Inventory Management as a Driver of Supply Chain Performance in Agricultural Value Chains: A Lean Theory Perspective from Kenya

Enock Musau Gideon

doi:10.55173/agriscience.v9i2.185

Authors

Enock Musau Gideon 1Institute of Transport and Logistics Studies (Africa), University of Johannesburg, South Africa Department of Management Science, Kisii University, Kenya

DOI:

https://doi.org/10.55173/agriscience.v9i2.185

Keywords:

inventory management, supply chain performance, Lean Theory, agricultural supply chains, Kenya

Abstract

Inventory management is a critical supply chain practice with significant implications for supply chain performance, especially in agricultural value chains that face challenges of perishability, demand fluctuations, and resource constraints. Guided by Lean Theory, this study examined the effect of inventory management on supply chain performance within Kenya’s agricultural supply chains using a quantitative explanatory research design. Primary data were collected through a structured questionnaire administered to employees across agricultural directorates. Reliability analysis confirmed strong internal consistency (α = 0.743 for inventory management; α = 0.850 for supply chain performance). Principal component analysis validated construct measurement (KMO = 0.769, p < 0.001). Regression results showed that inventory management significantly and positively predicts supply chain performance (β = 0.265, t = 6.120, p < 0.001), highlighting its role as a key determinant of efficiency and competitiveness. The study concludes that inventory management practices such as vendor-managed inventory, just-in-time replenishment, and stock transparency are indispensable for enhancing supply chain performance in Kenya’s agricultural sector. It recommends that policymakers and managers invest in Lean-inspired inventory strategies to optimize resource use, reduce waste, and build resilient agricultural supply chains.

References

Aboah, J., Wilson, M. M. J., Bicknell, K., & Rich, K. M. (2021). Ex-ante impact of on-farm diversification and forward integration on agricultural value chain resilience: A system dynamics approach. Agricultural Systems, 189, 103043.

Abodi, M. A., Obare, G. A., & Kariuki, I. M. (2021). Supply and demand responsiveness to maize price changes in Kenya: An application of error correction autoregressive distributed lag approach. Cogent Food & Agriculture, 7(1), 1957318. https://doi.org/10.1080/23311932.2021.1957318

Abreham, B. T., & Wolde, Z. K. (2025). Factors affecting the inventory management system of Ethiopian apparel manufacturing industries. In Green Energy and Technology (Part F793, pp. 195–208). Springer. https://doi.org/10.1007/978-3-031-87352-2_10

Alguirat, I., Lehyani, F., Tadja, D. D., & Zouari, A. (2025). Assessing the impact of technical and non-technical lean manufacturing practices on supply chain performance: A case study from Tunisia. International Journal of Advanced Manufacturing Technology, 139(11–12), 5595–5618. https://doi.org/10.1007/s00170-025-16191-6

Castro, C., Michell, K., Kristjanpoller, W., & Minutolo, M. C. (2024). What if we intervene? Higher-order cross-lagged causal model with interventional approach under observational design. Neural Computing and Applications, 36(24), 15075–15090. https://doi.org/10.1007/s00521-024-09833-5

Deshmukh, M., & Srivastava, P. (2021). Literature review of lean methodology and research issues for identifying and eliminating waste in software development. In Smart innovation, systems and technologies (Vol. 213, pp. 375–388). Springer. https://doi.org/10.1007/978- 981-33-4443-3_36

Edu Flores Luna, E., Mariano Lopez Damian, H., & Pinedo-Palacios, P. (2024). Lean manufacturing in warehouse management to reduce costs in a testing laboratory [Producción esbelta en la gestión de almacenes para reducir sus costos en un laboratorio de ensayos]. In Proceedings of the LACCEI International Multi-Conference for Engineering, Education and Technology. LACCEI. https://doi.org/10.18687/LACCEI2024.1.1.973

Ellery, M., Hirpara, L., Akande, E., Schweiker, G., & Gershenson, J. (2020). Investigating cash flow in the agricultural supply chain within Kenya. In 2020 IEEE Global Humanitarian Technology Conference (GHTC) (Article 9342881). IEEE. https://doi.org/10.1109/GHTC46280.2020.9342881

FAO. (2020). The state of food and agriculture 2020: Overcoming water challenges in agriculture. Food and Agriculture Organization of the United Nations. https://doi.org/10.4060/cb1447en

Feng, K. (2024). Study on the influence factors of M enterprise electric appliance inventory based on SOR model. In Proceedings of the ACM International Conference Proceeding Series (pp. 7–14). ACM. https://doi.org/10.1145/3705618.3705620

Gandhi Maniam, P. S., Prentice, C., Sassenberg, A.-M., & Soar, J. (2023). Identifying an optimal model for blockchain technology adoption in the agricultural sector. Logistics, 7(3), 59. https://doi.org/10.3390/logistics7030059

Ganesan, S., Wicaksono, H., & Fatahi Valilai, O. (2023). Enhancing vendor managed inventory with the application of blockchain technology. In Lecture Notes in Networks and Systems (Vol. 546, pp. 262–275). Springer. https://doi.org/10.1007/978-3-031-16281-7_26

Gohil, P., & Malek, M. (2023). Effect of lean principles on Indian highway pavements. In Emerging Trends and Innovations in Industries of the Developing World: A Multidisciplinary Approach (pp. 151–154). IEEE. https://www.scopus.com/inward/record.uri?eid=2-s2.0- 85174162054&partnerID=40&md5=16aef89a3377657b6517b0470252fb2d

