First, stock control was based on a simple physical plan and a
complicated data system. Several large godowns were to be built
in Dar es Salaam, with sections corresponding to the product
divisions, so that each product line would be contained under the
same roof and certainly all of any particular.

Product would be together. On the data side there were to be a
series of steps from order to replacement of stock shipped in
which branch orders were recorded, forwarded to godowns, filled
there, shipped, received, debited and credited to proper accounts
and replaced by produce divisions receiving information that or-
ders had been filled. The system was complicated enough and the
number of products large er.ough that the consultants recom-
mended the use of a computer to handle the data. The bulk of the
stock for each product was held in Dar es Salaam, from where
branches would draw stock as required. As aiready noted, 40
(mostly small) godowns in Dar es Salaam were the reality S.T.C.
had to work with, rather than 4 — § large ones. The complex stock
control systems, involving many pieces of paper between an order
from a branch and the final replacement of the item dispatched to
the branch, could not operate under the changed conditions, nor
was it flexible enough to accomodate minor alterations.

Second, the product divisions in Dar es Salaam made the initial
selection of all items. What this meant, especially in light of at-
tempts to narrow the number of specific brands in a product line
to as few as possible, was that branches ordered what was
available from the product divisions in Dar es Salaam. This
created the most serious problems in the case of raw materials and
spare parts where specifications were often crucial. The separation
of ultimate customers from those ordering stock caused a technical
divergence between supply and demand. With no alternative sour-
ces of supply, the potential effects upon customers is obvious.

Third, the most qualified manpower were concentrated in the
Head Office and product divisions. The bulk of the company’s
capital was also tied up in Dar es Salaam, in terms of stock, of-
fices, godowns and equipment.

Fourth, prsonnel matters were concentrated in the Head Office.
In practice, neither the product divisions nor the branches were
allowed to hire even low salaried people without the direct ap-
proval of the Head Office. For example, some 18 steps were in-
volved from the first request of a branch to add a salesman to the

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