INVENTORY MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF UNILEVER NIGERIA PLC
Keywords:
Inventory Management Practices, Financial Performance, Unilever Nigeria PlcAbstract
This study investigated the impact of inventory management practices on the financial performance of Unilever Nigeria Plc, focusing on three key strategies: Systematic Application and Production Software (SAP), Economic Order Quantity (EOQ), and Just-In-Time (JIT). The study employs a quantitative research design, analyzing secondary data from Unilever’s annual reports. Descriptive statistics and regression analysis were applied to assess the relationship between inventory management practices and the company's financial performance, measured through Return on Assets (ROA). The findings reveal that SAP, EOQ, and JIT all significantly influence ROA, with JIT having the strongest positive effect. The study concludes that effective implementation of these inventory management practices can enhance operational efficiency, reduce costs, and improve financial performance. Based on these results, the study recommends that companies leverage SAP technology, optimize order quantities using EOQ, and adopt JIT principles to improve procurement efficiency.
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