INVENTORY MANAGEMENT PRACTICES AND PERFORMANCE OF SUPPLY CHAIN AT THE NAIROBI CITY COUNTY, KENYA

Abstract

This study evaluated inventory management activities and the success of supply chain management in Nairobi City County with a particular focus on strategic supplier partnerships, economic order quantities, just-in-time delivery, and material resource planning. The research was grounded on the lean theory, theory of economic order quantity, application control theory, and stock diffusion theory. The study utilized a descriptive research approach and the positivist philosophy. The population of the study consisted of 340 individuals. The research sample size comprised 183 procurement officers that worked for County offices that were housed in the logistics and procurement division and built environment and urban planning. The study adopted a quantitative approach and used a questionnaire as the data-gathering tool. Descriptive statistics were used to measure means, frequencies, and percentages. Inferential statistics were utilized to determine the nature, strength, and statistical significance of the relationship between the variables. The latest version of SPSS was used for analysis. The findings showed that the adoption of Economic Order Quantity, just in Time, and Material Requirements Planning positively impacted supply chain achievement at Nairobi County. Strategic supplier partnerships were found to have an insignificant impact on supply chain performance. The findings were statistically significant and underscored the importance of mainstreaming Economic Order Quantity, just in Time, and Material Requirements Planning across the various departments of the county government of Nairobi. Nairobi County government should prioritize early engagement of suppliers in supply chain processes; proper and continuous communication with suppliers; frequent meetings with suppliers; using fewer rather than many suppliers and long-term partnerships with supplier to bolster the County’s supply chain performance. Future studies could explore the reasons behind the poor strategic supplier partnerships practices at Nairobi City County to guide the formulation and implementation of effective strong supplier partnership strategies to improve overall supply chain performance at the different departments of the county government of Nairobi. Key Words: Supplier Partnerships, Economic Order Quantities, Just-In-Time, Material Resource Planning CITATION : Sugut, J. C., & Ondara, A. (2023). Inventory management practices and performance of supply chain at the Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 10 (4), 396 – 416. http://dx.doi.org/10.61426/sjbcm.v10i4.2750.