Professional Documents
Culture Documents
ADMINISTRATION (GIMPA)
BUSINESS SCHOOL
BY
Names
OCTOBER, 2017
CERTIFICATION
The undersigned certify that he has read and recommended to the GIMPA Business School for the
Supervisors name............................................................................
Date...................................................................................................
Signature...........................................................................................
ii
DECLARATION
While acknowledging information from other sources, which I have duly cited, I hereby declare
that this project work is the result of my own original research and it has never been presented, in
whole or part, for another degree in the GIMPA Business School or elsewhere.
SIGNATURE....................................................
DATE................................................................
Name
iii
ACKNOWLEDEMENT
I give praise, honour and thanks to the Almighty God for His grace in seeing me through to the
completion of the MBA programme. I also wish to express my deepest gratitude to my dedicated,
supportive, able and accommodating supervisor, Dr. Kwasi Awuah-Werekoh of the GIMPA
I am equally grateful to the officials of Ick International Services Ltd. for granting me interviews
and responding to my questionnaires and also for the helpful and useful materials and publications.
iv
DEDICATION
The piece of work is dedicated to my lovely husband Mr. Victus Kwabla Sabutey, and my
handsome and adorable son Aaron NunanaKwaku Sabutey, for their prayers, encouragement, love
v
ABSTRACT
Managing stock effectively is important for any organization, running a hospital is no exception
because without enough stock, services to patients will come to a halt. Stock represents the largest
single investment in assets for most organizations. Telecommunication organizations must provide
24 hour services and accordingly, the need to keep stocks of certain materials to be able to
discharge their duties effectively. It is a generally held opinion that where stock management by a
firm is poor, delivery of service is normally affected. Hence, this study examined the challenges
and prospects of warehouse management systems and its effect on organizational performance
using ICK International service ltd as a case. A sample of 30 staff was selected for the study.
Questionnaires were used as the main instrument of data collection. The study revealed that the
organization ensures agreements with supplier for short cycle deliveries, ensures accurate
prediction of supplier delivery dates and operate Materials Requirements Planning system (MRP).
The study also revealed that the hospital ensures Strategic Supplier Partnerships as an Inventory
management practice and strictly uses Information Technology in its inventory management
practices. However, among the challenges Ick International faced with inventory management was
poor storage leading to insufficient inventories, bureaucratic process in procurement, and loss of
materials through inventory shrinkages, conflict of interest, weak management system and
insufficient funds for procurement. It was therefore recommended that there is a need for
management to emphasize the importance of inventory management and the firm should improve
the demand forecasting of major supplies and adoption of advanced information system such as
Electronic Data Interchange (EDI) to link their inventory practices with their service delivery.
vi
Table of Contents
CERTIFICATION ........................................................................................................................................ ii
ACKNOWLEDEMENT .......................................................................................................................... iv
DEDICATION .......................................................................................................................................... v
ABSTRACT............................................................................................................................................. vi
vii
2.5.4 Distribution Requirements Planning .............................................................................................. 16
4.3 Relationship between Warehouse Management System and Organizational Performance ........... 26
viii
5.4 Recommendations ................................................................................................................................. 32
References ................................................................................................................................................... 34
Appendix ..................................................................................................................................................... 37
ix
LIST OF FIGURES
x
LIST OF TABLES
xi
CHAPTER ONE
INTRODUCTION
Inventory control implies the coordination of materials controlling, utilization and purchasing. It
has also the purpose of getting the right inventory at the right place at the right time with right
quantity because it is directly connected with the production. The objective of any organization is
to get a good return out of every cedi invested in the company. According to Pandey (2005)
management through their policies, coordination, decision and control mechanisms must
maximize the return on investment (ROI).
