INFLUENCE OF VENDOR MANAGED INVENTORY ON PERFORMANCE OF RETAIL OUTLETS IN KENYA. A CASE OF TUSKYS SUPERMARKET LIMITED

Abstract

The main objective of the study was to investigate the influence of vendor managed inventory on performance of retail outlets in Kenya with specific reference to Tuskys supermarkets Limited. The study reviewed relevant design with survey of a total of 400 employees working at Tuskys supermarket headquarters offices situated in Nairobi. The employees were selected from; supply chain management department, focusing on top management, middle level management and junior staff. The study adopted a descriptive research design, with stratified random sampling technique to select a sample size of 80 respondents. Questionnaires were used as the main data collection instruments and a pilot study were conducted to pre-test questionnaires for validity and reliability. Data were analysed using descriptive statistics and inferential statistics. This was done by the use of SPSS Version 23. The findings indicated that Information sharing, Strategic Partnerships, information communication technology and Inventory control limits shared a variation of 52.8 % of performance of retail outlets. The researcher recommended that retail outlets should ensure that they become transparent with their suppliers, that there should be continuous replenishment of fast moving items like household items and consumables, the researcher further recommended that they invest in flexible communication channels to ensure real-time communication with their suppliers. It further recommended that supply chain management should ensure that they partnered with suppliers, who supply strategic items, in order to ensure that they are assured of delivery and commitment by suppliers. The researcher further recommended that procurement should take advantage of transactional kind of relationship especially with those suppliers who supply routine items like stationeries. It further recommended that Tuskys should invest heavily on ICT, they should integrate their systems with suppliers to facilitate JIT systems, and this would help them eliminate inventory carrying cost. Supermarkets should observe inventory levels, that is critical fast-moving products like household items and consumables items should not come below the minimum inventory levels and also certain items should not go beyond maximum inventory levels, especially slow-moving items like electronics. 

Key Words: Information Sharing, Strategic Partnerships, Communication Technology, Inventory Levels