The Influence of Inventory Turnover on Organisational Performance: A Case Study of Turkana County, Kenya

Abstract

The purpose of this study was to assess the effect of inventory turnover on organisational performance in Turkana County. A descriptive research design was adopted, guided by Lean Theory, which emphasises waste reduction and operational efficiency. The target population comprised 500 employees in supply chain, finance, and procurement functions, with a sample of 100 respondents selected through random and purposive sampling. Data were collected using structured questionnaires, with validity ensured through expert review and reliability confirmed via the test-retest method using the Pearson Product-Moment Correlation Coefficient. Quantitative data were analysed using descriptive and inferential statistics with SPSS software. The findings indicated that effective inventory turnover significantly enhanced organisational performance by improving resource utilisation and reducing inefficiencies. However, challenges such as delayed procurement processes impede optimal turnover. The study recommends implementing automated inventory tracking systems and providing staff training to improve inventory turnover and minimise losses. This research is significant as it offers practical recommendations to enhance organisational efficiency in Turkana County through improved inventory turnover practices.