Peterson and Joyce (2007) while supporting Pandey (2005) states that it is clear that ROI can be
maximized either by increasing profit margin or by reducing the capital employed or by both. In
the market situation, sales price cannot be increased (rather there is a demand to reduce it) and as
such profit can be increased only by reducing the material costs. On the other hand, the opportunity
to reduce the overheads and capital employed is more by inventory reduction (Drury, 2002). It is
thus evident that the ROI can be maximized by either reducing the material cost or reducing the
current assets by way of inventory of materials or can be optimized by increasing profits. Peterson
and Joyce (2007) maintain that it is evident that the inventory management can make a direct
contribution to increasing profitability in the following ways:
1
A. By deciding inventory norms nationally and through control systems. Inventory turnover
can be maximized which in turn will maximize current assets turnover and ROI.
B. By proper planning and control of spare parts, capacity utilization can be increased which
will increase the turnover of fixed assets and consequently increase ROI.
D. By developing proper systems and control on the issue of materials, the consumption can
be minimized, reduction in wastes and rejects, resulting in reducing the materials cost,
which will increase the profit margin.
E. Establishment of farms to grow the major raw materials and less dependent on importation.
Unless operators in the manufacturing industry understand the true costs associated with inventory
management and poor inventory productivity and can review the benefits of alternative
approaches, they will continue to be complacent, accepting average profit instead of better
performance. This study holds the view that the operators in the industry adopting a holistic
operating model that improves inventory productivity, enhances sales margin, and saves millions
of Cedis in operating costs and especially on costs associated with inventory. Saving costs on
inventory start with a comprehensive organizational focus on inventory management.
Warehouse management is a vital part of the supply chain management. It is important to create
an error-free, structured and efficient system to serve customers. In this topic, we will deepen into
the challenges and prospects of warehouse management and its effect on the performance of an
organization by considering ICK International Services Limited as the case study.
Wild, (2002) recommends, proper warehousing of inventory so that when goods are ordered, they
are held at the warehouse for the least time possible minimizing holding-cost of inventory.
Consequently, other operational costs may increase inventory management costs like through the
2
balance of ordering costs, holding costs, safety stock and stock outs (Palevich, 2012) and (Wisner,
Tan and Leong 2011). Once an organization realizes this, it can develop an online inventory
management tool to monitor its inventory information by breaking it down into groups by
correlating the categories with its customers.
Warehouse Management System (WMS) is designed to introduce improvement into every aspect
of a companys warehouse operations that offers an organized approach to manage effectively. By
integrating advanced radio frequency and bar coding technologies with core warehousing
functionality, WMS provides comprehensive fulfilment centre and warehouse management,
including receiving, stocking, picking and related warehouse tasks. The best-of-breed solution
leverages state-of-the-art technology to deliver all of the functionality needed to maximize
operational efficiency and increase throughput, thus meet the primary focus of warehouse in
accuracy and timely fulfilment of customer orders.
Globalization and competitive pressures have heightened the strategic use of MIS. More
specifically, Barcode data collection solutions for warehouse management system provides
powerful and flexible automatic identification system that connects the shop floor to the enterprise
software. If a warehouse is able to take on these challenges with great success the profits will
undoubtedly increase.
3
Gonzalez and Gonzalez (2010) noted that management and staff have minimal knowledge on how
to apply the economic order quantity, which negates the success of an organization.
ICK International Services Limited who are currently in the Operations and Maintenance Services
ought to train their staff who engage in procurement since systems cannot work by themselves.
Once the organization has qualified personnel who understand how to apply prudent inventory
management techniques, the organizations supply chain performance would, therefore, be
achieved.
The study conducted by Gonzalez and Gonzalez (2010) shows that forecasting techniques
utilization for demand planning helps organizations plan for their inventory adequately, avoiding
regular stock-outs. The shortcomings identified showed that lack of use of EOQ and ROP by firms
led to the utilization of more funds but their utilization led to customer satisfaction and cash savings
for the organization. The study did not address supply chain performance as a result of utilizing
efficient inventory management techniques.
Integrated supply chain practices in the policies were important too as well as suppliers alliance.
Notably, middle-level management empowerment was also a key factor in improved supply chain
performance. The shortcoming found was the model used gave 50% variance in performance
implying that some factors were left out during the study that could have given an improved
4
analytical model of the study. The study did not address, the extent of inventory management
techniques application that improves firms supply chain performance.
