The Effect Of Information Technology Tools On Inventory Management Performance In Automotive Industry In Nairobi County, Kenya

Abstract

The automotive industry plays a crucial role in driving economic growth worldwide. With rapid technological advancements, organizations in the automotive industry are increasingly using IT tools to enhance their operational efficiency and overall performance. However, scanty research had been explored on the effect of IT on inventory management performance in the automotive industry within Nairobi County, Kenya. This research was guided by the following specific objectives; to establish the effect of ERP software on inventory management performance in the automotive industry in Nairobi County, Kenya; to determine the effect of Internet of Things on inventory management performance in the automotive industry in Nairobi County, Kenya; to assess the role of barcoding technology on inventory management performance in the automotive industry in Nairobi County, Kenya; and to establish the effect of forecasting software on inventory management performance in the automotive industry in Nairobi County, Kenya. A comprehensive theoretical literature review, delving into foundational concepts and theories such as Performance Measurement Theory and Innovation Diffusion Theory. These theories serve as a theoretical foundation for comprehending the connection between IT and inventory management performance. The research design adopts a descriptive approach, facilitating the systematic collection and analysis of data from selected automotive companies situated in Nairobi County, Kenya. Prominent players in the region's automotive industry, including Isuzu East Africa Limited, Car & General Kenya Ltd, and CFAO Motors Limited, were chosen as participants. The target population encompassed respondents from diverse departments, namely Information technology tools, Operations, Sales and Marketing, Finance, and Supply Chain, amounting to a total of 150 participants. To determine the sample size, the Yamane Taro's formula was employed, resulting in a final sample of 130 participants. Stratified random sampling ensured proportional representation from each department. Structured questionnaires served as the primary data collection instrument, and their validity and reliability were assessed through pilot testing and content validity checks. The collected data was analysed using descriptive statistics, such as means and standard deviation, to interpret the findings. Inferential statistics, including regression analysis, was utilized to examine the relationships between the study variables. Diagnostic tests were conducted to assess accuracy and address potential biases. Throughout the research process, ethical considerations take precedence. Informed consent was obtained from participants, confidentiality and privacy were safeguarded, and data security measures were implemented. This study found that to achieve optimal inventory management performance, automotive companies in Nairobi County should adopt a holistic approach that integrates various IT solutions. The combined use of ERP software, IoT, barcoding technology, and forecasting software had been proven to drive efficiency, effectiveness, and costeffectiveness. Continuous investment in these technologies is essential to maintain competitiveness and meet evolving customer demands. Companies had also focused on regular training and development programs to ensure that employees are proficient in using these technologies. By embracing a comprehensive IT strategy, businesses had significantly enhanced their inventory management processes and overall operational performance.