Dissertaion 2016

HOW TO IMPLEMENT INVENTORY MANAGEMENT STRATEGY IN RETAIL
(GROCERY) SUPPLY CHAIN IN IRELAND
UNINSTITUTE OF TECHNOLOGY OF CARLOW
SUPPLY CHAIN MANAGEMENT
This project is submitted as part of the fulfilment of the regulation of the Higher Diploma in
Business Supply Chain Management. CW919
By
Zacharie Loukombo
C00210325

Implementing Inventory Management Strategy i
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ABSTRACT
Grocery retailers comprise one of the largest sections in the Irish retail industry. There
are many retailers in the industry and this dissertation has examined the main retailers in the
nation. While this paper has been drafted to discuss on how retail chains would implement
inventory management strategies, it pays particular attention on the retail suppliers in groceries.
The thesis, herein, was qualitatively executed with a purpose to explore how to implement
inventory management strategy within the retail sector and to outline the role of inventory within
Supply Chain Management and highlight its implications for said same. This was undertaken by
exploring secondary sources and performing interviews with employees working in two of the
main groceries stores in the nation.
In an effort to fulfil the stated purpose, the following questions were asked and answered,
what is the role of inventory in Supply Chain Management? What is the value and importance of
Information Communication and Technology (ICT) and inventory in retail supply chains? How
do we set about addressing the different issues in inventory management? And, what is the role
of retail in society and in the supply chain context?
For this study, I chose to use primary data in terms of qualitative opinion through
interviews with workers in the Tesco and Super Valu and secondary sources via undertaking a
literature review which also helped towards evaluating how to implement inventory management
strategy within the retail sector. I chose the descriptive qualitative approach to describing how to
implement inventory management strategy within the retail sector and conducted semi-
structured, qualitative interviews with six employees working in Tesco and Super Valu groceries
chain stores in Ireland. In the discussion chapter, some issues were found necessary to address in
implementing management strategies such as, the need for optimized tools at a strategic level to

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facilitate redesigning of whole grocery supply chains in Ireland, necessitated utilization of
technologies like RFID and the need to have good relationship amongst members of the supply
chain. In the final chapter, a summary of the thesis is provided as well as some
recommendations. Moreover, the relevance of the dissertation to all the operators in the retail
industry have been put forth.

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DECLARATION
I hereby declare that this dissertation entitled “How to Implement Inventory Management
Strategy within the Retail Business” is the result of my own research except as cited in
references.
This dissertation has not been submitted anywhere else for any award.
Signature: …………………………
Date: ………………………………

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ACKNOWLEDGEMENT
I am heartily thankful to my supervisor Michael O’Fearghail for his encouragement, guidance
and support from the initial to the final level enabled me to develop an understanding of the
subject.
Lastly I offer my regards and blessing to all who supported me in any aspect during the
completion of the project.

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Contents
ABSTRACT..................................................................................................................................... i
DECLARATION...........................................................................................................................iii
ACKNOWLEDGEMENT............................................................................................................. iv
CHAPTER ONE ........................................................................................................................... 1
Introduction..................................................................................................................................... 1
1.1. Introduction.......................................................................................................................... 1
1.2. Background .......................................................................................................................... 1
1.3. Rationale............................................................................................................................... 2
1.4. Purpose................................................................................................................................. 3
1.5. Scope.................................................................................................................................... 4
1.6. Chapter Summary................................................................................................................. 4
2.1 Introduction........................................................................................................................... 5
2.2 The Role of Inventory in Supply Chain Management .......................................................... 5
2.2.1 The GAAP Perspective ...................................................................................................... 6
2.2.2 The Supply Chain Management Efficiency Perspective.................................................... 6
2.2.3 The Risk Management Perspective.................................................................................... 7
2.2.4 The Balanced Perspective .................................................................................................. 7
2.2.5 The Role of Inventory in Supply Chain Management ....................................................... 8
2.2.6 Inventory Control Management ......................................................................................... 9
2.3 Role of Information Technology in Supply Chain Management........................................ 10
2.3.1Importance of Information in an Integrated Supply Chain Management: ........................ 10

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2.3.2 Supply Chain Organizational Dynamics:......................................................................... 11
2.3.3 Electronic Data Interchange............................................................................................. 11
2.3.4 Information and Technology: Application of SCM......................................................... 12
2.4. Addressing the Different Issues in Inventory Management............................................... 15
2.4.1 Using Centralized Databases to Eliminate Confusion ..................................................... 15
2.4.2 Application of Reorder Points on the Stock to Enhance Purchasing Process and Ensure
Manageable Levels of Inventory............................................................................................... 16
2.4.3 Incurring the Expense of Training Specialized Mission-critical Software. ..................... 16
2.4.4 Making Arrangements in the Warehouse that Allows Efficient Picking of Items and.
hence, Time-saving. .................................................................................................................. 17
2.4.5 Comprehensive Utilization of Available Technology...................................................... 17
2.4.6 Making Regular Inventory Checks. ................................................................................. 18
2.4.7 Employing Collaborative Planning, Forecasting and Replenishment (CPFR) ................ 18
2.5 Role of Retail in Society and the Supply Chain Context.................................................... 19
2.5.1 Role of Retail in Society .................................................................................................. 19
2.5.2 Role of Retail in Supply Chain ........................................................................................ 22
2.5.3 List of top 10 Ireland's Grocery. ...................................................................................... 23
2.5.4 Diagrams for the Ireland Grocery Market Share.............................................................. 23
2.6 Conclusion........................................................................................................................... 25
CHAPTER THREE.................................................................................................................... 27
The Primary Methodologic Researches. ................................................................................... 27

