INVENTORY VISIBILITY AND PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Yussuf Khalif Mohamed, Dr. Noor Ismail Shale

Abstract


Many manufacturing firms in Nairobi City County face challenges with limited inventory visibility, including inefficiencies in ICT integration, and order fulfillment. These limitations hinder their ability to optimize operations, reduce costs, and meet customer demands, ultimately affecting their overall performance and competitiveness. This study sought to investigate the impact of inventory visibility on the performance of manufacturing firms in Nairobi City County, Kenya. The study specifically sought to assess how ICT integration, and order fulfillment influence the performance of manufacturing firms in Nairobi City County, Kenya. This study was grounded on Technology Acceptance Model (TAM), and Systems Theory. A descriptive research design and a mixed-methods approach were adopted, targeting a population of 230 manufacturing firms registered under the Kenya Association of Manufacturers (KAM). The unit of analysis was the manufacturing firms, while the unit of observation was senior managers in supply chain management and production roles. A sample size of 146 firms was determined using Yamane's formula and selected through stratified random sampling to ensure sectoral representation. Data was collected using a semi-structured questionnaire, which underwent a pilot study with 15 respondents to test for reliability and validity. Data was analyzed using SPSS version 28. Descriptive statistics, including frequencies, percentages, and means, were used to summarize data, while inferential statistics, such as correlation and regression analysis, were employed to test relationships between the independent variables and the dependent. The findings revealed significant positive relationships between all independent variables and firm performance, with regression coefficients of 0.323 (p=0.000) for ICT integration, and 0.343 (p=0.000) for order fulfillment. These results highlight the critical role of inventory visibility tools in enhancing operational efficiency, customer satisfaction, and financial performance. The study concluded that adopting advanced inventory visibility systems is essential for optimizing supply chain processes and sustaining competitiveness. It recommends increased investment in ICT systems to streamline operations and improve order fulfillment efficiency. Additionally, firms should prioritize employee training and interdepartmental coordination to maximize the benefits of inventory visibility tools.

Key Words: Inventory Visibility, ICT Integration, Order Fulfillment, Performance of Manufacturing Firms


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