Inventory Management Strategies Employed by Kenyan Motor Vehicle Distributors in Managing Their Parts Inventory

Abstract

Motor vehicle distributors provide after-sales service for vehicles sold through sale of parts and maintenance repairs. They are also expected to run an efficient and profitable parts department, which means parts are also to be available when required and in the desired quantity at the right price. Evaluation of the effectiveness of strategies employed to achieve this form the basis of this research. The objectives were to determine the different parts inventory management strategies employed by motor vehicle firms in Kenya and to determine impact of these inventory management strategies on efficiency and customer service. The outcome is expected to assist vehicle distributors assess effectiveness of current strategies as well as finding new ways of improving inventory management. It will also provide intellectuals with an opportunity to test inventory management theories and pave way for further research into strategies relevant to motor vehicle companies in developing economies. Primary data was collected from managers in the industry responsible for managing inventory and descriptive statistics such as frequency, percentages, mean and standard deviation were used as the study sought to measure the effect of various variables and combinations of variables on efficiency and customer service. Cross tabulation was also used to check of the relationship and differences of opinion from one company to another. This assisted in making comparison analysis amongst the companies. I he findings were presented in tables and bar graphs. Conclusions were drawn and recommendations made from the analysis with gaps for further research identified.