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3.1. Introduction........................................................................................................................ 27
3.2. Research objectives............................................................................................................ 27
3.3. Research Questions ............................................................................................................ 28
3.4. Introduction to Research Methodologies ........................................................................... 28
3.5. Methods Chosen for Research............................................................................................ 30
3.6. The Research Approach ..................................................................................................... 31
3.7 Sampling.............................................................................................................................. 32
3.8 Data Collection.................................................................................................................... 34
3.9 Data Analysis Methods ....................................................................................................... 35
3.10 Ethics................................................................................................................................. 36
3.11. Validity............................................................................................................................. 36
3.12. Reliability......................................................................................................................... 37
3.13. Limitations ....................................................................................................................... 37
3.14. Feasibility......................................................................................................................... 38
3.15. Chapter Summary............................................................................................................. 38
4.1 Introduction......................................................................................................................... 40
4.2 Regular Use of Supply Chain Network Optimization Tools for Tactical Planning....... 40
4.3 Use of RFID as Enabling Technology ................................................................................ 41
4.4 Building Supply Chain Relationship................................................................................... 42
4.5 Chapter Summary................................................................................................................ 43

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CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS ................................... 44
5.1 Introduction......................................................................................................................... 44
5.2 Recommendations............................................................................................................... 44
5.3 Identification of Opportunities for Further Research and Development............................. 45
5.4 Conclusion........................................................................................................................... 46
Bibliography................................................................................................................................ 48
Appendix....................................................................................................................................... 57
Ethical Consent Form for Participants in the Interview............................................................ 57
Interview Questions ...................................................................................................................... 58
Interviewee I.............................................................................................................................. 59
Interviewee 2............................................................................................................................. 60
Interviewee 3............................................................................................................................. 62
Interviewee 4............................................................................................................................. 63
Interviewee 5............................................................................................................................. 65
Interviewee 6............................................................................................................................. 67

Implementing Inventory Management Strategy 1
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CHAPTER ONE
Introduction
1.1. Introduction
This chapter will set out to introduce the topic which shall be subsequently developed
throughout this paper. This dissertation has sought to explore how to implement inventory
management strategy within the retail business sector by drawing on secondary research and
analysing as to how it can be applied within the retail sector. Specifically, this introductory chapter
will outline the rationale behind undertaking this research, then outlining the purpose of this thesis.
Finally this paper will provide a chapter summary outlining briefly the content of each of the prior
chapters of this dissertation. This dissertation will be divided into five key chapters; Introduction;
Methodology; Literature Review; Discussion; Conclusions & Recommendations.
1.2. Background
The Irish retail and wholesale sector is the largest consumer of Irish food and drink
products in Ireland, where they purchase over five million euro worth of goods annually (IBEC,
2016 p.1). The retail sector is both the largest industry and largest private employer in the country
where it employs over 275,000 people or 14% of all those employed in the state (IBEC, 2016 p.1).
There are at present about 42,000 retail and wholesale businesses which operate in Ireland while
75% of these are family owned enterprises (Retail Ireland, 2016 p.1). The combined Irish retail
and wholesale sector provides 5.7 billion euro of taxes to Irish revenue, of which 4 billion was in
VAT and 1.7 billion in PAYE (Retail Ireland, 2016 p.1). The Irish retail sector has experienced
many challenges, mostly notably during the Irish recession of 2008 and 2009 when retail sales

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plummeted and, despite increased volumes, in that since 2013 Irish retail sales still remained 14%
below peak levels in 2015 the problem continued (Retail Ireland, 2016 p.1). This suggests that the
sector is highly vulnerable to economic shocks domestically and globally. Furthermore, a growth
in other sales avenues such as online retail has also increased the challenges posed to the traditional
retail seller in Ireland as this area opens up as a result of increased broadband penetration in Ireland
(Bord Bia, 2011 p.1). In the U.K., for instance, online grocery selling was projected to double
between 2011 and 2015, that is, from 5.5 billion pounds to 10.9 billion pounds fuelled by greater
consumer confidence and rapidly growing technologies (Bord Bia, 2011 p.1).
In addition, falling prices also challenge the sectors recovery as the Consumer Price Index
noted in 2015 that inflation remains negative while average consumer prices are down 3.6% for
the first six months of 2015, while at the same time costs including rents, rates, wages and utilities
increase which is also challenging for retail owners (Retail Ireland, 2016 p.1). However on the
positive side, consumer sentiment reached a peak in 2015 which suggests that they are more likely
to spend money than they were years previously as they grow in confidence about their financial
security (KBC, 2016 p.1). Finally the economy is continuing to grow with consumer spending
increasing by 2% in 2014 and 2.5% in 2015 while the national unemployment figure falls to a
record low of 8.6% since the collapse of the Irish economy in 2008/2009 (RTE, 2016 p.1). It is
clear then that Irish retail sector remains faced with challenging times and so it is important that
they are able to reduce their financial outlays while continuing to remain competitive in a dynamic
economic environment. One way of becoming more efficient and reducing costs is through the
optimising inventory management (Aaker & McLoughlin, 2010 p.1).
1.3. Rationale

