INVENTORY MANAGEMENT PRACTICES AND PERFORMANCE OF PROCUREMENT FUNCTION AMONG SUPERMARKETS IN NAKURU CITY, KENYA
Abstract
Purpose of the study: Assess the influence of inventory management practices on the performance of the procurement function among supermarkets in Nakuru City, Kenya. T
Statement of the problem: The performance of procurement function is central to the operations of supermarkets, ensuring that goods are sourced, purchased and delivered efficiently to meet customer demand. Despite the critical role of procurement function, Kenyan supermarkets continue to face persistent inefficiencies. The collapse or closure of several prominent retail chains has highlighted serious weaknesses in the procurement functions. In Nakuru City, supermarkets such as Stagematt and Vision Matt also closed amid procurement inefficiencies and related challenges.
Research Methodology: The study was anchored on the Economic Order Quantity (EOQ) Model and adopted a descriptive correlational research design. It targeted a census of all 118 employees (procurement officers, logistics officers, and store managers) across 9 major supermarkets in Nakuru City, Kenya. Primary data were collected via self-administered structured questionnaires (using Google Forms and drop-and-pick methods), with reliability and validity established through a pilot test at Naivas and Kipchimatt Supermarkets in Kericho plus expert review and Cronbach’s Alpha (>0.7), while analysis employed descriptive statistics, Pearson correlation, and multiple linear regression after normality checks, with results presented in tables.
Findings: The findings revealed a strong, positive and statistically significant relationship between inventory management practices and performance of the procurement function (r = 0.828, p = 0.000), with regression analysis indicating that one unit improvement in inventory management practices is associated with 0.640 unit increase in procurement performance (β = 0.640, p = 0.000).
Conclusion: The study concludes that inventory management practices serve as a critical mechanism for optimizing stock levels, minimizing procurement-related costs and disruptions, and enhancing overall procurement efficiency and competitiveness within supermarkets in Nakuru City.
Recommendations: It is recommended that supermarket management and procurement teams prioritize the adoption of automated inventory systems, accurate demand forecasting methods, Economic Order Quantity (EOQ) models, and staff training on real-time stock monitoring, while policymakers and industry regulators support capacity-building initiatives and technology integration to strengthen inventory practices and improve procurement outcomes in Kenya’s retail sector.
Keywords: Inventory management practices, performance, procurement function, supermarkets, Nakuru City, Kenya
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