EFFECT OF INVENTORY TURNOVER ON SUPPLY CHAIN PERFORMANCE IN THE MANUFACTURING SECTOR IN KENYA: A CASE OF EQUATORIAL NUT PROCESSORS LIMITED, MURANG’A COUNTY

Abstract

Manufacturing companies are focus on significantly improving supply chain performance by enhancing responsiveness and efficiency. Reduction in inventory cost and improving customer satisfaction determine the extent processes in manufacturing companies achieve efficiency and effectiveness. Equatorial Nut Processors Ltd focus on inventory replenishment and distribution to achieve supply chain performance. This research sought the effect of inventory turnover on supply chain performance of the manufacturing firms in Kenya, a case study of Equatorial Nut Processors Limited (ENPL) in Murang’a County, Kenya. The objective of the study was to effect of inventory turnover on supply chain performance of the manufacturing firms in Kenya, a case study of Equatorial Nut Processors Limited (ENPL). The study utilized descriptive survey research design. The target population of the study was all 100 employees in the company. Descriptive analysis that included percentages, frequencies, means and standard deviations was deployed. Inferential statistics, correlation and regression were used to analyze the data to establish the relationship between inventory replenishment and supply chain performance at in Equatorial Nut Processors Limited (ENPL), Murang’a County. From correlation results, the study revealed that there is strong, significant and positive correlation between Inventory turnover and supplier chain performance in Equatorial Nut Processors Limited (ENPL), Murang’a County (r=0.809, P V=0.002<0.05). Predictor Inventory turnover had a significant, positive effect on supply chain performance in Equatorial Nut Processors Limited (ENPL), Murang’a County as β1 =0.616, PV=0.003, t=8.628. This clearly indicated that inventory turnover lead to increase in supply chain performance of Equatorial Nut Processors Limited (ENPL), Murang’a County. From the findings of this research project, it can be concluded that inventory turnover is key driver of supply chain performance in the manufacturing sector in Kenya.