Improving performance of store management: a case study of Dhaka Electric Supply Company Ltd. (DESCO)
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Creation of Dhaka Electric Supply Company is a part of the reforms being initiated by the Bangladesh Government to increase efficiency in the area of generation, transmission and distribution. After its commencement on September 24, 1998 DESCO proved successful and therefore in the subsequent years of successful operation and performance, the operational area of DESCO was expanded and the total consumer growth increased. Being the first public limited company in the energy sector, DESCO is now considered as a profitable company which is managed efficiently and economically with optimum cost and manpower. Consequently DESCO Management has to face lots of challenges and threats as well as opportunities to improve its operational performance. DESCO‘s stores and spares stand almost two-fifth of the shareholder‘s equity. Again in recent days, physical storage and distribution has crucial roles to play for the organisation. The role of the management of stores is concerned with improving both the efficiency and the effectiveness of the stores function by seeking to eliminate waste from activities that add cost to the supply chain, while maximising those areas that add value. Before starting of this thesis, the researcher assumed that Store Management of DESCO has no specific long term vision and goals in its stores. In addition, the researcher also assumed that existing performance of Store Management is not that much satisfactory in terms of efficiency and effectiveness in comparison with the standards of similar industry. In general, this study is expected to helpful to the policy makers of DESCO to improving the existing performance of Store Management. The objectives of the study were achieved through three approaches; the first one was a valid questionnaire that was obtained from respondents‘ of DESCO. The second one is achieved through studying some practical cases, experienced by Store Management overtime. The third one is achieved through key informant interviews of store related officers and staffs of DESCO. A questionnaire was prepared to know the general perception and attitude regarding Store Management, to determine its objectives and scope, to evaluate the strategic factors affecting the choice of Store Management, to appraise and evaluate the role and effects of different stores, to assess Inventory Management, to examine and analyse security in different stores, to examine health and safety and legal issues involved in Store Management and to evaluate the use of information and Communication Technology at Central Store. After getting the response from the respondents‘ from questionnaire, practical experience and key informant interview, the study recommends some of the key areas for improvement of store management. The researcher recommends a number of possible ways in certain improving areas to DESCO Management like organization and management, personnel management, store management strategy, stock rotation and control, safety measures, security, warehouse premises, material handling equipment, dispatch, ICT, disposal of goods, inspection etc. The researcher believes that if DESCO Management considers and implements those recommendations in store management then existing performance of store management would certainly improve. Store Management is now considered as an inseparable part of all business. If effectively maintained and organised, Store Management of DESCO could keep safe custody of materials, their receipts, issues, and accounting with the objective of efficiently and economically providing the right goods at the right time whenever required in the right condition to all user departments.