Influence of inventory control system on procurement performance in the county government of Uasin Gishu, Kenya

Abstract

An inventory control system allows the firm to separate the process of purchasing, manufac- turing, and marketing of its primary products. The purpose is to achieve efficiencies in areas where costs are involved by reducing the risk of production shortages and avoiding lost sales. The study was conducted in order to determine the influence of inventory control systems on procurement performance at County Government of Uasin Gishu, Kenya. To achieve the objective, the study established the relationship between ERP Software and inventory forecast analytic on procurement performance. This study was founded on theory of Constraints and Lean theory. A descriptive survey research design was used. The target population was procurement staff; the accessible population was involving 65 procurement staff at the county government of Uasin Gishu. A pilot study was conducted in order to test the validity and reliability of the research questionnaire. Content validity was used as a validity test while reliability was tested using Cronbach’s alpha coefficient. The study used primary data, which was collected using structured questionnaires. Both descriptive and inferential statistics were used for data analysis. Findings revealed that ERP software (β1 = 0.103; p < 0.05), inventory forecast analytics (β2 = 0.315; p < 0.05), positively and significantly influenced procurement performance in the county. It was concluded that proper inventory control systems enhance efficiency and improve procurement operations. The study recommends that decision-making and understanding how risk influences decisions is imperative. The study further recommends that the management should focus on the timely release of purchase orders and procurement data in order to increases procurement performance. The study findings will guide the County to reduce financial losses due to the delivery of poor quality inventory. It is expected that the findings will improve on inventory control systems in the County