Effect of Inventory Computerization on Procurement Performance of State Service Corporations in Nairobi City County, Kenya
DOI:
https://doi.org/10.70619/vol5iss4pp1-16-636Keywords:
Inventory Computerization, Procurement Performance, State Service Corporations, Nairobi City County, KenyaAbstract
This study aimed to investigate the impact of inventory computerization on the procurement performance of state service corporations in Nairobi City County, Kenya. This study adopted a descriptive research design. The target population comprised chief accountants, procurement managers, and heads of inventory departments from 93 service state corporations in Nairobi City County, Kenya. A sample of 165 respondents was selected through stratified random sampling to ensure balanced representation across the three groups. The sample included 55 chief accountants,55 procurement managers, and 55 heads of inventory departments. Data was collected using structured questionnaires. The data were coded and analyzed using SPSS v28. Data analysis entailed descriptive and inferential statistics. The descriptive statistics included means, frequencies, and standard deviations, while the inferential statistics entailed correlation and regression analysis. The findings revealed that inventory computerization was moderately adopted among service state corporations in Nairobi City County. Most respondents confirmed the use of fully computerized inventory coding systems, which improved stock identification and retrieval. Inventory coding was widely applied and considered effective in stock categorization, while RFID technology was used to track inventory location, though its application remained limited in some organizations. RFID-based automation was also recognized for enhancing inventory security. Cloud-based systems were strongly acknowledged as critical for stock monitoring. In contrast, the adoption of Electronic Data Interchange (EDI) for supplier transactions was relatively low, with many respondents expressing neutrality or disagreement. Correlation and regression analyses confirmed that inventory computerization had a positive and significant effect on procurement performance. It was concluded that inventory computerization positively influences procurement performance by enhancing stock management, accuracy, and security. However, the limited use of technologies such as EDI shows the need for wider adoption of modern systems to maximize these benefits. The study recommends that service state corporations in Nairobi City County enhance the adoption of advanced inventory computerization systems to optimize procurement performance. Beyond existing tools such as inventory coding, RFID, and cloud-based systems, organizations should expand the use of technologies like Electronic Data Interchange (EDI) to improve supplier coordination and streamline transactions. Management should also invest in continuous staff training and allocate sufficient resources to support the full implementation of computerized systems.
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