IMPACT OF INVENTORY MANAGEMENT STRATEGY ON E-COMMERCE RETAIL BUSINESS (A STUDY OF JUMIA TECHNOLOGIES)
Abstract
This study examined the impact of inventory management strategies on the performance of e-commerce retail businesses in Nigeria, using Jumia Technologies AG in Ilorin Metropolis as a case study. The specific objectives were to: (i) examine the influence of demand forecasting tools on inventory turnover rate; (ii) assess the effect of Just-in-Time (JIT) inventory systems on stock-out frequency; and (iii) determine the impact of warehouse automation level on holding cost. The Economic Order Quantity (EOQ) theory served as the theoretical foundation for the study. A descriptive survey research design was adopted, and data were collected using structured questionnaires administered to 300 staff and associates of Jumia Technologies AG within the study area. The data were analyzed using descriptive statistics, Pearson correlation, regression analysis, and ANOVA. The findings revealed a strong positive and significant relationship between demand forecasting tools and inventory turnover rate (r = 0.820, p < 0.05); JIT inventory systems and stock-out frequency (r = 0.900, p < 0.05); and warehouse automation and holding cost (β = 0.803, p < 0.05). The study concluded that effective inventory management strategies significantly enhance operational efficiency, cost control, and service delivery in e-commerce. It recommended that Jumia Technologies AG and similar e-commerce businesses adopt a more integrated approach to forecasting, inventory scheduling, and warehouse automation to improve performance, reduce operational bottlenecks, and maintain a competitive edge in the digital marketplace.
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