Abstract: The primary purpose of this study was to find out the extent to which inventory management practices influence organizational performance in the Kenyan retail sector, specifically targeting the large retail stores in the county of Kisii. The specific objectives of this research project research are to determine the influence of inventory auditing, inventory demand forecasting, automation, and inventory turnover on organization performance in the retail stores of Kisii County. The study took place in large retail stores in Kisii town. The survey design methodology was adopted for the study with a target population of 810 large retail stores drawn from different segments of the retail sector. Sample selection used stratified random sampling based on the size of the retail stores. The findings thereafter indicated that 97% of the respondents were in agreement that stock taking procedures have disclosed the possibility of fraud pilferage theft and loss thus leading to savings. 94% agreed that stock taking facilitates comparison of physical stocks with stock records. 92% of the respondents were in agreement that records have helped in preparation of financial statements which show the performance of their business overtime. 69 % of the respondents agreed that at some predetermined time they count inventory by use of periodic cycle counting. The findings further indicated that 39% of the respondents were in agreement that they have advanced forecasting tools that enable improvement in cost reduction, 48% agreed that they have put in place correct forecasting methods thus reduction in stock outs, 77% of the respondents were in agreement that by conducting social media surveys they have known their customers preferences and changes leading to customer satisfaction. 57 % of the respondents agreed that regular forecasting accuracies leads to increased profits findings reveal that 56% of the respondents agreed that they use automated tools and techniques for order processing to enhance timely delivery of inventory to the organization. 49% agreed that their computers systems are linked with the suppliers in a real time environment. 56% of the respondents agreed that they have put in place electronic point of sale systems and closed-circuit televisions to monitor merchandise loss. 53 % of the respondents agreed that their systems are effective to deter merchandise loss from the retail stores, and 56% of the respondents agreed that their systems facilitate accurate information on the current inventory on stock. The researcher recommended that the retailers in Kisii town should incorporate quantitative inventory demand forecasting tools and market research methods in inventory demand forecasting this is because this will form an essential component since it is the driver for supply chain decisions, demand forecasting will also help in optimization of inventory levels, it will also serve as a vital information for inventory levels this will reduce the bullwhip effect leading to optimization of inventory levels and reduction of stock outs and overstocking. The researcher further recommends that the retailers should take advantage of automation in areal time environment to enhance timely delivery to their premises, the systems should be well maintained to deter merchandise loss and theft from the retail outlets, automation should be able to create fewer layers; each employee to be responsible for a more diverse set of responsibilities, real time data in the retail sector will empower fast decision making as when the need arises. The use of Point of sales (EPOS)should always show which product categories are most profitable, the products that are popular so that procurement officers will purchase strategically so that at the end will determine what will be in stock. The researcher further recommends that the pick and pack processes in Kisii retail outlets should be able to keep customers happy and improve accuracy, the retailers should consider automation, most of the retailers spent 60% of their time walking and moving product around they should instead embrace conveyer technology to reduce their extensive travel time. The attendants should walk less to reduce fatigue, they can make mistakes while tired this will lead to inventory loss and errors.
Keywords: stock taking, forecasting inventory demands, automation, pick and pack, organizationa performance.
Title: INFLUENCE OF INVENTORY MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN RETAIL SECTOR IN KENYA: A SURVEY OF LARGE RETAIL STORES IN KISII TOWN
Author: Emily Nyanchama Nyang’au, Professor Willy Muturi
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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