Vendor Management Inventory And Organization Performance Case Study Nakumati Supermarket Kampala

ABSTRACT

Vendor managed inventory is the system where vendor takes overall responsibilities of

business on behalf of organization by; making daily deliveries of goods, managerial

work, checking of stock and others. . In June 2009, the first Nakumatt store in Uganda

opened on Yusuf Lule Road on Kololo Hill, in central Kampala, the capital city. In

November 2010, Nakumatt expanded its footprint in Kampala by acquiring Payless

Supermarket, a Ugandan supermarket chain with two stores in the Kampala suburbs of

Bugoloobi and Bukoto, bringing the number of stores in Uganda to three. The initial

investment in the store in Kololo was approximately US$3 million. The two Payless

Supermarket stores cost an estimated US$650,000. Nakumatt plans to expand the new

stores at a later date.

The objectives of the study were to; determine the relevancies of VMI, challenges and

relationship between VMI and organization performance of Nakumati super market in

Kampala. The study shall use co- relational research design. Having a target population

of 60 respondents and sample size of 56 respondents to be sampled by use of simple

random technique.

The study found out that that there are various relevancies of vendor managed

inventory on performance at Nakumatt supermarket which included requires

administrative cost and reduce lost sales, Data entry errors are reduced, others were,

Better services level to the end customer, Quick and easy replenishment of stock of

goods, True partnership is formed between manufacture and distributors.

It found that following were recommendations of the study; regular~evaluation of the

stock requirements, attainment of more expertise in vendor inventory management, establish your recording and monitoring system on vendor managed inventory.