Inventory Control Practices and Supply Chain Leverage of Sugar Manufacturing Firms in Kenya

Abstract

This study aimed at establishing the relationship between inventory control practices and supply chain leverage of sugar manufacturing firms in Kenya. The specific objectives of the study were; lead time management practice, demand forecasting practice, lean stocks practice and buffer stocks practice. The research study further sought to determine the moderating effect of corporate leadership on the relationship between inventory control practices and supply chain leverage of sugar manufacturing firms in Kenya. The research study was anchored on three theories, namely theory of constraints, stock diffusion theory and supply chain road map theory. The research methodology followed a descriptive approach in which; the target population of the study was 241 respondents comprising of finance officers, procurement officers, production managers, senior managers and sales team involved in inventory control practices of the sugar manufacturing firms in Kenya. A census survey was conducted on all the 15 registered sugar manufacturing firms in Kenya. Data was collected by administering both structured and semi-structured questionnaires and also use of interview guides; where applicable. The questionnaires were administered through the help of trained research assistants who would drop them to the respondents, and picked later after two weeks. Pilot study was conducted on 20 respondents representing 8% of the study population. Data collected was analyzed by both descriptive and inferential statistics using statistical package for social sciences Version 28. Descriptive statistics involved calculation of means, frequencies, percentages and standard deviation. The five model diagnostic tests for model fitness were also executed for determination of the regression on data. Inferential statistics further included the use of Pearson correlation coefficient and multiple regression analysis. Results from the analyzed data were then presented in figures, charts, tables and histograms. Findings from data analysis indicated that there was a strong relationship between inventory control practices and supply chain leverage of sugar manufacturing firms in Kenya. Consequently, it was concluded from the findings that, inventory control practices significantly influence supply chain leverage of sugar manufacturing firms in Kenya. The study recommended for the implementation of inventory control practices, to achieve supply chain leverage of sugar manufacturing firms in Kenya. It was further recommended that sugar manufacturing firms in Kenya should always ensure shorter lead time practices for the supplies accurate demand forecasts, embrace use of lean raw materials and lean processes in production and always keep buffer stocks for constant stocks to cushion the sugar manufacturing firms in Kenya.