Impact of Inventory Management Techniques and Growth of SMEs: A Case Study of Standard Supermarket in Kampala District

Abstract

The aim of this research was to investigate how the use of inventory management techniques affects the development of small and medium-sized enterprises, taking a standard supermarket located in the Kampala district as a case study. To achieve this purpose, the study focused on three specific objectives. The first objective was to investigate the different inventory management techniques utilized by standard supermarkets. The second objective was to determine the motivations for and against the inventory management techniques on the growth of standard supermarkets. The third objective was to explore the relationship between inventory management techniques and the growth of standard supermarkets. By addressing these specific objectives, the study aimed to provide valuable insights into the significance of inventory management techniques on the growth of SMEs. The researcher used a purposive sampling technique to get a representative sample size to obtain responses on the case study. The study showed therein that the major contributions of inventory management practices on the growth of SMEs are that inventory management practices ensure that there is adequate categorizing of inventory and they provide measures for preventing inventory shrinkage. Inventory management techniques such as JIT and ABC are essential for the businesses through use of demand forecasting during planning which has improved efficiency in the businesses and through conducting regular stock counts which have helped in efficiency and improving on the growth of the SMEs. The researcher has proposed several suggestions for enhancing the inventory management practices of businesses. Firstly, it is essential to maintain accurate records of inventory management to project current and future demand and supply requirements of customers effectively. Secondly, regular training sessions should be provided to personnel involved in managing inventories to equip them with the essential skills and knowledge for managing inventory efficiently. Moreover, supermarkets should consider purchasing inventory with extended expiry dates to alleviate the problem of expiration, which could lead to financial loss. Additionally, it is recommended to procure inventory from reputable suppliers to ensure a steady supply of high-quality products.