Inventory Management and Performance of SMEs in the Manufacturing Sector of Harare

Abstract

Abstract The study assessed the inventory management (IM) strategies that are used by SME’s in the manufacturing sector of Harare, Zimbabwe. The study comprised of the population from Gleview complex, Siya So Mbare, Kuwadzana, Gazaland and Magaba industrial sites. Respondents were selected from the each of the companies which the researchers selected purposively. The study used qualitative research design which was descriptive in nature. The study also used purposive sampling technique. A sample used a sample size of 244 respondents. Data was collected from the questionnaires which were completed and received back. The research established that most SME’s use the Just-In-Time method of inventory management and do not have knowledge on the other computerized systems and methods. Since companies use JIT method, SME’s face challenges in the supply chain as they always have to make sure they have constant communication with their suppliers and also to reduce the time in which they receive materials. However, due to lack of computerized communication, they have to make orders when they are needed which would make delays to the customer. Due to the finding, the researchers concluded and also made request for further studies on specific areas which needed more time and clarity.