Inventory Management System and Performance of Pharmaceutical Firms in Anambra State and Imo State, Nigeria

Abstract

The study aimed at investigating the effect of inventory management system and performance of pharmaceutical firms in Anambra State and Imo State, Nigeria. The specific objectives were; To determine the effect of barcode scanning System on inventory turnaround time in pharmaceutical firms in Anambra State, Nigeria; To investigate the degree to which radio frequency identification technology (RFID) affect process efficiency in pharmaceutical firms in Anambra State, Nigeria. Relevant literature were reviewed under conceptual review, theoretical framework, and empirical review. The research work was anchored on Task-Technology Fit (TTF) theory. Survey research design was adopted for the study. The population of the study was 1882. The statistical formula devised by Borg and Gall (1973), was employed to arrive at a sample size of 361. Linear regression analysis was conducted to test the hypotheses in other to assess the relative predictive power of the independent variables on the dependent variable. All tests were conducted at 0.05 level of significance. The statistical package for social sciences (SPSS) version 23 was employed to test the hypotheses. The result showed that Barcode scanning System had a positive and significant effect on inventory turnaround time in pharmaceutical firms in Anambra State, Nigeria (t-statistics 3.976; p.value= 0.000). Radio frequency identification technology (RFID) had a positive and a significant effect on process efficiency in pharmaceutical firms in Anambra State, Nigeria (t-statistics =7.162; p.value=0.005). The study concluded that effective inventory management plays important role in ensuring that pharmaceutical firms maintain adequate stock, minimize inventory-related costs, improve operational processes, and provide timely services to customers. The study recommended that Management should ensure that pharmaceutical products are properly barcoded, strategically positioned at key points such as receiving, storage, stock counting, picking, and dispatch and regularly maintain and update barcode equipment and software to prevent system failures that could delay inventory operations.