A study conducted by Maghanga (2011) established that, for the tea processing firms to survive,
they need to embrace the changing competitive trends in the market. Best business practices need
to be adopted for the business to remain relevant and competitive. However, the study did not
cover the need to assess the management of the supply chain on the larger agricultural sector by
looking at impacts of firms supply chain performance.
Stock shortages are a headache for most organizations as expressed by Githendu, Nyamwange and
Akelo (2008) and it leads to customers dissatisfaction, which eventually leads to the low
performance of a firm. Organizations ought to ensure that their inventory is monitored from time
to time to avoid stock-outs. Due to the manual system of checking and validating, the stochastic
nature of demand and lead time is not achieved. Also, lack of automated systems, stock-outs are
experienced often and replenishment is done hurriedly leading to costly inventory management
and likewise low-performance standards.
The study conducted by Githendu, Nyamwange and Akelo (2008) indicated that firms that have
centralized stock holding have an advantage because they are able to control the stocks and avoid
stock duplication in their subsidiaries. Since high-value stocks are held, there are instances where
the organization will have too much stock in their warehouse implying a huge part of their cash is
tied down with stocks. Also, a proper inventory management system is lacking causing frequent
stock-outs for the organization. The study did not address inventory management techniques that
enhance service levels ensuring stocks are distributed on time and at the right place meeting
customers demands.
To the best knowledge of the researcher, no study has been done on the challenges of warehouse
management and its effect on organizational performance in the operations and maintenance
services industry.
5
It is against this background therefore that the researcher seeks to find out the challenges affecting
warehouse management and their effects on organizational performance and address them
accordingly.
2. To establish the problems associated with ICK International Services Limited on their
warehouse management as against its performance
3. To identify the challenges that ICK International Services Limited faces in services delivering
to customers
4. To establish the facts that relate to whether good warehouse management leads to good services
delivering
2. Supply chain professionals and finance managers will find this research useful for knowledge
and operational implementation.
3. The government will benefit indirectly to streamline the inventory management, the Ghanaian
public will benefit greatly from the information that will be gathered to use to rationalize their
supply chain systems.
6
4. Donor funding institutions will also benefit from this study, they will know how to streamline
their grant agreements with future projects run by Operations and Maintenance Services so that
the impacts are felt and funds donated do not go waste.
5. Academicians and scholars will also find this research valuable to their study and advancement
of their knowledge.
7
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
In various Operations and Maintenance Service providing companies and organizations
worldwide, Information and Communication Technologies (ICTs) play a role in the process of
providing effectively efficient services, products and packages to better satisfy their customers.
Companies face a dilemma in today's competitive marketplace, where customers demand
customized products and services and require that their orders are filled quickly, however,
customers do not want to pay a premium for this customization and availability (Graman and
Magazine, 2006). Therefore, organizations are exploring ways toward postponement strategy in
response to constantly changing demands (Yang et al.(2004).
Technological integration, data quality, system-to-system integration, and ICT or technical issues
have been identified as major challenges for many organizations when implementing inventory
control, AOT Consulting (2003).
This chapter, therefore, describes the integration of ICTs in inventory management systems and
their potential benefits to enhancing the performance of ICK International Services Limited.
8
coordinate transactions efficiently (Williamson, 1985). ICT can lower coordination costs, and in
supply chain contexts, digitally enabled integration capability can substantially improve
transactional efficiencies through increased information sharing and communications capabilities,
resulting in improved supply chain performance (Zhu & Kraemer, 2005). Furthermore, as argued
by (Lopez, 2013), ICT resources impact on communication improvement; this includes internal
and external communication and coordination of activities and this enables a faster and more
efficient use of information both within the firm and with external agents, such as customers and
suppliers. TCE highlights on the role of the digitally enabled supply chain management in
competitive environments.
To improve the performance or even survive in competitive environments, a firm needs to adapt
its businesses to respond to competitive actions (Sambamurthy et al, 2003). If a manufacturers
operation is frequently affected by competitors actions, it may face greater needs to coordinate
with supply chain partners. For example, a manufacturer that needs to modify the design of its
product, because of market entry or new products launched by competitors, also needs to modify
the design of upstream components that constitute the product; it may also need to rearrange
downstream channels for new product distribution. These may induce considerable coordination
tasks (Bensaou, 1997). Accordingly, technologies that help reduce coordination costs are more
valuable in intensely competitive markets.
