Inventory Management Techniques and Customer Satisfaction: a Case Study of Parambot Breweries Limited Kampala Case Study: Parambot Brewerries Limited, Kampala

Abstract

The study was set to examine the impact of inventory management techniques on customer satisfaction in Parambot breweries limited branch. This study will use descriptive and analytical research designs by adopting both qualitative and quantitative approaches. The study objectives were; to investigate the relationship between Activity Based Costing (ABC) technique and customer satisfaction in Parambot breweries limited, to determine the relationship between Just in Time (JIT) technique and customer satisfaction in Parambot breweries limited and to determine the relationship between Economic Order Quantity technique and customer satisfaction in Parambot breweries limited.

The primary data was collected using closed ended and open ended questionnaires and oral interviews administered to key informants in the organization. Secondary data was obtained from annual financial performance statements available in Total Uganda Ltd statistical performance book given to every branch in Uganda. Study population was 55 and sample size 53. Out of these only 45 which is 84.9% respondents returned fully filled questionnaires. Data was summarized, sorted, edited and analysed using statistical packages for social scientists (SPSS) and Microsoft word and the findings were presented in a report format.

Statistical data analysis with SPSS tested the impact of inventory management techniques on customer satisfaction and Correlation analysis was used to determine the nature and magnitude of the relationship among inventory management variables. The study findings indicated that there exists a negative correlation between inventory management techniques and customer satisfaction (r=-211.165).

The study therefore recommended that Management of Parambot breweries limited have to ensure that inventory control is understood well by majority of employees. This can be done through training and sensitization of employees regarding the importance on inventory management techniques. Members of the purchase department should ensure that proper records on items, is available in real time and easily accessible. This will prevent reduction in inventory levels an unnecessary purchase from undefined suppliers which often results to stocks and consequently stock out costs. Lack of enough stocks also means that a company is not able to match supply and demand and this greatly affects customer satisfaction and the organizations bottom line as put by (Akiva, 2009).

Parambot breweries limited should also strive to reduce the lead times between ordering and receipt. This can be enhanced through proper inventory management information sharing and collaboration with the suppliers so that goods are in the organization when they are needed to avoid stock outs as well as stock holding costs.

Management of Parambot breweries limited should put more effort in attracting more individual customers so as to increase on its clientele. Management of Parambot breweries limited need to put more efforts on checking the product quality and pricing mechanism so as to increase on its product sales and get more profits.

More efforts need to be put on inventory management techniques to reflect their benefits in inventory management so as to affect customer satisfaction..

Login to download()