FACTORS AFFECTING STORES OPERATION MANAGEMENT IN FOOD PROCESSING INDUSTRY IN KENYA

FACTORS AFFECTING STORES OPERATION MANAGEMENT IN FOOD
PROCESSING INDUSTRY IN KENYA: A CASE STUDY OF CAPWELL
INDUSTRIES LIMITED

BY
ROSE SOILA SHUNET

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A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF MANAGEMENT
AND LEADERSHIP IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE OF BACHOLORS OF BUSINESS
MANAGEMENT AND LEADERSHIP – PURCHASING AND SUPPLY
MANAGEMENT AT THE MANAGEMENT UNIVERSITY
OF AFRICA

APRIL 2018

ii

DECLARATION
Declaration by the Student
This project is my original work and has not been presented for a degree in any other
University

Rose S. Shunet Signature…………….…. Date …………………..…….
BML/12/00446/3/2015

Declaration by the Supervisor
This project has been submitted for examination with my approval as University
Supervisor

Names …………………..…… Signature ……………………… Date ……………….

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DEDICATION
I dedicate this research study to my family that played a significant role in ensuring that I
pursue this course to the end. It has been very challenging but am glad they gave me
reasons to continue pushing on until this far I have come.

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ACKNOWLEDGEMENT
I acknowledge the commitment, support and the passion that my supervisor, has shown
me during this research study development. Her guidance and the advice enabled to
understand the details that enabled me to have this project developed. I would also like to
give thanks to the administrators of Management University of Africa for facilitating and
providing tools for enhancing the process of carrying out this research study. Lastly, I
would also wish to acknowledge the encouragement, support and positive critiques from
my fellow students in their participation towards making this research study realize
success. Finally, the assistant manager Capwell industries Limited in Nairobi for helping
me secure the opportunity to collect data in that organization.

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ABSTRACT
This research study major on factors affecting stores operation management in food
processing industry in Kenya on a case study of Capwell industries Limited. The specific
objectives comprises of establishing the effect of information technology, inventory
management system, operational cost, space layout and staff training affecting stores
operation management in food processing industry in Kenya. The research study is
beneficial to management of Capwell industries Limited and other food processing
industry and the future researchers. The researcher adopted descriptive research design in
the methodology. On identifying the target population, the staff working at Capwell
industries Limited in Thika were chosen. They comprised of 174 staff in total. The
sampling design that guided the study in obtaining the sample size of 84 respondents. In
data collection techniques, questionnaires were used to collect data. The collected data
was analyzed both qualitatively and quantitatively and the presentations was in form of
figures such as bar graphs and charts. The study found that investing in technology by the
organization certainly helps to improve stores operation management. In communication
skills, communication serves as a foundation for effective planning to promote corporate
information sharing as a basis of stores operation management. The study further
established that companies were expected to follow and adhere to the interests of the
customer but not necessarily focusing on the usage of modern technologies and other
none customer oriented activities. Adopting good management styles was found to be
among the steps the manager takes to build up the level of productivity of employees can
improve the stores operation management. Study findings revealed that Capwell
industries Limited offer regular training to stores personnel especially on store operations
and management however the study further revealed that in general IT had helped the
factories streamline store operations more effectively. Respondent further indicate that
the record management system used in factories was semi-computerized rating it to be
average. The findings revealed that the current scheduling process in Capwell industries
Limited is poor and inventories records are rarely audited The study recommended
Capwell industries Limited should offer regular training programs to the employees in
order to improve their skills and knowledge. The study further recommended that they
should fully computerise record management systems in order to enhance accuracy. The
study further recommended that there was need for improvement of existing scheduling
process in order to improve service delivery in stores.

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TABLE OF CONTENTS
DECLARATION …………………………………………………………………………………………………. ii
DEDICATION ……………………………………………………………………………………………………. iii
ACKNOWLEDGEMENT ……………………………………………………………………………………. iv
ABSTRACT ………………………………………………………………………………………………………… v
TABLE OF CONTENTS ……………………………………………………………………………………… vi
LIST OF FIGURES …………………………………………………………………………………………….. ix
LIST OF ABBREVIATIONS ………………………………………………………………………………… x
OPERATIONAL DEFINITION OF TERMS …………………………………………………………. xi

CHAPTER ONE ………………………………………………………………………………………………….. 1
1.0 Introduction ………………………………………………………… Error! Bookmark not defined.
1.1 Background of the Study …………………………………………………………………………………. 1
1.2 Statement of the Problem …………………………………………………………………………………. 3
1.3 Objectives ……………………………………………………………………………………………………… 4
1.4 Research Questions …………………………………………………………………………………………. 5
1.5 Significance of the Study …………………………………………………………………………………. 6
1.6 Scope of the Study ………………………………………………………………………………………….. 6
1.7 Chapter Summary …………………………………………………………………………………………… 7

CHAPTER TWO …………………………………………………………………………………………………. 8
2.0 LITERATURE REVIEW ………………………………………………………………………………… 8
2.1 Introduction ……………………………………………………………………………………………………. 8
2.2 Theoretical Review ……………………………………………………………………………………….. 8
2.3 Review of Theoretical Literature …………………………………………………………………… 10
2.4 Research Gaps ………………………………………………………………………………………………. 24
2.5 Conceptual Framework ………………………………………………………………………………… 25

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CHAPTER THREE ……………………………………………………………………………………………. 28
RESEARCH DESIGN AND METHODOLOGY …………………………………………………… 28
3.0 Introduction ………………………………………………………………………………………………….. 28
3.1 Research Design……………………………………………………………………………………………. 28
3.2 Population ……………………………………………………………………………………………………. 29
3.3 Sample and Sampling Technique……………………………………………………………………. 30
3.4 Instrumentations ……………………………………………………………………………………………. 30
3.5 Reliability and Validity of Research Instruments ………………………………………………. 31
3.6 Data Collection Procedures…………………………………………………………………………….. 31
3.7 Data Analysis and Presentation ………………………………………………………………………. 31
3.8 Ethical Considerations …………………………………………………………………………………… 32
3.9 Chapter Summary …………………………………………………………………………………………. 32

CHAPTER FOUR ………………………………………………………………………………………………. 34
DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF FINDINGS …. 34
4.1 Introduction ………………………………………………………………………………………………….. 34
4.2 Presentation of Findings ………………………………………………………………………………. 34

CHAPTER FIVE ……………………………………………………………………………………………….. 56
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ……….. 56
5.1 Introduction ………………………………………………………………………………………………… 56
5.2 Summary of Findings …………………………………………………………………………………… 56
5.3 Conclusions ………………………………………………………………………………………………… 61
5.4 Recommendations ……………………………………………………………………………………….. 64
5.5 Suggestion for Further Study ………………………………………………………………………… 66
REFERENCES ………………………………………………………………………………………………. 6868
APPENDIX I: QUESTIONNAIRE …………………………………………………………………………. i
APPENDIX II: WORK PLAN 2018 …………………………… Error! Bookmark not defined.
APPENDIX III: BUDGET PLAN ………………………………. Error! Bookmark not defined.

viii

LIST OF TABLES

Table 3.1Target Population……………………………………………….………………28
Table 3.2 Sample Size…………………………………………………………………….29
Table 4.1 Response Rate ……………………………………………………………………………………… 34
Table 4.2 Gender of Respondents …………………………………………………………………………. 35
Table 4.3 Highest Level of Education Attained ………………………………………………………. 36
Table 4.4 Age of the Respondents ………………………………………………………………………… 37
Table 4.5 Has the company acquired sufficient IT devices/ tools ……………………………… 38
Table 4.6 Use of computers boosts performance of the company ……………………………… 39
Table 4.7 Delays due to system failures on transactions ………………………………………….. 40
Table 4.8 Skills and Competence gaps among IT staff ………………………………………………. 41
Table 4.9 Enhancement procurement and ordering processes …………………………………… 42
Table 4.10 Managing supplier relationship ……………………………………………………………. 43
Table 4.11 Warehousing and storage management …………………………………………………. 44
Table 4.12 Customer Relationship Management …………………………………………………….. 45
Table 4.13 Determination of appropriate maximum and minimum inventory levels ……. 46
Table 4.14 Increased Ordering cost ………………………………………………………………………. 47
Table 4.15 Coordination of inventory management decisions between departments
involved in inventory management …………………………………………………………… 48
Table 4.16 More efficient use of available warehouse space ……………………………………. 49
Table 4.17 Facilitation standardization of inventory movements ………………………………. 50
Table 4.18 Wastage of space ……………………………………………………………………………….. 51
Table 4.19 Complicated application methods in receiving and issuing of stock from store
………………………………………………………………………………………………………………. 52
Table 4.20 Poor performance is not always due to a lack of skills; the employee may
simply be disorganized or sloppy affecting stores operation ………………………….. 53
Table 4.21 Lack of commitment from staff ……………………………………………………………. 54

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LIST OF FIGURES
Figure 2.1Conceptual Framework ……………………………………………………….25
Figure 4.1 Response Rate ……………………………………………………………………………………. 34
Figure 4.2 Gender of Respondents………………………………………………………………………… 35
Figure 4.3 Highest Level of Education Attained …………………………………………………….. 36
Figure 4.4 Age of the Respondents ……………………………………………………………………….. 37
Figure 4.5 Has the company acquired sufficient IT devices/ tools …………………………….. 38
Figure 4.6 Use of computers boosts performance of the company …………………………….. 39
Figure 4.7 Delays due to system failures on transactions …………………………………………. 40
Figure 4.8 Skills and Competence gaps among IT staff …………………………………………… 41
Figure 4.9 Enhancement procurement and ordering processes …………………………………. 42
Figure 4.10 Managing supplier relationship …………………………………………………………… 43
Figure 4.11 Warehousing and storage management ………………………………………………… 44
Figure 4.12 Customer Relationship Management …………………………………………………… 45
Figure 4.13 Determination of appropriate maximum and minimum inventory levels ………
………………………………………………………………………………………………………………. 46
Figure 4.14 Increased Ordering cost ……………………………………………………………………… 47
Figure 4.15 Coordination of inventory management decisions between departments
involved in inventory management …………………………………………………………….. 48
Figure 4.16 More efficient use of available warehouse space …………………………………… 49
Figure 4.17 Facilitation standardization of inventory movements …………………………….. 50
Figure 4.18 Wastage of space ………………………………………………………………………………. 51
Figure 4.19 Complicated application methods in receiving and issuing of stock from store
………………………………………………………………………………………………………………. 52
Table 4.20 Poor performance is not always due to a lack of skills; the employee may
simply be disorganized or sloppy affecting stores operation ………………………….. 53
Figure 4.20 Lack of commitment from staff …………………………………………………………… 54

x

LIST OF ABBREVIATIONS
ARP Automatic Replenishment Programs
CIPS Chartered Institute of Purchasing and Supplies
CPFR Collaborative Planning, Forecasting and Replenishment
EDI Electronic Data Interchange
IT Information Technology
ICT Information Communication Technology
RFID Radio Frequency Identification
WMS Warehouse Management Systems

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OPERATIONAL DEFINITION OF TERMS
Information Technology Information technology plays a critical role in reducing
costs and meeting customer demand. Information
technology coordination is the method of organizing,
planning, and strategizing when synchronizing the needs of
two or more distinct groups.