9
Barney (2011) argues that the RBV approach has evolved from a nascent, upstart perspective to
one of the most prominent and powerful theories for describing, explaining, and predicting
organizational relationships. The RBV theory attempts to explain how technology creates value
(Zhu & Kraemer 2002, 2005). The RBV theory attributes the improvement in firm performance to
valuable resources or resource bundles (Barney 1991, Peteraf 1993). ICT creates value to the firm
indirectly as it affects other resources or processes which in turns lead to performance
improvement and hence competitive advantage. Therefore, researchers may find it particularly
beneficial to use intermediate-level dependent variables at the business process, department, or
project level (Wade & Hulland 2004, pp. 129130). In light of this logic, the study will particularly
address the impact of ICT on inventory management by focusing on the inventory management
practices; supplier relationships, inventory operations, procurement and ordering processes,
warehousing and storage management process, and customer relationships through which such
impact can be felt in the organization. Revenue generation and cost reduction are the two major
dimensions of process performance improvements through supply chain integration.
ICT adoption is aimed at process improvement, primarily cost reduction and revenue generation
((Mukhopadhyay & Kekre, 2002). Such improvements, seen from the RBV, stem from resource
synergy along the supply chain. Effective SCM aims to synchronize supply, production, and
delivery (Lee et al, 2000). For this to happen, firms need to leverage the connectivity of the Internet
to create an inter-firm digital platform, enabling real-time information sharing, and improving
coordination of allocated resources across the supply chain (Lee, 2004). The digital platform helps
establish connections among separate resources owned by supply chain partners, thus translating
them into bundles of coexisting resources responsive to each other (Zhu & Kraemer, 2002). This
is consistent with the notion of creating resource synergy as advocated by the RBV (Conner, 1991).
In inventory management, such value enhancement is manifest in the adoption of innovative
techniques such as vendor managed inventory and business models that rely heavily on
information sharing and collaborative planning. One such model is the Collaborative Planning,
Forecasting and Replenishment (CPFR) model which takes a holistic approach to supply chain
management and combines the intelligence of multiple trading partners in planning and fulfilling
customer demand by using common metrics, language and firm agreements to improve efficiency
for all participants. CPFR links Operations and Maintenance Service best practices category
10
management, supply chain planning and execution processes to increase availability while
reducing inventory, merchandising, transportation and logistics costs.
Today, some organizations are dependent on ICT for deploying e-commerce platforms to increase
business presence and link to customers, data mining where patterns can be used to guide firms to
make timely decisions and simplification of tasks that otherwise could be unwieldy to manage by
humans. Because businesses are dependent on ICT in the improvement of service delivery, they
have incorporated it into their strategic plans to give it deserved attention (Kodama, 2013).
Applications of ICT are as wide as there are the needs of an organization; they can range from the
simple point of sale unit to a whole organization where Enterprise Resource Planning system is
installed to manage almost every aspect of the organization. Some of these areas include supply
chain management, human resources, customer management and accounts (Duggan, 2012).
11
double-edged weapon, since the lack of inventory leads to loss of productivity, while excess
inventory leads to loss of profitability. Thus, (Oliveira & Rodriguez, 2008) argue that inventory
management has direct and significant effects on operational efficiency (performance) and
company finances and Roy (2012) points out that an effective inventory management will always
give a competitive advantage to the business over its competitors.
12
inventory accounts are updated automatically and continuously. Advances in the computer and
network technology make perpetual inventory systems possible, and implementing this type of
system requires an extensive technology expense. Point-of-Sale systems tied directly into
accounting software packages that can update accounting records and other inventory records on
the fly using information from barcode scanners, radio frequency identification tags or cashier
input. Such a system is not only quick and accurate but provides management with continuously
updated information on the status of inventory levels.
