Inventory Management Techniquesand Customer Satisfaction: a Case Study of Total Kabuusu Branch

Abstract

The study was set to examine the impact of inventory management techniques on customer satisfaction in Total Kabuusu branch. This study used 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 Total Kabuusu branch, to determine the relationship between Just in Time (JIT) technique and customer satisfaction in Total Kabuusu branch and to determine the relationship between Economic Order Quantity technique and customer satisfactions in Total Kabuusu branch.

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% response rate 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); ABC inventory technique has little strength towards influencing customer satisfaction in Total Kabuusu resulting it to have a negative relationship with customer satisfaction, JIT showed some relevance in influencing customer satisfaction and during correlation, it showed some significance and finally EOQ also showed a negative relationship with customer satisfaction. In summary therefore, findings from the entire study derived from correlation showed no significance between ABC, JIT and EOQ techniques in influencing customer satisfaction

The study therefore recommended that management of Total Kabuusu must strive to ensure that inventory management techniques are understood well by majority of employees. This can be done through training and sensitization of employees regarding the importance of these inventory management techniques to realize customer satisfaction.

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