Inventory Management An inventory system controls the level of inventory by
determining how much to order (the level of
replenishment), and when to order.

Operational Cost Is usually a monetary valuation of effort, material,
resources, time and utilities consumed, risks incurred, and
opportunity forgone in production and delivery of a good or
service.

Stores Layout Layout planning is deciding on the best physical
arrangement of all resources that consume space within a
facility. These resources might include a desk, a work
center, a cabinet, a person, an entire office, or even a
department.

Staff Training Training is the acquisition of knowledge, skills, and
competencies as a result of the teaching of vocational or
practical skills and knowledge that relate to specific useful
competencies. Training has specific goals of improving
one’s capability, capacity, productivity and performance.

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CHAPTER ONE
INTRODUCTION
This chapter focuses on the following areas; background of the study, statement of the
problem, objective of the study, research questions, significance of the study, limitations
of the study and the scope of the study.
1.1 Background of the Study
The stores department is one of the key departments in any food processing industry.
Problems arising from the stores department have a direct negative impact on the
organizations perpetuity since it is the driving force towards and behind production
(Ballard, 200). Stores operations are the key activities, practices, procedures or routines
that take place within the storehouse or stockyard regarding issue of materials, reception,
maintenance, storage, knowledge of materials, security, flow of materials, knowledge on
storehouse location systems and the connection from and with central and/or
departmental stores.
Kenya food processing industry are facing competition in the current markets which has
led to the need for coming up with better methods of managing and measuring how
inventories are utilized by various jobs or products, and therefore eliminate any wastage
in the supply chain (Chen, 2004). Consequently, many companies have to adopt
appropriate stores operations leading to reduction of inventory cost and improve
operational performance.in addition, industry being a private sector in Kenya needs to
maximize return on investment in order to achieve stakeholders objectives and this can be
achieved through efficient stores operation.
Stores play a vital role in the operations of an organisation. It is in direct touch with the
user departments in its day-to-day activities. The most important purpose served by the

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stores is to provide uninterrupted service to the manufacturing divisions. Further, stores
are often equated directly with money, as money is locked up in the stores (Frazelle,
2012). Some of the functions attributed to stores include: to receive raw materials,
components, tools, equipment?s and other items and account for them; to provide
adequate and proper storage and preservation to the various items to meet the demands of
the consuming departments by proper issues and account for the consumption; to
minimize obsolescence, surplus and scrap through proper codification, preservation and
handling; to highlight stock accumulation, discrepancies and abnormal consumption and
effect control measures; to ensure good housekeeping so that material handling, material
preservation, stocking, receipt and issue can be done adequately and to assist in
verification and provide supporting information for effective purchase action (Schroeder,
2010).
Stores management is a critical management issue for most public sector. Logistics is all
about managing stores, whether the inventory is moving or staying, whether it is in a raw
state, in manufacturing, or finished goods (Krajewski, 2009). Logistics and stores
management are embedded in each other and tied up closely. The “Bill of „Rights?” that
logistics professionals often repeat is to deliver the right product to the right place, at the
right time, in the right quantity and condition, and at the right cost (Henderson, 2005). To
make it happen, effective stores management is a cornerstone. Stores management also
becomes a fundamental part of supply chain management (SCM) now. A lot of research
in SCM over the last two decades can be characterized as so called “multi-echelon stores
theory” (Quayle, 2013). SCM has in recent years become an important way to enhance
the private sector competitive strength and therefore an important issue for most private
sectors.

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According to Cooke ; Szumal (2003), a summary definition of the supply chain can be
stated as: All the activities involved in delivering a product from raw material through to
the customer including sourcing raw materials and parts, manufacturing and assembly,
warehousing and inventory tracking, order entry and order management, distribution
across all channels, delivery to the customer and the information systems necessary to
monitor all of these activities.
Stores management is ever the means of conducting private sector around the world and
it facilitate continued flow of production (Quayle, 2013). Globalization of institutions
requires efficient Supply Chain Management. The science of supply chain further
connects with management to efficiently deliver the goods in a regular base. Many
management functions are being hypothesize and eventually use as the bases for the
institution operations. Today, institutions are integrating their supply chain formulation
with the help of the internet infrastructure. Certainly, stores Management considers some
important elements that food processing industry must consider.
1.2 Statement of the Problem
Over many decades food processing industry have been facing challenges in stores
management (Anichebe, 2013). Lack of ICT system has led to delayed stock taking and
poor stock control methods. In food processing industry there is lack of training
procurement staffs on how to use automated machines which has led to employee?s to
work manually leading to prolonged delay, increased damages, increased handling cost
and long operation cycles (Melville, Kraemer, ; Gurbaxani, 2014). Also lack of
procurement staffs training has led to employee?s resistance to change in adoption of new
technology; this is because employees in procurement department lack skills on how to
use procurement system like ERP and MRP (Beer, 2003). Lyson, (2006) in their study

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stated that IT in stores management led to accuracy and reliability and effective
management of stores operation in public sector.
From the year 2011 production cost in the food processing industry in Kenya have
increased by 11% contributing to low revenue. One of major contribution to this increase
is the problems in the efficiency of factories stores operations activities. An annual stock
taking conducted in 2013 in Capwell industries Limited, revealed that some critical items
were out of stock, leading to hasty buying because of low stock levels. The annual stock
taking report claimed that the problem might have been attributed to poor stores
operations. The report also revealed that there were cases of inaccurate recording or poor
entering of some data information, which was a good indication of poor record
management.
A study by (Elias, Sarah and Kagwathi, 2012) revealed that Capwell industries Limited
have not fully automated their stores operations besides them replacing obsolete IT
equipment with modern ones, thus there is low improvement of employees productivity.
Workforce efficiency is greatly affected by improper scheduling processes in most
Capwell industries Limited (Maeba, 2013) this has increased labor cost, assignment of
wrong people to perform task leading to inefficiency in stores operations. These are
internal challenges that have contributed to increase in production cost leading.
Therefore, this study will be carried out to establish the factors affecting stores operation
management in food processing industry in Kenya.

1.3 Objectives
1.3.1 General Objective
The general objective will be to study the factors affecting stores operation management
in food processing industry in Kenya on a case study of Capwell industries Limited.

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1.3.2 Specific Objectives
i. To identify the influence of information technology on stores operation
management in food processing industry in Kenya.
ii. To find out the effect of inventory management system on stores operation
management in food processing industry in Kenya.
iii. To assess the effect of operational cost on stores operation management in food
processing industry in Kenya.
iv. To determine the effect of space layout on stores operation management in food
processing industry in Kenya.
v. To investigate the effect of staff training on stores operation management in food
processing industry in Kenya.
1.4 Research Questions
i. To what extent does information technology affect stores operation management in
food processing industry in Kenya?
ii. To what extent does inventory management system affect stores operation
management in food processing industry in Kenya?
iii. What is the effect of operational cost on stores operation management in food
processing industry in Kenya?
iv. How does space layout affect stores operation management in food processing
industry in Kenya?
v. To what extent does staff training affect stores operation management in food
processing industry in Kenya?

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1.5 Significance of the Study
1.5.1 Management of Capwell industries Limited
This study addressed various ways that organizations would prefer to adopt in order to
improve their stores operation management. The study will highly be considered valuable
to the Management of Capwell industries Limited as they will be able to access various
suggested ways on improving their stores operation, therefore to that effect, when such
suggestions are implemented, there will be likelihood that some notable steps to
improving the stores operation management will be noted.

1.5.2 Other Food Processing Industry
The other food processing industry players will make use of the suggested
recommendations to improve the way they have been undertaking tasks involving
improvement in stores operation management. Since varied people will be involved in
this study, their contributions are expected to make a difference on better ways to
improve the stores operation management.

1.5.3 Other Researchers
This research study is of great use for future studies as point of references by other
independent researchers will give insight of what has been done and recommend gaps for
additional research studies.

1.6 Limitation of the Study
1.6.1 Fear of victimization
Some of the participants feared that they might be victimized by their co-workers as a
result of being part of the study. Since the questionnaires were administered publicly, this
might be a limitation for the researcher where most employees may feel victimized by

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their fellow staff. Some individuals consider it a big issue to provide information about
the organization.

1.6.2 Confidentiality
The respondents were not willing to give information since they feared the information
could fail to be confidentially treated, which could cost them their job. The researcher
overcame this problem by explaining the purpose of the study and that it is meant for
academic purpose not for anything else. The organization has policies on confidentiality
and privacy and employees are restricted not to share information with the non-members
of the organization. However the researcher assured the respondents that the study is
purely for academic purpose but not investigation

1.7 Scope of the Study
This study entailed finding out the factors affecting stores operation management in food
processing industry in Kenya and it was confined at Capwell industries Limited in Thika
town. The Capwell industries Limited is located at Thika town in Kiambu County. The
target population was 174 staff. This study was conducted in a period of four months
from December 2017 to March 2018.

1.7 Chapter Summary
This chapter presented the study background information. The background has included
an introduction of young entrepreneurs in Kenya. The chapter has outlined the research
questions of the study, the purpose of the study, and has also provided the scope of the
study. Significance of the study has also been discussed in this chapter.

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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter discusses the literature review of the study. The literature review provides
the reader with an explanation of the theoretical rationale of the problem being studied.
This chapter goes through the theoretical review, critical review, research gaps and
summary.
2.2 Theoretical Review
2.2.1 Scientific Management Theory
The study will be based on scientific management theory to investigate the influence of
staff training and scheduling process on effective store operations. The theory involves
the work of Fredrick Taylor. He started the era of modern management in the late
nineteenth and early twentieth centuries; Taylor regularly sought to overthrow
management by rule of thumb and replace it with actual aimed observations leading to
the one best practice (Ballou, 2000). Taylor advocated for the systematic training of
workers in the one best practice rather than allowing them personal discretion in their
tasks. Taylor believed that the workload would be evenly distributed between the workers
and management with management performing the science and instruction and the
workers performing the work, each group doing the work for which it was best suited
(Coyle, 2003).
Fredrick Taylor strongest positive legacy was the concept of breaking a complex task
down into a number of subtasks and optimizing the performance of the subtasks, thus his
stopwatch measured time trials (Ganesan, 2009). As a result, he proposed four underlying
principles of management. Firstly, there is need to develop a science of work to replace
old rule of thumb methods, pay and other rewards linked to achievement of optimum

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goals, measures of work performance and output. Failure to achieve these would in
contrast result in loss of earnings. Second is that workers should is that workers should be
scientifically selected and developed; training each to be first class at some specific task
(Watson, 2002). Thirdly the science of work to be brought together with scientifically
selected and trained people to achieve the best results. Finally, work and responsibility to
be divided equally between workers and management cooperating together in close
interdependence.

