Effect of Vendor-Managed Inventory System on Performance of Retail Outlets in Kenya.

Abstract

Performance of retail outlets is of paramount importance to the world economy as well as the Kenyan economy since it ensures availability of goods to the general public as and when it is needed therefore fulfilling time, place, and possession and form utility. However, recent performance of the sector has been unstable with a number of big retail outlets going out of business which threatens the sector’s contribution to Kenya’s GDP and employment. Previous studies which have linked inventory management practices to performance of the retail outlets have focused on retail outlets in towns and cities with little attention being given to the role of inventory management practices in retail outlets in Kenyas rural counties such as Migori County. The main objective of the present study was to establish the effect of inventory management practices on performance of retail outlets in Kenya with a specific objectives of the study were: to determine the effect of Vendor-Managed Inventory system on performance of retail outlets in Migori County. The study adapted a descriptive survey design. The target population of the study were the stores managers of 66 retail stores in Migori County. All the 66 retail store managers from the 66 retail stores in Migori County were selected. Questionnaires were used to collect data. The collected data were analyzed descriptively. Based on findings for the study objective, VMI, which showed that control activities have a positive significant effect on performance of retail outlets hence implying that holding all factors constant, a unit increase in control activities leads to a significant increase in performance of retail outlets, it is concluded that control activities is an important factor in increasing performance of retail outlets in the organizations.