Assessing the Effectiveness of the Inventory Management System in a Service Organization: A Case Study of Toyota Ghana Company Limited Central Parts Depot at Tema (in Ghana)

Abstract

This paper examine the effectiveness of inventory management system of the subsidiary Toyota Motor Corporation distribution organization hitherto referred in this paper as Toyota Ghana Company Limited (TGCL). The TGCL was incorporated in Ghana in January 1998 by the investment of Marubeni Corporation, Japan and Marubeni Auto Europe S.A., Belgium and started operations in April 1998. However, this research is limited to inventory managements and control practices in the TGCL Central Part Depot (CPD) at Tema. Growth and survival of any distribution company depends on microscopic analysis of operational processes and marketing effectiveness. To achieve this objective, inventory analysis has therefore attained limelight considering the investments involved in maintaining and managing inventories. The researchers used both quantitative and qualitative data from 40 customers and 50 staffs incorporating top managers of inventory management in TGCL. The study identified that cycle counting supported by the use of Automatic Data Processing (ADP) technology are used to ensure and maintain effective inventory records. The study further identified that the management of TGCL uses perpetual inventory control system which incorporates automatic order processing to control inventory in the company. There is a proper layout plan for inventory storage facility in maximizing the effectiveness of production process and meeting customers’ needs or desires.

Key words: inventory, inventory management, marketing effectiveness, automobile industry