2.2.2 Adaptive Structuration Theory
Based on this theory, the study intends to determine the effects of information technology
on effective store operations. Structuration theory was first proposed by Anthony
Giddens in his Constitution of society in 1984, which was an attempt to reconcile social
systems and the micro/macro perspective of organization structure. De Santis and Poole
(1994) borrowed from Giddens in order to propose Adaptive Structuration Theory (AST)
and the rise of group decision support systems (DSS). AST provides the model whereby
the interaction between advancing information technologies, social structures and human
interaction is described, which focuses on social structures, rules and resources provided
by information technologies as the basis for human activity?s is a viable approach in
studying how information technology affects effective store operations and management
this is because it examines the change from distinct perspectives.

AST is a viable approach in studying how information technology affects stores
management because it examines the change from distinct perspectives. Wild, (2012)
reported inventories are the merchandise owned by the company or institution and held
for resale to customers or use. Pandey (2008) concurred and added that inventories are

10
classified as current assets because typically they will be sold within the year or during a
firm?s normal operating cycle if it should be longer than a year for retailing firms,
inventories are often the largest and most valuable current assets. In conclusion AST?s
appropriation process is a good model to analyze the utilization and penetration of new
technologies in organization.

2.3 Review of Theoretical Literature
2.3.1 Information Technology
Information technologies are a vital component of successful institution and
organizations. Information technologies, including Internet-based, are playing a vital and
expanding role in store management (Lyson, 2006). IT can help all kinds of institutions
carried out in the store improve their efficiency and effectiveness of work and their
processes, managerial decision making, and workgroup collaboration, thus strengthening
their competitive positions in a rapidly changing marketplace. This is true whether IT is
used to support product development teams, customer support processes, electronic
commerce transactions, or any other institution activity. Internet based information
technologies and systems have become necessary ingredients for institution success in
today?s dynamic global environment (Lenard, 1995).
Executive managers are expected to be able to depict the advantages of IT as a key factor
enabling organizations to achieve their goals. The objective is to introduce executive
managers to the significant role played by IT in organizations? achievement of their plans
(Kelle, 2014). IT is considered an essential new strategy for organizations to gain
competitive advantage over rivals in the same line of institution. Organizations resulting
from the application of IT can ensure organizations? accomplishment and the
improvement of customer services. Therefore, both organizations and their customers

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will definitely enjoy the benefits of IT. IT developments can affect strategy. The growth
of the Internet is a classic illustration. It has profoundly affected the way many value
chain activities are performed (Goldsby, 2005). For example, the Internet enables
organizations to significantly streamline their inbound and outbound logistics activities
for products that can be digitized position (Lenard, 2005). Information technologies
support efficient sector operations, workgroup and enterprise collaboration, or effective
sector decision making. IT can change the way stores department operate (O?Brien ;
Marakas 2006). One area of concern deals with whether gender is an influence when it
comes to proficiency in management information technology (Nevill, 2008).
Innovation still plays an important role in the 21st century. Newer tools such as electronic
devices and information technology, as well as green and sustainable technologies, are an
integral part of supply-chain management within the food industry. Often, it is supply
chains that compete with one another, as opposed to individual firms. Various
technologies have the potential to provide a competitive advantage to those supply chains
and, in extremely competitive markets, these technologies can determine which firms
succeed and which firms fail (Narasimhan, 2000).
The use of electronic devices such as radio-frequency identification (RFID), global
position systems (GPS), and data recorders has drastically improved efficiency and
reduced waste for food processors and distributors. For example, the use of RFID
technology has enabled the food industry to track inventory and to ensure that products
arrive at their intended destination. Communicate with electromagnetic waves via a
terminal that interprets the data associated with that product, such as temperature and
expiration date. The data is used for tracking inventory, monitoring for foreign pathogens
or bacteria, and identifying the product?s content. This has reduced stock-outs and

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increased on-time deliveries. RFID tags have potential for “smart packaging,” automatic
checkout, “smart appliances,” “smart recycling,” and marketing/promotional
opportunities. It is also believed that this type of technology could improve security,
productivity, inventory control, and traceability as well as result in capital and other
operational savings (Orodho, 2004).
Advances in RFID technology have also included monitoring the temperatures of various
products. This has proved to be extremely valuable for perishable products, particularly
in the food industry. For example, a perishable food product moving through the
distribution channel can be monitored for quality. If temperatures exceed a threshold, a
decision can be made regarding the product?s quality and the product can be returned to
the producer or rerouted to a closer distribution center or store in order to minimize
financial losses and maximize consumer satisfaction (Phillips, 2003).
In the food industry, information technology plays a critical role in reducing costs and
meeting customer demand. Information technology coordination is the method of
organizing, planning, and strategizing when synchronizing the needs of two or more
distinct groups. The specific role of information technology depends on the type of
product that is being sold. Reid (2007) states that choosing the appropriate type of
information technology coordination depends on whether your product is “functional” or
“innovative,” and that choosing the correct coordination can ultimately lead to a supply
chain with a competitive advantage.
New, differentiated products require different methods of coordination using information
technology, because it is often difficult to predict consumer demand for innovative
products. Because of this, firms in the food industry should adopt an approach that

13
monitors the sales and purchasing habits of consumers and uses this information to
forecast demand. This may not be the most effective technique to reduce costs, but it is
the most appropriate model to deliver the attributes that consumers most desire
(Schroeder, 2010).

2.3.2 Inventory Management System
An inventory system controls the level of inventory by determining how much to order
(the level of replenishment), and when to order. There are two types of inventory control
systems; the continuous or perpetual inventory system and the periodic inventory system.
In a periodic inventory accounting system, the inventory account is updated periodically,
usually daily, monthly or quarterly. General Accepted Accounting Principles standards
require companies to record inventory purchases in a separate account, possibly titled
“Purchases,” continually. However, under the perpetual inventory system, inventory
accounts are updated automatically and continuously. Advances in computer and network
technology make perpetual inventory systems possible, and implementing this type of
system requires an extensive technology expense. Point-of-Sale systems tied directly into
accounting software packages can update accounting records and other inventory records
on the fly using information from barcode scanners, radio frequency identification tags or
cashier input. Such a system is not only quick and accurate but provides management
with continuously updated information on the status of inventory levels (Tam, 2003).
According to Zanakis (2000), modern inventory control systems often rely upon barcodes
and radio-frequency identification (RFID) tags to provide automatic identification of
inventory objects. To record an inventory transaction, the system uses a barcode scanner
or RFID reader to automatically identify the inventory object, and then collects additional
information from the operators via fixed terminals (workstations), or mobile computers.

14
Efficient inventory management is based on an inventory management information
system which is a database for storing and administering all types of data required for
efficient and accurate inventory management. This may include modules or fields for
keeping track of all items and locations, requisitions, back orders, required levels of
inventory on hand, reorder points, lead times, inventory error tracking, and more. This
type of system may interface with an Enterprise Resource Planning (ERP) and other
applications. An ERP management information system integrates areas such as planning,
purchasing, inventory, sales, marketing, finance, human resources, etc. ERP has been
used extensively in inventory management with a varied of techniques applied
innovatively ranging from Vendor Managed Inventory, Materials Resources planning and
Distribution Resources planning. An equally important system is a warehouse
management system (WMS) which does not contain customer data or prices as ERP
rather; a functioning inventory management system needs the continuous exchange
between WMS and ERP.
Inventory management comprises various actions taken by the management to reduce
cost, maintain production, continuous supply and reduce loss (Saleemi, 2009). According
to Pandey, (2005) the objectives of inventory management are: To maintain a large size
of inventory for efficient, smooth production and sales operation, and to maintain a
minimum investment in inventory to maximize profitability. Inventory management
refers to various techniques used to ensure that right quantity of an item is used at the
right time and place. Efficiency in inventory means the ability to quickly receive and
store products as they come in and retrieve and ship when they go out. Every extra
second spent in these processes adds to the costs of inventory management. Plus, efficient
distribution is a customer satisfaction issue for trade channel sellers and retailers.

15
Retailers expect suppliers to meet prescribed delivery timetables, and customers expect
customized orders and products to arrive on time (Lucey, 2006). Well-managed inventory
control is often a key in meeting profit margin objectives. Gross profit margin is the
difference between revenue earned from sales and the costs of goods sold. Take away
fixed costs including buildings, utilities and labor and you get to operating margin.
Investing as little as possible in inventory control while meeting the other objectives is
critical in earning profit and growing your business, (Watts, 2004).
Womack et al., (2003) introduced the lean production principle which was associated
with reduced inventories. Their argument was that as a way of reducing storage fees,
handling and waste, profit improvement were realised due to interest savings and
inventory reduction as the main reason for that. Brigham ;Gapenski, (2010) have
estimated by literature, these savings to be in the range of 20 -30 percent (%) of profit
realised. Additionally, they noted that in this competitive environment, Inventory
Management was gaining more and more attention and awareness. The inventory
management system supporters argue that surplus inventory will adversely interrupt the
net cash flow in affirm. The main costs incurred in holding inventory, are the capital
costs (interest or opportunity) and the physical cost (storage, insurance and spoilage).
Several inventory management systems have been discovered so as to tackle the problem
of excess inventory. These inventory management system include Just-In-Time (JIT) and
Materials Requirements Planning systems (MRP). Just-In-Time is a combination of
various exercises to both reduce and eradicate waste. It was first implemented by Ford
Company then later embraced by Toyota Motor Corporation (Japan) in the 1950s. JIT is
applied in the entire supply chain operation. The major components of JIT include but not
limited to sharing with suppliers and customers the product design, set- up times of

16
machines reduction, having suppliers nearby as single sources and maintaining a
comprehensive precautionary system (Scott, 2001).
Being that it is an inventory strategy, its impact in a firm should be mainly on the return
on investment which should go high because of the inventory reduction and any other
cost correlated to that. JIT also has huge impact on the quality of the product and the
organisation/order in which the product is produced. Its main principle is, products
should only be produced when an order of the item is received by a firm. JIT process
ensures that there is also warehouse space and cost which is kept at a minimal. Nevill
(2008) defined MRP as a product- oriented computerized technology works by inventory
reduction and delivery schedules sustenance. MRP system works by identifying the need
for an item being dependent on the need for an inventory item. This is to mean that with
the use of the marketing/sales forecast, they should be a link between an end product and
the time period used to attain this product.

