Impact of Inventory Management and Procurement Practices on Organization's Performance

Abstract

To remain competitive among other competitors in todays's market, organizations have been compelled to lower their costs, increase revenue while maintaining highest quality of their products and services that are delivered to their customers. Procurement management serves as an important strategy for organizations to remain competitive for both present and future. In this competitive business environment costs control serves as an important instrument to remain competitive in the market. In such environment, inventory management ensures control over customers demands thereby resulting to customer satisfaction and increase financial performance. The purpose of this research work is to examine inventory management and procurement practices and their impact on organizational performance. The performance measures examined in thie research are financial performance and customer satisfaction. The method used is secondary data collection by gathering information relating to inventory management and procurement practices form different articles, journals and books of various researchers. The results of this study found that automated procurement practice like e-product enhance organizational performance; implementation of world class procurement practices also enhance organizational performance. The study also found that inventory management enhance organizational performance.