Effectiveness of Electronic Inventory Systems on Customer Service Delivery in Selected Supermarkets in Kenya

Abstract

Effectiveness of electronic inventory system is very vital on customer service delivery. Without effectiveness, the customers will judge businesses harshly. The study evaluated the extent to which electronic inventory systems are used by supermarkets in Kenya. It also sought to determine the level to which lead-time variability resulting from the use of electronic inventory systems affects customer service delivery. The study also aimed at evaluating how the service quality created with electronic inventory systems has on customer service delivery in the selected supermarkets. A descriptive survey research design was adopted for the study with a target population of two thousand five hundred and forty nine respondents (2549) of which forty nine (49) were management staff and two thousand five hundred (2500) were customers of the five major supermarkets in Kenya. A census was conducted among the managers and supervisors while a sample of ninety two (92) was picked from the customers making the total sample size for the study three hundred and eighty one (141). For customers, Stratified-sampling design was used to achieve the desired representation from the total population and the sample size for each stratum was allocated proportionately. Data was collected using questionnaires, which were tested for reliability using Cronbach’s Alpha. Data collected was analyzed through Pearson’s correlation and the Chi-square test to test the hypothesis.  From the analysis the researchers established that majority of the supermarket chains had integrated the use of electronic inventory systems which had enhanced effective customer service delivery. Lead time had also been influenced positively the use of electronic inventory systems as well as the quality of service delivery which in turn led to effective customer service delivery.  The researchers recommended continuous improvement on the use of electronic inventory systems to ensure enhanced customer service delivery.

Key words: Inventory Holding Cost, Inventory, Lead-time, E-inventory System, Customer Service