ROLE OF INVENTORY MANAGEMENT PRACTICES ON PERFORMANCE OF THE HOSPITALITY INDUSTRY IN KENYA
Abstract
The purpose of the study was to establish the role of inventory management practices on performance of hospitality industry in Kenya. A descriptive research design was adopted and the target population comprised of 400 supply chain officers in the hotels in Nairobi Central Business District. The regression model procurement performance in the hospitality industry coefficient of determination R Square was 0.769 and R was 0.877. The coefficient of determination R Square indicated 76.90% of the variation on performance in the hospitality industry was explained by the set of independent variables. The remaining 28.30% of variation in performance in the hospitality industry could be explained by other variables not included in this model. The study recommended that there was need to appraise the suppliers annually and ensure the suppliers were paid on time. To enhance performance in the hospitality industry there was need to have sufficient and qualified procurement personnel with enough training assessment methods and with the rules and regulations. There should be adequate training and simulation for key stakeholders especially the procurement staff qualifications to promote reduction of procurement costs. Organization should offer professional skills related to procurement and employ staff with the professional skills. Procurement planning is usually the first stage of procurement process and therefore hospitality industry need to develop the skills for employees on developing quality procurement plans based on the approved budgets. The study recommended for information communication technology in procurement which was very critical in determining the level of organization performance. These calls for hospitality industry to fully invest in automating their key inventory management processes so as to ensure competitiveness and transparency in procurement processes. The investment on ICT Integration is critical in enhancing the cost efficiency, delivery time, product quality and customer satisfaction. The hospitality industry should provide more training on their staff on the application of different systems and technologies applicable in procuring goods and services.
Key Words: Supplier Management, Staff Competency, ICT Integration, Procurement Planning, Hospitality Industry
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.743
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