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INFLUENCE OF INVENTORY MANAGEMENT SYSTEMS ON PROCUREMENT PERFORMANCE IN RETAIL INDUSTRY IN KENYA: A CASE OF UCHUMI SUPERMARKETS IN NAIROBI COUNTY

 

 

Gerishom. K. Mjomba

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Dr. Allan Kihara

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.

 

CITATION: Mjomba, G., K. & Kihara, A. (2018). Influence of Inventory Management Systems On Procurement Performance in Retail Industry in Kenya: A Case of Uchumi Supermarkets in Nairobi County. International Journal of Human Resources and Procurement. Vol. 7 (3) pp 82 – 101.

ABSTRACT

Effective inventory management is the result of outstanding inventory control and inventory management within an organization. This study analyzed the influence of inventory management systems on procurement performance in retail industry in Kenya. The study therefore analyzed on how Enterprise Resource Planning systems, Electronic Data Interchange (EDI), Bar code and scanner and Vendor Managed Inventory (VMI) affect procurement performance in retail industry in Kenya. Descriptive research design was used in the study. The study was based in Nairobi County with the target population of all employees of Uchumi hyper outlet in Sarit center in Nairobi which has a total of 126 employees. A census of 126 was used. In collecting the data, open-ended and closed-ended questions were used. Questionnaires was adopted in collecting data which was analyzed qualitatively and quantitatively by use of descriptive statistics feature in SPSS version 21 to generate information which was presented using pie charts and tables. Pilot testing was carried out using four respondents who were selected randomly to establish the validity and reliability of the research instruments before the actual collection of data for the study was done. The multiple regression model was used to show the relationship between the dependent variable and the independent variables. The findings of the study indicated that there is positive relationship between inventory management tools and procurement management. The study recommended that retail industry should ensure reversing the current phenomenon of poor inventory management through maximum use and utilization of inventory management systems towards enabling a company to meet or exceed customers’ expectations of product availability with the amount of each item that will maximize net profits or minimize inventory investment.

 

Key words: Electronic data interchange (EDI), Enterprise resource planning systems, Barcode and scanner, Vendor managed inventory system, Barcode and scanner, Vendor managed inventory system, Procurement Performance

 

 

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