EFFECT OF INVENTORY MANAGEMENT ON SUPPLY CHAIN PERFORMANCE IN NON-GOVERNMENTAL ORGANIZATION IN SOMALIA

Eunice Katile Makau, Charles Kyalo Ndeto

Abstract


In unstable countries like Somalia, beneficiaries require humanitarian agencies to demonstrate operational efficiency especially when disasters strike since this can save lives. This means that an non-governmental organization that does not have inventory management strategies may fail to attain operational efficiency hence failing to achieve their main objective of saving lives due to delayed delivery and high costs of delivery. However, despite the adoption of various inventory management practices, supply chain performance in NGOs in Somalia stills remains poor. The objective of the study was to examine the effect of inventory management on supply chain performance in non-governmental organization in Somalia. The study used a descriptive research design. The target population was the heads of supply chain departments/procurement departments in 149 nongovernmental organizations in Somalia. Sampling frame was drawn from the 8 categories of NGOs in Somalia, which include advocacy, development, education, environment, finance, food, health and relief. Since the sample size is small, this was a census study and hence the whole population was involved. The study used primary data, which was collected by use of both semi-structured questionnaires. Qualitative data was analyzed through use of content analysis. The reporting of qualitative results was presented in a narrative form. Quantitative data was analyzed by use of descriptive and inferential statistics. Descriptive statistics comprised of measures of central tendency and measures of variability (standard deviation), frequencies and percentages. Inferential statistics included correlation analysis and multiple regression analysis. The study results were presented through use of tables and figures. The study found that inventory management has a positive and significant effect on the supply chain performance in non-governmental organization in Somalia. From the results, the study recommends that the management of the NGOs in Somalia. The study recommends that the management of the NGOs in Somalia should adopt and implement effective demand forecasting techniques to avoid over-stocking and stock-outs. In addition, the therefore recommends that the management of the NGOs in Somalia should formulate and implement better policies of inventory control to ensure stock wastage is minimized.


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