13
2.5.1 Enterprise Resource Planning
ERP is a process by which a company (often a manufacturer) manages and integrates the important
parts of its business. ERP is designed to replace paper-based systems by analyzing data from all
areas of a companys resources. ERP covers all functions of a business such as purchasing,
manufacturing, distribution, and inventory management. ERP is designed around a number of
modules each of which can stand alone or combined with others that include finance, logistics,
manufacturing, supplier management and human resources (Stevenson, 2007).
Modern Operations and Maintenance systems integrate Point of Sale and ERP system to provide
more accurate and reliable information and better cost control benefits. The use of barcode
technology to capture and share data almost instantly through the supply chain reduces inventory
costs, eliminates errors, improves document tracking and effectively streamlines business
processes. The Electronic deep sea, commonly used in Operations and Maintenance Service,
check-out user login information enables Operations and Maintenance Services to raise reliable
end-user information, which is vital to the firms planning purposes.
14
The newest trend in the area of inventory control and management is vendor-managed inventory
(VMI) systems and agreements. In a VMI system, distributors and/or manufacturers agree to take
over the inventory management for their customers. Based on daily reports sent automatically from
the customer to the distributor, the distributor replenishes the customer's stocks as needed. The
distributor or manufacturer sees what is selling and makes all necessary arrangements to send the
customer new products or parts automatically. No phone calls or paperwork are necessary allowing
the supply chain process to remain uninterrupted.
The benefits that can accrue to both parties in a VMI arrangement are noteworthy. Both parties
should experience a savings of time and labour. The customer is able to maintain fewer items in
stock and can rely upon a steady flow of products or parts. The vendor or distributor benefits in
two ways. First, a supplier is able to better anticipate production requirements. Second, the supplier
benefits from a strong relationship with the customer, one that is more difficult to alter that would
be a vendor-customer relationship in which such automated systems did not exist.
The tracking of inventory can be possible by use of Radio Frequency Identification (RFID) which
enhances the efficiency of inventory management and replenishment practices. Substantial
benefits in the form of reduced interruptions in production or lost sales due to items being out of
stock will accrue to the Operations and Maintenance Service. RFID enables bulk reading where
many tags can be read in a short space of time a typical read rate is hundreds of tags per second,
the tags can be read over a very long range many hundreds of meters in the case of specialized
tags. RFID tags are durable because they can be ripped, soiled and performance is not impaired.
They can do a bulk reading in a short space of time. All these benefits enhance the effectiveness
of inventory management processes and hence the overall the supply chain (Gerald & David,
2000). RFID and sensor data is real-time, high volume and operational in nature. RFID technology
is designed to inform and enrich systems and processes, not be an end in itself.
As with all outsourcing arrangements, there are potential negatives to a VMI system. The first is
the partial loss of control experienced by the customer in managing his or her own inventories.
Second is the problem this type of system poses on a vendor in the case of volatile sales periods.
It is very difficult for a distributor or manufacturer to hold large inventories for one customer on a
15
VMI system who is experiencing a slowdown in sales while having to ramp up for another
customer who is experiencing rising demand. Both parties to a VMI agreement must weigh the
pros and cons of such a system thoroughly and be sure to include in any VMI agreement
prearranged methods for dealing with periods of volatile sales patterns.
Using barcode technology integrated with the MRP system saves time, increases efficiency and,
above all, improves accuracy. It can help maximize productivity for warehouses, distribution
centres and manufacturers alike. Businesses also have their pick of a wide variety of barcode
solutions, each offering different levels of automation, allowing them to find the right fit.
MRP plays a vital role in the supply chain by helping coordination efforts of production,
engineering, purchasing, marketing and human resource to achieving a common strategy or
business plan (Gerald & David, 2000). It also helps the supply chain managers to analyze
implications of their decisions. The changes can easily be factored into the system as they arise,
such as rush orders and coordination of production with purchasing, marketing and human
resources in such a way as the timing of supplier deliveries, using sales forecast to determine
master budget and planning recruitment or run-down of personnel.
16
organizations, such as car manufacturers that sell their car via several distribution points, such as
regional and local distributors, and purely merchandising organizations, such as Operations and
Maintenance Service (William, 2009).