2.3.3 Operational Cost
According to Lyson (2006), cost is another major determination, in fact the limit to
pricing, is the firms cost structure. It is important for marketers to estimate the cost of
manufacturing and marketing the product. It is also important to know how cost behaves
over period of time and quantities produced. Another factor to be considered is that
different firms, within the same industry, operate at different levels of efficiency,
reflecting their cost structures. A firm may have a highest cost structure than the industry
average on account of several variables, some of them behind higher reject rates, lack of
co-ordination between departments sub-optimal utilization of plant capacity and so on.
Costs set the floor for the price than the company can change for its products. The
companies want to change a price that both covers all its cost for producing, distributing

17
and selling the products, and delivers affair rate of return for its effort and risks. A pricing
strategy many companies work to become “low cost procedures” in their industry.
Companies with lower cost can set lower prices that result in greater sales and profit.
Jane (2008) found that a company’s cost takes two forms; fixed and variable fixed cost
(also known as overhead) are costs that do not vary with the production or sales level.
Variable costs vary directly with the lever of production. Total costs are sum of the fixed
and variable costs for any given level of production. Management wants to change a price
that will at least cover the total production costs at a given level of production. The
company must watch its cost carefully, if it costs the company more than competitor to
produce and sell its products it accompany will have to change a higher price or make
less profit, putting at a competitive disadvantages.
According to Lim (2011), to price wisely management needs to know how its costs vary
with different level of production. For marketing managers, developing variable costs to
use in pricing decisions is frequenting a frustrating process often, many products are
made in the same factory and the allocation of costs by the finance department is often
arbitrary. Products which are easily to manufacture and have low materials costs
frequently assume too much of the overhead of a facility, making the marketing
manager’s task in pricing to meet market conditions quit difficult. In this regard
marketing people are advised to study in depth the costing process used at a particular
faculty, so that they can convincingly present their case for proper costing of particular
products lines. Activity Based Costing (ABC) is a relatively new approach to establishing
cost which allows hope for more accurately determining what costs should be assigned to
particular product lines customers.

18
According to Lavie (2002), product managers cannot make intelligent pricing decision
without having some estimate of the relative cost position held by competitors in the product
category. An understanding of the cost structure of the category provides at least two types of
guidance. First assuming no brand would be priced below variable cost from an extended
period, cost estimates provide the product manager with an idea of how some competitors can
price. Second cost estimates give the product manager idea of the margin category. Coupled
with data on sale volume which are usually relatively easy to obtain and information on
marketing program cost, total profit can then be estimated. This can be important information
in fore existing. The likelihood that a product will stay in the market and the amount of money
a competitor has put behind its brand strategy. Costs can be estimated in several ways. A
common approach for manufactured product is to use reverse engineering for a detailed
analysis of cost structure. Product managers can readily identify components and their cost in
the markets particularly for manufactured product is possible to understand current costs and
forecast future cost through the use of experience curve.
According to Gertz (2000), prices have traditionally been calculated as cost plus, prices
for example an adequate profit margin has been added to the production cost of a product.
There is no longer an aggregation of all cost that is split to one uniform price per
customer, but different products are priced differently. To get a clear picture of the role
that cost play in pricing it is useful to think of cost-based price floors. This term indicates
that costs are useful in determining lower limits for pricing whereas upper limits are
determined by customer value and competitive reaction. Price floors can be further
differentiated by time horizon. In the long run no company can achieve average prices
for the whole product range that are below full cost. Any price above variable unit cost
contributes to covering fixed cost in the short term.

19
According to DeSanctis (2004), it is certainly important for a company to have a good
understanding of their cost in order to be aware of price floors, but to be able to maximize
either profit or market penetration; additional information has to be available on the value
these products provide their customer with and what the competitors door are likely to do
in reaction to the company`s own pricing strategy. Technology development might be
another driver to increase the scope for cost induced price reduction. As overheads cost
are especially relevant when new products are launched and fixed cost have to be split on
only few customers, seeking for possibilities to reduce these costs seems worth thinking
about.
According to Coyle (2003), failure to understand value to the consumer when the
company does not understand the values of the customer, the customer should be made
part of pricing decisions of a company. Pricing may be too heavy and influenced by cost,
when all the cost that led to production are high the final price is also high. This is to
cater for what used in the manufacturing of the product. All the cost should be bearable
complexity of pricing, pricing goods should not be made complicated so that unnecessary
things that may lead to in effective pricing are the traditional markets and larger return on
investment. Therefore pricing strategies should be based down on all marketing concepts.

2.3.4 Space Layout
Layout planning is deciding on the best physical arrangement of all resources that
consume space within a facility. These resources might include a desk, a work center, a
cabinet, a person, an entire office, or even a department. Decisions about the arrangement
of resources in a business are not made only when a new facility is being designed; they
are made any time there is a change in the arrangement of resources, such as a new
worker being added, a machine being moved, or a change in procedure being

20
implemented. Also, layout planning is performed any time there is an expansion in the
facility or a space reduction (Cox, 2010).
An inefficient layout of store can have a negative effect on stores operation management.
Decreasing productivity, creating inventory control issues, errors in shipping and posing
safety risks. When it comes to laying out your warehouse, it is important to exploit its full
space. Everything should be accessible and in the right location, allowing staff to carry
out their duties in the most efficient way. Ensuring every square foot of space is properly
utilised, within your warehouse, will keep overhead costs to a minimum and increase
productivity (Chow, 2006).
Beer (2003) receiving is arguably the most critical function of the store. It is important to
ensure you have enough room for your staff to carry out all of the necessary activities
from breaking down pallets to counting items. The more space there is in the receiving
area, then the easier it is for your staff to complete the job efficiently. Warehouse activity
can be fast and dynamic which is why it is necessary to create segments in the warehouse
that are well defined. For example, your returned products area should be in a separate
part of your warehouse that is enclosed by a fence and clearly marked. This ensures that
returned products are not mistaken for stock. It is also important to keep shipping and
receiving areas separate and located in different areas of the warehouse to avoid improper
staging of freight merchandise (Ballard, 2000).
In order to provide customers with the best possible chance at filling their order right the
first time, make sure they have adequate instructions. The pick path refers to the direction
that you want your pickers to move down the aisle. It should start at the farthest point
away from the shipping area and dump the picker in front of the shipping prep area.

21
Sketch out the pick paths on paper ahead of time. The idea is that pickers will make one
pass through the facility in the most efficient way possible (Anichebe, 2013).
The basic elements in a design that guides customers through the store are the layout,
signage, and feature areas. A good store layout helps customers find and purchase
merchandise. Several types of layouts commonly used by retailers are the grid, racetrack,
and free form. The grid design is best for stores in which customers are expected to
explore the entire store, such as grocery stores and drugstores. Racetrack designs are
more common in large upscale stores like department stores. Free-form designs are
usually found in small specialty stores and within large stores? departments (Ballou,
2000).
Signage and graphics help customers locate specific products and departments, provide
product information, and suggest items or special purchases. In addition, graphics, such
as photo panels, can enhance the store environment and the store?s image. Digital signage
has several advantages over traditional printed signage, but the initial fixed costs have
made the adoption of this technology slow. Feature areas are areas within a store
designed to get the customer?s attention. They include freestanding displays, end caps,
promotional aisles or areas, windows, cash wraps or point-of-sale areas, and walls (Beer,
2003).
Space management involves two decisions: the allocation of store space to merchandise
categories and brands and the location of departments or merchandise categories in the
store. Some factors that retailers consider when deciding how much floor or shelf space
to allocate to merchandise categories and brands are the productivity of the allocated
space, the merchandise?s inventory turnover, the impact on store sales, and the display

22
needs for the merchandise. When evaluating the productivity of retail space, retailers
generally use sales per square foot or sales per linear foot (Chen, 2004).

2.3.5 Staff Training
To investigate the influence of staff training on stores management, the study will be
based on scientific management theory. The theory basically consists of the works of
Fredrick Taylor, (1993). Fredrick Taylor started the era of modern management in the
late nineteenth and early twentieth centuries; Taylor consistently sought to overthrow
management by rule of thumb and replace it with actual timed observations leading to the
one best practice. He advocated for the systematic training of workers is the one best
practice rather than allowing them personal discretion in their tasks. He further believed
that the workload would be evenly distributed between the workers and management with
management performing the science and instruction and the workers performing the
labor, each group doing the work for which it was best suited. Taylors? strongest positive
legacy was the concept of breaking a complex task down into a number of subtasks, and
optimizing the performance of the subtasks, hence, his stopwatch measured time trials
(Rubinstein, 2000).
As a result, he proposed four underlying principles of management. A training program is
more than just a series of unrelated workshops. It should reflect a way of looking at what
your organization does, as well as the needs of the staff. Some organizations plan training
a year at a time, choosing to focus on one or a small number of topics, and scheduling
discussions or presentations months in advance. Others see a training program as a
progression as staff members build their skills and knowledge from the initial training
throughout their time in the organization. Still others see a program as covering the areas
that staff members need to do their jobs well, which often means responding to

23
immediate concerns (We’re getting a lot of participants who are using heroin. What’s
necessary is that your staff training plan end up with a program that has some reason
behind its structure. An unrelated series of presentations or activities might have some
value, but it will benefit neither the staff nor the organization as much as a training
program that forms big impact to the management of store (Cooke, 2003).
Training is of growing importance to organizations seeking to achieve its strategies.
There is significant debate among professionals and scholars as to the affect that training
has on both employee and organizational goals. One school of thought argues that
training leads to an increase in turnover while the other states that training is a tool to that
can lead to higher levels of employee retention in implementation of strategies. As the
investment in various training programs continue to rise, it becomes even more
imperative for employers to understand the impact that training has on their attainment of
strategies (Coyle, 2003).
Not only does training increase with firm size (as measured by turnover), but there also
appears to be a relationship between training and growth performance in turnover. The
highest uptake of training was reported in firms where turnover had increased
considerably. In South Africa, successful clothing entrepreneurs were those who had
undertaken a number of business and technical training programs (Rogerson, 2000).
Enterprise development training provides the necessary skills to promote business and
facilitate economic growth (Davenport, 2013). Owner managers can be equipped with
skills, such as how to identify their competitive advantage over their counterparts, both
local and foreign. This would enable them to lay out strategies for the future. Through
training, entrepreneurs can achieve their full potential. According to Buzzard and
Edgecomb (2002) and Ongile and McCormick (2006), enterprises in the “missing

24
middle” have the highest propensity to create jobs and improve the quality of manpower
to graduate into the formal medium and large scale categories. This can also assist in
solving the major problem of unemployment.

