Application of factor analysis on the determinants of warehouse inventory performance at Eskom distribution in Gauteng cluster

Tinaye Mahohoma and Nonkululeko Nene
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Tinaye Mahohoma: Durban University of Technology
Nonkululeko Nene: DaVinci Institute

International Journal of Research in Business and Social Science (2147-4478), 2025, vol. 14, issue 5, 558-568

Abstract: This study investigates the key factors influencing warehouse inventory performance at Eskom Distribution in the Gauteng Cluster using factor analysis. The aim is to identify critical elements that impact inventory management effectiveness and enhance operational performance. Eskom faces challenges in inventory control, including forecasting inaccuracies, procurement risks, and technology integration limitations, despite advancements in Economic Order Quantity (EOQ) and Reorder Point (ROP) models. This research applies a quantitative approach with a positivist paradigm, using simple random sampling to select 144 respondents from a target population of 230 employees involved in inventory management. Data was collected through structured questionnaires and analyzed using Principal Component Analysis (PCA) to uncover the factors affecting warehouse performance. The study identifies three major components—operational efficiency, inventory accuracy, and record-keeping—that account for the majority of variance in performance outcomes. These findings are aligned with previous studies emphasizing the role of accurate inventory data, efficient operations, and technology in enhancing warehouse functioning. The implications suggest that Eskom and similar organizations should invest in advanced inventory management systems, improve staff training, and adopt real-time tracking solutions. Further research could explore how external disruptions and emerging technologies, such as AI and blockchain, influence inventory performance across various sectors. This study contributes valuable insights to the field of inventory management within the public sector, offering practical recommendations for improving warehouse efficiency and reducing operational delays. Key Words:Warehouse Inventory Performance, SCOR Model, Eskom Distribution, Operational Efficiency

Date: 2025
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