EFFECT OF VENDOR MANAGED INVENTORY ON ORGANIZATIONAL PERFORMANCE OF SUPERMARKETS IN MOMBASA COUNTY
Abstract
The study sought to establish the effect of Vendor Managed Inventory (VMI) on organizational performance of supermarkets in Mombasa County. The study specifically sought to establish the effect of quality control and Supply Relationship Management on organizational performance of supermarkets in Mombasa County. In trying to establish the effect of the independent variables (quality control, and Supplier Relationship Management) on the dependent variable (organizational performance of Supermarkets) adopted Deming’s Quality Management Theory and the Agency Theory. A descriptive survey design was adopted as the major research design. All the supermarkets in Mombasa County constituted the study target population. In this regard, both simple and stratified random sampling techniques were used to arrive at the study sample population. Questionnaires were the major tool of data collection in the study and constituted of both closed-ended and open-ended questions. In this case, both qualitative and quantitative data was collected in the study. The quantitative data collected was analyzed for both inferential and descriptive statistics by use of the SPSS Version 23 software. Descriptive statistics consisted of the percentage, mean and standard deviations for the research items under each variable. On the other hand, the inferential statistics entailed the ANOVA test and correlation analysis to predict the existing relationship between the dependent and the independent variables in the study. The qualitative data from the open-ended questions was organized into sub-topics and then re-coded back into the SPSS Software for more descriptive statistics. Statistical tables were used to present the study results. In this case, the study findings established that there existed a positive correlation between independent variables (Quality Control and Supplier Relationship Management) and dependent variable (Organizational Performance of Supermarkets). The study further recommended retail firms in Mombasa County to develop and implement sound quality control measures and at the same time invest in rigorous training of its staff so that they can accurately perform quality inventory control and retail firms in Mombasa County to consider fully integrating VMI to enhance the level of Supplier Relationship Management within and outside the organization.
Key Words: Quality Control and Supplier Relationship Management
Full Text:
PDFReferences
Alexander, B., van Vuuren, J. J., Hermanus, M. T., Dassah, M. R., & Mason, R. B. (2016).
Project 2015/13: E-Retail in South Africa and the Impact on Skills Development in the South African Retail Sector. University of South Africa.
Blumberg, B. F., Cooper, D. R., & Schindler, P. S. (2014). Business research methods. McGraw-hill education.
Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.
Chitale, A. K., & Gupta, R. C. (2014). Materials Management a Supply Chain Perspective: Text and Cases. Phi Learning Pvt. Ltd.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Cohen, L., Manion, L., & Morrison, K. (2013). Research methods in education. Routledge.
Denscombe, M. (2014). The good research guide: for small-scale social research projects. McGraw-Hill Education (UK).
Dong, Y., Dresner, M., & Yao, Y. (2014). Beyond information sharing: An empirical analysis of vendor‐managed inventory. Production and Operations Management, 23(5), 817-828.
Fowler Jr, F. J. (2013). Survey research methods. Sage publications.
Fox, M. J. (2013). Quality assurance management. Springer.
Gommans, H. P., & Kari, J. M. (2015). The Influence of Supply Chain Management Practices on the Procurement Performance of Horticulture Companies (A Case Study of Homegrown Horticulture Company, Naivasha). International Journal of Scientific and Research Publications, 555.
Gordon, C. E. (2015). Behavioural approaches to corporate governance. Routledge.
Govindan, K. (2013). Vendor-managed inventory: a review based on dimensions. International Journal of Production Research, 51(13), 3808-3835.
Gugiu, C., & Gugiu, M. (2017). Determining the Minimum Reliability Standard Based on a Decision Criterion. The Journal of Experimental Education, 1-15.
Hameri, A. P., Borg, A., & Eloranta, E. (2014). Vendor-managed inventory in a global maritime supply chain–The case of a Brazilian pulp producer. Maritime Economics & Logistics, 16(2), 207-227.
Irungu, B. K., & Wanjau, K. L. (2011). Effectiveness of vendor managed inventory systems in retail supermarkets in Kenya. International journal of business and public management, 1(1), 85-89.
Kamau, J. W. (2014). Effectiveness of supermarkets as retail outlet of fast moving consumer goods in Nairobi county (Doctoral dissertation). University of Nairobi.
Kariuki, J., & Noor. I. (2015). Role of Vendor Managed Inventory Systems Integration (VMIS)
On Supply Chain Performance in The Retail Sector in Kenya: A Case of Uchumi Supermarkets. International Journal of Human Resource & Procurement (Ijhrp), 1(4), 356-372.
