Inventory Management and Operational Performance in the Oil Marketing Companies in Kenya

Abstract

This study is targeted at investigating the inventory management and operational performance in the Oil marketing companies in Kenya. The research objectives were to establish the inventory management techniques used in the oil marketing companies in Kenya; to examine the challenges diverse oil marketing enterprises experience in Kenya in the application of Inventory management methods of inventory management practices and to determine the correlation between inventory management techniques and operational performance in the Oil Marketing Companies in Kenya. This study was carried out through a descriptive research design. This study targeted 75 Oil marketing companies in Kenya; since the population is small a census was done. Data was analyzed using descriptive statistics with the use of Statistical Package for Social Sciences (SPSS). The exploration further discovered a positive correlation between inventory management and operational performance of Oil marketing firms. The finding revealed that variables; Just-in-time, Activity Based Management Economic Order Quantity, and Vendor Managed Inventory have a positive increase in operational performance. From the findings some of the challenges found to affect inventory management include: poor supply chain coordination between the various players and Unfavorable government policies e.g. quotas, bans. The study finds out that firms specializing in oil marketing activities benefit from sound inventory control management systems. Some of these benefits comprise optimal utilization of allocated resources, reduction of associated costs, enhanced profitability and effectiveness in sales operations.