The Impact of Strategic Inventory Management on Logistics Organization’s Performance
Abstract
This study examines the impact of strategic inventory management on the performance of logistics organizations in Oman. Inventory management plays a crucial role in ensuring efficient operations, reducing costs, and meeting customer demands. The study investigates the strategic inventory management practices adopted by logistics organizations in Oman, including demand forecasting, procurement optimization, and inventory control techniques. It analyses the influence of these practices on key performance indicators such as order fulfillment, on-time delivery, inventory turnover, and customer satisfaction specifically within the context of the Omani logistics industry. The study highlights the significance of a well-designed inventory management strategy in enhancing overall organizational performance by improving resource allocation, minimizing stockouts, and enhancing supply chain responsiveness. The study concludes with practical implications for logistics managers in Oman and suggests avenues for future research in this area specific to the Omani context.
References
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Mustafa Tanrikulu, M., Şen, A., & Alp, O. (2010). A joint replenishment policy with individual control and constant size orders. International Journal of Production Research, 48(14), 4253-4271.
Nachiappan, S. P., Jawahar, N., Parthibaraj, S. C., & Brucelee, B. (2005). Performance analysis of forecast driven vendor managed inventory system. Journal of advanced manufacturing systems, 4(02), 209-226.
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Oballah, D., Waiganjo, E., & Wachiuri, W. E. (2015). Effect of inventory management practices on Organizational performance in Public health institutions in Kenya: A case study of Kenyatta national hospital. International journal of education and research, 3(3), 703-714.
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Roth, A. E. (1991). A natural experiment in the organization of entry-level labor markets: Regional markets for new physicians and surgeons in the United Kingdom. The American economic review, 415-440.
Roth, A. V., & Miller, J. G. (1992). Success factors in manufacturing. Business horizons, 35(4), 73-82.
Singh, A., Agrawal, M., & Marshall, F. M. (2010). The role of organic vs. inorganic fertilizers in reducing phytoavailability of heavy metals in a wastewater-irrigated area. Ecological Engineering, 36(12), 1733-1740.
Singh, D., & Verma, A. (2018). Inventory management in supply chain. Materials Today: Proceedings, 5(2), 3867-3872.
Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of marketing, 59(3), 63-74.
Soh, K. L., Wong, W. P., & Chong, C. L. (2015). Strategic choices: A composite model for logistics service providers. Journal of Southeast Asian Research, 2015, 652416.
Song, J. S., van Houtum, G. J., & Van Mieghem, J. A. (2020). Capacity and inventory management: Review, trends, and projections. Manufacturing & Service Operations Management, 22(1), 36-46.
Stank, T. P., Goldsby, T. J., Vickery, S. K., & Savitskie, K. (2003). Logistics service performance: estimating its influence on market share. Journal of business logistics, 24(1), 27-55.
Taghian, M., D’Souza, C., & Polonsky, M. (2015). A stakeholder approach to corporate social responsibility, reputation and business performance. Social Responsibility Journal.
Thakre, S. (2021). Study of the impact of JIT (just--in time) in inventory management in the automobile sector India in. IJM, 12(2), 720-730.
Vickery, B. (1997). Metatheory and information science. Journal of documentation, 53(5), 457-476.
Ward, M. J. (1996). Coming of age in the age of self-determination. Self-determination across the life span, 3-16.
Zulkiffli, S. N. A., Sebadak, M., Padlee, S. F., & Yusoff, J. M. (2019). A Literature Review of Innovation Capabilities and Business Performance of Third-Party Logistics (3PL) Service Providers in Malaysia. Int. J Sup. Chain. Mgt Vol, 8(2), 1018.
Anantadjaya, S. P., Nawangwulan, I. M., Irhamsyah, M., & Carmelita, P. W. (2021). Supply chain management, inventory management & financial performance: evidence from manufacturing firms. Linguistics and Culture Review, 5(S1), 781- 794.
Atnafu, D., & Balda, A. (2018). The impact of inventory management practice on firms’ competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia. Cogent Business & Management, 5(1), 1503219.
Batista, L., Bourlakis, M., Liu, Y., Smart, P., & Sohal, A. (2018). Supply chain operations for a circular economy. Production Planning & Control, 29(6), 419-424.
Chalupová, K. (2018). The Impact of Just-in-Time Inventory Management on Business Cycle Severity.
Choi, T. Y., & Hartley, J. L. (1996). An exploration of supplier selection practices across the supply chain. Journal of operations management, 14(4), 333-343.
Dess & Robinson, (1984 Dess, G. G., & Robinson Jr, R. B. (1984). Measuring organizational performance in the absence of objective measures: the case of the privately‐held firm and conglomerate business unit. Strategic management journal, 5(3), 265-273.
Dong, Y., & Xu, K. (2002). A supply chain model of vendor managed inventory. Transportation research part E: logistics and transportation review, 38(2), 75-95.
Dubelaar, C., Chow, G., & Larson, P. D. (2001). Relationships between inventory, sales and service in a retail chain store operation. International journal of physical distribution & logistics management.
Gečienė, J. (2020). The resilience of organizations in the context of regional social sustainability: management challenges under uncertainty. Organizacijų vadyba: sisteminiai tyrimai, (83), 37-55.
Hall, R. E. (2001). The stock market and capital accumulation. American Economic Review, 91(5), 1185-1202.
