Statistical Analysis of Inventory Management Systems on Organizational Performance

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The main purpose of the study was to investigate the effect of physical distribution management on organizational performance by Rutungu Distributors Ltd, Kampala (U). The study assessed the relationship between order processing and organizational performance in Rutungu Distributors Ltd in an attempt to establish the relationship between storage and organizational performance in the organization. It also sought to find out the relationship between other aspects of inventory management on organizational performance within the company. The research used a case study design approach which was correlational considering both quantitative and qualitative approaches in the data collection, presentation, and analysis. The population of the study was several categories of employees of the company. Findings from the study depicted that there is a positive significant relationship between order processing and organizational performance implying that when a customer submits an order, it is verified to ensure the necessary information is included and processed promptly. Storage and organizational performance; this means that the company can reduce damage through good materials handling. There was a positive significant relationship between inventory control and organizational performance as a result of heavy investment in inventory control practices and procedures. There was also a positive significant relationship between transportation and organizational performance showing that the company has an effective automated transportation system, observes well-coordinated fleet management practices, and also has a good vehicle maintenance policy. The study thus recommends the company to continue reducing the time it takes to get an order to a customer’s premises and to replenish its stores as it is what every company desires, but while faster fulfilment and small order sizes make customers, and store managers happy, faster fulfilment comes at a cost.