Electronic inventory management system on retail businesses. Case study of Mbarara

Abstract

The study was aimed at investigating the advantages and disadvantages of using electronic inventory management system on retail businesses, a case study of Mbarara. The study also sought to determine the relationship between effective inventory management and performance of retail businesses, analyze the effect of proper electronic documentation system and performance of retail businesses, and investigate the relationship between staff IT skills on electronic Inventory management and performance of retail businesses. Data was collected from a sample of 60 staff of retail businesses in Mbarara using a well-structured survey questionnaire. Data collected was analysed using SPSS and relationship between variables was established using Pearson’s correlation and regression analysis. The study showed positive correlation between effective inventory management and performance of retail businesses (r = 0.657) and between Proper electronic documentation system and effect on performance of retail businesses (r = 0.905). Staff IT skills was positively correlated with performance of retail businesses (r = 0.957). The findings also reveal that the aspects of electronic inventory management such staff skills and proper documentation, have a positive impact on the performance of retail businesses. This therefore indicates that because of proper staff skills and effectiveness of electronic inventory systems, may be of a disadvantage to the growth and performance of retail businesses. It can be concluded that IT led to improved inventory management in retail business outlets in Mbarara. Business outlets adopt the modern information technologies and the staff need to be taken for specialized training on the use of IT in the stores management since some of them did not support use of IT. The documentation system used should be improved which will lead to effectiveness of inventory management