INFLUENCE OF INFORMATION AND COMMUNICATION TECHNOLOGY TOOLS ON INVENTORY MANAGEMENT: A CASE OF UCHUMI SUPERMARKETS LIMITED
Abstract
The objectives of SCM are to achieve the desired customer service level in the targeted market segment and to optimize the total cost of the supply chain investment. The general objective of the study was to investigate the influence of information and communication technology tools on inventory management: A case of Uchumi Supermarket Limited. The specific objectives of the study were to establish the influence of vendor managed inventory (VMI) and distribution resource planning (DRP) System on inventory management of Uchumi Supermarket Limited. The study adopted descriptive design. The target population comprised of 173 Uchumi senior personnel in the following departments; IT, Finance division, customer care, supply and administration department from the Company’s Offices in Nairobi. Owing to the small number of target population, a census study was carried out which generated a total of 173 respondents. The researcher used questionnaires as data collection instruments for the research. The questionnaire was administered through drop and pick later method. The quantitative data obtained from the questionnaires was coded and keyed into statistical package of social science (SPSS) analysis software. The study concluded that ICT is useful in attaining efficiency in the inventory management of Uchumi Supermarkets. ICT applications such as VMI and DRP were found in the business because they are easily understood, easy to implement and cost- effective. Vendor managed inventory influenced the inventory management of Uchumi Supermarket. Distribution resource planning (DRP) system influenced the inventory management of Uchumi Supermarket. The Supermarket should focus on developing strong ICT systems, strong warehousing facilities and/or by engaging large suppliers to lease from third parties. This would hasten the implementation of VMI in the Supermarket. The Supermarket should enter into distribution resource planning agreements defining clearly the responsibilities and obligations of the parties involved.
Key Words: Vendor Managed Inventory, Distribution Resource Planning, Information and Communication Technology, Inventory Management, Uchumi Supermarkets Limited
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.307
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