Influence of Inventory Control Practices on Procurement Performance of Agrochemicals Distributors in Nakuru Central Sub-County, Kenya

Benjamin Nyariki Onchoke

doi:10.11648/j.ijefm.20160403.14

Abstract

The purpose of this study was to establish the Influence of inventory control practices and procurement performance of Agrochemical Distributors in Nakuru Central Sub-County. The study was a survey as it sought to determine the relationship between internal inventory control and procurement performance in agrichemical distributors in Nakuru Central sub-county within limited time frame. The respondents in this study were the employees in Agrochemical Distributors in Nakuru Central Sub-County. Data was collected through structured questionnaires that were self-administered by the researcher through drop and pick technique. The respondents were given ample time to fill the questionnaires after which they were collected for analysis. The filled questionnaires were checked before coding for analysis. SPSS version 21 was used in analyzing the collected data. Frequencies and percentages were used to describe individual indicators of internal inventory control and procurement performance while correlation and regression analysis for and influence of internal inventories control practices on procurement performance. The results of the study were presented using tables that were accompanied by explanation. Findings of the study revealed that Internal Inventory Security Procedural Practices, Inventory Auditing and Computerized Inventory Control both individually and collectively have significant positive influence on Procurement Performance. The study recommends that further study should be conducted to assess how internal inventory security procedural practices can be adopted by public institutions and whether such practices can be incorporated in the public procurement regulations. Also, further studies can be done to establish the integrated role of internal and external audit in inventory control especially in manufacturing and distributing organizations and to determine the influence of computerized inventory management on supplier and customer relationship management in manufacturing and distributing organizations.

Highlights

The current supply chain environment is characterized with numerous risk factors that may negatively affect internal supply chain operations of an enterprise
Correlation analysis was done to determine the relationship between Inventory Security Practices, Inventory Auditing, Computerized Inventory Control and Procurement Performance
The first conclusion was made that internal inventory security practices have significant positive influence on procurement performance

Summary

Introduction

The current supply chain environment is characterized with numerous risk factors that may negatively affect internal supply chain operations of an enterprise. Scholars have regarded these factors as supply chain risks. For an organization to successfully operate and compete in the current risky supply chain environment, the organization must put into place effective control measures within its internal supply chain. According to Posazhennikova (2012) one of the strategies currently adopted by enterprises is development of an effective internal inventory control system. Bartmann (1992), To Score (2002), inventory control involves the procurement, care and disposition of materials while to Posazhennikova (2012), inventory control is concerned with understanding organizational and customer requirements, forecasting and scheduling for inventory delivery based on lead times and developing inventory

Objectives

Methods

Results

Conclusion