Strategic Inventory Control and Operational Performance of Manufacturing Firms in Mogadishu, Somalia

Abstract

The aim of the study was to determine how Strategic Inventory Control Techniques influence Operational Performance of Manufacturing Firms in Mogadishu, Somalia. The study objectives were; To determine the extent of adoption Strategic Inventory Control Techniques that are commonly used by Manufacturing Organizations and to establish the relationship between Strategic Inventory Control Techniques and Operational Performance of Manufacturing Firms in Mogadishu, Somalia. Methodology that was adopted was descriptive design with the target population of all Manufacturing entities who are registered members by Ministry of Commerce and Industry (2018) of Somalia. The listed members are 35 and thus census was carried out to study the entire population. The study adopted Primary data. Drop and pick later and use of mails was used to administer the questionnaire. The findings show EOQ, Just-In-Time, ABC Analysis, Warehouse Management System and Demand Forecasting were all adapted to a large extent by the Manufacturing Firms in Somalia. Descriptive statistics was used to analyze the first objective and regression analysis was used to analyze the second objective. The findings also reveal that the independent variable (Strategic Inventory Control) had a positive influence on the dependent variable (Operational Performance) and that the adoption of Strategic Inventory Control affected Efficiency, Speed and Quality to a large extent. It is recommended that all the manufacturing firms should adopt Strategic Inventory Control Techniques to a large extent since it has been established that the Techniques influence Operational Performance. The study was limited as it only focused on the Manufacturing firms in Mogadishu only and thus the results cannot be conclusive to other Manufacturing Firms which are not in Somalia. Future research should focus on other Strategic Inventory Control Techniques which are not commonly used and establish the reason as to why they are not being adopted, not only by manufacturing firms in Mogadishu but also by other firms