Pages: (1-26 )
Abstract
Operational performance issues such as production inefficiencies, operational inflexibility, inadequate product quality control measures, and delays in meeting delivery deadlines frequently plague fast-moving consumer goods manufacturing companies, which are suggestively due to inadequate inventory management practices of automated inventory control, inventory shrinkage, just in time inventory and vendor managed inventory. Extant studies on the operational performance of fast moving consumer goods manufacturing companies have attempted to elucidate on the challenges of fast-moving consumer goods manufacturing companies and the attendant supposed solutions; however, most of the existing research focused more on developed countries rather than developing countries such as Nigeria. Hence, this study examined inventory management practices and operational performance of selected fast-moving consumer goods manufacturing companies in Ogun state, Nigeria. Survey research design was adopted for this study. The population comprised 693 top, middle and low-level management staff of five selected fast-moving consumer goods companies in Ogun State, Nigeria. A sample size of 321 was determined using Cochran formula. Stratified sampling technique was adopted in selecting respondents. A structured and validated questionnaire was utilized for data collection with Cronbach’s alpha reliability coefficients for the constructs ranged from 0.81 to 0.99. The response rate was 93.5%. Data were analyzed using the descriptive and inferential (Multiple Regression) statistics at a significant level of 5%. Findings revealed that inventory management practices have positive and statistically significant effect on the operational performance (Adj.R2= 0.066, F(4, 299) = 6.258, p<0.05) of the selected fast-moving consumer goods manufacturing companies in Ogun state, Nigeria. Inventory management practices therefore, improved the operational performance of the selected fast-moving consumer goods manufacturing companies in Ogun state, Nigeria. The study recommended that these manufacturing companies, should prioritize the strategic implementation of robust inventory management practices, including automated inventory control systems, stringent measures to mitigate inventory shrinkage, adoption of just-in time inventory strategies, and fostering collaborative vendor-managed inventory partnerships, thereby optimizing inventory levels, minimizing waste, enhancing agility, and ensuring efficient resource utilization across the supply chain to enhance their operational performance.
Keywords: Automated inventory control, Inventory management practices, On-time delivery, Operational flexibility, Operational performance, Product quality, Vendor managed inventory,