Stock management practices and supply chain performance of pharmaceutical companies in Nairobi, Kenya

Abstract

Purpose: The study was aimed at establishing stock management practices and performance in pharmaceutical firms in Nairobi. It was specifically aimed to establish how, EOQ, VMI, ERP, JIT and ABC analysis affects SC performance. The study used descriptive research design in its methodology. Design/Research method: The study was guided by Resource based view Theory and strategic choice theory. Data collection was effected by use of structured questionnaires. Supply chain managers, procurement managers and the equivalent were the targeted population. The targeted population was 38 pharmaceutical firms in Nairobi. These questionnaires were issued through drop and pick method, coded, keyed and analyzed using both descriptive and regression analysis. Finding: he findings of the study established that Pharmaceutical firms in Nairobi had adopted stock management practices to a large extent, which was indicated by a mean values greater than 3.0 on a scale of 1-5 for stock management practices. The results ascertained that stock management practices had a positive impact on performance. This was indicated by a positive correlation between the stock management practices and performance, which was measured by the values in the coefficients table. Limitation: The major limitation of the study is that it was based on pharmaceutical firms in Nairobi only. Implication: Future academicians should research on stock management practices in other firms rather than pharmaceutical firms in Nairobi Key words: Stock management practices, Supply chain management, procurement management practices, supply chain performance, pharmaceutical firms