EFFECT OF INVENTORY MANAGEMENT PRACTICES ON SUPPLY CHAIN PERFORMANCE OF GOVERNMENT HEALTH FACILITIES IN KISUMU COUNTY IN KENYA

Abstract

In spite of the policy and institutional reforms undertaken in the Kenyan government health facilities and the support from non-governmental organizations, government health facilities in Kisumu County are still not able to effectively manage their inventory. The purpose of this study was to determine the effect of inventory management practices on supply chain performance of government health facilities in Kisumu County. The target population was the 12 government health facilities level 4 and 5 in Kisumu County since they operate under some defined level of semi-self-autonomy that allows them to manage their own inventory and supply chains; which formed the unit of analysis. The unit of observation was 84 comprising of Procurement officers, Stores clerks, Logistics officers and IT employees from those health facilities. The study was conducted in the year 2018. A census was conducted on all the 12 public health facilities. The study used both primary and secondary data where a semi-structured questionnaire was used to collect primary data while a secondary data sheet collected secondary data on procurement costs. The collected quantitative data was analysed using percentages, means, standard deviations and frequencies while inferential statistics used included regression and correlation analysis. Statistical analyses were carried out using SPSS version 21 and results presented in pie chart, table and graph. Regression analysis results revealed that lean inventory practices, inventory records accuracy and information technology had a significant effect on supply chain performance, while demand forecasting had an insignificant effect on supply chain performance. Based on the findings of the study, the study concluded that lean inventory practices, inventory records accuracy and information technology had the most significant effect on supply chain performance of government health facilities in Kisumu County.

Key Words: Lean Inventory Practices, Inventory Records Accuracy, Information Technology, Demand Forecasting On Supply Chain Performance Of Government Health Facilities In Kisumu County