| dc.description.abstract | Inventory management plays a pivotal role in the procurement performance of the public
sectors in Kenya. However, it is worth noting that for the function to realize its aims properly
it has to be effectively managed. This study sought to establish factors that affect
effectiveness of inventory management in the energy sector in Kenya. The study was guided
by four objectives which focused on the influence of Information Technology, Staff Training,
Safety Stock and Global Sourcing on Inventory Management. Descriptive research design
was used for the study. The data was collected using a questionnaire which was the main data
collection instrument. A total of 100 respondents were targeted by the study out of which 84
responded giving a good response rate. The sampling frame for this study included
procurement managers, procurement officers, procurement assistants and clerical officer in
the procurement department in the Kenya Pipeline company limited. The collected data was
analysed using descriptive statistics and this was done using a statistical package for analysis
(SPSS). On the effect of information technology, the study found that majority of the
respondents agreed that KPC has managed to reduce inventory levels by use of modern
technology. It was also found that quite a number of respondents agreed that in general IT
has helped KPC manage inventories more effectively and control stock outs of spares.
Regarding the effect of staff training and development on inventory management, the study
established that it was very important to have staff with wide experience on challenging
assignments. On the effect of safety stock management on inventory management, the study
found that the respondents agreed that application of the right stock levels by KPC minimizes
on obsolete items and stock outs. Finally, on the effect of global sourcing on inventory
management, the study found that high percentage of the respondents indicated that KPC has
managed to interact with suppliers globally due to significant shift of supply base’s
worldwide with focus on global value countries to a large extent. The study concluded that
information technology, staff training and development, safety stock management and global
sourcing affect effectiveness of inventory management in KPC. It is recommended that for
the inventory to be well managed and controlled, KPC needed to fully adopt the use of ERP
system. Another recommendation is that more training be organized for staff on inventory
management and the study further recommended that KPC needed to perform a continuous
and periodical review on inventory. It was finally recommended that another study be done
on the challenges of inventory management which was not the concern of this study. | en_US |
