Abstract: Proper inventory management has a significant effect on project performance. Construction companies play a major role in setting up and completing projects that contribute to the overall growth of an economy. Over the past years, the construction companies in Nairobi have been experiencing performance-related challenges in their projects. At times, inventory costs run beyond the estimates, which eventually results in losses for the firms. Some of the large construction companies have many projects with fixed prices based on the contracts, and they sometimes bear the risk of cost overruns. The companies sometimes experience interrupted operations because the inventory runs out of stock. However, most of them have insufficient inventory management approaches. It leads to a delay in finishing projects, and they incur more costs than their estimates during budgeting. This study investigated the effect of inventory management controls on project performance of selected construction companies in Nairobi City County, Kenya. The target population included three construction companies in Nairobi; Seyani Bros Ltd, Intex Ltd and Epco Builders Ltd. 686 employees were drawn from Seyani Bros Ltd, Intex Ltd and Epco Builders Ltd specifically working in procurement, finance and warehouse departments. A sample size of 206 was obtained through stratified random sampling technique. Using self-administered questionnaires, primary data was obtained and used to establish the sample size. Multiple regression analysis was utilized for inferential data analysis to establish relations between dependent and independent variables. The study found that inventory management controls significantly and positively impact the project performance of the selected construction companies in Nairobi County. The study concluded that through inventory management controls the construction firms may regulate inventory levels by keeping the right amount of each product in stock, monitoring their purchase orders, and maintaining a working supply chain. The study recommended that the construction companies should embrace inventory management controls specifically; warehouse security measures, minimal double handling of materials, stock taking, inspection of materials and accounting controls.
Keywords: Inventory Management Control, Project Performance.
Title: EFFECT OF INVENTORY MANAGEMENT CONTROLS ON PROJECT PERFORMANCE OF SELECTED CONSTRUCTION COMPANIES IN NAIROBI CITY COUNTY, KENYA
Author: Orechi Gesare Rose, Dr. Alfayos Ondara
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 10, Issue 2, October 2022 - March 2023
Page No: 175-181
Research Publish Journals
Website: www.researchpublish.com
Published Date: 10-November-2022