2.4 Research Gaps
Aldooro (2002) Information technologies support efficient sector operations, workgroup
and enterprise collaboration, or effective sector decision making. IT can change the way
stores department operate, the author however did not indicate the effects of information
technology on stores operation management in food processing industry, therefore,
further studies will be done on how information technology affects stores operation
management in food processing industry.
According to Zanakis (2000), modern inventory control systems often rely upon barcodes
and radio-frequency identification (RFID) tags to provide automatic identification of
inventory objects. To record an inventory transaction, the system uses a barcode scanner
or RFID reader to automatically identify the inventory object, and then collects additional
information from the operators via fixed terminals (workstations), or mobile computers.
Efficient inventory management is based on an inventory management information
system which is a database for storing and administering all types of data required for
efficient and accurate inventory management. This study still intended to find out how
inventory management affects stores operation management in food processing industry.
A store layout is the design in which a store’s interior is set up. Store layouts are well
thought out to provide the best exposure possible. They are designed to create an
attractive image for consumers. Robbins (2005) however did not indicate the influence of
stores layout on stores operation management in food processing industry. It is through

25
this gap that this study seeks to identify the effects of stores layout on stores operation
management in food processing industry.
Binder (2008) indicated that operational cost affect stores operation management in food
processing industry but did not elaborate how operational cost is favourable towards
improving the stores operation management in food processing industry was not clearly
indicated by the scholar thus creating a gap that the researcher aims to examine further.
Training imparts the necessary skills required for the organization to meet the required
quality of service that satisfy customers. Organization should always be well informed
about the emerging technologies so that they can be in a position to cope with such
changes and thus enable them to improve their productivity. Whereas this is true, the
author failed to show us how training affects stores operation management in food
processing industry. This study intends to find out how training affects stores operation
management in food processing industry.
2.5 Conceptual Framework
Figure 2.1 Conceptual Framework
Independent Variables Dependent Variable

Inventory Management System
Information Technology
Operational Cost

Stores operation management in
food processing industry
Stores Layout
Staff Training

26
2.5.1 Information Technology
In the food industry, information technology plays a critical role in reducing costs and
meeting customer demand. Information technology coordination is the method of
organizing, planning, and strategizing when synchronizing the needs of two or more
distinct groups. The specific role of information technology depends on the type of
product that is being sold.
2.5.2 Inventory Management System
An inventory system controls the level of inventory by determining how much to order
(the level of replenishment), and when to order. There are two types of inventory control
systems; the continuous or perpetual inventory system and the periodic inventory system.
In a periodic inventory accounting system, the inventory account is updated periodically,
usually daily, monthly or quarterly.
2.5.3 Stores Layout
A store layout is the design in which a store’s interior is set up. Store layouts are well
thought out to provide the best exposure possible. They are designed to create an
attractive image for consumers.
2.5.4 Operational Cost
Operating (Operational) costs are the expenses which are related to the operation of a
business, or to the operation of a device, component and piece of equipment or facility.
They are the cost of resources used by an organization just to maintain its existence.
Operational costs in corporate image include the cost of hiring debt collectors, legal fees
incurred on defaulters, telephone costs of calling defaulters among others. A hotel can
adopt an operational cost strategy that seeks to minimize these costs on corporate image.

27
2.5.5 Training
Training equips employees with knowledge to undertake the activities in the organization
easily. With quality training, employees will have better knowledge on what need to be
done which will improve stores operations management.

28
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.0 Introduction
The study presents the methodologies that guided data collection and presentation in the
consequent chapters. Methodology is the process used to collect information and data for
the purpose of making business decisions. The methodology may include publication
research, interviews, surveys and other research techniques, and could include both
present and historical information (Mugenda ; Mugenda, 2003). This chapter constitutes
the research instruments which the researcher used in the study, the target population and
the sampling method, procedure of data collection and data analysis.

3.1 Research Design
Research design works as a systematic plan outlining the study, the researchers’ methods
of compilation, details on how the study arrived at its conclusions and the limitations of
the research. Research design is not limited to a particular type of research and may
incorporate both quantitative and qualitative analysis (Orodho and Kombo, 2002).
In this study, descriptive research design was used. It is described by Holborn and
Langley (2008) as a scientific method which involves describing the behavior of a subject
without influencing it in any way and descriptive research is often used as a pre-cursor to
quantitative research designs, the general overview giving some valuable pointers as to
what variables are worth testing quantitatively, continues to site the advantages that this
descriptive method of research design helps researchers plan and carry out descriptive
studies, designed to provide rich descriptive details about people, places and other
phenomena.

29
3.2 Population
The target population is the number of elements that has one or more characteristics in
common that which can be studied or can provide information for studying; this is
according to (Peil, 2003).
The general target population of this study was 174 permanent staff of Capwell industries
Limited. The target population will be categorized into HR – 6, IT – 19, Finance – 38,
Sales and Marketing– 7, Legal & Admin – 16, Production – 57 and Security – 2 staff.
The details about the target population is presented on the table 3.1.

Table 3.1 Target Population
Category Target Population Percentage
Human Resource 6 3
IT 5 3
Finance 4 2
Sales and Marketing 35 21
Legal & Administration 6 3
Production 109 63
Stores 9 5
Total 174 100
Source: Capwell industries Limited (2018)

3.3 Sample and Sampling Technique
The sampling design to be used is stratified random sampling. It is defined by Peil (2009)
as a probability sampling technique where the researcher divides the selected target
population into different subgroups or strata, then randomly selects the final subjects
proportionally from the different strata.

30
While Holborn & Langley (2008) says stratification is therefore, the process of dividing
members of the population into homogeneous subgroups before sampling, the strata
should be mutually exclusive: every element in the population must be assigned to only
one stratum, the strata should also be collectively exhaustive: no population element can
be excluded and then the simple random sampling or systematic sampling is applied
within each stratum. The sample size was determined through the use of RAOSOFT
sample size calculation (http://www.raosoft.com/samplesize.html). This often improves
the representativeness of the sample by reducing sampling error. The margin of error was
5% while the confidence level was 90% and population size was 174. This generated a
sample size of 84 respondents. This was represented on table 3.2.

Table 3.2 Sample Size
Category Target Population Sample Size Percentage
Human Resource 6 3 3
IT 5 2 2
Finance 4 2 2
Sales and Marketing 35 18 22
Legal & Administration 6 3 3
Production 109 52 63
Stores 9 4 5
Total 174 84 100
Source: Capwell industries Limited (2018)

3.4 Instrumentations
Questionnaires were used as a data collection tool. The questionnaires are defined by
Glen (2010) as any written instruments that present respondents with a series of questions
or statements to which they are to react either by writing out their answers or selecting
from among existing answers. Questionnaires was used because as explained by Lyon

31
(2007) they are used to collect data about phenomena that is not directly observable such
as, inner experiences, opinions, values, interests, they are more convenient to use than
direct observation when used for collecting data therefore the advantages of using
questionnaires are as follows: can be given to large groups, respondents can complete the
questionnaire at their own convenience, answer questions out of order, skip questions,
take several sessions to answer the questions, and write in comments. The cost and time
involved in using questionnaires is less than with interviews.

3.5 Reliability and Validity of Research Instruments
In determining validity and reliability, questionnaires was pilot tested among 5 selected
staff within this organization. The questionnaires were pre tested to ensure they yield
reasonably unbiased data, questions were later on rephrased to focus on the main
objective of the study in a more simplified way. The pre-testing as shown by Kirk &
Miller (2010) is where threatening questions can be altered and opening statements and
methods of recoding responses can also be evaluated to ensure respondents are able to
easily answer questions.

3.6 Data Collection Procedures
Questionnaires were developed and distributed to the staff at Capwell industries Limited
offices Thika town; this was undertaken by the basic approach of hand delivery. A period
of four days was allowed for the purpose of the staff to respond and was collected back
for analysis.

3.7 Data Analysis and Presentation
According to Glen (2010) analysis of data is a process of inspecting, cleaning,
transforming, and modeling data with the goal of highlighting useful information,

32
suggesting conclusions, and supporting decision making, data analysis has multiple facets
and approaches, encompassing diverse techniques under a given subject of study. During
data analysis, qualitative and quantitative methods were adopted. The data was edited,
coded and classified so as to present the results of the data analysis in a systematic and
clear way. The analyzed data was presented by use of pie charts and graphs for easy
understanding.

3.8 Ethical Considerations
The researcher approached the organizations with an introduction letter from the
Management University Africa. The nature of information required for this study is
considered sensitive, thus the researcher treated all information with utmost
confidentiality and use it solely for this study. There was need to strive and ensure
honesty in analyzing and reporting the data that was collected.

3.9 Chapter Summary
This chapter provides the research design detailing how the data was sought. The chapter
further presents the population, sample and sampling technique, instruments validity and
reliability test, data collection procedures, data analysis methods and ethical
considerations.

33
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF FINDINGS
4.1 Introduction
In chapter four, the data has been analyzed quantitatively and qualitatively. Analysis of
data is a process of inspecting, transforming, and modeling data with the goal of
highlighting useful information, suggestive observations and supporting decision making.
4.2 Presentation of Findings
4.2.1 Response Rate
Table 4.1 Response Rate
Category Frequency Percentage
Response 77 92
No Response 7 8
Total 84 100

Figure 4.1 Response Rate

The questionnaires given to the respondents were collected back after being filled. Table
4.1 and figure 4.1 showed 77 questionnaires were returned while 7 questionnaires were
not returned. This was equivalent to 92% and 8% respectively in the order of returned
and non-response. Since greater percentages of questionnaires were returned it was
therefore considered that the final studies could be analyzed.

92%
8%
0
10
20
30
40
50
60
70
80
90
100
ResponseNo Response
Percentage

Category

34
4.2.2 Gender
Table 4.2 Gender of Respondents
Category Frequency Percentage
Male 41 54
Female 36 46
Total 77 100

Figure 4.2 Gender of Respondents

The representation of the findings shown on the table 4.2 and figure 4.2 was based on the
gender response. As the results of the analysis it shows; 54% of the total respondents
participated in the study were male while 46% were female respondents. The results led
to interpreting that this organization had ability to act fairly on gender basis considering
that both gender were almost equally represented.

54% 46%
Male
Female

35
4.2.3 Highest Level of Education Attained
Table 4.3 Highest Level of Education Attained
Category Frequency Percentage
Secondary 3 3
Diploma 28 37
1st Degree 30 40
Post Graduate 16 20
Total 77 100

Figure 4.3 Highest Level of Education Attained

This finding indicated the level of education of respondents who participated in this
study. Based on these findings in table 4.3 and figure 4.3, it was noted that 3% of the
respondents were secondary graduates while 37% constituted diploma graduates and 40%
were having 1st degree graduates and 20% of respondents had post graduate level of
education. It was established that this study comprised of learned individual going by the
majority of the respondents with college education and masters.

3%
37% 40%
20%
0
5
10
15
20
25
30
35
40
45
SecondaryDiploma1st degreePost Graduate
Category
Percentage

36
4.2.4 Work Experience
Table 4.4 Work Experience of the Respondents
Category Frequency Percentage
< 1 year 10 13
1-5 years 21 27
6-10 years 31 40
Above 10 years 15 20
Total 77 100

Figure 4.4 Work Experience of the Respondents

The study as shown on table 4.4 and figure 4.4 sought to find out the work experience of
respondents, this was to assist in finding out the level of experience employees have in
dealing with communication aspects. The results established that majority 40% of
respondents had worked in the company for between 6-10 years, 27% of them had
worked for 1 to 5 years; 20% had worked for over 10 years and 13% of the respondents
have worked in the company for a period below 1 year. This shows that the majority of
employees have sufficient work experience.

13%
27%
40%
20%
0
5
10
15
20
25
30
35
40
45
< 1 year1-5 years6-10 yearsAbove 10 years
Category
Percentage

37
4.2.5 Information Technology
Table 4.5 Has the company acquired sufficient IT devices/ tools
Category Frequency Percentage
Strongly agree 31 41
Agree 27 35
Neutral 5 6
Disagree 10 13
Strongly disagree 4 5
Total 77 100

Figure 4.5 Has the company acquired sufficient IT devices/ tools

The presentation shown on table 4.5 and figure 4.5 focused on whether the company has
not acquired sufficient IT devices and tools. The study findings showed that 41% of
respondents strongly agreed to the statement while 35% agreed. However 6% of
respondents were unsure of whereas 13% of respondents disagreed and 5% of
respondents strongly disagreed. The study found that majority of respondents agreed that
the has not company acquired sufficient IT devices and tools.

