Benefits of efficient stock management in a manufacturing firm
Ogamode, Austine (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025121235270
https://urn.fi/URN:NBN:fi:amk-2025121235270
Tiivistelmä
The purpose of this research was to find out the impact of efficient stock management on the operational performance of a manufacturing firm, using Dangote Cement Cameroon as a case organisation. To achieve this end, the study sought to identify the significant role played by the efficient management of stock items within a manufacturing organisation and to further examine the precise tasks of an efficient stock management system in a large-scale industrial operation.
The interview method was the methodology used to gather data for this research. In effect, for this study, the qualitative research approach and the interview study method were used. To achieve the objective of this study, primary data was collected during semi structured interviews with 6 employees of Dangote Cement Cameroon PLC. A purposive sampling technique was used to select participants, specifically targeting individuals in managerial positions within departments directly involved with inventory, logistics, production, and finance. Interview questions were tailored to capture each of the benefits of efficient stock management.
From the findings that the primary advantages identified are a significant reduction in holding costs and a strong assurance of production continuity and hence directly contributing to the operational efficiency and profitability of Dangote Cement Cameroon PLC, the study concludes that cutting costs in management of stock in manufacturing companies is highly profitable yet with challenges that need to be identified and overcomed. In general therefore, efficient stock management system is a good foundation for cost control and production flow. However, to secure its future, the company must evolve, not just by being lean, but also by being resilient and smart and by strengthening its supply chain and embracing digital tools. Thus Dangote can build an inventory management system that is not only efficient but also strong enough to handle the uncertainties of the modern market.
The interview method was the methodology used to gather data for this research. In effect, for this study, the qualitative research approach and the interview study method were used. To achieve the objective of this study, primary data was collected during semi structured interviews with 6 employees of Dangote Cement Cameroon PLC. A purposive sampling technique was used to select participants, specifically targeting individuals in managerial positions within departments directly involved with inventory, logistics, production, and finance. Interview questions were tailored to capture each of the benefits of efficient stock management.
From the findings that the primary advantages identified are a significant reduction in holding costs and a strong assurance of production continuity and hence directly contributing to the operational efficiency and profitability of Dangote Cement Cameroon PLC, the study concludes that cutting costs in management of stock in manufacturing companies is highly profitable yet with challenges that need to be identified and overcomed. In general therefore, efficient stock management system is a good foundation for cost control and production flow. However, to secure its future, the company must evolve, not just by being lean, but also by being resilient and smart and by strengthening its supply chain and embracing digital tools. Thus Dangote can build an inventory management system that is not only efficient but also strong enough to handle the uncertainties of the modern market.