Role of Inventory Management Strategies on Procurement Performance in State Corporations in Kenya

Author(s)

Lydiah Ngaya Mutinda , Dr. Samson Nyang`au Paul ,

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Volume 7 - May 2018 (05)

Abstract

The main purpose of the paper was to determine the role of inventory management strategy in procurement performance at National Hospital Insurance Fund. The research design used in this study was descriptive in nature which adopted qualitative and quantitative research strategies in order to find the solution to the study problem. The target population was 181 employees. The sample of respondents was determined using stratified sampling which relied on mere chance to determine who would be selected in the sample and called for random selection in the inclusion of the cases into the sample.  A sample size of 123 respondents out of a total frame of 181 target population was interviewed. The research focused on primary data that was collected from questionnaires distributed to the target groups. This study collected both qualitative and quantitative data. After data collection, the data was edited and coded in readiness for analysis by the researcher. The qualitative data collected were subjected to content analysis. On the other hand, the researcher used descriptive and inferential statistics to analyze the quantitative data. SPSS version 23 software was used to perform correlation and regression analysis on the collected data. The analyzed data was presented using statistical and graphical techniques. The findings revealed that inventory control and inventory accountability had a positive effect on procurement performance. Thus, the disclosure of inventory documents when needed sends the message that the organization is accountable hence they can be relied on to conduct business with. It is therefore crucial that suppliers need to make a commitment to stock an inventory of approved stock and have a timely response to customer references and proper material handling. Finally, there is a need for organizations to have verification of documents in the process of receiving and issuing inventory

Keywords

Inventory Management Strategy, Procurement Performance, Inventory Accountability, Inventory Control, National Hospital Insurance Fund

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