Information system managed inventory and organizational performance. A case study of joint medical stores in Uganda

Abstract

In Uganda to date, organizations like the Joint Medical Stores constantly strive to maintain optimum inventory level to be able to meet its requirement and avoid over or under inventory level that can impact the financial figures. The use of information systems in Inventory management is so fundamental since it enhances flexibility and provides competitive advantage due to the ability to respond rapidly to customer requirement. Information system managed inventory such as Enterprise Resource Planning (ERP), Material Distribution Planning (MDP) and Material Requirement Planning (MRP), may improve organizational performance in terms of cost management, efficiency, quality control and quick response. With that effect, the researcher was motivated to carry out a research on information system managed inventory and organizational performance taking a case study of Joint Medical Stores in Uganda. However, there were also other objectives and these included the following; to examine the influence of Enterprise Resource Planning system on the performance of the Joint Medical Store; to establish the effect of Material Requirement Planning information system on the performance of the Joint Medical Store and to assess the influence of Distribution Requirement Planning information system on the performance of the Joint Medical Store. The researcher used questionnaires and interviews to obtain data. Results from the questionnaires and interviews were used to draw frequency and percentage tables on the background of the respondents, peoples' attitudes, opinions, habits, education level among other issues in relation to information system managed inventory and organizational performance. Results of the study showed that the information system also can lead to improved service levels due to better coordination or replenishment orders; Enterprise Resource Planning boosts the planning functions. The study fu1ther found out that there is a significant and positive relationship between information systems managed inventory and organizational performance. The study recommends that, there should be improvement in the information system because it leads to improved service levels due to better coordination or replenishment orders.