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The rationale behind choosing this topic is straightforward as this author shall now outline.
Quite simply, having an effective and efficient inventory management strategy is critical for
business organizations as it impacts their flexibility and success (Barthlott & Winiger, 2002 p.2).
This is even more evident within the retail sector, where the majority of business are small scale
and more constrained financially, as we saw above (Gaur & Kesavan, 2015 p.1). In such an
environment, it is even more critical that an inventory system is managed successfully so that the
business can supply customers with what they need to enhance their profitability and strategic
advantage. It is an important part of supply chain management. Understanding how we can
implement an effective inventory management strategy is important as well in considering
retailers, Stock makes up a considerable proportion of the total assets in any retail firm (Gaur &
Kesavan, 2015 p.25). For instance, in a certain case, stock was the biggest assets on the balance
sheet, accounting for approximately 57% of all the companies traded shares in the market, 35.1%
of all the assets was inventory, while the percentage of buildings, property and equipment was
31% (Gaur & Kesavan, 2015, p. 25). As inventory is a current asset and thus, typically, the largest
use of working capital for a retailer, inventory management is an important determinant of liquidity
risk for a retail organisation (Gaur & Kesavan, 2015, p. 25). The inventory is critical to the success
of a business because a retailer is unable to sell what they don’t have while poor inventory
management which leads to too much stock may also cause financial problems due to storage costs
or spoilage and waste (Gaur & Kesavan, 2015, p. 25). It is then critical that we can introduce
improved inventory management systems into retail businesses to maximise efficiency in their
supply chain processes.
1.4. Purpose

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The purpose behind undertaking this dissertation was to explore how to implement
inventory management strategy within the retail sector. This was undertaken by exploring
secondary sources and applying the knowledge to the retail sector to provide recommendations for
how it could employ and implement an effective inventory management strategy.
1.5. Scope
The scope of this paper is to include a range of inventory management strategies which can
be implemented by businesses. The study involved secondary research drawing on journal articles,
textbooks, websites and other research papers. The paper focuses exclusively on businesses which
operate in the retail sector and wholesale sector. Following from this analysis and synthesis of
secondary data, this author provided recommendations which are pertinent for Irish retailers in
how they can best implement an inventory management strategy.
1.6. Chapter Summary
This study set about introducing the topic of this dissertation by providing a brief
background to the retail sector in Ireland before exploring the rationale behind embarking on such
a topic. This introduction outlined how Irish retailers are largely small and family owned and
currently face a number of challenges, which require more efficient operations. This analysis also
highlighted why this author chose the topic of inventory management in light of of the inherent
value of greater efficiency within the process in order to reduce costs and maximise resource
allocation and effectiveness of stock control procedures. Subsequently, this chapter outlined the
purpose of the dissertation before addressing the scope involved in its application. The next chapter
will focus on the scholarly literature related to inventory management.

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CHAPTER TWO
Literature Review
2.1 Introduction
This chapter will set out to provide a review of the literature on inventory management in
order to critically explore and address the research questions outlined in the last chapter. In order
to address each of these research questions sufficiently, this chapter will be divided into four
sections, each concentrating on addressing one research question per section. The first section
addresses the role of the inventory in supply chain management, embodying such aspects as the
efficiency of the supply chain management, the management perspective and the generally
accepted accounting principles applied in supply chain management amongst others. The second
section entails technological involvement in supply chain management and incorporates such areas
as emerging issues, the importance of technology and software applied in supply chain
management. Third, the literature comprehensively discusses the issues attached to the inventory
management including, but not limited to, employing c Collaborative Planning, Forecasting and
Replenishment (CPFR), utilization of the available technology and conducting regular inventory
checks. Finally, the role of supply chains in society and the economy is addressed.
2.2 The Role of Inventory in Supply Chain Management
Council of Supply Chain Management Professionals (CSCMP) is one of the greatest
global firms in the supply chain management industry. In this regard, data collected by CSCMP
is highly regarded (Member types, 2016 p.1). When the Council of Supply Chain Management
Professionals published their yearly State of Logistics Report in June 2013, inventory trends

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were part of the major areas covered. The report announced an upward trend for wholesale, retail
and manufacturing retail with retail inventory increasing the most. In a similar manner, inventory
related costs hiked. According to the report, inventory can be used to establish the status of
supply chain and logistics activities. Inventory has emerged as one of the most misunderstood,
intruding and interesting aspects of the business. On the ground, there are various perspectives
provided to give a precise definition of what is inventory. The most common perspectives are
outlined below.
2.2.1 The GAAP Perspective
Under the Generally Accepted Accounting Principles (GAAP) stipulation, inventory
should be treated as a current asset. Inventory is a “tangible personal item” under the custody of
the business awaiting to be sold. Under this perspective, inventory is treated as to incorporate
work in progress, finished goods, and raw material. All these are items waiting to be sold and,
hence, are an asset of inventory. However, there are always some issues when companies offload
their inventories, considering the assets as a costly element in the business. It is the ability to
manage inventory that is tricky in many cases, especially when sorting inventory expenses yet
still considered to be an asset.
2.2.2 The Supply Chain Management Efficiency Perspective
Supply chain intends to maintain an operational coordination during the supply of the
items. The efficiency of the supply system can only be achieved through inventory reduction. In
this perspective, inventory is taken as a liability in the supply chain. A majority of managers
today are, therefore, struggling to maintain low inventory, as this is the primary efficiency

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measure. To emphasize the need for low inventory observance in ensuring high effectiveness in
the process, organizations have developed various tactics to keep the inventory count
significantly low. They include, but are not restricted to, lean inventory, just-in-time inventory
management systems and even collaborative initiative (Frankel, Keller, and Keller, 2014 p.1).
Many researchers have attributed the need by many managers to keep the inventory count
associated with the concept of inventory investment. Since inventory maintenance is quite
expensive, reduction of the cost is perceived as a positive injection via savings.
2.2.3 The Risk Management Perspective
Even when holding inventory is quite expensive, several risks evaluations could be made
in cases of low inventories. The risks evaluated includes; unpredicted supply chain, missed
services opportunities and the costs and impacts of stock outs. The concerns have brought up the
issue of the adoption of safety stock. As such, inventory is perceived as a risks management tool.
Disruption in the supply chain results into inconveniences, due to the management of supply
chain processes. Several factors are involved in the creation of such risks including poor
information availability, lead time uncertainties and lack of specificity in the execution of tasks.
More advanced perception of inventory management is the fluctuation of prices well as .inflation
risks.
2.2.4 The Balanced Perspective
In this case, the inventory is considered an asset, yet an asset that firms do not needing
excess. By having too little, the firm may run into risks, on the other hand, if high inventory
levels are maintained, the associated extreme costliness also becomes an issue. As such,

