The Influence of Vendor Managed Inventory on Procurement Function of NCPB in Uasin Gishu County

Authors

  • Valentine Cherotich Jomo Kenyatta University of Agriculture and Technology
  • Enock Gideon Musau

Abstract

Procurement is a critical management function for most companies large companies, medium-sized companies, and small companies. Inventories are important to the successful operations of manufacturing and processing industries. However, the procurement function at NCPB does not control their inventories properly hence resulting in understocking and causing the organizations to stay off production, thereby resulting in organizational ineffectiveness. This study sought to determine the influence of vendor-managed inventory on the procurement function of NCPB in Uasin Gishu County. The study adopted a stratified sampling technique in establishing the sample for the study. Yamane sample determination formula. Questionnaires were used by the study to collect the data. The semi-structured questionnaire was self-administered to increase the response rate. The study analysed the results using the SPSS software version 24. Regression analysis was used to develop a regression model expressing the hypothesized relationship between variables under study. The researcher regressed the variables at a 5% significance level to determine the strength of the variables and the direction of their relationship. The study found that vendor-managed inventory has a positive and statistically significant effect on the procurement function at NCPB in Uasin Gishu county (Î =0.327; p<0.05). The study concluded that inventory management needs to be embraced to help the management team appreciate the direct impact of these initiatives. The study recommended that the adoption of flexible inventory management practices through appropriate research will help efficiently and effectively meet the business's diverse yet drastic changing needs as well as address challenges arising from a dynamic global business environment. The study draws the findings about the topic under the study. However, procurement is a function that ensures the overall success of the organization.

Keywords: Vendor Managed Inventory, Procurement

 

Author Biographies

Valentine Cherotich, Jomo Kenyatta University of Agriculture and Technology

School of Entrepreneurship, Procurement and Management Jomo Kenyatta University of Agriculture and Technology

Enock Gideon Musau

Lecturer, School of Business and Economics, Department of Management Science, Kisii University, Kenya

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Published

2020-11-14

How to Cite

Cherotich, V., & Musau, E. G. (2020). The Influence of Vendor Managed Inventory on Procurement Function of NCPB in Uasin Gishu County. Journal of Procurement & Supply Chain, 4(1), 55–68. Retrieved from https://stratfordjournal.org/journals/index.php/journal-of-procurement-supply/article/view/611

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