ASSESSMENT OF THE ROLE OF MATERIALS MANAGEMENT ON ORGANIZATIONAL PERFORMANCE: A CASE OF NEW KENYA COOPERATIVE CREAMERIES LIMITED, ELDORET KENYA. (Published)
Materials management is a tool to optimize performance in meeting customer service requirements at the same time adding to profitability by minimizing costs and making the best use of available resources. The main objective of the study was to assess the role of materials management on organizational performance. Specifically, the study intended to assess how inventory control systems and lead time affect organizational performance. The empirical analysis of the study focused mainly on the New Kenya Cooperative Creameries, Eldoret, Kenya, being one of the largest and the oldestdairy company in East and Central Africa.The target population of the study was 56 employees of New KCC Ltd. Eldoret. A sample of 49 respondents was selected from this population using the stratified random sampling technique, where 7 departments, which directly deal with materials, were selected which include: production, Purchasing, quality Control, Warehouse/store, Human Resource Development, Finance and audit and physical Distribution departments.Data was collected through a structured questionnaire, consisting mainly of closed ended and open-ended questions. The data was analyzed through descriptive statistics such as mean, standard deviation, median and percentages. Results showed that there was significant increase in organizational performance as a result of inventory control system involvement. Further, results showed that lead time was highly significant to organizational performance through acquiring and delivering the needed materials within the shortest time possible. The study advocated that a lot of emphasis need to be directed to materials management in dairy companies in order to achieve significant cost savings, reduction in wastes and production costs and to achieve increase in profitability and product quality, consequently improving the organizational performance. The study recommended that dairy companies adopt the use of Information Communication Technology (ICT), use of proper codes in all materials, and the employees be trained on the use of inventory control systems.
Keywords: Inventory Control Systems, Materials Management, Organizational Performance