, the quantities to be ordered are some of the problems encountered every day. High level of stock locks up the capital of any company. Hence, the aim of this study is to uncover the best stocks management practice and supplier management that will make the Cocoa Processing Company (CPC) adhere to the value for money in capital and recurrent expenditures with relation to procurement law in the country. The objectives are to identify the suppliers and stocks management principles adopted and utilized; assessing the effectiveness of Cocoa Processing Company‟s Suppliers an d Stock control management; examining the challenges encountered in the application of supplier and stock control management and ascertain whether or not learned from these principles. A thorough literature review was done, hence questionnaires was designe d and administered to total sample of seventy-three respondents which was made up of various departments who are involved in suppliers and stock management processes. Data was analysed using Statistical Package for Social Science (SPSS, Version 16) through the use of descriptive statistics (percentages). The findings of the study point out to the fact that computerized system are used in taking inventory, however, these is only used at the stores and not accessible by end-users. In addition some of the challenges the study revealed include: non -availability of production materials, the trade system adopted by the government has constrained the company in production activities and the power outage has led to increase in production. Again, congestion at Tema port has caused untimely delivery imported input. More importantly, the study revealed that the company has failed in documentation due to redeployment strategies which does not fit current trend company status. The study therefore recommend that Appraisal Tender Review Committee (TRC) should be vibrant in ensuring effective and efficient dissemination of information to entire staff on procurement processes and procedures to enable informed decisions by CPC Management. Capacity training on knowledge and skills acquisition in procurement management for staff should be encouraged. There should be the engagement of material manager for the coordination of departments involve in handling all suppliers of production stocks and materials. The implication of the study gives a directional approach to the management of suppler and stocks management at CPC Ltd and adheres to will improve the performance of the company as a whole.
A dissertation submitted to the Department of Building Technology Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the degree of MSc Procurement Management