Inventory Management System and Performance of Selected Consumer Goods Manufacturing Companies in Nigeria

This study was designed to examine the inventory management system and performance of select listed consumer goods’ manufacturing companies in Nigeria. Specifically, the objectives were to evaluate the level of influence of inventory cost control, inventory efficient/accountability and inventory speed on the profitability of the select listed companies. Longitudinal research design using time series panel data of six years period, 2010 – 2015 was adopted. The population for this study consisted of the 24 listed consumer goods’ manufacturing companies on the Nigerian Stock Exchange (NSE). Taro Yamane’s sample size statistical formula was used to determine the sample size of ten (10) at an error term of 0.05 while purposive sampling technique was used to select the sampled companies. The data obtained were from secondary sources and analysed using descriptive and inferential statistics. The finding reveals that there is significant positive influence of inventory cost control (inventory management system) on net profit margin (profitability) and insignificant and fair inventory management practices on inventory turnover and inventory speed. Based on this finding, it was concluded that inventory management system significantly influences performance of select listed consumer goods’ manufacturing companies in Nigeria. Thus, the companies should ensure that efficient inventory management system is maintained for appropriate inventory investments, enhanced profitability and to reduce the inventory costs associated with holding excessive inventories in the warehouses as well as shortening inventory holding periods and increasing inventory turnover.