Influence of Demand Forecasting on Supply Chain Performance of Petroleum Marketing Companies in Nakuru County, Kenya

Inventory management techniques are essential for the organization since organizations success and cost minimization of the expenditures of a firm leads to improvement in the performance of supply chain and employee knowledge. Inventory management techniques are aimed at reducing stock holding costs, being able to supply what is required, when is required and being supplied in the right quality and quantity to avoid waste, while remaining competitive. The main objective of this study was to establish the influence of demand forecasting on procurement performance of Petroleum marketing companies in Nakuru County, Kenya. The study used a descriptive survey research design. 147 supply chain managers and the procurement officers working with the petroleum marketing companies in Nakuru County, Kenya constituted the target population. The study used a structured questionnaire and the findings were presented in tables. The results indicated that there was a positive correlation (r=.285) between demand forecasting and supply chain performance. The hypothesis test results showed that demand forecasting had a statistically significant influence on supply chain performance.