2.6 Summary
This chapter has reviewed literature pertaining to the impact of IT on inventory management. The
literature has demonstrated how the advancement in IT and the plethora of ICT tools where
adopted have transformed supply chain management and of interest inventory management. In the
context of a highly volatile global business environment, high customer expectations, it is
imperative for Operations and Maintenance Service firms to improve their product and service
offering to remain competitive. To ensure such agility and customer responsiveness, adoption of
modern IT cannot be gainsaid.
There is a significant development in IT in the general retail sector that if applied effectively, a
business can gain in improving inventory management performance. The use of ICT tools such as
barcodes, RFID and EDI is a necessary integration with modern IT systems as they facilitate
information capture, aggregation and sharing. Various IT systems have been used in Operations
and Maintenance Service in the telecommunication sector are largely modules of ERP system such
as VMI, MRP and DRP. However, functioning inventory management system needs the
continuous exchange between WMS and ERP. However, most of the literature on the impact of IT
on inventory management has focused on operational efficiency and customer satisfaction. Even
so, these studies have been conducted in developed countries that have significant differences in
IT infrastructural development from the current scenario in the country. Whereas there is the
17
documented literature of IT application in the retail sector, it is assumed that level of adoption and
its impact on inventory management is the same for all regions. Further, the impact of IT adoption
on inventory management performance is beyond improving operational efficiency and as the
literature opines it affects decision and activity points involved in the overall process of inventory
management including supplier relationship, warehousing and storage, procurement and ordering,
sales process and customer relationships. However, there is little attention accorded to this end by
all existing literature. Through this research, the impact of IT on inventory management would fill
this gap.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the research design and explains the methodology used in gathering data.
The study will be conducted within ICK International Services amongst the companys employees;
the study will be exploratory in nature, using a case study research design. A case study involves
a careful and complete examination of a social unit and departments within the organization and
embraces the depth of a study. In this case, the study will involve ICK International Services
Limited, which is in the Operations and Maintenance Service in the Telecommunication industry.
19
Table 3.1: Target Population at ICK International Services Limited
Management Levels Frequency Percentage
Strategic 5 5.3%
Tactical 22 23.1%
Operational 68 71.6%
Total 95 100.0%
Source: Fieldwork 2017
20
The main tool will be questionnaires, which will consist of both open-ended and closed-ended
questions. Secondary data will also be used, for it is very crucial to determine issues concerning
the variable relations.
3.6 Instrumentation
This research will use questionnaires to gather primary data, questionnaires will be taken to various
employees within the company for them to complete and return them within a specified period of
time. This method is economical in terms of time and cost and thus will be able to cover a large
number of respondents.
21
CHAPTER FOUR
4.1 Introduction
This chapter presents research findings and analyzes data obtained through questionnaires from
respondents. The main aim of this study is to assess the impact of warehouse management on ICK
International Services. The researcher gathered data from all respondents.
The results are presented in the form of graphs and charts to indicate the responses to the following
key areas of the study: demographic analysis, analysis of the objectives and other essential
thematic areas relevant to the objectives of the study.
22
The study gathered demographic characteristics of respondents to determine how they can assist
to provide accurate data for the study. As indicated in Table 4.1, 40% of respondents were females
whereas 60% were males. This is significant for the study as it gives an almost balanced
representation of both genders in expressing their respective opinions to reduce any bias in the
responses of the respondents. Majority of respondents (37%) were holders of Diploma whiles 30%
had WASSCE qualification. Respondents with a 1st and 2nd Degree represented 20% and 13%
respectively. This trend is an indicator that the respondents will be able to understand the questions
of the study and can answer satisfactorily. The respondents cut across various departments within
the organization. Logistics department has the highest respondents of 53% followed by the General
Administration with 27% and the Accounts department being 20%. Finally, the study sought to
know how long respondents have been working with ICK International. 17% had worked for 10
years and above whereas 40% had worked for 1-3 years, however, 43% of respondents had been
working for 5-10 years. This put the respondents in a position to better understand the systems and
structure implemented at ICK International and to make known their objective views on the study
objectives.