41%
35%
13%
6% 5%
0
5
10
15
20
25
30
35
40
45
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Percentage

Category

38
Table 4.6 Use of computers boosts performance of the company
Category Frequency Percentage
Strongly agree 28 36
Agree 15 19
Neutral 30 40
Disagree 3 4
Strongly disagree 1 1
Total 77 100

Figure 4.6 Use of computers boosts performance of the company

Table 4.6 and figure 4.6 summarized study findings focusing on whether the use of
computers boosts performance of the company. In the analysis based on responses it was
found that 13% of respondents strongly agreed, 19% agreed to the statement as 63% were
neutral whereas 4% disagreed and 1% of respondents strongly disagreed. Based on the on
the majority of respondents, they were not sure about use of computers boosts
performance of the company, this implies that the management was expected to impart
that knowledge to the employees.

0
5
10
15
20
25
30
35
40
Strongly
agree
AgreeNeutralDisagreeStrongly
disagree
36%
19%
40%
4%
1% Percentage

Category

39
Table 4.7 Delays due to system failures on transactions
Category Frequency Percentage
Strongly agree 15 20
Agree 33 43
Neutral 23 30
Disagree 4 5
Strongly disagree 2 2
Total 77 100

Figure 4.7 Delays due to system failures on transactions

The presentations were based on summarized findings on whether the organizations
experience delays due to system failures on transactions. The study found that 20% of
respondents strongly agreed to the idea whereas 43% agreed as 30% of respondents were
neutral as 5% of respondents disagreed and 2% of respondents strongly disagreed.

20%
43%
30%
5% 2%
0
5
10
15
20
25
30
35
40
45
50
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Percen
tage

Category

40
Table 4.8 Skills and Competence gaps among staff
Category Frequency Percentage
Strongly agree 31 41
Agree 24 31
Neutral 11 14
Disagree 8 11
Strongly disagree 3 3
Total 77 100

Figure 4.8 Skills and Competence gaps among IT staff

Table 4.8 and figure 4.8 provided a summarized percentage response on whether there is
Skills and Competence gaps among IT staff. The study found that 41% of respondents
strongly agreed to the statement while 31% agreed as 14% of respondents were neutral
whereas 11% of respondents disagreed and 3% of respondents strongly disagreed. The
majority of respondents confirmed the existence of Skills and Competence gaps among IT
staff. Therefore, companies are expected to conduct training on their staffs.

41%
31%
11% 14%
3%
0
5
10
15
20
25
30
35
40
45
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Percentage

Category

41
4.2.6 Inventory Management System
Table 4.11 Enhancement of procurement and ordering processes
Category Frequency Percentage
Strongly agree 33 43
Agree 25 33
Neutral 10 13
Disagree 5 6
Strongly disagree 4 5
Total 77 100

Figure 4.11 Enhancing procurement and ordering processes

Table 4.11 and figure 4.11 summarized study findings on enhancing procurement and
ordering processes. According to the findings 43% of respondents that were the majority
indicated that they strongly agreed, 33% agreed as 13% of respondents were neutral
whereas 6% of respondents disagreed and 5% of respondents strongly disagreed. This
was a confirmation that inventory management enhancing procurement and ordering
processes.

43%
33%
6%
13%
5%
0
5
10
15
20
25
30
35
40
45
50
Strongly agreeAgreeNeutralDisagreeStrongly agree
Percentage

Category

42
Table 4.12 Managing supplier relationship
Category Frequency Percentage
Strongly agree 21 28
Agree 33 43
Neutral 17 22
Disagree 2 3
Strongly disagree 4 4
Total 77 100

Figure 4.12 Managing supplier relationship

The analysis of findings depicted on the table 4.12 and figure 4.12 addressed the findings
on managing supplier relationship. The percentage response showed that 28% of
respondents strongly agreed as 43% agreed whereas 22% of respondents were neutral and
3% of respondents disagreed and 4% of respondents strongly disagreed. This was a
confirmation from the majority of respondents that inventory management serves as a
foundation for effective stores operations management.

0
5
10
15
20
25
30
35
40
45
Strongly
agree
AgreeNeutralDisagreeStrongly
disagree
28%
43%
22%
3% 4%
Percentage

Category

43
Table 4.13 Warehousing and storage management
Category Frequency Percentage
Strongly agree 30 40
Agree 28 36
Neutral 19 24
Disagree 0 0
Strongly disagree 0 0
Total 77 100

Figure 4.13 Warehousing and storage management

The findings in the study as shown on table 4.13 and figure 4.13 was about the need to
establish whether warehousing and storage management affect stores operation
management. It was found that 24% of respondents strongly agreed, 36% agreed as 40%
of respondents were neutral whereas none disagreed and still none of respondents
strongly disagreed. As per the majority of respondents, it was noted that majority of
respondents were undeceive.

0
5
10
15
20
25
30
35
40
Strongly
agree
AgreeNeutralDisagreeStrongly
disagree
40% 36%
24%
0%
0%
Percentage

Category

44
Table 4.14 Customer Relationship Management
Category Frequency Percentage
Strongly agree 38 49
Agree 15 20
Neutral 11 15
Disagree 8 10
Strongly disagree 5 6
Total 77 100

Figure 4.14 Customer Relationship Management

Table 4.14 and figure 4.14 presented findings that sought to establish whether customer
relationship management affect stores operation. The analysis showed that 49% of
respondents strongly agreed to the idea as 20% agreed whereas 15% of respondents were
neutral as 10% of respondents disagreed and 6% strongly disagreed. This was an
indication that customer relationship management is critical.
.

0
5
10
15
20
25
30
35
40
45
50
Strongly
agree
AgreeNeutralDisagreeStrongly
disagree
49%
20%
15%
10%
6%
Percentage

Category

45
Table 4.15 Determination of appropriate maximum and minimum inventory levels
Category Frequency Percentage
Strongly agree 20 26
Agree 25 32
Neutral 21 28
Disagree 9 12
Strongly disagree 2 2
Total 77 100

Figure 4.15 Determination of appropriate maximum and minimum inventory levels

Table 4.15 figure 4.15 provided study findings from a study seeking to establish whether
determination of appropriate maximum and minimum inventory levels improve stores
operations. The analysis revealed that 26% of respondents strongly agreed to the idea as
32% agreed whereas 28% of respondents were neutral as 12% of respondents disagreed
and only 2% of respondents strongly disagreed. The study therefore indicated based on
the majority that determination of appropriate maximum and minimum inventory levels
improve stores operations.

26%
32%
12%
28%
2%
0
5
10
15
20
25
30
35
Strongly
agree
AgreeNeutralDisagreeStrongly
disagre
Percentage

Category

46
4.2.7 Operational Cost
Table 4.17 Increased Ordering cost
Category Frequency Percentage
Strongly agree 51 67
Agree 22 28
Neutral 1 1
Disagree 0 0
Strongly disagree 3 4
Total 77 100

Figure 4.17 Increased Ordering cost

In examining whether increased ordering cost affect stores operation. The ratings
obtained from the study showed that 67% of respondents felt they strongly agree to the
idea, 28% agreed as 1% of respondents were indecisive whereas none of respondents
claimed they disagreed as 4% of respondents strongly disagreed to the statement. Based
on the majority of respondents it was a confirmation that increased ordering cost affect
stores operation.
67%
28%
1%
0%
4%
0
10
20
30
40
50
60
70
80
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Percentage

Category

47
Table 4.18 Increased Ordering Cost
Category Frequency Percentage
Strongly agree 13 17
Agree 45 59
Neutral 15 19
Disagree 3 4
Strongly disagree 1 1
Total 77 100

Figure 4.18 Increased Ordering Cost

In the analysis the study found that increased ordering cost affect stores operation.
However, there were responses to confirm about the statement. The ratings showed that
17% of respondents had strongly agreed to the statement, 59% of respondents agreed
whereas 19% of respondents were neural as 4% of respondents claimed they disagreed
and 1% of respondents strongly disagreed.

0
10
20
30
40
50
60
strongly
agree
AgreeNeutralDisagreeStrongly
disagree
17%
59%
19%
4% 1%

Percentage

Category

48
Table 4.19 Coordination of inventory management decisions between departments
involved in inventory management
Category Frequency Percentage
Strongly agree 4 5
Agree 32 41
Neutral 23 30
Disagree 17 22
Strongly disagree 1 2
Total 77 100

Figure 4.19 Coordination of inventory management decisions between departments
involved in inventory management

The analysis of findings revealed that coordination of inventory management decisions
between departments involved in inventory management. In the analysis, the percentage
response showed that 5% of respondents strongly agreed to the idea, 41% agreed as 30%
of respondents were indecisive whereas 22% of respondents claimed they disagreed as
2% of respondents said they strongly disagreed. Going by the majority of respondents it
was a confirmation that coordination of inventory management decisions between
departments involved in inventory management. An effort that was expected to be
regularly gets promoted by the management.
5%
41%
30%
22%
2%
0
5
10
15
20
25
30
35
40
45
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Percentage

Category

49
4.2.8 Space Layout
Table 4.23 More efficient use of available warehouse space
Category Frequency Percentage
Strongly agree 42 55
Agree 20 26
Neutral 12 15
Disagree 3 4
Strongly disagree 0 0
Total 77 100

Figure 4.23 More efficient use of available warehouse space

The findings addressed more efficient use of available warehouse space enhance stores
operation. The ratings showed that 55% of respondents felt they strongly agree to the
idea, 26% agreed as 15% of respondents were neutral whereas 4% of respondents
claimed they disagreed as none of respondents said they strongly disagreed. This was an
indication that the efficient use of available warehouse space enhances stores operation.

0
10
20
30
40
50
60
Strongly
agree
AgreeNeutralDisagreeStrongly
agree
55%
26%
15%
4% 0%
Percentage

Category

50
Table 4.24 Facilitation standardization of inventory movements
Category Frequency Percentage
Strongly agree 33 44
Agree 23 31
Neutral 0 0
Disagree 18 24
Strongly disagree 3 7
Total 77 100

Figure 4.24 Facilitation standardization of inventory movements
The analysis of findings focused on determining whether standardization of inventory
movements enhance stores operation. The percentage response to confirm the statement
revealed that 44% of respondents strongly agreed to the idea, 31% agreed as none of
respondents were neutral whereas 24% of respondents claimed they disagreed as 7% of
respondents said they strongly disagreed. This implied that standardization of inventory
movements enhance stores operation. Therefore, it was an indication that managers were
expected to lift up the productivity of employees to achieve company goals through better
management styles.

3%
37%
0%
24%
7%
0
5
10
15
20
25
30
35
40
45
50
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Category
Percentag
e

51
Table 4.25 Wastage of space
Category Frequency Percentage
Strongly agree 9 12
Agree 26 34
Neutral 22 28
Disagree 18 24
Strongly disagree 2 2
Total 77 100

Figure 4.25 Wastage of space

The study focused on determining whether wastage of space affect stores operation. The
ratings obtained from the study showed that 12% of respondents chose strongly agree to
the idea, 34% agreed as 28% of respondents were neutral whereas 24% claimed they
disagreed as 2% of respondents strongly disagreed. Based on the majority of respondents
it was a confirmation that wastage of space affects stores operation.

