INFLUENCE OF INVENTORY MANAGEMENT PRACTICES ON PROCUREMENT PERFORMANCE AMONG MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA

Abstract

The purpose of the study is to assess the influence of inventory management practices on procurement performance of manufacturing firms in Nairobi County, Kenya. It is aided by the following objectives, to explore the influence of material specification on procurement performance, to determine the influence of material management techniques on procurement performance, to examine the influence of material receipt controls on procurement performance and find out the influence of material delivery deviation controls on procurement performance of manufacturing firms. The study uses descriptive study design. The study aims at collecting information from respondents on the influence of material management practices on procurement performance of manufacturing firms in Kenya. The study analyzed different theories to expound on the relationship between the inventory management practices and procurement performance of manufacturing firms. The study employed stratified random sampling technique in coming up with a sample size of 213 respondents from a total of 455 target population in manufacturing firms in Nairobi, Kenya.. Pilot study was carried out to establish the reliability and validity of research instruments. Statistical Package Social Science analysis and Descriptive statistics were presented through pie charts, table and descriptive notes. Multiple regression model was used to show the relationship between the dependent and independent variables. A good response rate of 80% was realized. It was established that most of the firm’s inventory management practices had positive impact on procurement performance. The study further adopted a regression analysis to determine the relationship between the variables at 5% level of significance. The study findings showed that the four variables had a significant influence on procurement performance. The study indicated that there has been limited amount of research on influence of inventory management practices on procurement performance of manufacturing firms in Nairobi Kenya. Thus, the findings of this study serve as a basis for future studies on inventory management practices. The inventory management practices and procurement performance of manufacturing firms in Nairobi Kenya, has not been widely studied which presents gaps in African and Kenyan contexts. The study contributed to knowledge by establishing that material specification, material management techniques, material receipt controls and material delivery deviation controls influence procurement performances.