Inventory Management Systems and Firm Performance: A Case of Krones Life Cycle Service Centre East Africa

Edna Anunda and Charles Katua Kithandi
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Edna Anunda: Daystar University
Charles Katua Kithandi: Daystar University

African Journal of Commercial Studies, 2025, vol. 6, issue 4

Abstract: This study examined the effect of inventory management systems (IMS) on firm performance at the Krones Life Cycle Service Centre East Africa. Guided by the Resource‑Based View, Systems Theory, and the Theory of Constraints, the research evaluated how IMS adoption influences operational efficiency and organizational outcomes. A descriptive survey design was employed targeting 120 employees, with a sample of 60 selected through stratified random sampling. Data were collected using questionnaires, interviews, and document analysis. Findings revealed widespread use of perpetual inventory systems and periodic inventory checks, with growing adoption of just‑in‑time inventory principles. Most respondents reported reduced inventory costs, improved customer service efficiency, and stronger supplier relationships following IMS implementation, though system complexity and occasional operational disruptions were identified as challenges. The study concludes that integrated IMS significantly enhances operational and financial performance and recommends continued training, system upgrades, and risk mitigation strategies.

Keywords: Inventory Management Systems; Perpetual inventory systems; Periodic inventory system; Just in Time inventory system; Vendor managed inventory system (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2025-86

DOI: 10.59413/ajocs/v6.i4.14

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