INVENTORY MANAGEMENT PRACTICES AND PERFORMANCE OF CLEANING COMPANIES IN NAIROBI CITY, KENYA

Christine Wambui Mwaniki, Dr. Miriam Thogori

Abstract


Proper inventory management technique plays an important function on firm performance and there is a positive relationship between the processes of managing inventories include and company performance. Inventory Management is an important corporate function as it’s essential to the successful operation in the organizations.  The general objective of this study was to examine the effect of inventory management practices on performance of commercial cleaning companies in Nairobi County, Kenya. The specific objectives were to; examine effect of lead time, and supplier relationship on performance of commercial cleaning companies in Nairobi County, Kenya. The study was guided by theories namely inventory control theory, and social exchange theory. The research employed a descriptive research design. The target population was hence 348 respondents. The study sampling frame was 348 management staff of the cleaning companies in Nairobi County.  The sample size was determined using Taro Yamane's 1967 sampling formula.  The sample size was 186 respondents. Data was collected using questionnaires. A pilot test was conducted with 10% of the sample size hence 16 respondents. In this study, construct and content validity were used. The reliability coefficient of the research instruments was checked using  Cronbach’s Alpha.. Results were tabulated. Data was analyzed using SPSS Version 28.  The study used descriptive statistics which included frequency, percentage, and mean. The inferential statistics included correlation and regression. Findings show that; a strong significant relationship between lead time and firm performance (r=0.723, p=0.000), and a moderate significant relationship between supplier relationship and firm performance (r=0.418, p=0.000). The recommendations are; firms should ensure that there is stand-by staff who are called upon when there is high demand, should develop a structural mechanism to ensure cordial buyer-supplier relationships, and should a create a policy framework to make the best inventory management strategies, such as JIT (Just in Time) and MRP (Material requirements planning) easier to adopt.

Key Words: Inventory Management Practices, Lead Time, Supplier Relationship, Performance, Commercial Cleaning Companies, Nairobi County

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