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. George Ochiri

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

CITATION: Muli, G., M. & Ochiri, G. (2019). Effect Of Inventory Management Systems On Performance Of Retail Supermarkets In Nairobi City County, Kenya. International Journal of Human Resources and Procurement. Vol. 8(7) pp 22 - 43.

ABSTRACT

Retail industry has seen growth in the past years with the formal retail reaching penetration rates of between 25 to 30 percent and the average value of a shoppers’ basket has also increased by 67% in the last five years, placing Kenya the fastest growing retail market .The study sought to establish the effect of inventory management systems on retail supermarkets performance in Nairobi City County to achieve this, the study reviewed both theoretical and empirical literature and proposed the research methodology that addressed the gaps identified in literature as well as answering the research questions. The Literature was reviewed along themes and theories that was used to access the observation and opinions related to the study and the study used four variables, resource based theory, agency theory, theory of constrains, adaptive structuration theory to explain the four independent variables. The study has adopted a descriptive research design which has enabled the researcher to have an open mind in achieving the in-depth study of the main objective of the study .The population of the study comprised of officers in the inventory management department of the 52 supermarkets of study in Nairobi City County. Two inventory officers from the supermarkets were selected to represent the population through a simple random technique. Questionnaires were issued and data was collected using the issued self-administered questionnaires. The collected data was analysed by use of descriptive and inferential statistics. The quantitative data generated was keyed in and analysed by use of Statistical Package of Social Sciences (SPSS) version 23 to generate information which will be presented using tables, charts, frequencies and percentages. Multiple regression models was used to show the relationship between the dependent variable and the four independent variables in this study. The response rate of the study was 95%.and the findings of the study indicated that enterprise resource planning, vendor managed inventory, electronic data interchange and just in time have a positive relationship with retail supermarket performance. Conclusively the study recommended that retail supermarkets should embrace the use of inventory management systems in order to improve overall organization performance and further researches should to be carried out in other industries to find out if the same results can be obtained.