1.1 Introduction
Inventory management is a fundamental aspect of business operations that involves the systematic control of stock, including the procurement, storage, and distribution of goods (Chopra & Meindl, 2019). It is the process through which organizations ensure that the right quantity of items is available at the right time to meet customer demands while minimizing costs associated with overstocking or stockouts. Effective inventory management is crucial for maintaining operational efficiency, and improving customer satisfaction (Amini & Seifi, 2018).
Traditional methods of inventory management often rely on manual tracking systems or periodic updates, which are prone to human error, delays, and inaccuracies (Kumar & Sharma, 2020). In addition, the absence of integrated and automated systems limits the ability of managers to make timely decisions regarding procurement, distribution, and overall stock control. On the other hand, real-time inventory management systems enable continuous monitoring of stock levels, providing immediate updates on the status of inventory and allowing businesses to respond quickly to changes in demand or supply.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitation of the study and Definition of technical terms.
1.2 Background of Study
Inventory management is a vital component of organizational operations that ensures the availability of goods to meet customer demands while minimizing unnecessary costs. According to Chopra and Meindl (2019), effective inventory control is essential for optimizing supply chain performance and reducing operational inefficiencies. Poor inventory management often leads to overstocking, stockouts, and misplacement of items, which negatively affects customer satisfaction and organizational profitability.
It is reported that many businesses still rely on manual or semi-automated systems to manage their inventory, which is prone to human error and delays (Amini & Seifi, 2018). These traditional methods are often inefficient in providing real-time updates on stock levels, making it difficult for managers to make timely and informed decisions regarding procurement and distribution. Kumar and Sharma (2020) asserted that the lack of real-time visibility into inventory data increases operational costs and hinders responsiveness to market demand fluctuations. Ramanathan (2019) stated that the integration of technology into inventory management allows organizations to track stock movements accurately, generate automatic alerts for low-stock items, and maintain up-to-date records (Ramanathan, 2019).
On the other hand, manual tracking methods are labor-intensive, prone to discrepancies, and often fail to provide reliable reporting for auditing and decision-making purposes. Researchers have affirmed that real-time inventory management systems contribute to improved operational efficiency, reduced wastage, and enhanced profitability (Amini & Seifi, 2018; Kumar & Sharma, 2020). Scholars contend that organizations that adopt automated stock control systems are better positioned to respond to dynamic market conditions and maintain competitive advantage (Chopra & Meindl, 2019). The application of real-time monitoring not only improves accuracy and accountability but also supports strategic planning by providing comprehensive data for forecasting demand and managing supply chain operations effectively.
The challenges encountered that led to the execution of the research work is that, existing stock control practices often fail to integrate with other business management systems, leading to fragmented information and inefficiencies in reporting and auditing processes. Manual tracking is labor-intensive and susceptible to human errors, while traditional software systems may not provide instantaneous updates or notifications when inventory levels reach critical thresholds (Kumar & Sharma, 2020). This study is set against the backdrop of the growing need for efficient inventory control solutions that minimize errors, optimize stock levels, and enhance overall organizational performance in real time.
1.3 Statement of Problem
Based on the investigation conducted, the implemented system encounters a number of challenges, with some of the most significant issues outlined below:
- Manual inventory tracking was prone to human error, leading to inaccurate stock records.
- There are delays in updating stock information was resulting in overstocking or stockouts.
- Lack of integration with other organizational systems was causing fragmented data and inefficiencies.
- The traditional inventory system was time-consuming, requiring labor-intensive record-keeping.
- The old system is unable to provide real-time alerts for low-stock items were limiting timely decision-making.
1.4 Aim and Objectives of the Study
The aim of this study is to design and implement a real-time stock inventory control system that will enhance inventory accuracy, reduce operational inefficiencies, and support informed decision-making. The specific objectives of the study are:
- To create a real-time stock inventory control system that enables accurate tracking of stock levels across the organization.
- To develop a user-friendly interface that allows staff to efficiently manage inventory transactions and access relevant stock information.
- To design a system that integrates inventory management with procurement, sales, and finance for seamless organizational operations.
- To implement automated alerts and notifications for low stock levels, expired items, and stock replenishment needs.
- To provide real-time updates on stock levels and minimize human errors associated with manual inventory tracking.
1.5 Significance of Study
The implementation of the proposed system and the accompanying research documentation is highly significant in the following ways.
- The system will improve operational efficiency by automating manual tasks, minimizing human errors, and streamlining the tracking and monitoring of inventory movements.
- The new system will provide numerous benefits to organizations by enhancing the accuracy and efficiency of inventory management processes.
- The system will enhance customer satisfaction by ensuring that products are available when needed, thereby reducing delays and improving service delivery.
- Organizations will also benefit financially, as accurate inventory control will reduce wastage, prevent losses from expired or misplaced stock, and optimize resource utilization.
- The proposed system will position businesses to remain competitive in an increasingly dynamic market environment.
- The system will provide valuable data for forecasting, strategic planning, and decision-making, ultimately contributing to sustainable growth and profitability.
1.6 Scope of Study
The scope of this study is limited to the development and implementation of a real-time stock inventory control system for Shoprite Nigeria, Lagos State.
The study will focus on tracking product inventory, generating alerts for low-stock items, and providing accurate real-time updates for management decisions. It will cover all stock categories within the organization and integrate with the existing management systems.
1.7 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).
1.8 Definition of Terms
Inventory Management:
Inventory management is the systematic approach to sourcing, storing, and selling inventory both raw materials and finished goods (Chopra & Meindl, 2019). It is the backbone of business operations, ensuring products are available when needed.
Real-Time System:
A real-time system is a computerized system that provides immediate processing of data as events occur, allowing for instant updates and responses (Kumar & Sharma, 2020).
Stock Control:
Stock control is the process of monitoring and managing the supply, storage, and accessibility of inventory to prevent overstocking or stockouts (Amini & Seifi, 2018).
Automation:
Automation refers to the use of technology to perform tasks without human intervention, enhancing efficiency, accuracy, and productivity (Ramanathan, 2019).
Operational Efficiency:
Operational efficiency is the ability of an organization to deliver goods or services in the most cost-effective manner without compromising quality (Chopra & Meindl, 2019).
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