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managements are seen as to want an equilibrium point in inventories storage. That ensures the
smooth running of the supply chain that is easy to adapt to changes.
2.2.5 The Role of Inventory in Supply Chain Management
Arguably, the most critical role of inventory in the supply chain management is to
enhance the balance between demand and supply. The movement of firm’s stock volume
indicates the direction of flow, it provides an indication of any alteration in the already
established demand and supply equilibrium point. When the firm gets an insight into the market
balance, then it becomes easier to maintain the balance between customers’ needs and proper
firm operations. One of the latest aspects of the supply chain is the utilization of Sales and
Operations Planning (S&OP). The primary duty of the mechanism in the supply chain is to
combine both demand management functions together with operations duties and level strategic
planning. The operational teams are placed in a good position to mirror the direct sales prediction
data. Such shifts in the market effect the production and packaging plans of the firms, then
inventory management becomes a paramount aspect of the business.
The inventory movement is crucial in management of the flow of goods in the supply
chain. Inventory availability or deficit provides an insight into the effectiveness of the supply
chain management. For instance, a firm with huge levels of stock implies that it incurs high
holding cost as well as the opportunity costs of having working capital in asset form and the
converse is true. However, Waller and Esper (2014 p.1) caution that using inventory to measure
the efficiency of a supply chain management system could lead to an incorrect judgment. The
inventory, if properly monitored, possesses the power to indicate ineffectiveness of management
systems in the supply chain, for example, significant errors in recordings, long supplier lead

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times, inefficient inventory handling systems and, perhaps, bottlenecked firm operations. As
such, inventory can be successfully applied as a measure of effectiveness in the supply chain
management process as it is the first element of the business affected.
There is an upward trend of cases whereby the supply chain consultants, industry
analysts, and researchers are more concerned about inventory management in learning to manage
the operations and gather necessary management information from the supply chain performance
trends and shifts in the market. Days of inventory, inventory turns, and cash-to-cash cycle are
gaining massive popularity and applicability in many organizations due to their attached
importance and fundamental information that would be gathered upon their interpretation.
Information provided by the ratios and financial data includes; the rate of inventory flow in the
market, the ability of the firm to manage the changes and effects of firm’s liquidity on
inventories investments as well as the effectiveness observed in supplier relationships of the
organization.
2.2.6 Inventory Control Management
Inventory control management entails maintaining the right amount of inventory by the
supplier or retailer at any operation time. Maintaining the right amount of inventory is quite hard
to achieve, especially when dealing with fast moving consumer goods. As such, inventory
control management should be employed to ensure optimum levels of inventory are kept. Several
techniques are historically known to be applicable including but are not limited to; Economic
Purchase Order Quantity for quantity determination, cost of ordering for timing purposes and
safety stock which helps establish minimum stock levels. In all the techniques, statistical analysis
is significantly involved and also encompasses maintaining records for different inventory

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parameters (Waters, 2006 p.34). Over the past two decades, the concept of inventory control
management has been highly embraced by numerous distributors as well as retailers.
2.3 Role of Information Technology in Supply Chain Management
The primary goal of the supply chain management (SCM) is to facilitate information and
products movement between all the parties involved. Recent technological advances have been
of additional impact to the information disbursement process. The developments have made the
coordination of activities to be an easier task. However, it is important to understand that,
information flow is not all about computers. Numerous benefits and reductions of cost is one of
the major achievements in SCM. Factory automation, data processing equipment, and
improvised hardware are among the main changes in the process. Technology provides a
communication route between customers, retailers, distribution centres, the assembling sectors
and the suppliers (Handfield et al., 2002 p.1).
2.3.1Importance of Information in an Integrated Supply Chain Management:
Before the 1980s and in the early years of that decade, the communication between
different members of the supply chain was paper based. The method was highly contested for
being slow. The power of information in the chain was highly overlooked. However, due to
growth in the need for any organization to embrace communications to enhance its
competitiveness edge, many firms today highly regard communication and information
communication technology systems in the supply process. Among factors which have facilitated
its growth in importance are; prioritizing of customer’s satisfaction. As such, Inventory has
become an important management tool and decision making.

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2.3.2 Supply Chain Organizational Dynamics:
Members of the SCM are obliged to facilitate effective information flow in one way or
another. The betterment of the chain is achieved through collaborative efforts. Additionally,
recent studies indicate a shift of power from typically belonging to suppliers to now in the
province of retailers. Due to technological advances favouring the position of retailers in the
market, their prominence in the chain has been far reaching (Handfield et al., 2002 p.1). Some of
the global leaders in the retail market include Wal-Mart, EBay, and Amazon. More
developments have seen interlinks between the suppliers and the retailers to coordinate the
operations and affect the outcomes. Some advantages related to such developments include,
improved productivity, cost reduction and emergence of better product/market strategies.
Barrett and Konsynsik (1982 p.25) hypothesized five core classes of participation by
involved parties in the inter-organizational system, beginning with:1. Multi-participant exchange
node, wherein the primary member provides a platform for communication to all the members
lower in the rankings and to whom their transactions are highly related. 2. Remote input/output
mode, here the participating members are interfaced to a central location supported by a single or
many higher-level participants. 3. Application processing node, which means some systems
which can be shared, to illustrate, inventory queries are shared among the participants. 4.
Network control node, in which the chief participant provides a network with many applications
somewhat useful to lower members. 5. Integrating network node, here, the role of the member is
to provide ICT services in the chain and the lower ranking members of the chain are real-time
data customers (Role of information technology in supply chain management, 2000 p.1).
2.3.3 Electronic Data Interchange

