The effect of effective stores management on organizational performance: a case study of New Vision

Abstract

The study was carried out at New Vision Uganda with the purpose of examining the effects of effective stores management on organizational performance. The research objectives were; to examine the effect of Just-In-Time as a stores management tool on the effective performance of New Vision, to investigate the effect of inventory control as a stores management tool on the effective performance of New Vision and to examine the relationship between stores management and quality performance at New Vision, Uganda. The literature review was done based on the study objectives and a descriptive research design was used where both qualitative and quantitative approaches of data collection were adopted on 50 respondents using questionnaires as data collection methods. The study found out that the application of JIT has made materials arrive at the right time, holding costs have reduced, also, products are produced in right amounts, waste have reduced, production costs have reduced and the general storage costs have reduced since less is stored. However, JIT doesn’t totally remove the cleaning costs and has not reduced inspecting and ordering costs. The study concludes that inventory control helps in inventory planning and scheduling, inventory control reduces on operational costs since the organization ensures that only authorized personnel are allowed to make purchase in the organization, it also pays attention to the inventories whose value is high and does not experience under stock situations. The study also found a strong positive relationship between stores management and performance at Pearson correlation coefficient r= 0.794. It is recommended that there is need to install a strong control and inspecting system so as to detect fraud and theft of stock and the stores should be enlarged and tidy so as to ensure maximum usage of space among other recommendations.