Relationship Between Information Technology Adoption and Warehouse Operations at Sony Sugar Company, Kenya
Abstract/ Overview
The world is growing in technology and most industries are adopting the use of ICT
in their operations. Information technology involves development, maintenance and
use of computer systems software and networks for processing and distribution of
data. Most industries used manual systems that were not efficient and effective. The
currently existing competition between the sugar industries has pushed for the
development of new technologies in their operations to make them satisfy their
customers. A principle requirement for controlling the warehouse is harnessing the
power of technology to maximize a facility's potential. A few studies have attempted
to investigate the extent of warehouse information technology adoption by industries
in the country. However; there is limited literature on the effect of information
technology adoption on warehouse operations therefore, the purpose of this study was
to analyze the relationship of information technology adoption on warehouse
operations of Sony Sugar Company. Specific objectives of the study were; to
determine the level of use of ICT on warehouse operations; to investigate the benefits
of information and communications technology on warehouse operations of Sony
Sugar Company; to establish the effects of information and communication
technology on warehousing operations at Sony Sugar Company Ltd and to find out
challenges that influence the adoption and use of ICT applications on (warehouse
operations at Sony Sugar Company Ltd. The research design that was used in the
study was descriptive and correlation design, the total target population from the
company's registry were 500 of employees and a sample size of 150 was selected to
participate. Stratified random sampling was used to divide the sample size into two
strata of Sony sugar company warehouse management and warehouse staff. Primary
data were collected using questionnaires and secondary data from books and journals
from library and industry brochures. Data was analyzed using regression and
correlation techniques. The study established that the utilisation of ICT systems at
Sony warehousing operations was positive. The study findings showed that they.
utilised internet system more often in warehousing operations than others as shown by
the mean of 4.2 and bar coding and scanning which was at a mean of 3.6. The study
established that there existed a significant positive but weak effect of ICT adoption
and warehousing operations at Sony Sugar. The study findings are significant to
procurement practitioners who want to know more on effects of information
technology and may use the findings as a point of reference. The management of
company find it important for assessing the level of service delivery to their clients. It
will also be important to the shareholders in knowing how best they can maintain and
advance the use of information technology in the warehouse operations. The
researcher suggested further studies on the role of automation of warehouse on
employees' performance in organization, the impact of ICT use in warehousing
operations on financial performance of the company.