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Electronic Data Interchange (EDI) is the use of computer-to-computer interlink by
different servers with an aim of exchanging business documents. The application of EDI helps
avoid the traditional means and provide such benefits in the SCM as better customer satisfaction,
improved billing, cost effectiveness and reduced paper work among others.
2.3.4 Information and Technology: Application of SCM
The applications of technology varies from hardware to software systems. The hardware
is inclusive of the computer output gadgets and the storage devices. The software includes huge
systems and application programs. A The latest SCM software are inclusive of; 1. Base Rate,
Carrier select and match pay for calculating freight costs, making transport cost comparisons and
evaluating the effectiveness of the suppliers. 2. Supply chain planning for predicting demand and
making manufacturing plans 3. Transportation Network optimization for contouring the bidding
process and 4. Logistic planning solutions to manage the supply chain (Mukharji et al., 1996
p.1).
Electronic Commerce: Electronic Commerce, commonly known as e-commerce,
encompasses all the tools and techniques applied to facilitate paperless business transactions. It
comprises such elements as electronic funds transfer, email, electronic data interchange, and
shared databases among others. By having such aspects in the business, the supply and
distribution of material and products becomes an easier process.
Bar coding and Scanner: Are codes used in supermarkets, bookshops and other big
retailers which serves to identify the product by serial number and manufacturer and to track
goods movement?

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The EAN is a numeric-only bar cord symbology technique employed by retailers to track
commodities when in store. Each item is given a different number according to flavour, colour
and weight. As such, retailers have an easy means of tracing location of products when needed,
and additionally help in accounting of sales.
Data warehouse: Are business areas capable of collecting overall organizational data in a
consolidated system? All the data related to operations are recorded and historical information
integrated as well.
Enterprise Resource Planning (ERP) tools: Does transactions management tool exist that
works to capture data, process the information and eliminate manual analysis? In the SCM, ERP
works to monitor information flow well as customer order information (O’Leary, 2000 p.1).
Radio Frequency Identification (RFID): is a method of identification usually used in
retail stores, whereby a device has the ability to read electronic numbers or codes on a certain
product tag. It help reduce labour and increases sales as more customers can be served. They also
reduces theft cases when used to track unauthorised transfer of inventory products. Included,
herein, is an image of how RFID in the central distribution functions.

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Image retrieved from (RFID, 2016)
POS Technology: Point of Sale (POS) technology also known as Point of Service,
encompasses utilization of software and hardware at the payment desk and eliminates the need
for price tags, as the selling price of an item is attached to an item in a coded manner. POS is
now used by the majority for its attached benefits. Among the benefits include discounts
implementation, easy change of prices, and checking of consumers’ loyalty. POS technology can
be used effectively in a groceries business where many consumers require quick services.
The advancement of technology over the years have been of tremendous significance to
the supply chain. It has been impactful in ensuring proper information. It has helped the
organizations enhance the market competitiveness and adapt to changing markets. The typical
supply chains are now huge, and there is more room to predict future market changes.

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Nevertheless, integration of right infrastructures is essential towards the achievement of optimum
goals. The cost of installing technological system could be high, but the benefits counter the
expense. The use of the internet to transact businesses requires a strong and reliable platform and
as such calls for preparedness from the firm. More changes are expected and as such, the use of
the internet, SCM applications and networking links will be important in future, as the market
expand and more innovations are made.
2.4. Addressing the Different Issues in Inventory Management
The development of inventory has made supply chain to be a more sophisticated entity.
The need to be careful when assessing the inventories is also associated with a number of
mistakes which could render the logistics management strategies implementation a hectic affair.
The errors occur in a number of operational areas including information disbursement, supply,
and predicting the future trends (Mathur, 2011 p.45). Every problem is associated with particular
challenges which act to lower the efficiency within supply chains and need a respective solution.
Some problems are related. Some of the ways that could be employed to reduce challenges
encountered in the supply chains are as discussed below. There are other many ways which can
be executed to enhance the flow of raw material, labour, products and cash in the supply chain.
However, the ones stipulated herein are the main one identified by the majority of the literature
consulted in this particular writing.
2.4.1 Using Centralized Databases to Eliminate Confusion
Deployment of centralized databases provides the business with a chance to incorporate
many resources centres. Combining information from regional levels with that from main offices

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can be very useful, especially in the comprehensive analysis of available data. The confusion that
comes with complex data is resolved by the criteria of breaking down data concerning location
and supply channel chosen in order to establish a full judgment of inventories movement and
monitoring considerations (Miller, training, and support??, 2013 p.1). When the organization
warehouse is packed with the correct set of items, satisfying the needs of the clients becomes an
easy task. Since customers’ satisfaction is an essential part in the eventuality of their royalty,
organizations should establish a centralized database to eliminate orders and inquiries problems
(Umar, 2003 p.14).
2.4.2 Application of Reorder Points on the Stock to Enhance Purchasing Process and
Ensure Manageable Levels of Inventory.
This ensures the correct level of inventory is maintained in the warehouse. The system
ensures no cases of too much stock in the store and also too little. Inadequate quantity would
render the organization out of sales, and too much would increase the cost of storage. Since
many organizations experience difficulties when managing their cash, ensuring the right level of
stock is maintained would help the firm establish correct liquidity level. Inventory pointers serve
well in this role (CSCMP, Esper, and Waller, 2014 p.1). A phenomenon known as the bullwhip
effect occurs when there exists demand variability in the market. The bullwhip effect can be
controlled by using this technique to ensure any demand change is noted on time and acted on
immediately. Having manageable amount of inventory eliminate such elements as denying an
order to regulate inventory level, lack of coordination and delay in information circulation in the
supply chain leads to bullwhip effect (The Bullwhip effect, nd p.1).
2.4.3 Incurring the Expense of Training Specialized Mission-critical Software.

