Abstract: Inventories constitute a significant proportion of current assets in distribution firms; therefore, it is necessary that inventories must be controlled efficiently and effectively in order to avoid unnecessary investment of funds and thereby to improve the firm’s performance. Distribution firms are constantly seeking to improve their inventory control system in order to stay afloat in business and stay clear from extensive competition from their competitors. Supply chain performance is achieved through a proper inventory control system; when the firm is able to meet end customers’ needs associated with ensuring the availability of product, delivering it on time in the right way and ensuring appropriate inventory level. This study therefore sought to examine the effect of inventory control system on supply chain performance in distribution firms in Kenya. The study was a case study research design as it places more emphasis on the full contextual analysis of fewer events and their interrelation. The target population of the study consisted of staff from the four distribution centers in Nairobi (Mugoya, Kenroid, BDC and SDV Transami). The study adopted stratified random sampling as a sampling technique in selecting the sample data. Data collection instruments were structured questionnaires to collect primary data. The study also made use of secondary sources of data. Data was analyzed using SPSS version 21. Findings were presented in form of tables, graphs, charts and figures followed by interpretation and discussion of the findings. Afterwards, conclusions and recommendations were drawn. Correlation analysis was employed to know the relationship between variables. Multi linear regression results have those four predictors can explain 65.61% of change in supply chain performance. Following the results of the study it’s worthwhile to conclude that there is a positive and significant relationship between inventory control system and supply chain performance in distribution firms through staff competence, order size, customer service level and lead time. Further research study can be conducted in other distribution firms and other sectors of the economy to establish if inventory control system has an effect on supply chain performance. The study recommended that distribution firms should embrace inventory control system so that they reap from immense benefits accrued from an efficient and effective system, it should also be encouraged to attain supply chain performance.
Keywords: avoid unnecessary investment of funds, Distribution firms.
Title: Effects of Inventory Control System on Supply Chain Performance in Distribution Firms in Kenya: A Case of Bollore Africa Limited
Author: EMELDA NYAKOBOKE KAMANDA, DR. NOOR SHALE
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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