Role of Inventory Management on Competitive Advantage among Manufacturing Firms in Kenya: A Case Study of Unga Group Limited

Abstract

The main objective of the study was to investigate the role of inventory management on the competitive advantage of manufacturing firms in Kenya, with reference to Unga Group Limited. Specifically, the study assessed the extent to which information technology is used in inventory management in Unga Group Limited, determine how inventory lead time, inventory control and inventory control practices affect competitive advantage of Unga group limited. The study adopted a descriptive research design to support and meet the research objectives. The target population was all the 289 employees working at Unga Group Limited headquarters who directly deal with inventory management. Stratified sampling and simple random sampling techniques were employed in the selection of 30 respondents. The study used both primary and secondary data. Primary data was collected using self-administered questionnaires consisting of closed ended and open-ended questions. The data collected was analyzed by descriptive statistics using a statistical package for analysis (SPSS). The study revealed that information technology, inventory control systems, inventory lead time and inventory control practices are important factors in attainment of competitive advantage of manufacturing firms in Kenya. The study recommended that the firm should embrace inventory control systems and information technology so as to improve and enhance competitive advantage. This study also recommended a similar research on other industries to ascertain whether the findings of the study are universal.

Combining lean and green practices to achieve a superior performance: The contribution for a sustainable development and competitiveness—An empirical study on the Portuguese context

“…OP has a positive impact on CAs ( r = 0.323; p = 0.000), therefore supporting H8. This data is aligned with the results presented by previous literature (Liu et al, 2020; Naliaka & Namusonge, 2015). Therefore, this denotes that with a tight resource management, for instance, in terms of optimizing inventories and lowering delivery time, it can lead to a superior CA (Naliaka & Namusonge, 2015; Omoregbe & Taiwo, 2017), through improved OP.…”

“…This data is aligned with the results presented by previous literature (Liu et al, 2020; Naliaka & Namusonge, 2015). Therefore, this denotes that with a tight resource management, for instance, in terms of optimizing inventories and lowering delivery time, it can lead to a superior CA (Naliaka & Namusonge, 2015; Omoregbe & Taiwo, 2017), through improved OP. The results obtained are valid for both groups, that is, the low lean maturity group ( r = 0.199; p = 0.021) and the high lean maturity group ( r = 0.472; p = 0.000).…”

“…In turn, Zanotti et al (2018) detected the existence of a positive relationship, although not very significant, between OP and the competitive environment of organizations. Naliaka and Namusonge (2015) attested that factors such as inventory control and delivery times are relevant to reach CA in organizations, namely the manufacturing ones. Moreover, Sapkauskiene and Leitoniene (2010) claimed that when organizations have a shorter response time to the demand of their customers, relatively to its competitors, this could normally lead to their market domain, translating, for example, into cost reduction, customer satisfaction and loyalty, leading to an increased competitiveness.…”

Inventory management practices at a big-box retailer: a case study

“…A case study approach is a methodology that helps with the exploration of an occurrence within a specific context through the interpretation of various data sources, it BIJ 30,7 also examines the occurrence from various perspectives in order to gain better insight (Esain, 2000;Baxter and Jack, 2008). Similar to the recent works of Naliaka and Namusonge (2015), Karim et al (2018), Jayakumaran et al (2020), Lukkarinen and Majava (2020), our work focuses on studying the inventory management practices at one organization. To study the inventory management practices, this case study focuses on one organization, similar to the approach recently utilized by Naliaka and Namusonge (2015), Karim et al (2018), Jayakumaran et al (2020), and Lukkarinen and Majava (2020).…”

Inventory Management and Operational Performance of Manufacturing Firms in South-East Nigeria

“…In (Naliaka & Namusonge, 2015), the role of inventory management on the competitive advantage of Unga group limited, Kenya, was investigated. To do justice to this, the effect of inventory lead time, inventory control/practices on the competitive advantage of the quoted manufacturing was determined.…”