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One of the gross mistakes committed by organizations is spending money to purchase
very powerful software that they end up not utilizing fully, due to lack of proper handling. Since
some of the software employed requires high human monitoring and specialized skills to operate
that introduces another problem. As a result, the error that many organizations make can be
eliminated by accepting to spend extra cash on specialized training, especially, for high-tech
software and those which requires high-security configuration like MARG ERP 9+ Inventory
management system, HD Accounts and Billing, and Astral Inventory Management System.
Trying to learn alone might lead to numerous problems and prove especially detrimental to the
supply chain (CSCMP, Esper, and Waller, 2014 p.1).
2.4.4 Making Arrangements in the Warehouse that Allows Efficient Picking of Items and.
hence, Time-saving.
An inappropriate arrangement of items in the warehouse would lead to distraction,
especially in the process of sorting and packaging of items (Myerson, 2015 p.12). By proper
organization of inventories, firms benefit by making both financial and time savings. Those
items with high demand should be placed at a point that facilitates easier shipping and
transportation upon ordering. With the expansion of the company’s magnitude, the order which
was once observed becomes a problematic affair to do so. The working of this method is limited
to a short duration of time. However, expansion requires efficiency and, thus, efficient supply
chain interaction by the components.
2.4.5 Comprehensive Utilization of Available Technology.

18
In many cases, due to the shortage of information concerning the utility of certain
software, organizations are entangled in technological quagmires when they fail to address all the
uses fully. Coupled with companies failing to recruit mechanical and software experts, the
challenges the company encounters in sustaining the customers’ needs and smooth operation
without full utilization of software utility and the inability to use technology well could be costly
particularly when replacements are frequently done. For instance, software like Contalog,
Handifox, Inventorytrack and Taphunter may require experienced individuals or trained
personnel and can be of great use in inventory management. The company is, therefore, obliged
to deploy the correct individual that enables full utilization of software functionality for
maximum outcomes (TechnoFunc, 2012 p.2).
2.4.6 Making Regular Inventory Checks.
Since a majority of businesses make their inventory checks, it becomes a hectic process
to establish the real count of inventories. In some cases, the process of stock taking interferes
with the normal running of the organization and otherwise affects the flow of goods and
materials into the market or to the firm. When the supply chained is effected, it could lead to
serious problems for instance loss of customers, loss of revenues and wastage of time. In that
regard, the business should try to conduct more regular checks which minimize the cost as well
as time wastages, consequentially achieving smooth operation of the SCM. Inventory checks
depends on organization size and flow of goods. On average inventory checks should be done
weekly or monthly.
2.4.7 Employing Collaborative Planning, Forecasting and Replenishment (CPFR)

19
Collaborative Planning, Forecasting and Replenishment (CPFR) is a supply chain
management technique that seeks to unite all the participants in the supply chain making
emphasis on products replacement in the process. The planning process becomes much easier
since information needed for decision making is readily available. The inventory update by each
member and transfer of data is explained as one of the causes of increased efficiency. Numerous
savings are associated with CPFR including increased efficiency, cost reduction and reduced
transportations (Ireland, Crum, and Irel, 2005 p.23).
2.5 Role of Retail in Society and the Supply Chain Context
The role of retailers has significantly grown in the current market setting. The benefits
achieved through strong retailers’ involvement in the supply chain management does not only
lead to customers’ satisfaction, but also, allows the CSM to considerably gain. The importance
role of retail in society as well as the supply chain is delineated as being documented by different
scholars and academicians. One initiative established in Ireland to ensure consumers are well
catered for is the use of Efficient Consumer Response (ECR), Ireland. The program facilitates
the retailers and lower members of the supply chain to receive proper training on the field,
maintaining their participation in food service industry in tandem with unestablished local
businesses. The program has been formulated to enhance consumer experience and interaction
with the retailers. More importantly, it allows them to gain maximum satisfaction. This initiative
is particularly important towards groceries businesses – an important section to many residents
who purchase groceries on a regular basis.
2.5.1 Role of Retail in Society

20
Retailers’ participation have improved customers convenience. Retail diversification has
also resulted in consumers accessing goods and services at their convenience. Door-to-door
delivery is one form of convenience that can be attributed to such developments. Since
emergency stores run throughout, customers now enjoy more flexibility and more freedom which
leads to greater satisfaction.
Retailers allow more accessibility of goods and services to consumers. Since inventories
are worthless while held, it is the ability of intended consumers to acquire them easily that
enhances their utility. Moreover, customers can avail goods in suitable packaging. Retailers
break down the commodities which allow consumers to purchase what suits them best.
The retail versatility is an added advantage to the society (Technofunc.com, 2016 p.1).
Retailers in the current world operate from fixed places to online platforms. The majority of
online businesses and delivery stores transport the goods and that could be interpreted as an
improvement in their living standards. Moreover, the retailers add value in the supply chain as
they order goods upon exhaustion of their held inventory.
One most recent forms of providing accessibility of goods to the consumers is via On
Shelf Availability (OSA). The goods are arranged on the shelf and the consumers can go round
the store or the retail shop selecting their preferred goods. Upon selection of the goods,
customers pays at the counter. In many supermarkets groceries are given a section and
consumers can benefit by making choice based on available goods and the prices indicated. OSA
provides another versatility and in return increases consumers’ satisfaction. In turn, the products’
life-cycle can be reduced as consumers goods that are fast moving will be quickly replaced while
the slow moving ones will dictate infrequent ordering.