Other inventory management practices were presented to respondents to determine their level of
agreement and same are displayed in the various tables below. Table 4.2 presents views of
respondents on the practice of lean inventory system at ICK International. It could be seen from
the Table 4.2 that ICK International ensures Lean Inventory System (LIS) as an inventory
management practice. The mean responses for most of the five variables used to ascertain LIS
were more than 4.0. Variable 2 received the highest agreement with mean 5.35, this was followed
23
by variable 3 with mean 5.09. However, Variable 1 received the highest disagreement with a mean
2.83 preceded by Variable 5 with a mean of 3.78. This implies that to ensure lean inventory system
being practised, ICK International ensures agreements with the supplier of short cycle deliveries,
ensure accurate prediction of supplier delivery dates and operate materials requirements planning
system (MRP). These findings support earlier studies by Oballah et al. (2015), Ogbo et al. (2014)
and Anichebe and Agu (2013).
24
Table 4.3 Strategic Supplier Partnership
Strategic Supplier Partnership N Min. Max. Mean Std. Dev.
Variable 1 Involving suppliers early in product 30 1 5 4.65 1.828
design process
25
Table 4.4 Information Technology
Information Technology Items N Min. Max. Mean Std.
Dev.
Variable 1 ICK International has 30 3 5 6.26 .681
computerized all inventory
management system
Variable 2
ICK International are
electronically linked with 30 2 4 4.04 1.801
suppliers in a real-time
environment
Improved Security 30 23 6 1
26
To assess the relationship which exists between warehouse management systems and the
organizational performance of ICK International, the study sought the views of respondents by
asking whether they agree or disagree to the relationship drawn by the study. The findings are
presented in Table 4.5 above. 18 respondents agreed that the warehouse management system
implemented by ICK International has increased customer satisfaction. Some explained, there isnt
shortage of materials at the warehouse which put ICK International to always deliver to its clients.
7 disagreed with this assertion whereas 5 respondents didnt answer this question. Similarly,
Majority respondents believe the warehouse management system has increased employee job
satisfaction at ICK International although 9 respondents disagree with this claim. 7 respondents
believe Warehouse management system hasnt reduced cost and saved ICK International time but
23 respondents believe otherwise. ICK International has an improved inventory system which
provided accurate balance inventory as indicated by 19 respondents. They claim with a click of a
button, stock levels of all materials in the warehouse could be determined. 9 respondents disagreed
and 2 failed to answer this question.
The study also revealed 25 respondents agree the warehouse management system has improved
the demand planning of ICK International. They explained that ICK International is able to meet
demand deadlines, however, 3 respondents disagree whiles 1 respondent failed to answer the
question. Stealing of Materials from the warehouse has been drastically reduced according to the
23 respondents who agreed warehouse management system has improved the security of ICK
Internationals stock. They further explained that, with the barcode on all materials, it was
impossible to steal anything from the warehouse, a situation which wasnt so prior to the
implementation of warehouse management system. 6 respondents disagreed with this assertion
whereas 1 respondent failed to answer the question. When asked the impact of warehouse
management on the supplier-client relationship, 22 respondents agreed there is a positive
relationship whereas 8 respondents disagreed.
Based on the responses from respondents, the study can make a direct relationship between the
warehouse management and organizational performance. The outcome of all the variable tested
was positive. These findings are in tandem with previous studies conducted by Oballah et al.
(2015), Ogbo et al. (2014) and Anichebe and Agu (2013).
27
4.4 Service delivery challenges of ICK International
Fig 4.1
27
25
23
19
8
5
5
3
2
1
ECOMONIC ENVIRONMENTAL REGULATORY MANAGEMENT
28
4.5 Impact of Warehouse Management system on Service Delivery
Fig 4.2
SERVICE DELIVERY
theft time bound client satisfaction
11%
25%
64%
29
CHAPTER FIVE
5.1 Introduction
This chapter presents a summary of the findings of the study, conclusions drawn and provides
practical recommendations to the identified problems based on the findings of the research. This
chapter discusses the findings uncovered by the administration of the questionnaires.
