European Journal of Logistics, Purchasing and Supply Chain Management (EJLPSCM)

EA Journals


The Procurement Threshold in the Procurement Act of Ghana, ACT 663 (2003) as Amended: Any Impact on Inventory Management of Tertiary Institutions in Ghana? (Published)

The Ministry of Education is one of the ministries in Ghana that spend a chunk of their budgetary allocation on procurement of commodities other than personal emolument. In the Ghanaian public sector, the acquisition of materials for operations is through the application of Ghana’s Public Procurement Act, Act 663 (2003) as amended in Act 914 (2016). This study focuses on the effects of procurement threshold in Ghana’s Procurement law on inventory management of tertiary institutions in Ghana. Specifically, the study focuses on establishing how procurement thresholds enshrined in the Public Procurement Act of Ghana affects quantities of items purchased for inventory. The study chooses the Cape Coast Technical University as its case study. In a descriptive study, forty (40) respondents were sampled and questionnaires were administered to them. Preliminary analysis were made in a tabular form and presented on a bar chart on the basis of the study objectives. After interpreting the data, the results of the study revealed that procurements thresholds instituted in the Public Procurement Act which are used to determine the procurements methods and approval authorities based on the contract value have some impact on inventory management. Among others, the study suggests that these thresholds must be reviewed at least every four (4) years to reflect current economic trends and situation of the country and again, frequent monitoring and evaluation of procurement entities by the Public Procurement Authority (PPA) must be strengthened to ensure compliance of the Procurement law in Ghana.

Keywords: Inventory., Management, Procurement Act of Ghana, Threshold, stock


With the increasing focus in enhancing supply management chain through use of the rapid development of Information and Communication Technology, businesses are seeking to develop and organize strategic, efficient and world-wide inventory control system for its use. In order to promote such global inventory control system, which are also compatible with sustainability objectives, organizations need to develop and implement effective systems both individually and collectively. This has resulted to Modern inventory control as a result of improved technology being one of the most strategic initiative embraced by organization in partnering initiatives for encouraging collaboration and information sharing among trading partners (Angulo, 2007). The main objective of the study was to investigate the impact of technology on inventory control systems in Kenya ferry services. The study adopted a descriptive research with survey of a total of 220 and applied a stratified random sampling technique to select a sample size of 60 respondents. Questionnaires were used as the main data collection Descriptive statistics analysis method was to analyze the gathered data. The study concluded that technology has had bigger impact on inventory control in terms of efficiency, ease of accessing information and accuracy thereby affecting organizational performance. The study recommends that modern inventory control systems should be well implemented since it forms a platform for ease of evaluating risk in which the organization invest a lot of money in purchasing of inventory. Additionally the study recommends that organization should integrate all its inventory management functions with information communication technology as well.

Keywords: Efficiency, ICT, Integration, Inventory., Procurement, Supplier

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