WEJINYA Stella Wada
Department of Marketing,
Faculty of Administrative and Management,
Rivers State University Nkpolu-Oroworukwo, Port Harcourt, Nigeria
OPARA Bright C.
Department of Marketing,
Faculty of Administrative and Management,
Rivers State University Nkpolu-Oroworukwo, Port Harcourt, Nigeria
Abstract
This study investigated the relationship between just-in-time (JIT) inventory technique and procurement performance of upstream multinational oil and gas companies in South-South Nigeria. The study was conceptualized using JIT inventory technique as predictor to procurement performance with measures such as material availability, timeliness and cost reduction. Cross-sectional survey design was employed in this study. The population of the study comprised 24 upstream multinational oil and gas companies operating in South-South Nigeria as enlisted in the finelib.com Nigerian Directory and Search Engine.
The sample size of the study was the same as the population. The study administered 3 copies of structured questionnaire to Operations, Procurement/Logistics and Marketing Managers of the 24 of upstream multinational oil and gas companies, bringing the total number of respondents to 72. However, 67 respondents provided useable data for the study. Pearson’s Product Correlation Coefficients with a 95% confidence interval was used to test the hypotheses. Each test was conducted at a 0.01 level of analysis with the help of the Statistical Packages for Social Sciences (SPSS) version 23.0. The study found the existence of significant relationship between JIT inventory technique and procurement performance of upstream multinational oil and gas companies in South-South Nigeria. Thus, the study concluded that JIT inventory technique significantly relates to procurement performance of upstream multinational oil and gas companies in South-South Nigeria; and recommend that managers of upstream multinational oil and gas companies in South-South Nigeria should adopt JIT inventory technique to boost their procurement performance.
Keywords: Cost reduction, just-in-time inventory technique, material availability, procurement performance, timeliness.