Inventory management and Supply chain performance of Non-governmental organizations in the Agricultural Sector, Kenya
Mwangi, Anthony G
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Inventory management techniques are tools used by organizations to achieve supply chain performance. Thus, this study sought to establish the relationship between inventory management techniques and supply chain performance. The study was guided by three objectives: to determine the extent of inventory management techniques application in non-governmental organizations in the agricultural sector in Kenya, to determine the impact of inventory management techniques on the supply chain performance of non-governmental organizations in the agricultural sector in Kenya and to establish the challenges of inventory management implementation techniques in non-governmental organizations in the agricultural sector in Kenya. The research methodology adopted was descriptive research design of cross sectional type for all NGO studied and data collected using structured questionnaire were administered by drop and pick while others that were unreachable were via email. Objective one was analyzed using descriptive statistics of mean and standard deviation, objective two was analyzed using regression analysis to identify the relationship between inventory management techniques and supply chain performance and objective three was analyzed using mean score and ANOVA. The results were presented in tables and pie chart. The study recognized that the NGOs studied were eager to embrace inventory management techniques since that had operated for more than ten years. It was evident that there was significant relationship between inventory management techniques and supply chain performance represented by R2 value of 0.732 which translates to 73.2% variance explained by the independent variables of EOQ, JIT, marginal analysis, order batching, vendor managed inventory, simulation and ABC analysis. Further research study can be conducted in other NGOs in Kenya to establish if inventory management techniques have an impact on supply chain performance of NGOs in Kenya. It has also been recommended that NGOs in the agricultural sector should embrace inventory management techniques so that they can reap from the immense benefits accrued from inventory management implementation. Also, it was evident that close partnership with customers or partners, prequalification of suppliers, holding safety stock, lack of inventory management techniques, e-procurement tools, JIT, stringent grant agreements and knowledge in inventory management techniques should be encouraged to attain high supply chain performances.