Effect of ICT on Successful Implementation of Vendor Managed Inventory among Manufacturing

This study sought to assess the factors affecting successful implementation of VMI among manufacturing firms in Nakuru County. The study was motivated by the fact that despite the evidence of value addition by the VMI technique towards effective and efficient supply chain, there has not been enough research on the topic. In addition, most manufacturing firms especially in Kenya are yet to adopt and successfully implement the technique in enhancing their supply chain performance. As a result, this study used a descriptive census design to enhance the understanding of VMI towards its successful implementation among manufacturing firms. The data for this study were obtained using questionnaires which were structured in both open and closed ended questions. The analysis of data was conducted using SPSS program. Regression analysis was conducted to measure relationship between the variables of study. Findings of this study were considered significant in enhancing strategies towards effective implementation of VMI among supply chain participants and line organizations. The study also sought to add knowledge to the existing literature on VMI technique and highlight the relationship between VMI and supply chain performance. The findings of the study indicated that the various factors of VMI implementation had a statistical significant relationship with successful implementation of the strategy. This led to the rejection of all the hypotheses of the study. For successful implementation of VMI, the study concluded that there should be extensive sensitization on the VMI strategy and its benefits towards enhancing supply chain performance. In addition, quality information should be shared among supply chain partners to enhance confidence and trust that was considered critical to successful implementation of VMI strategy. The study also concluded that ICT is key to the successful implementation of VMI strategy. The study recommended EDI as the major IT platform that should be utilized to enhance the success of VMI among manufacturing firms.