WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 13, 2016
The Relationship Between Inventory-Management Policies and Customer Service in Manufacturing Industries Logistics in Gauteng Province, South Africa
Author: Musenga Francis Mpwanya
Abstract: Inventory management is one of key logistical activities that help companies generate revenue, keep customers, and grow. Despite many published papers dealing with inventory management in the business literature, a limited number of studies have been dedicated to the relationship between inventory-management policies and customer service, particularly in the South African context. The study seeks to determine the relationship between inventory-management policies and customer service in the manufacturing industries logistics located in Gauteng Province, South Africa. To achieve the objective, the empirical data were collected through a survey questionnaire from manufacturing industries logistics in Gauteng Province. Fisher’s exact test for a (2x2) contingency table was used to analyse the primary data. The results show that inventory-management policies positively influence customer service in manufacturing-industries logistics in Gauteng Province, indicating that the use of inventory-management policies increases customer satisfaction, and extends the market share in manufacturing industries logistics. It is recommended that a periodic customer survey should be put in place to identify customers’ needs and meet them effectively, and the use of technologically enabled business tools should be intensified, in order to ensure closeness with the customers.
Keywords: inventory, inventory management, inventory-management policies, customers’ needs, customer service
Pages: 556-572WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 13, 2016, Art. #51