30
5.2.2 Relationship between warehouse Management System and Organizational
Performance
The study established a direct relationship between warehouse management system and
organizational performance of ICK International. Majority of respondents agreed key factors that
determine organizational performances are directly impacted by warehouse management systems.
The study identified that job satisfaction is positively impacted by warehouse management
systems. With a proper warehouse system in place, the chances of shortages are reduced, making
employees have access tools and materials needed to work. Similarly, warehouse management
systems increase customer satisfaction. Service deliveries are not fraught with delays, unexpected
shortages. The study also found Warehouse management system is directly related to time and
cost savings, better-balanced inventory that enables ICK International to better plan demands.
Losses at the warehouse due to theft, negligence has reduced significantly due to warehouse
management system. Finally, the majority of respondents agreed that rifts and frictions that ensue
between suppliers and ICK International have been reduced.
All these factors culminate to determine the business performance of ICK International. By
extrapolation, the study can conclude that Warehouse management systems at ICK International
have directly impacted its business performance.
31
need to be given some level of autonomy to make decisions swiftly. The study reveals ICK
International practices bureaucratic management style that sometimes causes delays in critical
decision making.
The study final ascertained the impact of warehouse management system on ICKs service
delivery. Majority of respondents noted client satisfaction is the greatest outcome of implement a
warehouse management system. Others also noted that incidents of theft and time wasting have
drastically reduced.
5.3 Conclusions
Effective inventory management is upheld to be a prospective driver for augmenting profit
margins. Minimizing total inventory of cost through identifying an optimum level of inventory
that an organization holds is the way forward. A well-functioning inventories management will
bring both economic benefits in terms of profitability and bring a good image to the company. It
will enable the company to undertake projects on time and bring out quality finished products of
the company. When a company implements effective inventories management systems, the firms
efficiency is enhanced. This has an impact on the level of performance in terms of turnover,
growth, management and ultimately profitability as purported by previous studies by Oballah et
al. (2015), Anichebe and Agu (2013) and Ogbo et al. (2014).
This study sought to investigate the inventory management practices on healthcare service
delivery. It can be concluded from the study that ICK International has been practising inventory
management. However, its effectiveness and how those practices were adhered to by management
and staff were somehow with some challenges. Therefore, pragmatic measures should be put in
place to curb such challenges to ensure effective and efficient inventory control in healthcare
institutions.
5.4 Recommendations
There should be the use of an integrated information system by ICK International to connect and
distribute projects related information particularly between staffs in the organization, or that links
the company with its suppliers. To this ends, the adoption of enabling technologies such as a
Logistics Information System (LIS), often in the form of Electronic Data Interchange (EDI) or
Value Added Network (VAN) or the internet are desirable so that different parties in the supply
32
chain can gain access to the needed information for decision making, thereby meeting the market
requirements responsively.
Improvement of demand forecasting should be the basis for the company to plan their internal
operations and to cooperate with departments to meet market demand. These should define which
products will be required, what amount of these products would be called for, and when they will
be needed. All forecasting must deal with four major variables that combine to determine what the
market condition will be like. Those variables are demand, supply, product characteristics and
competitive environment.
There should be an improvement of relationships with suppliers. The most important purchasing
activity is to select and keep close relationships with several reliable and high-quality suppliers in
order to reduce product cost, maintain good product quality and customer services. ICK
International should improve relationships with their suppliers by paying them on time, ensuring
early placement of orders, free flow of information, and also being honest with them. This is
because it was discovered from the study that some of the suppliers were reluctant to supply
materials when orders are made in situations where the company is indebted to them.
33
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Appendix
Section A:
Please tick (), in the appropriate box and provide comments where necessary.
Section B
Please state the extent to which you agree or disagree with the following statements. The rst
answer that comes into your mind is usually the best!
37
1= Yes 2= Neutral 3= No USE FREQ TABLE
1 2 3
Ick International Operates of Just-In-time (JIT)
Little or no Expediting
38
Better Balanced Inventory
Improved Security
Economic
Environmental
Regulatory
Management
Time Bound
Client Satisfaction
39