Kingiri, A. N. (2021). Agricultural advisory and extension service approaches and inclusion in reaching out to Kenyan rural farmers. African Journal of Science, Technology, Innovation and Development, 13(7), 797–806. https://doi.org/10.1080/20421338.2020.1823098

Kotian, H., Varghese, A. L., & Rohith, M. (2022). An R function for Cronbach’s alpha analysis: A case-based approach. National Journal of Community Medicine, 13(8), 571–575. https://doi.org/10.55489/njcm.130820221149

Kumar, N., Rabbani, Q., & Khan, N. A. (2024). Efficient customer service and operation

maintenance by inventory management. Journal of Mechanics of Continua and Mathematical Sciences, 19(9), 66–76. https://doi.org/10.26782/jmcms.2024.09.00007

Lee, P. F., Muhammad, N. A., Di Sutam, E., Ab-Samat, H., Chin, J. F., & Prakash, J. (2025). Lean thinking in service sector: Waste identification in Malaysian customs administration. In Lecture Notes in Mechanical Engineering (pp. 391–403). Springer. https://doi.org/10.1007/978-981-96-4353-0_35

Moyer, D., Ostertag, M., & Gershenson, J. (2022). In 2022 IEEE Global Humanitarian Technology Conference (GHTC) (pp. 250–256). IEEE. https://doi.org/10.1109/GHTC55712.2022.9910996

Mthembu, B. T., Mncwango, B. T., & Olanrewaju, O. A. (2024). Exploring supply chain efficiency: Unravelling root causes of waste in sugar refining operations. In 2024 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. IEEE. https://doi.org/10.1109/IEEM62345.2024.10857141

Owino, W. O., Kahenya, P., Wafula, E., & Otieno, G. (2024). Challenges and effective strategies for developing and scaling solutions to reduce food loss and waste in Kenya’s fruit and vegetable sector. Frontiers in Horticulture, 3, 1489192. https://doi.org/10.3389/fhort.2024.1489192

Pushkarna, G., Bisht, D., Bhandari, P., Madhu, B., & Prasanna, Y. L. (2025). Streamlining manufacturing with lean principles: A JIT, MRP, and supply chain optimization approach. In AIP Conference Proceedings (Vol. 3157, No. 1, Article 110026). AIP Publishing. https://doi.org/10.1063/5.0263448

Raghavendra, A. N., & Amalanathan, S. (2023). Role of AI in the inventory management of agri- fresh produce at HOPCOMS. In Advanced machine learning algorithms for complex financial applications (pp. 115–131). IGI Global. https://doi.org/10.4018/978-1-6684- 4483-2.ch008

Rao, V. V. (2025). Leveraging AI for real-time inventory management in perishable goods supply chains. In Modernizing the food industry: AI-powered infrastructure, security, and supply chain innovation (pp. 207–231). IGI Global. https://doi.org/10.4018/979-8-3373-5288- 6.ch010

Ruel, S., El Baz, J., Ivanov, D., & Das, A. (2024). Supply chain viability: Conceptualization, measurement, and nomological validation. Annals of Operations Research, 335(3), 1107– 1136. https://doi.org/10.1007/s10479-021-03974-9

Sharma, P., Pusa, N., Kumari, M., & Singh, P. (2025). Balancing accuracy and cost: A new estimator for stratified random sampling. Communications in Statistics: Simulation and Computation. Advance online publication. https://doi.org/10.1080/03610918.2025.2552216

Sittivangkul, K., Treethong, K., & Tiwong, S. (2024). Enhancing efficiency and organization: Applying lean principles in university's mockup room. In 2024 IEEE International Conference on Software Engineering and Service Sciences (ICSESS) (pp. 133–137). IEEE. https://doi.org/10.1109/ICSESS62520.2024.10719388

Tukamuhabwa, B. R. (2023). Supply chain orientation and supply chain risk management capabilities: Mechanisms for supply chain performance of agro-food processing firms in Uganda. Journal of African Business, 24(4), 649–672. https://doi.org/10.1080/15228916.2023.2165894

Ufua, D. E., Ibidunni, A. S., Papadopoulos, T., Matthew, O. A., Khatoon, R., & Agboola, M. G. (2022). Implementing just-in-time inventory management to address contextual operational issues: A case study of a commercial livestock farm in southern Nigeria. TQM Journal, 34(6), 1752–1771. https://doi.org/10.1108/TQM-09-2021-0268

Umukoro, I. O. (2020). Enhancing Africa's agri-value chains through digital platforms. In Africa's platforms and the evolving sharing economy (pp. 91–120). IGI Global. https://doi.org/10.4018/978-1-7998-3234-8.ch005

World Bank. (2022). Kenya economic update, June 2022: Aiming high – Securing Kenya’s economic future. The World Bank Group. https://documents.worldbank.org/en/publication/documents- reports/documentdetail/099005206132232749/p1741970f273f20e80a3ab0f47a58f9f69

Yüce, A. (2024). Explanatory research. In Encyclopedia of Sport Management (2nd ed., pp. 348– 349). Edward Elgar Publishing. https://doi.org/10.4337/9781035317189.ch202

Züfle, S., & Wunu, P. (2025). Managing the supply chain in Africa: The role of innovative technologies in national and international logistics. 227–245). Springer. https://doi.org/10.1007/978-3-031-70384-3_20