Vendor managed inventory and operational performance of manufacturing companies in Uganda. a case study of roofings limited.

Abstract

The study examined the relationship between vendor managed inventory and operational performance in manufacturing companies in Uganda with a case of Roofings Limited. The study was guided by the Theory of Constraints (TOC), which emphasizes identifying and managing bottlenecks that limit overall system performance. Specifically, the study aimed to examine the relationship between information sharing and operational performance in Roofings Limited, to analyse the relationship between stock replenishment and operational performance in Roofings Limited and to assess the relationship between inventory monitoring and operational performance in Roofings Limited. The study adopted a cross-sectional research duration, employed a mixed research approach, used a case study strategy and utilized the explanatory research classification as the research design. Simple random sampling and purposive sampling techniques were used to select 98 respondents who were drawn from a population of 130 individuals from categories of managers, department heads, inventory officers, I.T officers, procurement officers and support staff. A self-administered questionnaire, interview guide and document review checklist were used to obtain data from the company. Correlation results showed that there is a statistically significant positive relationship between information sharing and operational performance (r = .592, p = .000), stock replenishment and operational performance also had a statistically significant positive relationship (r = .497, p = .000) and inventory monitoring and operational performance had a statistically significant positive relationship (r = .658, p = .000). The linear regression analysis indicated that inventory monitoring has the strongest effect on operational performance given that its Adjusted R Squared .410 was more than that of information sharing (Adjusted R Squared =.344) and stock replenishment (Adjusted R Squared =.256) respectively. The study concluded that the significant relationship between information sharing and performance suggests that when suppliers are consistently informed about inventory levels, reorder points and delivery schedules, the company is better positioned to manage production timelines and avoid stock-related disruptions. It was also concluded that while replenishment activities do support performance, the company still relies on reactive practices that could be improved with more proactive inventory control mechanisms. The study recommended that Roofings Limited should adopt a centralized digital platform that allows vendors to access real-time data on inventory levels, turnover rates and reorder points. In addition, the company should regularly analyze stock consumption trends, seasonal fluctuations and lead times should inform adjustments in replenishment planning, reducing under- or over-stocking risks.