ABSTRACT

This study was conducted on the topic titled, “Assessment of Effects of E-Commerce on Inventory Management in Logistics Companies: The Case of GLOTELHO.” E-commerce is one of the buzzwords in the recent years. Laudon & Traver (2021) states that, E-commerce technology, is different and more influential from other technologies that we have seen in the past century. It includes all aspects of trading, including commercial market creation, ordering, supply chain management and the transfer of money (Garrett and Skevington, 2019). Inventory management in logistics companies is an essential part of the supply chain management network that helps formulate, organize, implement and control the efficient flow of goods in the company. It is a complex process that aims to move inventories effectively in the supply chain while elevating customer satisfaction. Inventory logistics is one such solution that can help companies seamlessly execute their business operations while maintaining a stable inventory. The study had as main objective to assess the contribution of E-commerce inventory management in GLOTELHO, and specific objectives to investigate the kinds of E-commerce inventory management in GLOTELHO, to analyze the effect of E-commerce inventory management in GLOTELHO, and to sort out mitigation strategies to remedy shortcomings in E-commerce inventory management in GLOTELHO. The study employed the descriptive research method, and made use of mainly primary data collected from the case study area by the use of tools like, semi-structured questionnaire. Upon research, the study found a diverse range of e-commerce inventory management practices at GLOTEHO, including JIT inventory management, VMI, cross-docking, and cloud-based systems among others. Supported by inferential statistics and frequency distributions (p < 0.001), confirming the presence of multiple inventory management types. Therefore, the alternative hypothesis is accepted. Strong correlations were found between certain practices and positive effects on inventory management. Supported by inferential statistics and correlation coefficients (p < 0.05), indicating a clear relationship between types of inventory management and their effects. Hence, the alternative hypothesis is accepted. From the findings, the study recommended that GLOTEHO should continue to invest in advanced technological solutions such as Cloud-Based Inventory Management Systems, there should be a strategic focus on continuous improvement and innovation in inventory management practices. Areas for further studies were made that, further investigation into the adoption and impact of emerging technologies such as blockchain, Internet of Things (IoT), and artificial intelligence (AI) in e-commerce inventory management.

Keywords: Inventory Management, E-commerce

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to the Study

Inventory management in logistics companies is an essential part of the supply chain management network that helps formulate, organize, implement and control the efficient flow of goods in the company. It is a complex process that aims to move inventories effectively in the supply chain while elevating customer satisfaction. Inventory logistics is one such solution that can help companies seamlessly execute their business operations while maintaining a stable inventory. The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet is known as E-commerce. Its convenience of shopping online has transformed consumer behavior and created new opportunities for businesses to reach customers worldwide. This digital revolution has not only altered the way people shop but also have a profound impact on inventory management in logistics companies.

In the world, E-commerce is one of the buzzwords in the recent years. Laudon & Traver (2021) states that, E-commerce technology, is different and more influential from other technologies that we have seen in the past century. It includes all aspects of trading, including commercial market creation, ordering, supply chain management and the transfer of money (Garrett and Skevington, 2019). E-commerce is actually a generic title that describes a range of technologies and practices that are now available to improve the effectiveness of trading relationships and inventory management in logistics companies in the world today.

Logistics has a tremendous potential to play a major strategic role in companies. With increased global competition, the logistics function can be further exploited to allow a company to gain a competitive advantage (Sum , 2021). Effective logistics management is crucial for companies in the retail industry, especially those operating in the E-commerce sector. The rise of E-commerce has made it imperative for businesses to implement efficient logistics practices that ensure customer satisfaction, reduce costs, and enhance competitiveness (Wang, 2020). The evolution of E-commerce has brought new challenges to logistics management in the world today. Managing the flow of orders and product storage is a complex task for companies that have a wide range of items in their catalog, especially with the development of E-commerce (Hugos, 2018). With the constant increase in the volume of orders, a more effective management of inventory and delivery logistics is required. With a larger volume of orders coming in from various channels in the world, companies must be able to efficiently process and fulfill these orders, while also maintaining accurate inventory levels (Richards, 2017).

