Impact of Inventory Management Practices on Small and Medium Enterprises Manufacturing Subsector In Oyo State, Nigeria

Abstract

This study examines the impact of inventory management practices on the performance of SMEs manufacturing sub-sector in Oyo State, Nigeria. A survey of 129 randomly selected from three (3) cities such as Ibadan, Ogbomoso and Oyo town. The data collection instrument was a structured questionnaire designed for the study. Data were analyzed with the aid of descriptive statistics such as simple percentage and mean. Results reveal that inventory management practices have positive and significant impact on the performance of SMEs manufacturing sub sector. Furthermore, results also reveal that delay in delivery of materials, use of manual inventory management system/lack of technology, lack of professional personnel, holding too much/too little inventory, purchase of materials with a near expiration date, insufficient funds for procurement and use of outdated storage facilities are the major factors affecting effective inventory management practices in SMEs manufacturing sub-sector in Oyo State, Nigeria. Subsequently, the study recommends that SMEs operators/ mangers should be encouraged to adopt information technology in inventory management. Also, SMEs operators and managers should be encouraged to constantly attend conferences, seminars and workshops in Nigeria and abroad in order to improve their skills on inventory management.

Accounts Payable Turnover and Firm Performance of Quoted Manufacturing Firms in Nigeria

“…Many studies also focused on profitability ratios, such as ROA, ROE, etc., and a few studies, which include studies by Amahalu (2018), used information from annual reports and accounts to examine the effect of inventory turnover period on growth proxied by sales growth; however, the study was limited to only firms in the brewery sector. Other studies, including Kareem (2018) focused on SMEs using survey methodology. Thus, the literature is filled with studies mainly based on survey methodology and OLS regression techniques.…”

“…However, in the Nigerian context available evidence suggests that non-financial firms lack definitive credit and operational techniques which are required for survival in the 21 st century (Ogbo & Ukpere, 2014). Prior studies have focused mainly on inventory management and firm performance; such as Amahalu (2018), Kareem (2018) in Nigeria; Atnafu and Balda (2018) in Ethiopia;and, Bawa, Asamoah, and Kissi (2018) in Ghana. Despite the importance of inventory management to the success of a firm (Agu, Obi-Anike, & Eke, 2016); however, the management of other elements in the operating cycle is still desirable for improved performance in today's competitive and dynamic business environment.…”

“…The third issue tackled in the present study is the industry selection bias (Hussain, Nguyen, Nguyen, Nguyen, & Nguyen, 2021) and the sample inadequacy of prior studies conducted in the Nigerian context. For instance, studies by Kareem (2018) focused on SMEs; Akinlabi (2017) on flour mills companies; Agu et al (2016), Anichebe and Agu (2013) on three companies; Ogbo and Ukpere (2014) case study of 7up Bottling Company; and, Oliomogbe (2002) case study of Nigeria Breweries and Nigeria Bottling Company Plc. Amahalu (2018), focused on only firms in the brewery sector.…”

Assessment of the Triggers of Inefficient Materials Management Practices by Construction SMEs in Nigeria

“…This is, despite the efforts of successive government to strengthen Nigerian SMEs. Non-construction SMEs have failed to perform and contribute significantly to national economic growth and development (Kareem, 2018), and this is no different from Construction SMEs. This failure could be attributed to management issues as regards materials and other project and organisational resources.…”

“…Mismanagement of material and other resource has been one of the major challenges facing SMEs globally (Kareem, 2018). As a result of inefficient management of resources, about 5% of global GDP is lost (International Bank for Reconstruction and Development, 2014).…”