Impact of integrated logistics system on effective management of inventory in electricity sub-sector in Kenya

Abstract

This study attempted to evaluate the perceived and factual impact of integrated logistics system (ILS) on effective management of inventory in electricity sub-sector (ESS) in Kenya. The specific concern of the study revolve around understanding resultant business economic benefits (BEB) for the sector in terms of improved customer service, reduce costs and cycle time as occasioned by quality ILS management practice, ILS resource activation level and ILS capability levels. The framework is informed by resource based view to influence BEBs in the ESS. Descriptive research using survey method was applied. The target population consisted of ESS staff in management who use ILS. They were purposively sampled and their opinion sought by use of IS-Impact Measurement Model. Primary data were collected through a questionnaire. Both quantitative and qualitative techniques were used to analyse data. Statistical tests done included correlation ANOVA and regression analysis. The scientific research method was consistently employed to assure quality control while observing ethical standards. The SPSS tool was used in data analysis. The study suggests quality management practice and resource activation level are significant indicators of BEB, that ILS has played a vital role to improve quality of customer service, achieve stock cost reduction and reduce cycle time in the operations of the ESS. This may accrue business economic benefits in terms of enhanced return on investment (ROI), improved business practices by relative reduction in stock holding, improved decision making triggering increased electricity connectivity and achievement of set targets. The results will inform government, ESS and corporate managers on the impact of ILS on managing inventory. It is vital to improve capability level on both quality customer service and cost reduction, also improve resource activation level on cost reduction