Abstract
Large manufacturing firms in Kenya continue to face warehouse management challenges, including inaccurate inventory records, stock-outs, inefficient receiving processes, and poor warehouse space utilization, which negatively affect operational efficiency, customer satisfaction, and overall organizational performance. This study examined the influence of Warehouse Management Systems (WMS) on the performance of large manufacturing firms in Nairobi City County, Kenya, with specific focus on inventory management and receiving and put-away. The study was anchored on the Resource-Based View Theory and Transaction Cost Economics Theory. A descriptive research design was adopted. The target population comprised 172 respondents drawn from 92 large manufacturing firms registered with the Kenya Association of Manufacturers (KAM). Purposive sampling was used to select respondents directly involved in warehouse operations. Primary data were collected using semi-structured questionnaires, while descriptive statistics, Pearson correlation, and multiple linear regression were employed to analyze the data using SPSS Version 29. A total of 121 completed questionnaires were returned, representing a response rate of 78.1%. The findings revealed that both inventory management and receiving and put-away had positive and statistically significant effects on the performance of large manufacturing firms in Nairobi City County, Kenya. Inventory management exhibited a significant positive influence through improved inventory visibility, optimized stock levels, and enhanced inventory accuracy, while effective receiving and put-away practices enhanced receiving accuracy, warehouse space utilization, and operational efficiency. The regression model was statistically significant (p < .001), indicating that Warehouse Management Systems are important determinants of organizational performance. The study concludes that effective implementation of Warehouse Management Systems enhances warehouse operations and contributes significantly to improved organizational performance through better inventory control, efficient receiving and storage processes, improved customer satisfaction, and enhanced financial performance. The study recommends that large manufacturing firms strengthen investment in Warehouse Management Systems, prioritize real-time inventory management, automate receiving and put-away processes, and continuously improve warehouse operational practices to enhance competitiveness and organizational performance.
Keywords: Warehouse Management Systems, inventory management, receiving and put-away, organizational performance, large manufacturing firms, Nairobi City County, Kenya.