Impact of Inventory Management Practices on Small and Medium Enterprises Manufacturing Subsector In Oyo State, Nigeria

Abstract

This study examines the impact of inventory management practices on the performance of SMEs manufacturing sub-sector in Oyo State, Nigeria. A survey of 129 randomly selected from three (3) cities such as Ibadan, Ogbomoso and Oyo town. The data collection instrument was a structured questionnaire designed for the study. Data were analyzed with the aid of descriptive statistics such as simple percentage and mean. Results reveal that inventory management practices have positive and significant impact on the performance of SMEs manufacturing sub sector. Furthermore, results also reveal that delay in delivery of materials, use of manual inventory management system/lack of technology, lack of professional personnel, holding too much/too little inventory, purchase of materials with a near expiration date, insufficient funds for procurement and use of outdated storage facilities are the major factors affecting effective inventory management practices in SMEs manufacturing sub-sector in Oyo State, Nigeria. Subsequently, the study recommends that SMEs operators/ mangers should be encouraged to adopt information technology in inventory management. Also, SMEs operators and managers should be encouraged to constantly attend conferences, seminars and workshops in Nigeria and abroad in order to improve their skills on inventory management.