Modern Loveok

FACTORS AFFECTING STORES OPERATION MANAGEMENT IN FOOD PROCESSING INDUSTRY IN KENYA: A CASE STUDY OF CAPWELL INDUSTRIES LIMITED BY ROSE SOILA SHUNET 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 2018ii 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 ……………….iii 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.iv 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.v 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.

vi TABLE OF CONTENTS DECLARATION ……

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….. 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 ………………………………………………………………………………… 25vii 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 ……………………………………………………………. 54ix 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 …………………………………………………………… 54x 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 Systemsxi 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.1 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 the2 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.3 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 study4 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.5 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?6 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 by7 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.8 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 optimum9 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 are10 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 customers11 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 and12 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 that13 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 of16 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, distributing17 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 being20 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 display22 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 to23 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 “missing24 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 through25 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 Training26 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 Lyon31 (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% 0102030405060708090100ResponseNo ResponsePercentage Category34 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% MaleFemale35 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% 051015202530354045SecondaryDiploma1st degreePost GraduateCategory Percentage36 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% 051015202530354045< 1 year1-5 years6-10 yearsAbove 10 yearsCategory Percentage37 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% 051015202530354045Strongly agreeAgreeNeutralDisagreeStronglydisagreePercentage Category38 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. 0510152025303540StronglyagreeAgreeNeutralDisagreeStronglydisagree36% 19% 40% 4% 1% Percentage Category39 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% 05101520253035404550Strongly agreeAgreeNeutralDisagreeStronglydisagreePercentage Category40 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% 051015202530354045Strongly agreeAgreeNeutralDisagreeStronglydisagreePercentage Category41 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% 05101520253035404550Strongly agreeAgreeNeutralDisagreeStrongly agreePercentage Category42 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. 051015202530354045StronglyagreeAgreeNeutralDisagreeStronglydisagree28% 43% 22% 3% 4% Percentage Category43 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. 0510152025303540StronglyagreeAgreeNeutralDisagreeStronglydisagree40% 36% 24% 0% 0% Percentage Category44 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. . 05101520253035404550StronglyagreeAgreeNeutralDisagreeStronglydisagree49% 20% 15% 10% 6% Percentage Category45 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% 05101520253035StronglyagreeAgreeNeutralDisagreeStronglydisagrePercentage Category46 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% 01020304050607080Strongly agreeAgreeNeutralDisagreeStronglydisagreePercentage Category47 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. 0102030405060stronglyagreeAgreeNeutralDisagreeStronglydisagree17% 59% 19% 4% 1% Percentage Category48 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% 051015202530354045Strongly agreeAgreeNeutralDisagreeStronglydisagreePercentage Category49 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. 0102030405060StronglyagreeAgreeNeutralDisagreeStronglyagree55% 26% 15% 4% 0% Percentage Category50 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% 05101520253035404550Strongly agreeAgreeNeutralDisagreeStronglydisagreeCategory Percentage51 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% 0510152025303540Strongly agreeAgreeNeutralDisagreeStronglydisagreePercentage Category52 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. 01020304050StronglyagreeAgreeNeutralDisagreeStronglyagree50% 26% 15% 9% 0% Percentage Category53 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% 0510152025303540StronglyagreedAgreedNeutralDisagreedStronglydisagreedPercentage Category54 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% 051015202530354045Strongly agreeAgreeNeutralDisagreeStronglydisagreePercentage Category55 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% 0510152025303540StronglyagreeAgreeNeutralDisagreeStronglydisagreePercentage Category56 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 to64 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 manager66 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. 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(2004), Monitoring the performance of a reorder point system: A control chart approach, International Journal of Operations & Production Management, 14(2), 51–62 Wiersma, W. (2005). Research methods in education: An introduction (6th ed.). Boston: Allyn and Bacon. Wild, T., (2012). Best Practice in Stores Management 2nd edition. Oxford: Butterworth-Heinemann (imprint of Elsevier). Zanakis, S. H., Austin, L.M., Nowading, D.C., and E.A. Silver (2000). “From Teaching to Implementing Stores Management: Problems of Translation,” Interfaces, 10(6), 103–110.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 staffiii 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 levelsiv 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 disagree 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 managementv 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 easiervi 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