The Perception of employees on the effects of inventory management practices on the financial perfomance of a petroleum company pperating in a hyper-inflationary evnvironment. The case of Glow Petroleum
- Author
- Pasara, Gracious
- Title
- The Perception of employees on the effects of inventory management practices on the financial perfomance of a petroleum company pperating in a hyper-inflationary evnvironment. The case of Glow Petroleum
- Abstract
- This research is aimed at exploring the perception of employees on the effects of inventory management practices on the financial performance of a fuel retailing company operating in a hyperinflationary environment in Zimbabwe. The objectives of the research were to first identify the perception of employees on the inventory management strategies; to investigate and analyze the perception of employees on the challenges being faced by companies in the fuel retail industry in implementation inventory management strategies and to evaluate the employee’s perceptions regarding the strengths and weaknesses of companies in the fuel retail industry’s inventory management strategies and their influence on the company’s financial performance. The study was done through descriptive research design. The main data collection instrument was questionnaires which were distributed to 110 respondents of which 92 were responded to. Included in the sampling frame were regional managers, site managers, finance director, site supervisors, distribution clerks and pump attendants in Glow Petroleum. A statistical package (SPSS) was used to analyze the collected data using descriptive statistics. The research found that quite a number of respondents perceived that the company practiced Economic Order Quantity and that fuel was delivered in time as well as that the company keeps buffer stocks and orders fuel at a predetermined level of fuel. The respondents also perceived that the company does not use price reduction strategies to improve its financial performance but rather ensures timely delivers and offers quality products and services. The perceived challenges faced by the company include the everchanging business environment, hyper-inflation and unfavorable polies put in place by the government and ZERA. Recommendations in the study include training employees to be well equipped with skills to implement proper inventory management practices as well as adopting automated inventory tracking devices/sensors of fuel management and Software Packages. The study concluded that the company uses a combination of techniques including Economic Order Quantity and Just In Time among others and faces unique challenges such as unfavorable policies. The study therefore recommends the company and other companies in the fuel industry to be proactive in terms of inventory management and be up to date with latest inventory management practices that are applicable in the fuel industry as well as train their employees in the aspect of inventory management.
- Date
- June 2024
- Publisher
- BUSE
- Keywords
-
Inventory management practices
- Financial performance
- Fuel industry
- Glow Petroleum
- Supervisor
- N. Hove
- Item sets
- Department of Accountancy
- Media
-
PASARA GRACIOUS.pdf