The Impact of inventory management in mitigating stockouts: a case 29 best food and beverage companies in Zimbabwe

Author

Garaimareva, Decency

Title

The Impact of inventory management in mitigating stockouts: a case 29 best food and beverage companies in Zimbabwe

Abstract

The food and beverage industry in Zimbabwe has experienced growth, particularly after the dollarisation of the economy around 2009. However, this growth has taken place within an unstable economic environment marked by significant operational challenges. The industry's reliance on imports exposes it to supply chain risks such as currency fluctuations and delivery uncertainties (Burger-Helmchen, David, & Hendrik, 2020; Muñoz-Torres, Caiado, & Leal Filho, 2021; Munuhwa, 2022). High inflation between 2020 and 2025 has further strained operations, leading to business collapses (World Food Programme, 2023; Food and Agriculture Organisation [FAO], 2023; FAO, 2025). Ethical issues, including deceptive trading practices, also affect the industry, causing revenue losses and deterring investors (Mambanda, Maibvisira, & Murangwa, 2022; Chikweche, 2021; Dube, 2022).
A key challenge is inefficient inventory management, causing production delays and stockouts (Rackbeat, 2024; Mambanda et al., 2022; Muñoz-Torres et al., 2021). Stockouts disrupt operations, decrease customer satisfaction, and harm financial performance. Similar inventory control issues exist in other Zimbabwean sectors like mining (Chikweche, 2021; Mambanda et al., 2022; Munuhwa, 2022). The Confederation of Zimbabwe Industries (CZI) has highlighted broader manufacturing sector challenges, including limited working capital and raw material availability, which complicate inventory management in the food and beverage industry (FAO, 2025; Burger-Helmchen et al., 2020; Muñoz-Torres et al., 2021).
Recent research on Zimbabwe's food and beverage industry uses quantitative surveys and structural equation modelling (SEM) to analyse supply chain risk management, inventory control effectiveness, and operational performance (Mambanda et al., 2022; Burger-Helmchen et al., 2020; Muñoz-Torres et al., 2021). Studies show ethical branding improves firm reputation, which reinforces the brand (Dube, 2022; Mambanda et al., 2022). Effective inventory control systems positively impact organisational performance by optimising inventory and reducing stockout costs (Burger-Helmchen et al., 2020; Rackbeat, 2024; Mambanda et al., 2022). Supply chain risk management also positively relates to risk information sharing and analysis, predicting operational performance in food retail (Burger-Helmchen et al., 2020; Muñoz-Torres et al., 2021; Caiado et al., 2022). Total Quality Management (TQM) implementation in Zimbabwean beverage vi

manufacturing has also shown positive outcomes (Mambanda et al., 2022; Muñoz-Torres et al., 2021).
In conclusion, Zimbabwe's food and beverage industry faces significant inventory management and supply chain challenges due to economic instability, import reliance, and ethical concerns. However, strategies like ethical branding, effective inventory control, and proactive risk management can improve operational performance and firm reputation (Burger-Helmchen et al., 2020; Mambanda et al., 2022; Muñoz-Torres et al., 2021). Prioritizing modern inventory control systems and staff training is recommended (Rackbeat, 2024; Mambanda et al., 2022). Integrating ethics into company processes is also crucial for attracting investors and customers (Dube, 2022; Mambanda et al., 2022). Improving inventory management and supply chain resilience can enhance food security and economic development in Zimbabwe (FAO, 2025; Burger-Helmchen et al., 2020; Muñoz-Torres et al., 2021). Future research could explore the specific impacts of perpetual versus periodic inventory systems on stockouts and operational efficiency in this sector

Date

June 2025

Publisher

Buse

Keywords

Food and beverage industry

Inventory management

Supply chain risk management

Economic instability

Stockouts

Supervisor

Mr Bindu