In Africa, the landscape of logistics and inventory management has been significantly influenced by the burgeoning presence of E-commerce platforms across the continent. With the rapid proliferation of digital marketplaces, the dynamics of consumer behavior have undergone a transformative shift, imposing novel challenges on logistics companies operating in Africa (Nuwasiima & Nganwa, 2020). The advent of E-commerce has led to an increase in demand variability, necessitating a reevaluation of traditional inventory management practices to align with the unique market conditions prevalent in African countries (Munyoki, 2019). This paradigm shift has propelled logistics firms in Africa to adapt their inventory strategies to cater to the evolving needs of digitally-connected consumers while navigating infrastructural constraints and diverse market landscapes (Omar , 2018).

The unique socio-economic and infrastructural challenges prevalent in Africa have accentuated the need for tailored approaches in E-commerce-driven inventory management. Munyoki (2019) emphasizes the significance of understanding local contexts and market nuances, advocating for customized inventory strategies that accommodate factors like unreliable infrastructure and varying purchasing patterns. This involves recognizing the distinct consumer behavior, logistical constraints, and economic conditions that define different regions within the continent. Adapting inventory management practices to suit African markets necessitates a blend of technological innovation and contextual awareness. For instance, Nuwasiima and Nganwa (2020) stress the importance of bridging the digital divide to ensure inclusivity and accessibility in E-commerce operations across diverse regions within Africa. This digital divide, characterized by disparities in internet access and technological literacy, poses a significant barrier to the seamless implementation of E-commerce solutions.

Understanding and adapting to local purchasing patterns is essential. According to Chege and Wang (2020), E-commerce businesses must tailor their inventory strategies to reflect the preferences and behaviors of local consumers. This might include adjusting product assortments based on regional demand, implementing flexible payment options, and ensuring timely delivery even in areas with logistical challenges. Furthermore, sustainability considerations are increasingly important in inventory management. As Ndubisi and Nwankwo (2020) argue, sustainable practices not only address environmental concerns but also resonate with the growing consumer awareness and demand for ethical business practices in Africa. Implementing eco-friendly packaging, optimizing supply chains to reduce waste, and supporting local suppliers are strategies that can enhance the sustainability of E-commerce operations.

In Cameroon, the need for tailored approaches in E-commerce-driven inventory management, as noted by Munyoki (2019) shows that the significance of understanding local contexts and market nuances, advocating for customized inventory strategies that accommodate factors like unreliable infrastructure and varying purchasing patterns. This involves recognizing the distinct consumer behavior, logistical constraints, and economic conditions that define different regions within the country. Nuwasiima and Nganwa (2020) stress the importance of bridging the digital divide to ensure inclusivity and accessibility in E-commerce operations across diverse regions within Cameroon. This digital divide, characterized by disparities in internet access and technological literacy, poses a significant barrier to the seamless implementation of E-commerce solutions.

A critical aspect of this adaptation involves the integration of mobile technology. Cameroon has experienced a mobile revolution, with a significant portion of the population accessing the internet primarily through mobile devices. As highlighted by Porter (2019), leveraging mobile platforms for inventory management and customer engagement can enhance the efficiency and reach of E-commerce operations. Mobile technology can facilitate real-time inventory tracking, customer service interactions, and payment processing, addressing the infrastructural limitations that hinder traditional E-commerce models. According to Chege and Wang (2020), E-commerce businesses must tailor their inventory strategies to reflect the preferences and behaviors of local consumers. This might include adjusting product assortments based on regional demand, implementing flexible payment options, and ensuring timely delivery even in areas with logistical challenges.

The unique socio-economic and infrastructural challenges prevalent in Douala, Cameroon, have accentuated the need for tailored approaches in E-commerce-driven inventory management for companies like GLOBAL TELECOMMUNICATION HOUSE (GLOTELHO). As highlighted by Porter (2019), leveraging mobile platforms for inventory management and customer engagement can enhance the efficiency and reach of E-commerce operations. Mobile technology can facilitate real-time inventory tracking, customer service interactions, and payment processing, addressing the infrastructural limitations that hinder traditional E-commerce models. Munyoki (2019) also emphasizes that, the significance of understanding local contexts and market nuances, advocating for customized inventory strategies that accommodate factors like unreliable infrastructure and varying purchasing patterns. This involves recognizing the distinct consumer behavior, logistical constraints, and economic conditions that define different regions within Douala.

