CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATION OF FINDINGS
The study aimed at establishing the effect of inventory management on organizational performance. The study was guided by research objectives and the researcher summarized the findings in consistence to the research objectives.
5.1 Summary of Major Findings
The findings in the study the factors that hinder efficient inventory management include; Technological challenges due to drastic technological advancement, Changes in supply of inventories like agricultural products, Obsolescence of goods while in storage facilities , Production costs of an item has an influence on its being stored, Inventory management has numerous costs involved like holding costs.
The results in the study indicates that Other factors affecting organizational performance include; Cash and non-cash recognition programmes are important, Rotation of employees in an organization is essential in ensuring organizational performance, communicating to employees efficiently is beneficial in organizational performance, Setting organizational goals to ensure better performance, Having clear information regarding organization is essential in performance.
The study indicates that effects of inventory management on organizational performance include; Increase effectiveness of employees in an organization,Reduction of expenses of stock creates better performance, tracking of inventories in an organization, and saving of organizational resources.
5.2 Discussion of findings
5.2.1 Influence of funding on stores management
According to the findings in the study majority of the respondents assert that that stores management enables globalization this is also supported by (G. Rendon, 2006), Organizations are increasingly relying on critical services and production contracts as their key to maintaining competitive advantage, the organization’s competence and process capability in stores management is now more important than ever. Some organizations are using process capability maturity models to assess, measure, and improve critical core processes, such as software development and project management. Although, the application of capability maturity models to the contract management process is just beginning to emerge as a best practice.
This findings indicates that stores management Supports procurement this is also in line with (Krappe and Kallayil, 2003) who states that Over the last fifty years many, of the world’s largest firms have advanced from being simple manufactures of hard goods, or providers of basic services, to being sophisticated vendors using advanced business models. This means that commitment of customers and suppliers to contractual obligations has increased, thus, the need for sustainable contract management policies.
The results in the study indicates that stores management in an organization reduces cost of manufacturing as stated by Still (2005), argues that efficient stores management are the life blood of the modern business. Without this vital legal glue, entering into arm’s length commercial deals would be fraught with peril yet for medium to large sized organizations stores management brings challenges of its own
5.2.2 Findings on the various stores management techniques
According to the results in the study Just in time management technique is used in stores management, this is also in line with Donald (2009) who argues that JIT offers another approach which does not use rigid plans but gives a way of organizing all activities to occur exactly the time they are needed. They are not done too early which would leave materials having around until they are actually needed and they are not done too late which would give poor customer service.
The findings indicates that Material management planning is used to maintain stores records, this results is also in line with Ronald Ballou, (2004), says MRP primarily is used for scheduling high valued custom made parts, materials and supplies whose demand is reasonably well known. The purpose of MRP from logistics point of view is to avoid as much as possible carrying these items in inventory.
The results in the study indicates that ABC Analysis is used to maintain stores inventory, this is also in line with Donald waters, (2009), who states that ABC puts items into categories that show the amount of effort worsening on inventory control. This is a standard Pareto Analysis or rule of 80/20 which suggests that 20% of inventory items need 80% of the attention while the remaining 80% of items need only 20% of the attention. The categories are defined in terms of the value of annual demand, so ABC analysis starts by calculating the annual usage by value of each item.
The findings indicates that Inventory verification systems is used to maintain inventory , this is also in line with Donald waters, (2009) who states that EOQ is the optimal size for an order in a simple inventory control. This analysis was done early in the last century and it remains the best way of controlling many stocks with independent demand. Its flexible and easy to use and gives good guidelines for a wide range of circumstances.
5.2.3 Various techniques of automation in stores management
The findings in the study indicates that Electronic Funds Transfer is an ICT system installed to helps in stores management, this is also in line with Lysons and Farrington, (2006) who states that EDI is a technique based on agreed standards, which enables computers in different organizations to successfully send business information of transaction from one to another. They emphasize that EDI reduces on the lead-time simply because transactions are faster and more accurate.
The findings in the study indicates that Electronic Mail is instrumental in automation of stores management, this is also further highly recommended by leanders et-al, (1998) who states that E-mail is a process by which letters, orders or other documents are sent by a computer along telecommunication lines to appear on the Visual Display Unit (VDU) at their destination. They emphasize that incase buyers use this technique in the process of buying, sending and receiving of messages can take minutes instead of days.
According to the findings in the study most of the respondents hold the view that E-market place helps in the stores management , this is also in line with Lysons (2006) who asserts that, e-market is a web site that enables procurement officers to select the best suppliers in the market electronically. In this situation, a procurer is in control especially in open market places.
5.3 CONCLUSION
The findings in the study states that technological challenges including costs of maintaining machines and costs of maintaining among other greatly affects and hinders efficient inventory management.
The study indicates that changes in supply of inventories have an influence on the efficiency in inventory management.
The obsolescence of goods while in storage facilities has an influence on the proper storage of inventories in the store this is due to the fact that when inventories kept for long in the store they become obsolete.
However the production cost of items also hinders an organization from keeping the inventories in the store has an effect on inventory management in an organization.
The study also discovers that the othe factors affecting organizational performance are numerous including cash and non-cash barriers which prevent organization from obtaining some inventories in the organization.
The level of employee Rotation of employees in an organization is essential in ensuring organizational performance.
However communicating to employees efficiently is beneficial in organizational performance as observed in the study.
According to the findings in the study it is imperative to observe that setting organizational goals to ensure better performance is critical for the better performance of an organization.
The study indicates that inventory management has effects on Increase effectiveness of employees in an organization,
According to the findings in the study inventory management helps in Reduction of expenses of stock and creation of better performance.
However the organization also is essential in tracking of inventories in an organization, and saving of organizational resources.
5.4 Recommendations
The findings show that funding helps stores management to; Enables globalization, supports procurement, Enables organizational performance, reduces costs in manufacturing and increases competitiveness.
According to the findings in the study the various stores management techniques include; just in time technique, material requirement planning, ABC Analysis, Economic order quantity, Inventory verification systems, computerized systems and manual systems.
The finding in the study indicates that various techniques of automation in stores management include; Economic data interchange transfer, Economic mail, Electronic hubs, and Electronic market place.
