Factors affecting on Container Inventory Management (CIM): Evidence from Container depots in Sri Lanka

Abstract

Container inventory and management (CIM) is an integral part of running a successful container logistics operation, allowing for best-in-class container utilization and low-cost operations. Ineffective container inventory management has become a fairly widespread concern in the shipping industry. carrier's extensive fleet is essentially useless if it is not managed effectively and efficiently. The container inventory can be managed effectively to maintain a smooth balance between supply and demand while reducing potential extra expenses by adhering to efficient and effective procedures. This paper proposes some factors affecting to container inventory management [CIM] in Container depots in Sri Lanka. Accordingly, a target population of 384 senior employees in the field are followed by a questionnaire survey have been carried out and data were analyzed mainly using Chi-Square test. Researcher believes that responses received by employees whom with experience more than 10 years can highly influence on the output of the study based on judgmental sampling method.Data analysis, reliability analysis, demographic factor analysis, descriptive statistical analysis, cross tabulation analysis, and correlation analysis. Chi-square testing and multiple regression analyses were used. With the expertise point of view, this study would lead to understand the factors influence on CIM. After clear analysis, the study concluded four factors namely, demand and supply of containers, high shipping rates, imports and exports trends and cargo seasonality have an influence on the container inventory management. It’s acceptable that no any party can completely avoid such consequences, but the researcher believes that with proper identification and planning accordingly, this ineffectiveness of container inventory management can be lessened or controlled. With no doubt, taking proactive measures will positively impact on container industry of Sri Lanka as well as the economy of the country.