21
Consumers depend on retailers for products information. Since they act as the link
between the distribution store and the market, they facilitate research on commodities, gathering
of statistics and offer advice to consumers (Amadeo, 2016 p.1). Firms are heavily reliant on
retailers for market feedback. As an extension to the general economy, retailers ensure mobility
of investment in the economy. Since retail shops and merchandise stores are easy to establish,
they provide a flow of finance in the economy between the manufacturer and the customers. To
extended cases, a retailing economy creates investing cultures. It is the money spent on retail
commodities that fuel economic prosperity. The economic growth could be in the form of
employment creation, infrastructure development, and the creation of social cohesion (Staff,
2016 p.1). The interaction of workers, employers and customers motivates positivity and mutual
co-existence.
Perhaps the most important contribution of retail is the improvement of social life of the
subjects?? (Staff, 2016 p.1). Examples include, involving participation in social development
programs, campaigning for social forums, and making sponsorship deals. When the customers
are thought of, they feel more appreciated that their welfare is catered for and satisfaction is
optimized. Provision of education and healthcare amenities are among the events most
participated in by retailers.
Seen as a differentiating factor between retailers and other forms of business operation,
personal contact is another essential psychological benefit customers receive as a result of
retailers’ interaction. Buyers build loyalty with customers making the market interaction much
lively. Through loans and higher purchase modes of selling, the retailers makes it possible for
customers to access services and products at the most critical moments.

22
Moreover, retailers facilitate economic development in society by building a flow of cash
as buyers purchase goods. Since economic development primarily depends on mobility of
financial resources in the surrounding society, more prosperity can be achieved through
resources utilization created by retailers. The overall effect is improved financial growth and
improvements in living standards s customers work hard to buy goods.
2.5.2 Role of Retail in Supply Chain
Retailers are the primary source of information to the distributors and the manufacturers.
Using technology to track and manage stocks has been effective in maintaining an equilibrium in
the market. As consumers behaviours changes, their track of count can be helpful in regulating
the number of new entrants in the market. Using cloud tracking stock and demand shifts can be
noted with ease. Retailers are contingent of the current market stand. As such, retailers maintain
the supply chain balance by adapting to seasonal changes and fashion shifts.
Application of source tagging by retailers ensures proper monitoring of stock as they
move from the manufacturers to the consumers. When the quantity and location of goods
available are identified using the formula, it assists in communicating with stock management,
demonstrating better judgment in decisions making. Sensors are currently used to detect when
goods are lower than a certain level. In addition, tagged goods are used to help the customer
locate a product in a warehouse or a supermarket (Schiff, 2016 p.1).
Supply chains are bettered by retailers’ presence as they are essential elements of B2B e-
procurement (B2B). This assists firms in forecasting market trends and decidewisely on the
content to supply (Schiff, 2016 p.1). More importantly, retailers are the pivot of the marketing

23
and supply chain. They ensure the supply chain and commercialization parties in the market are
at an equal wavelength. The retailers raise an alarm when the supply is low and stop receiving
when they have enough inventory. In light of the role of supply chain management, retailers play
both to supply chain and in social participation.
2.5.3 List of top 10 Ireland's Grocery.
Although there are quite many groceries in the republic of Ireland, it is distinctively clear that
some over-shadow others. Provided herein is a list of the top groceries stores in Ireland.
a. Super Valu
b. Lidl
c. Tesco
d. Dunnes Stores
e. Aldi
f. Eurospar
g. M&S FoodHall
h. Iceland
i. Joyces 365
j. Fresh
2.5.4 Diagrams for the Ireland Grocery Market Share
The groceries stores share the market differently. The Pie Chart and the Table below
represents different market shares occupied by the groceries stores in Ireland (Ltd, 2015 p.1).

24

25
Image Retrieved from (Briggs, 2016)
2.6 Conclusion
In conclusion, inventory chain management is a complex topic that encompasses a wide
array of disciplines. There are certain principles that apply to supply chain management
including accounting guidelines and regulations on conducting stock checks. For proper
coordination of matters in supply chain management cannot be undermined and this requires
high efficiency for the right results to be achieved. It is eminent from the literature that
technology plays a deep role in the management of inventories today, ranging from use of

26
software and mode of online management. More so, the importance of retail to society is referred
to at length in the paper. Retailers also plays a significant role in the supply chain as it was
elucidated in the paper.

27
CHAPTER THREE
The Primary Methodologic Researches.
3.1. Introduction
This chapter will provide an outline of the methodological approach this author wishes to
take when embarking on their research study. In order to embark on a study assessing how to
implement inventory management strategy within retail businesses this chapter will outline the
research objectives that will be used to underpin and guide the research process. This chapter will
also provide an overview and introduction to research methodologies in general and their value in
underpinning a research study. This paper will then provide details of the actual research proposed
before identifying how this paper will enhance the validity and reliability of the data collected and
the conclusions reached. Finally, this analysis will draw upon the limitations of the study and the
study’s own feasibility.
3.2. Research objectives
There are a number of research objectives which will underpin and guide this research study.
These are:
1. To outline the role of inventory within Supply Chain Management and highlight its
implications for said same. This involves creating an understanding of the inventory and
the principal issues in inventory management.
2. To review the link between information and communication technologies (ICT) and
inventory in retail supply chains.
3. To evaluate the ICT and inventory strategies of a retailer in the Irish grocery sector.