12%
34%
24%
28%
2%
0
5
10
15
20
25
30
35
40
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Percentage

Category

52
4.2.9 Staff Training
Table 4.23 Complicated application methods in receiving and issuing of stock from
store
Category Frequency Percentage
Strongly agree 38 50
Agree 20 26
Neutral 12 15
Disagree 7 9
Strongly disagree 0 0
Total 77 100

Figure 4.23 Complicated application methods in receiving and issuing of stock from
store

The findings addressed whether the application methods in receiving and issuing of stock
from store affect stores operation. The ratings showed that 55% of respondents felt they
strongly agree to the idea, 26% agreed as 15% of respondents were neutral whereas 16%
of respondents claimed they disagreed as none of respondents said they strongly
disagreed.

0
10
20
30
40
50
Strongly
agree
AgreeNeutralDisagreeStrongly
agree
50%
26%
15% 9%
0%
Percentage

Category

53
Table 4.26 Poor performance is not always due to a lack of skills; the employee may
simply be disorganized or sloppy affecting stores operation
Category Frequency Percentage
Strongly agree 17 23
Agree 24 35
Neutral 17 23
Disagree 11 15
Strongly disagree 3 4
Total 77 100

Figure 4.26 Poor performance is not always due to a lack of skills; the employee may
simply be disorganized or sloppy affecting stores operation

The summarized study findings were to address whether Poor performance is not always
due to a lack of skills; the employee may simply be disorganized or sloppy affecting
stores operation. The study found that respondents who were totaling to 23% claimed
they strongly agreed, whereas 35% of respondents agreed as 23% of respondents were
neutral however 15% of respondents disagreed and 5% of respondents strongly disagreed.
This was an indication that Poor performance is not always due to a lack of skills; the
employee may simply be disorganized or sloppy affecting stores operation.

23%
35%
15%
23%
5%
0
5
10
15
20
25
30
35
40
Strongly
agreed
AgreedNeutralDisagreedStrongly
disagreed
Percentage

Category

54
Table 4.27 Lack of commitment from staff
Category Frequency Percentage
Strongly agree 22 28
Agree 30 40
Neutral 19 25
Disagree 6 7
Strongly disagree 0 0
Total 77 100

Figure 4.27 Lack of commitment from staff

The presentations of study findings on lack of commitment from staff. As shown in the
study a total of 28% of respondents claimed that they strongly agreed, whereas 40% of
respondents agreed as 25% of respondents were neutral and still 7% of respondents
disagreed whereas none of them strongly disagreed.

28%
40%
7%
25%
0%
0
5
10
15
20
25
30
35
40
45
Strongly agreeAgreeNeutralDisagreeStrongly
disagree
Percentage

Category

55
Table 4.28 Enhancing procurement and ordering processes
Category Frequency Percentage
Strongly agree 29 38
Agree 22 28
Neutral 14 18
Disagree 4 6
Strongly disagree 8 10
Total 77 100

Figure 4.28 Enhancing procurement and ordering processes

The analysis of findings was to address a study on enhancing procurement and ordering
processes. The study found that 38% of respondents strongly agreed to the statement
whereas 28% agreed as 18% of respondents were neutral whereas 6% of respondents
disagreed and 10% of respondents strongly disagreed.

38%
28%
6%
18%
10%
0
5
10
15
20
25
30
35
40
Strongly
agree
AgreeNeutralDisagreeStrongly
disagree
Percentage

Category

56
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter summarizes the findings as generated from data analysis, there is also
presentation of the conclusion, the recommendations and the suggestion of further
studies. The study focused on factors affecting stores operation management in food
processing industry in Kenya on a case study of Capwell industries Limited.

5.2 Summary of Findings
5.2.1 The effects of technology affect stores operation management in food
processing industry in Kenya
The summary of findings as generated from data analysis was based from a study seeking
to establish the relationship of various aspects of technology on stores operation
management in food processing industry. Some of the aspects focused on a study to
establish whether the acquisition sufficient IT devices/ tools boost stores operations. The
study findings showed that 41% of respondents that were majority confirmed that they
strongly agreed to the statement while 5% of respondents strongly disagreed. This
implied that technology was an issue that organizations were expected to refocus on.
Summary also showed that on a study whether whether use of computers boosts
performance of the company, 63% were neutral while 1% of respondents strongly
disagreed. Based on the on the majority of respondents, they were not sure about use of
computers boosts performance of the company, this implies that the management was
expected to impart that knowledge to the employees. In summarized findings on whether
the organizations experience delays due to system failures on transactions. The study
found that 43% agreed as 5% while 2% of respondents strongly disagreed. Going by the
majority of respondents, the study implied that there was a need for the organization to
invest in technology.

57

The summarized percentage response on whether skills /competence gaps among IT staff
affected stores operation in the firm. The study found that 41% of respondents strongly
agreed and 3% of respondents strongly disagreed. Going by the majority of respondents,
the companies are expected to hire skilled and competent staff and also conduct regular
training on the staffs.

5.2.2 The effect of inventory management system on stores operation management
in food processing industry in Kenya
The summarized study findings were aimed at determining whether inventory
management system enhances procurement and ordering processes. The findings revealed
that 43% of respondents strongly agreed however 5% of respondents strongly disagreed.
Therefore, as per majority of respondents it as an indication that there was a breakdown
of inventory management system which could impart negativity in stores operation
management. The summary from a study on whether inventory management system
serves as a foundation for effective managing supplier relationship. The percentage
response revealed that 43% agreed and 3% of respondents disagreed. This was a
confirmation from the majority of respondents that inventory management system serves
as a foundation for effective managing supplier relationship. In summary on a study
whether warehousing and storage management is seen as a must for employees playing a
central role in determining organizational effectiveness. It was found that 40% of
respondents were neutral whereas none disagreed and still none of respondents strongly
disagreed. Thus, warehousing and storage management is seen as a must for employees
playing a central role in determining organizational effectiveness.

58
The summary was further provided to address whether inventory management system
enables customer relationship management and as a result increases efficiency. The
analysis showed that 49% of respondents strongly agreed however 6% strongly
disagreed. This was an indication that the management had to instruct the supervisory and
subordinate staff about any change in policy and as a result increases efficiency. In a
study seeking to establish whether determination of appropriate maximum and minimum
inventory levels improves stores operation. The analysis revealed that 32% agreed while
2% of respondents strongly disagreed. This implied that the firm must determine
maximum and minimum inventory levels for better planning and efficient stores
operation.

5.2.3 The effects of operational cost on stores operation management in food
processing industry in Kenya
The summary was generated from a study that sought to establish whether increased
ordering cost of items in the firm affect stores operation. It was noted that 67% of
respondents strongly agreed as 4% of respondents strongly disagreed to the statement. As
per the majority of respondents the study implied that company?s stores operation can
positively be boosted through effective cost cutting measures. In the analysis examining
whether the costs of systems implementation in the firm negatively affect stores operation
in the firm. The study was confirmed by 59% of respondents who agreed while 1% of
respondents strongly disagreed. An indication that much attention to have an effective
budget in the firm. The analysis of findings revealed that too many steps in a procedure
of procuring items in the organization affected stores operation as supported by 41%
against 2% of respondents who strongly disagreed. This was a confirmation that too
many steps in a procedure of procuring items in the organization affected stores
operation.

59

The study on whether coordination of inventory management decisions between
departments involved in inventory management enhances stores operation in the firm, a
total of 61% strongly agree to the idea, as 4% of respondents were indecisive. Implying
that companies that give finer details to operations of their customer service could
experience better stores operation.

5.2.4 The effects of space layout on stores operation management in food processing
industry in Kenya
The summarized study was based on examining whether more efficient use of available
warehouse space can determine the productivity of its staff and ultimate success or failure
and resulting in efficient stores operation. The responses showed 55% of respondents
strongly agreed to the idea however only 16% of respondents claimed they disagreed.
Therefore, the managers had a responsibility to apply appropriate styles that could drive
high level of productivity. Focusing on determining whether poor performance is not
always due to a lack of skills; the employee may simply be disorganized or sloppy
affecting stores operation. It was confirmed by 44% of respondents as 7% of respondents
disagreed. This implied that the poor performance is not always due to a lack of skills; an
indication that managers were expected to lift up the productivity of employees to
achieve company goals through better management styles. On whether space layout
facilitates standardization of inventory movements. it was noted that 34% agreed as 2%
of respondents strongly disagreed. Therefore, this implied that the key to the success of
the company productivity and stores operation with the practices of the management and
styles of management in use.

60
The summarized study findings was to address whether wastage of space in the firm?s
store affected stores operation. The study found that s 35% of respondents agreed and 5%
of respondents strongly disagreed. This was an indication that wastage of space in the
firm?s store affected stores operation. This could be achieved by identifying the managers
with appropriate skills and styles to handle challenges. The summary was aimed at
determining whether stock taking in the warehouse enhances stores operation. Therefore
40% of respondents agreed while 7% of respondents disagreed This Implied that
appropriate management style is that which handles issues promptly in order to avoid
creating a bad image and efficient stores operation.

5.2.5 The effects of staff training on stores operation management in food processing
industry in Kenya
The summary was generated from a study that sought to establish whether complicated
applications due to lack of skills affect stores operation. It was noted that 67% of
respondents strongly agreed as 4% of respondents strongly disagreed to the statement. As
per the majority of respondents the study implied that company?s stores operation can
positively be boosted through effective training of staffs and providing them with the
right skills. In the analysis examining whether the poor performance is not always due to
a lack of skills; the employee may simply be disorganized or sloppy affecting company
image and stores operation in the firm. The study was confirmed by 59% of respondents
who agreed while 1% of respondents strongly disagreed. An indication that poor
performance is not always due to a lack of skills; the employee may simply be
disorganized or sloppy affecting stores operation. The analysis of findings revealed that
lack of commitment from staff affected stores operation as supported by 41% against
2% of respondents who strongly disagreed. This was a confirmation that lack of
commitment from staff affected stores operation.

61

The study on whether training of staff on procurement and ordering processes enhances
stores operation in the firm, a total of 61% strongly agree to the idea, as 4% of
respondents were indecisive. Implying that companies staffs with the right skills,
competency and experience enhances efficient stores operation.

5.3 Conclusions
The study sought to determine how information technologies affect stores operation
management in food processing industry in Kenya. The findings established that
enterprise resource planning and material resource planning are necessary in stores
management in in food processing industry in Kenya. An organization?s IT plays an
important role in helping it adopt and maintain a strategic position. Information
technologies support efficient sector operations, workgroup and enterprise collaboration,
or effective sector decision making. On basis of information technology, it can be
concluded that Capwell industries Limited has embraced technology and has automated
most of stores operations and hence IT is major contributor to efficient store operations in
in food processing industry. It was further concluded that use of IT had helped Capwell
industries Limited inventories more effectively and streamline stores operations.
According to the analysis of findings, out dated IT equipment replacement was not being
done promptly however in areas where adoption of modern technology had been
implemented, delivery of service was found to be faster while the inventory was being
economized.

