Inventory management practices, retailer-supplier collaboration and supply chain performance of retail stores in Nakuru county, Kenya

Abstract

Retail chain stores in Kenya are facing unprecedented change in the external environment disruption affecting supply chains motivating integration of inventory management practices with retail-supply chain collaboration to achieve expected supply chain performance.  The objectives of this study were to determine influence of continuous replenishment to establish inventory optimization and supply chain collaboration on supply chain performance in retail chain stores in Nakuru County. The research adopted a descriptive survey research design and surveyed 106 retail chain stores in Nakuru County. Primary data was collected using questionnaires and analyzed using descriptive analysis and inferential statistics techniques, correlation and regression analysis. Results revealed that continuous replenishment contributed significantly (B₁= 0.576, PV = .001<0.05) to supply chain performance in retail chain stores in Nakuru County. There was a strong, significant and positive (B₂=0.307, PV=.001>0.05) relationship between inventory optimization and supplier chain Performance. Combining inventory management practices, continuous replenishment and inventory optimization with retailer-supply chain collaboration resulted in an increase in RSquared of model 1, 0.440   to 0.459 demonstrating that joining continuous replenishment and inventory optimization with supply chain collaboration has a significant positive impact on supply chain performance. Successful continuous replenishment and inventory optimization together with retailer-supplier chain collaboration resulted in supply chain efficiency.