Influence of Inventory Control Practices on Procurement Performance of Agrochemicals Distributors in Nakuru Central Sub-County, Kenya

Abstract

Abstract:The purpose of this study was to establish the Influence of inventory control practices and procurement performance of Agrochemical Distributors in Nakuru Central Sub-County. The study was a survey as it sought to determine the relationship between internal inventory control and procurement performance in agrichemical distributors in Nakuru Central sub-county within limited time frame. The respondents in this study were the employees in Agrochemical Distributors in Nakuru Central Sub-County. Data was collected through structured questionnaires that were self-administered by the researcher through drop and pick technique. The respondents were given ample time to fill the questionnaires after which they were collected for analysis. The filled questionnaires were checked before coding for analysis. SPSS version 21 was used in analyzing the collected data. Frequencies and percentages were used to describe individual indicators of internal inventory control and procurement performance while correlation and regression analysis for and influence of internal inventories control practices on procurement performance. The results of the study were presented using tables that were accompanied by explanation. Findings of the study revealed that Internal Inventory Security Procedural Practices, Inventory Auditing and Computerized Inventory Control both individually and collectively have significant positive influence on Procurement Performance. The study recommends that further study should be conducted to assess how internal inventory security procedural practices can be adopted by public institutions and whether such practices can be incorporated in the public procurement regulations. Also, further studies can be done to establish the integrated role of internal and external audit in inventory control especially in manufacturing and distributing organizations and to determine the influence of computerized inventory management on supplier and customer relationship management in manufacturing and distributing organizations.

Inventory Management and Operational Performance of Manufacturing Firms in South-East Nigeria

“…(Folinas & Shen, 2014) found no link between inventory turnover and financial performance. (Onchoke & Wanyoike, 2016) found a significant positive influence of internal inventory security procedural practices, inventory auditing and computerized inventory control, on procurement performance. In (Lwiki et al, 2013), the study result revealed that there a positive correlation between inventory management and return on sales exists.…”

Effects of Inventory Management Practices on Operational Performance in Mombasa County Government, Kenya

“…Comparatively speaking, traditional cost systems, which usually depend on a small number of volume-based metrics, like direct labor hours or sales volume, assign costs less accurately than when numerous drivers are used (Krumwiede and Roth, 1997). Customers, suppliers, goods, and supply chains that are a part of these operations are allotted charges by ABC [15,16]. EOQ is a model that is frequently utilized to manage inventory in a variety of industries, according to writers like Blackburn (2010).…”

Critical Analysis of Interest Rate and Financial Performance of Saccos in Kenya

“…Okundi (2011) also observed that SACCOs suffer challenges of their members preferring loans from commercial banks because the amount of loans rewarded to them by commercial banks is not pegged on savings as in the case of SACCOs. Since there was an empirical evidence that interest rate have a significant effect on financial performance (Ndegwa, Waweru and Huka, 2016;Kariuki and Ngahu, 2016;Ngumi, 2014;Khan and Sattar, 2014;Onyekachi and Okoye, 2013), a critical analysis of effect of interest rate on financial performance of SACCOs in Kenya was inevitable. This would help in developing a favourable interest rate for better performance of SACCOs that had been rocked with a number of challenges.…”

“…This study analyzed the banking behavior in Africa and interest rate emanates from the study findings as one of the factors affecting lending behavior. Kariuki and Ngahu (2016) examined the effect of interest rates on loan performance of Microfinance Institutions in Naivasha Sub-County, Kenya. The study used survey research design and found out that there was a strong relationship between interest rate and loan performance (loan repayment).…”

“…Holtgrave and Crosby (2003) study did not attached a lot of premium to interest rate and its effect on financial performance of SACCOs thus providing and eminent gap in the study area scope and study constructs. Kariuki and Ngahu (2016) study scope was limited to microfinance institution with limited generalization to SACCOs. Also the study used loan performance as dependent variable thus the study findings cannot be generalized to other findings that used financial performance indicators of ROE and ROI.…”