Research on the Impact of Inventory Management Practice on Organizational Performance in Telecommunication Companies

Abstract

Abstract: This research study examined the impact of inventory management on organizational performance in telecom companies. The study used a descriptive study design, and SPSS was used to conduct statistical analysis. In order to choose the samples, the researcher used both purposive and simplerandom sampling methods. Data for the study was collected from 130 respondents out of which 92 responded making the research valid. The relationships and hypothesis proposed in theconceptual framework were tested using multi-linear regression equation model. The research results indicate that higher levels of inventory management practice can lead to an enhanced competitive advantage and improved organizational performance. The study also accepted the hypothesis that was tested that inventory management and organizational performance have a significant positive relationship. Therefore, it is recommended that telecom organizations in Uganda should adopt Vendor management inventory, maintain good communication with the suppliers as this helps to eventually transfer inventory management responsibilities from the company’s procurement function to the vendors thus revamping organizational performance and increasing their competitiveness. They should also update their inventory management system in order to improve effectiveness by investing more money in the latest IT systems and utilizing sophisticated technologies such as purchasing fuel sensors for inventory monitoring and management so as to minimize on downtime and as well as cost reduction. The research study alsosuggests that management should take a more proactive approach to the problem of inappropriate inventory management strategies being used by constantly exposing its employees to training ona regular basis in order to strengthen their inventory management skills and allow them to understand current inventory management systems thus if implemented it can enable the companyin lowering costs by ensuring that stock records are maintained accurately and kept in order to prevent the risk of overstocking or understocking. Key words: Inventory management, Organizational Performance, Telecommunication companies