Indrasen, Y. S., Rajput, V., & Chaware, K. (2018). ABC analysis: A literature review. Journal For Advanced Research In Applied Sciences, 5, 134-137.
Kalaitzi, D., & Tsolakis, N. (2022). Supply chain analytics adoption: Determinants and impacts on organisational performance and competitive advantage. International Journal of Production Economics, 108466.
Koin, V. R., Cheruiyot, G. K., & Mwangangi, P. (2014). Effect of inventory management on the supply chain effectiveness in the manufacturing industry in Kenya: A case study of tata chemicals Magadi. International Journal of Social Sciences Management and Entrepreneurship, 1(2), 189-202.
Kuei, C. H., Madu, C. N., & Lin, C. (2001). The relationship between supply chain quality management practices and organizational performance. International Journal of Quality & Reliability Management.
Lee, Y. K., Kim, S. H., Seo, M. K., & Hight, S. K. (2015). Market orientation and business performance: Evidence from franchising industry. International journal of hospitality management, 44, 28-37.
Leuthesser, L., & Kohli, A. K. (1995). Relational behavior in business markets: Iplications for relationship management. Journal of Business Research, 34(3), 221-233.
Luthra, S., & Mangla, S. K. (2018). When strategies matter: Adoption of sustainable supply chain management practices in an emerging economy’s context. Resources, Conservation and Recycling, 138, 194-206.
Muchaendepi, W., Mbohwa, C., Hamandishe, T., & Kanyepe, J. (2019). Inventory management and performance of SMEs in the manufacturing sector of Harare. Procedia Manufacturing, 33, 454-461.
Mustafa Tanrikulu, M., Şen, A., & Alp, O. (2010). A joint replenishment policy with individual control and constant size orders. International Journal of Production Research, 48(14), 4253-4271.
Nachiappan, S. P., Jawahar, N., Parthibaraj, S. C., & Brucelee, B. (2005). Performance analysis of forecast driven vendor managed inventory system. Journal of advanced manufacturing systems, 4(02), 209-226.
Nemtajela, N. (2016). Inventory Management under Demand Uncertainty in the Fast Moving Consumer Goods Organisation in Gauteng. University of Johannesburg (South Africa).
Oballah, D., Waiganjo, E., & Wachiuri, W. E. (2015). Effect of inventory management practices on Organizational performance in Public health institutions in Kenya: A case study of Kenyatta national hospital. International journal of education and research, 3(3), 703-714.
Ogbo, A. (2014). The Impact of Effective Inventory Control Management on Organizational Performance”: Mediterranean Journal of Social Sciences.
Panayides, P. (2006). Enhancing innovation capability through relationship management and implications for performance. European Journal of Innovation Management.
Roth, A. E. (1991). A natural experiment in the organization of entry-level labor markets: Regional markets for new physicians and surgeons in the United Kingdom. The American economic review, 415-440.
Roth, A. V., & Miller, J. G. (1992). Success factors in manufacturing. Business horizons, 35(4), 73-82.
Singh, A., Agrawal, M., & Marshall, F. M. (2010). The role of organic vs. inorganic fertilizers in reducing phytoavailability of heavy metals in a wastewater-irrigated area. Ecological Engineering, 36(12), 1733-1740.
Singh, D., & Verma, A. (2018). Inventory management in supply chain. Materials Today: Proceedings, 5(2), 3867-3872.
Slater, S. F., & Narver, J. C. (1995). Market orientation and the learning organization. Journal of marketing, 59(3), 63-74.
Soh, K. L., Wong, W. P., & Chong, C. L. (2015). Strategic choices: A composite model for logistics service providers. Journal of Southeast Asian Research, 2015, 652416.
Song, J. S., van Houtum, G. J., & Van Mieghem, J. A. (2020). Capacity and inventory management: Review, trends, and projections. Manufacturing & Service Operations Management, 22(1), 36-46.
Stank, T. P., Goldsby, T. J., Vickery, S. K., & Savitskie, K. (2003). Logistics service performance: estimating its influence on market share. Journal of business logistics, 24(1), 27-55.
Taghian, M., D’Souza, C., & Polonsky, M. (2015). A stakeholder approach to corporate social responsibility, reputation and business performance. Social Responsibility Journal.
Thakre, S. (2021). Study of the impact of JIT (just--in time) in inventory management in the automobile sector India in. IJM, 12(2), 720-730.
Vickery, B. (1997). Metatheory and information science. Journal of documentation, 53(5), 457-476.
Ward, M. J. (1996). Coming of age in the age of self-determination. Self-determination across the life span, 3-16.
Zulkiffli, S. N. A., Sebadak, M., Padlee, S. F., & Yusoff, J. M. (2019). A Literature Review of Innovation Capabilities and Business Performance of Third-Party Logistics (3PL) Service Providers in Malaysia. Int. J Sup. Chain. Mgt Vol, 8(2), 1018.
Published
2023-09-01
How to Cite
AL SHUKAILI, Salim Muhanna Salim; JAMALUDDIN, Zaharuzaman; ZULKIFLI, Norhayah.
The Impact of Strategic Inventory Management on Logistics Organization’s Performance.
International Journal of Business and Technology Management, [S.l.], v. 5, n. 3, p. 288-298, sep. 2023.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/23756>. Date accessed: 06 dec. 2023.
Section
Articles
