The Effect of Vendor Managed Inventory on Performance of Retail Super Markets in Uganda: A case study of Nakumatt Supermarket

Abstract

This study was about the effect of vendor managed inventory on performance of retail supermarkets in Uganda, using a case study of Nakumatt Supermarket, Oasis Mall branch Uganda. Specifically, the study sought to; assess the effect of inventory flow management on the performance of Nakumatt supermarket; examine the effect of ICT systems employed on the performance of Nakumatt supermarket and; establish the effect of the supplier-client relationship on the performance of Nakumatt supermarket. This study adopted a case study research design and employed both qualitative and quantitative approaches. Out of a study population of 102 subjects, the study identified a sample size of 89, using purposive, convenience and simple random sampling techniques. Analysis of quantitative data consisted of descriptive statistics, such as frequencies and percentages and inferential statistics, from which deductions about the findings were made. Analysis of qualitative data was done by way of thematic and content analysis methods. Findings revealed a statistically significant relationship between inventory flow management, the ICT systems employed and the supplier-client relationship on one hand and performance of Nakumatt supermarket on the other hand. It was concluded that; poor information sharing affects performance of a retail outlet; failure to embrace the changing aspects of ICT and sustain new optimum ICT systems may invariably affect performance and the poor supplier-client relationships have a negative bearing on performance. The study recommended the need for developing a Vendor management Inventory (VMI) system with robust inventory flow policies and plans; make a prudent selection for the ideal products that qualify to fit within a VMI program; have mechanisms to create an atmosphere of trust and commitment with chosen and interested upstream chain partners/suppliers and lastly; develop a fully automated and integrated VMI system with the upstream partners.