The findings established that procurement staffs training is significance since there is
training on how to use information systems, and training on public procurement act.

62
Staffs training is programs that provide workers with information, new skills, or
professional development opportunities. Based on the findings, it can be concluded that
Capwell industries Limited do not offer frequent training to their staffs especially on
store operations hence a major contributor to inefficiency in stores operations. Due to
lack of frequency training program to stores personnel the factories face numerous
problem in skills and on knowledge in jobs performance, in his study (Tas, 2008)
recognized that career specialty training provides employees with the opportunity to
enhance knowledge, skills and abilities necessary to perform jobs beyond the minimum
level and that it also allows employees the opportunity to explore new areas of interest
and specialization that will enhance abilities and skills in other specialized jobs .

The study provides an understanding of the challenges faced by organization on poor
performance. The results have shed light on the state of inventory management practice
and use of local organizations in this area, and show currently adopted technologies and
the barriers that prevent their optimization. The findings show that there is a need for
support for the food processing companies to be able to better benefit in inventory
management. Creation of more widespread awareness about inventory management,
better provision of the requisite technologies, as well as adequate training and skills
upgrading and updating are some of the support that would help organization plan
strategy. The results clearly indicate the necessity to provide support to organization if
they are to successfully manage inventory. Accordingly, support to overcome or alleviate
the identified barriers of inventory management need to be recognized. However, most of
the businesses are not confident with inventory management as technique of influencing
performance of food processing companies.

63
In communication skills the study concluded that managers' inability to clearly express
their thoughts, ideas and demands leads to employees' inability to perform the work well
an indication that there was a breakdown of communication which could impart
negativity in corporate image. The study further concluded that communication serves as
a foundation for effective planning to promote corporate information sharing as a basis of
building corporate image. An employee communication satisfaction is seen as a must for
employees playing a central role in determining organizational effectiveness. The
conclusion showed a confirm from the study that the sound communication system
enables the management to instruct the supervisory and subordinate staff about any
change in policy and as a result increases efficiency. The essential information must be
communicated to the managers who in-turn must communicate the plans so as to
implement them. This implied that all the essential information must be communicated to
the managers who in-turn must communicate the plans so as to implement them and build
positive image of the company. In a study in which ineffective or poor communication is
frustrating for employees, and becomes a source of a conflict. This was an indication that
ineffective or poor communication is frustrating for employees, and becomes a source of
a conflict this was found to ultimately affect stores operation.

In management styles, the study concluded that the quality of manager and effective
management styles can determine the productivity of its staff and ultimate success or
failure. The management had a responsibility to apply appropriate styles that could drive
high level of productivity. Focusing on determining whether poor performance is not
always due to a lack of skills; the employee may simply be disorganized or sloppy
affecting company image. The poor performance is not always due to a lack of skills; an
indication that managers were expected to lift up the productivity of employees to

64
achieve company goals through better management styles. The authority which the
manager holds must exercise the power for the benefit of the team for productivity and
company image. This implied that the key to the success of the company productivity and
image lies with the practices of the management and styles of management in use. In
developing effective management styles to deal with challenges is an urgent need of
organizations for a competitive environment and image. This could be achieved by
identifying the managers with appropriate skills and styles to handle challenges. The
study concluded that management style is that which handles issues promptly in order to
avoid creating a bad image. In the analysis of findings to address whether the manager
sensitizes the employees and works with them to set individual goals linked to the
business's mission for a positive image. This implied that the steps the manager takes to
build up the level of productivity of employees can improve the image of the company.

5.4 Recommendations
5.4.1 Information Technology
On basis of information technology the study recommended that Capwell industries
Limited should fully automates their stores operations .the greatest potential is not
expected to be from the improvement of clerical and administrative tasks, but from the
ability of managers and other stores personnel to gain increased control over their
operations. Reasons why the factories should consider fully automated systems are; first
is a critical need to improve the productivity of employees so as to realize economies of
scale and realize predictable quality level and the second reason for fully automation is
the increasing complexity of the factories organizational decision making and
information needs.

65
5.4.2 Inventory Management System
Food processing ought to embrace information communication technology in inventory
management. Automation will help the warehousing firm in inventory control by setting
inventory control levels and calculating the amount of inventory to hold and release
therefore improving the operational performance of the firm. The food processing ought
to embrace inventory management systems improve the operational performance. These
systems include: JIT systems, Enterprise Resource Planning (ERP), Vendor Managed
Inventory (VMI), and Materials Requirements Planning Systems (MRP).

5.4.3 Operational Cost
The study also recommends that cost control should be observed well and proper training
should be encouraged to improve the current used methods. The study also recommended
that modern technology should be used which is more efficient and removes bulk of files
storage in hardcopy. The study recommends that inventory management should be well
articulated, there should be increased support for training to improve the inventory
management. It is also recommended that investors officials should be part of the
inventory management team for this will reduce loss of inventory. The study therefore
recommends that in order to ensure that the organization remain sustainable, they should
procure employees that are competent in inventory management.

5.4.4 Space Layout
The study recommend that in management styles, the management at Capwell industries
Limited had a responsibility to apply appropriate styles that could drive high level of
productivity of employees which in turn could build the image of the company. The
managers should lift up the productivity of employees through adopting better
management styles such as democratic and free reign. The authority which the manager

66
holds must exercise the power for the benefit of the team for productivity and company
image. There was also need to note that the success of the company productivity and
image lies with the practices of the management and styles of management in use. This
can be achieved by identifying the managers with appropriate skills and styles to handle
challenges.

5.4.5 Staff Training
The study recommends that stores management should be observed well and proper
training should be encouraged to improve the current used methods. The study also
recommended that modern technology should be used which is more efficient and
effective to the organization and enhance operation stores management. The study
recommended that Capwell industries Limited occasionally offer training in form of
workshops, seminars or training sessions to their employees so as to enhance their
knowledge, skills and abilities necessary to perform jobs especially employees handling
stores operations. The study also recommended that proficiency in service training as a
component of the career development initiative must be closely coordinated with the
organization?s training efforts, this will benefits both the organization and its employees
by keeping them up-to-date on duties with present job assignments as stores personnel.

5.5 Suggestion for Further Study
The study majorly focused on examining the factors affecting stores operation
management in food processing industry in Kenya on a case study of Capwell industries
Limited. However, however, a singly study of this nature could not exhaust all aspects
covered. There is need to undertake other research studies on challenges facing stores
operation management in food processing industry in Kenya.

67
This study was limited to Kiambu County; a similar study should be conducted in other
counties across the country to establish the stores operation management in food
processing industry in Kenya and how it contributes to improved performance of stores
operation. This will provide a platform to compare and identify areas of weaknesses and
thus recommend areas of improvement.

68
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i
APPENDIX 1: QUESTIONNAIRE

This study is based on factors affecting stores operation management in food processing
industry in Kenya on a case study of Capwell industries Limited.
Please attempt the following questions. The obtained information will be a basis for
developing a complete study that is being carried out.
Answer the questions by providing you opinion and ticking on the sections provided.
NB: This information will be used strictly for academic purposes only and will be
treated with utmost confidence.

PART A: GENERAL INFORMATION
1. Gender
Male
Female

2. Highest level of education
Secondary
Diploma
1st Degree
Post Graduate

3. How long have you been working this organization?
Below 1 year
1-5 years
6-10 years
Above 10 years

ii
PART II: INFORMATION TECHNOLOGY
Kindly tick on the statement you agree with based on a scale of 1-5 in which 1-strongly
agree, 2-agree, 3 neutral 4-disagree and 5 – strongly disagree.
To what extent does information technology affect stores operation management in
food processing industry in Kenya?

Statement
Strongly agree

Agree

Neutral

disagree

Strongly disagree

1 Has the company acquired sufficient
IT devices/ tools

2 Use of computers boosts performance
of the company

3 Delays due to system
failures on transactions

4 Total systems failure
5 Skills /Competence gaps
among IT staff

iii
SECTION III: INVENTORY MANAGEMENT SYSTEM
Kindly tick on the statement you agree with based on a scale of 1-5 in which 1-strongly
agree, 2-agree, 3 neutral 4-disagree and 5 strongly disagree
To what extent does inventory management system affect stores operation
management in food processing industry in Kenya?

Statement
Strongly agree

Agree

Neutral

disagree

Strongly disagree

7 Enhancing procurement and ordering
processes.

8 Managing supplier relationship.

9 Warehousing and storage management
(stock identification)

10 Customer relationship management.

11 Determination of appropriate
maximum and minimum inventory
levels

iv

SECTION IV: OPERATIONAL COST
Kindly tick on the statement you agree with based on a scale of 1-5 in which 1-strongly
agree, 2-agree, 3 neutral 4-disagree and 5 strongly disagree.
What is the effect of operational cost on stores operation management in food
processing industry in Kenya?

Statement
Strongly agree

Agree

Neutral

disagree

Strongly disagre
e
13 Increased Ordering cost

14 Costs of systems implementation

15 Too Many Steps in a Procedure

16 Coordination of inventory
management decisions between
departments involved in inventory
management

v
SECTION V: SPACE LAYOUT
Kindly tick on the statement you agree with based on a scale of 1-5 in which 1-strongly
agree, 2-agree, 3 neutral 4-disagree and 5 strongly disagree
How does space layout affect stores operation management in food processing
industry in Kenya?

Statement
Strongly agree

Agree

Neutral

disagree

Strongly disagree

19 More efficient use of available
warehouse space

20 Facilitates standardization of
inventory movements

21 Wastage of space

22 Warehousing and storage management
(stock identification)

23 stock taking in the warehouse easier

vi

SECTION VI: STAFF TRAINING
Kindly tick on the statement you agree with based on a scale of 1-5 in which 1-strongly
agree, 2-agree, 3 neutral 4-disagree and 5 strongly disagree
To what extent does staff training affect stores operation management in food
processing industry in Kenya?

Thank you for your cooperation

Statement
Strongly agree

Agree

Neutral

disagree

Strongly disagree

25 Complicated Applications due to lack
of skills

26 Poor performance is not always due to
a lack of skills; the employee may
simply be disorganized or sloppy
affecting company image

27 Lack of commitment from staff
29 Enhancing procurement and ordering
processes.

vii

APPENDIX II: WORK PLAN

ACTIVITY WK
1
WK
2
WK
3
WK
4
WK
5
WK
6
WK
7
WK
8
WK
9
WK
10
Problem
Formulation

Preparation of
research
questions

Compiling
Proposal
Defence

Field Data
Collection

Data Analysis
Report Writing

Presentation

Table IN.B: Activities on the Research Management Table are indicated by the
following symbols:

viii
APPENDIX III: BUDGET PROPOSAL

Amount
No Item Kshs
1 Stationeries 6,800
2 Telephone and Internet cost 2,600
3 Typing work 5,000
4 Photocopies and journals 1,700
5 Travelling cost 2,500
6 Contingencies 2,000
Total 20,600