Kinyanjui, M. W. (2016). Inventory Management Practices and Performance of World Food Programme Partners in Kenya (Doctoral dissertation, University of Nairobi).
Kondo, E. M. (2015). The effect of revenue enhancement strategies on financial performance of Kenya revenue authority (Doctoral dissertation, University of Nairobi).
Lai, M. H., & Kwok, O. M. (2015). Examining the rule of thumb of not using multilevel modeling: The “design effect smaller than two” rule. The Journal of Experimental Education, 83(3), 423-438.
Lins, K., Servaes, H., & Tamayo, A. (2015). DP10399 Social Capital, Trust, and Firm Performance during the Financial Crisis. Routledge.
Li, W., Veliyath, R., & Tan, J. (2013). Network characteristics and firm performance: An examination of the relationships in the context of a cluster. Journal of Small Business Management, 51(1), 1-22.
LoBiondo-Wood, G., & Haber, J. (2014). Reliability and validity. G. LoBiondo-Wood & J.
Haber. Nursing research. Methods and critical appraisal for evidencebased practice, 289-309.
Qrunfleh, S., & Tarafdar, M. (2015). Supply chain management practices–IT utilisation alignment: impact on supply chain performance and firm performance. International Journal of Business Information Systems 5, 18(4), 364-389.
Ritala, P., & Hurmelinna‐Laukkanen, P. (2013). Incremental and radical innovation in coopetition-The role of absorptive capacity and appropriability. Journal of Product Innovation Management, 30(1), 154-169.
Ross, D. F. (2016). Introduction to e-supply chain management: engaging technology to build market-winning business partnerships. CRC Press.
Rotich, M. K. (2014). Dynamic procurement practices and supply chain performance of supermarkets in Nairobi, Kenya (Doctoral dissertation). University of Nairobi.
Sachan, S., Nigam, U., Gangwar, P., & Sood, R. (2014). An overview of pharmaceutical and biological product quality control. Journal of Drug Delivery and Therapeutics, 4(2), 167-168.
Sallis, E. (2014). Total quality management in education. Routledge.
Samuel, I. S., & Ondiek, O. (2014). Inventory Management Automation and The Performance of Supermarkets in Western Kenya. (Master’s Project). University of Nairobi.
Schiller, D. (2014). Digital depression: Information technology and economic crisis. University of Illinois Press.
Sikomwe, S., Kandufa, P., Giga, D., & Mudzurandende, F. (2014). Analyzing business failure in relation to the life cycle of the business and the economic cycle: A study of entrepreneurial ventures in Hwange (Zimbabwe). European Journal of Business and Management, 6(7), 80-91.
Siricha, P. S., & Theuri, F. S. (2016). The Effects of Electronic Procurement on Organizational Performance in Kenya Ports Authority. Imperial Journal of Interdisciplinary Research, 2(11).
Spradley, J. P. (2016). Participant observation. Waveland Press.
Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Stewart, H., & Gapp, R. (2014). Achieving Effective Sustainable Management: A
Small‐Medium Enterprise Case Study. Corporate Social Responsibility and Environmental Management, 21(1), 52-64.
Storey, D. J. (2016). Understanding the small business sector. Routledge.
Vrat, P. (2014). Just-in-Time, MRP, and Lean Supply Chains. In Materials Management (pp. 151-173). Springer India.
Wagner III, W. E. (2016). Using IBM® SPSS® statistics for research methods and social science statistics. Sage Publications.
Wambua, B. J., Okibo, W. B., Nyang’Au, A., & Ondieki, S. M. (2015). Effects of Inventory
Warehousing Systems on the Financial Performance of Seventh Day Adventist Institutions: A Case of Adventist Book Centers (ABC), Kenya. International Journal of Business and Management, 10(4), 259.
Walumbe, E. (2016). Supplier relationship management and performance of media firms’ in Kenya (Doctoral dissertation). University of Nairobi.
Williams, B. D., Waller, M. A., Ahire, S., & Ferrier, G. D. (2014). Predicting retailer orders with POS and order data: The inventory balance effect. European Journal of Operational Research, 232(3), 593-600.
Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A balanced approach. Cengage Learning.
Zhao, S. T., Wu, K., & Yuan, X. M. (2016). Optimal production-inventory policy for an Integrated multi-stage supply chain with time-varying demand. European Journal of Operational Research, 255(2), 364-379.
DOI: http://dx.doi.org/10.61426/sjbcm.v5i1.643
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.