EFFECT OF WAREHOUSE MANAGEMENT SYSTEMS ON SUPPLY CHAIN PERFORMANCE OF FAST-MOVING CONSUMER GOODS MANUFACTURERS IN KENYA
DOI:
https://doi.org/10.47604/ijscm.1192Keywords:
Warehouse Management Systems, Supply Chain Performance, Fast-Moving Consumer GoodsAbstract
Purpose: The purpose of this study was to establish the effect of warehouse management systems on supply chain performance of fast-moving consumer goods manufacturers in Kenya
Methodology: The study adopted descriptive research design. The unit of observation was the operations manager of the 51 FMCG manufacturers located in Nairobi. The sampling frame of the current study consisted of operations managers in the manufacturers of the FMCGs in Nairobi. The study used the census method to select 51 manufacturers of the FMCGs in Nairobi, thus the sample of the study was 51 respondents. Primary data was used in the study. The study used questionnaires to collect data. Mixed methods technique of analyzing data was used where both descriptive and inferential analysis were used. The data collected from the field was analyzed using SPSS 23 program. The questionnaires were referenced and the items in them coded for easier data entry. The presentation of the findings was done using tables.
Results: The study found that warehouse management systems positively and significantly influences Supply chain performance of FMCG in Kenya. The study found that the respondents were in agreement that warehouse management system helps to reduce picking errors; warehouse management system facilities the maximum use of storage space; warehouse management system helps to optimize stock control; warehouse management system improves work productivity; and that warehouse management system guide workers through risk assessments and flag up warehouse safety requirements.
Unique contribution to theory, practice and policy: The study recommended that when warehouse management systems are improved, supply chain performance of the company improves as well. The study recommends management of the company to ensure they remain informed on the changes in the market to ensure that their warehouse management system is up-to-date and therefore avoid process redundancy and inaccurate inventories. There is a need to use strategic approach in practices of managing logistics by embracing modernized technology and training of employees on the use of the same.
Downloads
References
Bhat, A. (2011). Supply Chain Risk Assessment Tools and Techniques in the Automobile Industry: A Survey. The IUP Journal of Supply Chain Management, 6(1), pp.67-76.
Bondarev, A., & Zakirov, D. (2015). Warehouse of data on platform of Hadoop for systems supporting decision making in the education system. ICECCO, 2015 Twelve International Conference on (pp. 1-4). IEEE.
Carter, J. R., Smeltzer, L., &Narasimhan, R. (1998). Role performed by the association between sellers and buyers in integrating TQM using SC. European Journal of Purchasing & Supply Management, 4(4), 223-234.
Cox, A. (2010). Managing with power: Strategies for Improving Value Appropriation from Supply Relationships. Journal of Supply Chain Management, 37 (1), 1-9
Dacin, C. (2007). The Legitimacy of Strategic Alliances: An Institutional Perspective. Strategic Management Journal, 28(2), 169 - 187
DiMaggio, P., & Powell, W. W. (1983). Revisiting Iron Gate: institutional isomorphism and Collective rationality in the field of organizations. American sociological review, 48(2), 147-160.
Euromonitor. (2015). Kenya's fats and oils. Retrieved from
http://www.euromonitor.com/oils-and-fats-in-kenya/report.
Fan, M., Zhang, Y., & Zhang, Z. (2015). Reframing Financial Regulation: Enhancing Stability and Protecting Consumers. Arlington, VA: Mercatus Center at George Mason University.
Kandie, K. (2014). Sustained Investments In Electricity Needed To Power The Economy. Economic Review.
Kenyan Association of Manufacturers (KAM)(2017). Ten policy priorities for transforming manufacturing and creating jobs in Kenya. Retrieved from, http://www.kam.co.ke/Docs/
Laosirihongthong, T., Adebanjo, D., & Choon Tan, K. (2013). Green supply chain management practices and performance. Industrial Management & Data Systems, 113(8), 1088-1109
Mandrinos, S. (2014). International practices of FMCG products: research on PDO products: Greece's feta cheese.
Miheso, S. C. (2013). Adoption of Integrated Financial Management Information System (ifmis) By The National Government In Kenya. Doctoral dissertation, University of Nairobi.
Mitullah, W. & Odek , P.(2010). Employment Creation in Agriculture & Agro"Processing Sector in Kenya in the Context of Inclusive Growth: Political Economy & Settlement Analysis. Partnership for African Social and Governance Research Working Paper No. 020, Nairobi, Kenya.
Mukolwe, G. A., & Wanyoike, D. M. (2015). Does Financial Liberalization Reduce Financing Constrains? Financial Management Association 31 (4): 5-34.
Mungu, S. (2013). How application of practices of managing logistics can affect the level of stocks of essential drugs in public health institution. Unpublished thesis UoN.
Njambi, E., &Katuse, P. (2013). 3PL in efficiency of delivery for competitive advantage of Kenya's FMCG organizations.
International Journal of Social Sciences and Entrepreneurship, 1(8), 15-27.
Nyaga, J. (2014). Aspects that affect the distribution of FMCG in Kenya: EEA. Journal of Social Sciences and Entrepreneurship, 1(12), 290-302.
Owino, E. O. (2013). Service Quality in Kenyan Universities: Dimensionality and Contextual Analysis. Unpublished Thesis, University of Nairobi.
Ramaa, A., Subramanya, K. N., &Rangaswamy, T. M. (2012). Effects of WMS in performance of SC. Int. Journ. CA, 54(1).
Republic of Kenya, (2014). Economic Survey 2014. Nairobi, Kenya: Kenya National Bureau of Statistics.
Udeh, D.O. and Karaduman, I. (2015). The impact of supply chain in the warehouse management systems of Turkish automotive industry. International Journal of Economics, Commerce and Management 3(5), 410-423.
Wacuka, K. (2015). Association between management of inventory and performance of SC of FMCG. Masters Dissertation, University of Nairobi.
Wambui, K. (2015). Relationship between lean management practices and supply chain performance of FMCG. Masters Dissertation, University of Nairobi.
Wasamba, I. O. (2008). Strategies applied by manufactures dealing FMCG in motivating their members: Kenya's supermarkets. Thesis, University of Nairobi, Nairobi.
Wasonga, P. (2012). Factors that affect perception of consumers of manufacture's dealing with FMCG in EAC; Laundries detergent products.
Zhu, Q., & Sarkis, J. (2007). Mediating impact of institutional pressure on practices of green SC and performance. Int. Journ. Research on production, 45(18-19), 4333-4355.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.