Adapting inventory management practices to suit the Douala market necessitates a blend of technological innovation and contextual awareness. For instance, Nuwasiima and Nganwa (2020) stress the importance of bridging the digital divide to ensure inclusivity and accessibility in E-commerce operations across diverse neighborhoods within Douala. This digital divide, characterized by disparities in internet access and technological literacy, poses a significant barrier to the seamless implementation of E-commerce solutions. Kende and Quast (2019), collaboration between governments and private enterprises can lead to the development of essential infrastructure, such as reliable internet connectivity and transportation networks, which are crucial for the effective functioning of E-commerce. These partnerships can also foster innovation by supporting startups and small businesses in the technology sector, driving economic growth and improving service delivery.

Addressing the unique socio-economic and infrastructural challenges in Douala requires a multifaceted approach to E-commerce-driven inventory management. By leveraging technological innovations, fostering public-private partnerships, understanding local market dynamics, and prioritizing sustainability, businesses like GLOTELHO can create robust and inclusive E-commerce ecosystems that cater to the diverse needs of consumers in Douala.

1.2 Statement of the Research problem.

The surge in E-commerce has fundamentally altered order volume dynamics in logistics companies especially in terms of inventory management in GLOTELHO. The proliferation of online retail platforms has led to a significant increase in order frequency and diversity in GLOTELHO. With the ease of online purchasing, customers exhibit a tendency to place smaller, more frequent orders compared to traditional bulk purchases. This shift impacts inventory management profoundly, resulting to the problem of high demand of re-evaluation of stocking strategies. Therefore, it is pertinent to review the impact of E-commerce on order volume in GLOTELHO, which now, grapple with the challenge of efficiently managing higher order volumes, often comprising a wider array of products, necessitating agile inventory control mechanisms to meet the demand for quicker, smaller shipments while avoiding stock outs or overstock situations.

Additionally, the advent of the Internet has revolutionized the transmission of goods and services in GLOTELHO. Online connectivity has streamlined communication channels, enabling real-time tracking and monitoring of shipments. However, this instantaneous flow of information also intensifies the need for faster order processing and delivery timelines, as well as, the expectation of swift deliveries influenced the Internet creates pressures on inventory management systems, demanding optimized stock levels and efficient logistics operations to meet the heightened pace and expectations of customers accustomed to rapid online transactions. Which is the problem of GLOTELHO as they may not have effective and efficient managers to meet the high demand intensified by the fast and easy flow of information.

The rise of E-commerce has significantly impacted inventory management strategies in GLOTELHO, increasing the complexity and cost of managing a diverse and extensive product range. Despite the growing demand and competition, it remains unclear whether GLOTELHO has implemented effective measures to manage these challenges. Therefore, this study aims to investigate and propose measures to enhance inventory management practices in GLOTELHO to better accommodate the demands and complexities introduced by E-commerce.

1.3 Research questions

1.3.1 Main Research Question

How does E-commerce inventory management operate in GLOTELHO, Douala, Cameroon?

1.3.2 Specific Research Questions.

The specific research questions of the study are:

• What is the kind of E-commerce inventory management in GLOTELHO, Douala, Cameroon?
• What are the effects of E-commerce inventory management in GLOTELHO, Douala, Cameroon?
• What are the measures to redress the effect of E-commerce inventory management in GLOTEHO, Douala, Cameroon?

1.4 Research Objectives

1.4.1 Main Research Objectives

To assess the contribution of E-commerce inventory management in GLOTELHO, Douala, Cameroon

1.4.2 Specific research Objectives

The specific research objectives of this study are:

• To investigate the kinds of E-commerce inventory management in GLOTELHO, Douala, Cameroon
• To analyse the effect of E-commerce inventory management in GLOTELHO, Douala, Cameroon
• To sort out mitigation strategies to remedy shortcomings in E-commerce inventory management in GLOTELHO, Douala, Cameroon

1.5 Research Hypotheses

1.5.1 The Main Research Hypothesis

E-commerce has no significant relationship with inventory management in logistics companies

1.5.2 Specific Research Hypotheses

• There exists many kinds of E-commerce inventory management in GLOTELHO, Douala.
• There is a correlation between types and effects in E-commerce inventory management in GLOTELHO, Douala.
• Adaptable and practical modalities could remedy effects resulting from E-commerce inventory management in GLOTELHO, Douala.