The Influence of Vendor Managed Inventory on Procurement Function of NCPB in Uasin Gishu County
Abstract
Procurement is a critical management function for most companies large companies, medium-sized companies, and small companies. Inventories are important to the successful operations of manufacturing and processing industries. However, the procurement function at NCPB does not control their inventories properly hence resulting in understocking and causing the organizations to stay off production, thereby resulting in organizational ineffectiveness. This study sought to determine the influence of vendor-managed inventory on the procurement function of NCPB in Uasin Gishu County. The study adopted a stratified sampling technique in establishing the sample for the study. Yamane sample determination formula. Questionnaires were used by the study to collect the data. The semi-structured questionnaire was self-administered to increase the response rate. The study analysed the results using the SPSS software version 24. Regression analysis was used to develop a regression model expressing the hypothesized relationship between variables under study. The researcher regressed the variables at a 5% significance level to determine the strength of the variables and the direction of their relationship. The study found that vendor-managed inventory has a positive and statistically significant effect on the procurement function at NCPB in Uasin Gishu county (Î =0.327; p<0.05). The study concluded that inventory management needs to be embraced to help the management team appreciate the direct impact of these initiatives. The study recommended that the adoption of flexible inventory management practices through appropriate research will help efficiently and effectively meet the business's diverse yet drastic changing needs as well as address challenges arising from a dynamic global business environment. The study draws the findings about the topic under the study. However, procurement is a function that ensures the overall success of the organization.
Keywords: Vendor Managed Inventory, Procurement
References
Adeyemi, S. L., & Salami, L. O. (2010). Inventory Management: A Tool for Optimizing Resources in a Manufacturing Industry. Journal of Social Science, 23(2), 135-142.
Akelo, E. (2011). The Impact of Inventory Management Practices on Performance of NGOS in Kenya. University of Nairobi: Business and Public Policy, 4(1)1-8.
Anichebe, R., & Agu, K. M. (2013) Effects of Inventory Management on Organizational Effectiveness in Selected Organizations in Enugu. International Journal of Economics, Commerce and Management, 5(11), 625-636.
Aro-Gordon, S., & Gupte, J. (2016). Contemporary Inventory Management Techniques: A Conceptual Investigation. Proceedings of the International Conference on Operations Management and Research, Mysuru, India.
Blackburn, J. (2010).” Fundamentals of Purchasing and Inventory Control for Certified Pharmacy Technicians “Texas Tech University, Health Sciences Center, School of Pharmacy. Strategic Journal of Business and Change Management, 4(5), 43-45.
Boisdeffre, (2016). Role of Just in Time Management on Warehouse Management in France.
Strategic Journal of Business and Change Management, 7(5), 134-145.
Boisdeffre, MD. (2016). Opinion Piece: The Importance of Records Management in France.
Records Management Journal 16(2), 76-81.
Cooper, D.R., & Schindler, P.S. (2014). Business Research Methods. (9th Ed.). New York: McGraw-Hill.
Creswell, J., W. (2013). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. (4th Ed.). London: Sage Publications
Deloitte (2014). The Deloitte Consumer Review Africa: A 21st Century View.
Dess, G. G., & Robinson, R. B. (2014). Measuring Organizational Performance in the Absence of Objective Measures: The Case of the Privately‐Held Firm and Conglomerate Business Unit. Strategic Management Journal, 5(3), 265-273.
Dimitrios, P. (2008). The Effect of Inventory Turnover Management Practices on Firm Performance. International Journal of Productivity and Performance Management, 57(5), 355–369.
Drost, E., A. (2011). Validity and Reliability in Social Science Research. Education Research and Perspectives, 38(1), 105-123.
Edwin, R., & Florence, W. (2015). The Effect of Inventory Investment on Profitability of Cement Manufacturing Companies in Kenya: A Case Study of Listed Cement Manufacturing Companies in Kenya. International Journal of Academic Research in Business and Social Sciences, 4(4), 60–74.
Eroglu, C. (2011). Lean, Leaner, Too Leaner. The Inventory Performance Link Revisited. Journal of Productivity and Performance Management, 17(4), 34-43.
Eroglu, C., Brent, W., & Waller, M. (2011). Consumer Driven Retail Operations. The Moderating Effect of Consumer Demand and Case Pack Quantity. International Journal of Physical Distribution and Logistics Management, 41(5), 420-434.
Esther, U. U. (2012). Effectiveness of Inventory Management in a Manufacturing Company.
Thesis, Caritas University, Amorji-Nike, Department of Accountancy.
Field, A. (2013). Discovering Statistics Using SPSS. (4th Ed.). London: Sage Publication. Govindan, K. (2013). Vendor Managed Inventory: A Review Based on Dimensions. International Journal of Production Research, 51(13), 3808-3835.
