Influence of vendor inventory management on organizational performance in retail outlets in Kenya: A case of Uchumi supermarkets

Vendor managed inventory (VMI), also known as continuous replenishment or supplier-managed inventory, is one of the most widely discussed partnering initiatives for encouraging collaboration and information sharing among trading partners (Angulo, 2007). The main objective of the study was to investigate the influence of vendor inventory management on organizational performance in retail outlets in Kenya. The study adopted a descriptive research with survey of a total of 172 and applied a stratified random sampling technique to select a sample size of 86 respondents. Questionnaires were used as the main data collection Descriptive statistics and inferential data analysis method was to analyze the gathered data.The study concluded that that economic order quantity is affected by VIM thereby affecting organizational performance. The study recommends that VIM should be well implemented since it influences the organization to invest a lot of money in purchasing of inventory. Additionally the study recommends that organization should integrate all its inventory management functions with information communication technology as well as ICT realization. Organizations need to enhance Communication among staff members and customers.