Original Research

Investigating the efficacy of inventory policy implementation in selected state-owned enterprises in the Gauteng province: A qualitative study

Asanda Penny, Musenga F. Mpwanya, Keith R. Lambert
Journal of Transport and Supply Chain Management | Vol 15 | a552 | DOI: https://doi.org/10.4102/jtscm.v15i0.552 | © 2021 Asanda Penny, Musenga F. Mpwanya, Keith R. Lambert | This work is licensed under CC Attribution 4.0
Submitted: 06 November 2020 | Published: 28 October 2021

About the author(s)

Asanda Penny, Department of Marketing, Supply Chain and Sport Management, Faculty of Management Sciences, Tshwane University of Technology, Pretoria, South Africa
Musenga F. Mpwanya, Department of Marketing, Supply Chain and Sport Management, Faculty of Management Sciences, Tshwane University of Technology, Pretoria, South Africa
Keith R. Lambert, Department of Marketing, Supply Chain and Sport Management, Faculty of Management Sciences, Tshwane University of Technology, Pretoria, South Africa


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Abstract

Background: The formulation, implementation and evaluation of inventory policies are vital for adequate management of inventory in organisations to ensure seamless flow of inventory and customer satisfaction. Inventory policies offer the required guidelines on how inventory should be managed in organisations to attain inventory management goals. However, it is unclear whether these guidelines are efficaciously implemented to enhance the inventory management performance of Eskom and Transnet in the Gauteng Province.

Objective: This study sought to investigate the efficacy of inventory policy implementation at each of the selected SOEs in the Gauteng Province.

Method: The study employed a qualitative research design with a sample of twenty-four inventory staff, of which fifteen were from SOE1 and nine from SOE2. The sampled population (inventory staff) were selected purposefully at each SOE in the Gauteng Province. Data were mainly gathered by means of semi-structured interviews and were thematically analysed.

Results: The study generated four themes that reveal the extent of inventory policy implementation and its associated impact on inventory costs at each SOE. These themes included adherence to inventory policy, inventory policy violations, implementation extent of inventory policy, inventory growth rate and the associated increase in inventory carrying costs and lack of inventory planners’ planning skills.

Conclusion: Inventory policies were not fully implemented at each SOE. Poor inventory purchasing decision and violation of inventory policies contributed to inventory growth rate and excess inventory carrying and its associated costs. This therefore negatively affects the inventory management performance of SOE 1 and SOE 2.


Keywords

inventory; inventory management; inventory policies; inventory policy implementation; state-owned enterprises; qualitative study

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