ROLE OF STORES MANAGEMENT IN REDUCTION OF REDUNDANT STOCK, A CASE STUDY OF KEROCHE BREWERIES LIMITED, KENYA

Stephen Watenga Kariuki, Gladys Rotich

Abstract


Managing redundant stock is critical in enhancing cost reduction. This study explored the role of stores management in reduction of redundant stock and utilized contingency, coordination, inventory theories. A census research design and stratified random sampling were adopted with a target population of 60 participants. A semi-structured questionnaire was self-administered. Data was analyzed using descriptive and inferential statistics. Response rate was 86.7%, majority (63.5%) was male, 38.5% were aged between 31-40 years; 55.8% attained undergraduate degrees. Moreover, 48.1% worked for 3-5 years, 13.5% were executive managers, 26.9% middle level managers, 30.8% supervisors and 28.8% were junior staff. Poor material management and policies causes stock redundancy (mean = 4.40), efficient issue of materials in and out of store was prioritized (mean = 4.42), creation of efficient store control policies reduces redundant stock (mean = 4.08), supply chain contracts are well implemented when supply chain coordination exists (Mean=4.15). The study concluded that stores management, poor material management and policies influences redundant stock. Supply chain contracts are well implemented when supply chain coordination exists. The study recommends that poor material management and organizational policies should be well addressed. Supply chain contracts should support forecasting. Organizations should ensure there are effective inventory management policies.


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