Effectiveness of Inventory Management on the Profitability of Manufacturing Sectors in Nigeria Bottling Company, Kaduna

Abstract

Inventory management plays a crucial role in the profitability of manufacturing sectors, including the Nigeria Bottling Company in Kaduna. The study aimed to assess the effectiveness of inventory management on the profitability of manufacturing sectors in Nigeria Bottling Company, Kaduna. The study is quantitative and utilizes both primary and secondary data. A survey instrument was developed to collect primary data from a sample of 100 managers and employees within the Nigeria Bottling Company, Kaduna. Additionally, secondary data was collected from annual reports and financial statements of the company. The primary data collected was analyzed using statistical techniques such as descriptive statistics and regression analysis, while the secondary data was analyzed using content analysis. This mixed-method approach allowed for a comprehensive examination of the effectiveness of inventory management on the profitability of the manufacturing sectors in the Nigeria Bottling Company, Kaduna. From the result of data analysis, the hypothesis there is a positive relationship between inventory management and prompt delivery in manufacturing sectors (Nigerian Bottling Company) Kaduna, was rejected and the alternate was accepted. The study concludes that although inventory management is a key factor in prompt service delivery, it is not the only factor. The organization must balance its operations by putting in place important management and operational policies that support service delivery. Some of which are recommended to include the implementation of advanced inventory management techniques, enhancing demand forecasting and production planning processes, among other things.