ABSTRACT

Inventory management is concerned with ensuring that all activities involved in storekeeping and stock control are carried out efficiently and economically by those employed in the store. There has been a question for management about the efficiency of inventory management procedures in place resulting from inconsistencies of inventory levels leading to various weakness like losses that come as a result of over, under-stocking, expiry inventory, failure to meet targets and low morale of the company members. As a result the company‟s stores are over crowded making the work of a store-keeper difficult, late issue of materials to the department and these in turn result into poor inventory service delivery.Kenyan oil marketer KenolKobil posted an 8.96 billion shilling ($105.66 million) pretax loss in 2012 from a 4.93 billion shilling profit in 2011(RoK, 2013). The Energy Regulatory Commission statistics indicate that crisis related to inventory management hinders effective management of stores at KenolKobil limited.The study was guided by four objectives (information technology, distribution channels, Staff Competenceyand material handling equipments.The study was a descriptive research design. The target population was procurement managers, stores managers and other stores personnel in theKenolKobil. Questionnaires were the main data collection instruments. The study employed both quantitative and qualitative analysis techniques. Data was presented using tables, pie charts and bar graphs. Inferential statisticsincludes correlation and regression analysis. The study found out thatinformation technology Reduces lead times on effective inventory management; that information technology has no effect on Increased lead times in effective inventory management; that no change on lead times brought by information technology.The study also found that Most employees have basic Staff competency (competencies) on inventory management at kenolkobil.

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