28
4. To provide clear recommendations as to how a retail business can minimize their costs
and maximize their profit by employing a comprehensive inventory management
strategy.
3.3. Research Questions
In order to adequately address the research objectives above the author has set out a number
of research questions which will be answered over the course of this dissertation:
1. What is the role of inventory in Supply Chain Management?
2. What is the value and importance of ICT and inventory in retail supply chains?
3. How do we set about addressing the different issues in inventory management?
4. What is the role of retail in society and in the supply chain context?
3.4. Introduction to Research Methodologies
Research takes many different forms depending on the nature of the study undertaken
whether it is primary or secondary research. Secondary research involves collecting information
that has already been published (Watkins & Burton, 2013 p.34). This largely involves desk
research and assessing textbooks, journal articles, websites and any other information which has
been made available in public discourse (Watkins & Burton, 2013 p.34). This type of research
allows you to learn much about a particular topic and you can also reduce bias by undertaking a
thorough research initiative involving many different studies and sources. There are many
advantages to undertaking secondary research as it is more time efficient than primary research
and researchers can gather a large amount of information more quickly and cheaply than if they
had to carry out primary research. In addition, secondary research allows us to collate and

29
synthesize a wide variety of studies or research articles together, in order to help us understand a
phenomenon, as we draw upon a large body of existing research (Watkins & Burton, 2013 p.45).
Literature reviews and meta-analysis are important examples of how secondary research can be
used to develop a greater understanding of a phenomenon. Literature reviews can be highly
advantageous as they are more cost efficient and time effective than undertaking primary research.
They involve locating and understanding what previous researchers have learned about a topic
while revealing gaps in the overall body of knowledge (Withrow, 2014 p.24). In addition, you can
gather a wide wealth of information across a broad range of resources including the local library,
college library, online databases and across the internet, meaning that there is a much larger
volume of information and knowledge open to researchers than those employing primary research
methods. Researchers can draw on books, journal articles, websites, seminal publications and
unpublished sources when researching and including literature. You seem to be repeating yourself
(Withrow.2014 p.12). Literature reviews also have the advantage in being able to help researchers
identify gaps and weaknesses around a specific topic which they can then explore more closely
(Bui, 2009). Literature reviews are an essential feature of research studies and dissertations in that
they provide a background of the literature which exists in the field. Literature reviews then can
be utilised to rationalise and justify using different interventions in a research study and can help
provide recommendations towards effective practice. A drawback of literature reviews, however,
includes the fact that no new information is being generated in the field, but rather it is reflecting
existing research. However, this too can aid in having a broad understanding of an area and assist
in the analysis of a field and the issuing of recommendations based on best practice within the area
as they are previously documented.

30
In contrast to secondary research described above, primary research involves collecting
new information from a population (Saunders et al, 2009 p.1). It involves collecting research from
participants, analysing it and drawing conclusions and adds something new to the discourse on the
subject (Mills et al, 2010 p.1). There are two different forms of primary research; quantitative and
qualitative research. Qualitative research involves research which is more in-depth, richer and
more detailed than quantitative research and, as such, includes methods such as interviews and
focus groups (Saunders et al, 2009 p.1). As a result of qualitative research being more in-depth,
they usually involve a much smaller number of participants due to the time and cost involved in
collecting the data (Allan, 2009; Burns & Grove, 1993 p.34). In contrast, quantitative research
involves a much larger population with such data collection tools including surveys and
questionnaires (Allan, 2009 p.34). The results of qualitative studies are usually descriptive in
orientation while quantitative studies use statistics and provide results using numerical calculations
(Allan, 2009 p.34). Depending on the research question being posed, a research design could be
either qualitative or quantitative, while others can be mixed which involves a blend of both types
of research. Quantitative research is largely seen to be more objective, valid, reliable and able to
be applied more generally to the population as compared with qualitative research (Saunders et al,
2009 p.1). This is because many qualitative research studies use less than twenty participants in
their research, whereas quantitative research could employ hundreds if not thousands of
participants and therefore, naturally, the results can be generalised more readily. Furthermore,
quantitative research has a key strength it that it uses statistical analysis to derive results and test
correlations within a scientific format.
3.5. Methods Chosen for Research

31
This research accommodated two types of data; primary data in terms of qualitative opinion
through interviews with workers in the Tesco and Super Valu and secondary via undertaking a
literature review which also helped towards evaluating how to implement inventory management
strategy within the retail sector. To achieve the objectives set out above, including outlining the
role of inventory within Supply Chain Management, reviewing the link between information and
communication technologies (ICT) and Inventory in retail supply chains, evaluating the ICT and
Inventory Strategies of a Retailer in the Irish Grocery Sector and providing clear recommendations
for how a retail business can minimise their costs and maximise their profit is needed. This study
can use existing literature to assess and analyse this information. As demonstrated above, this
literature review is more cost effective and time efficient than undertaking primary research and
this author can also spend more time exploring a broader range of resources and assess the
pertinence of these for the research questions identified earlier in this paper. With primary research
this author is limited in the scope of their analysis and in their ability to provide effective
recommendations to Irish retail businesses. However, now by focusing on and implementing a
comprehensive literature review, this researcher can focus on analysing a large array of best
practice guidelines and research already conducted to support recommendations and to truly
develop an understanding of how to implement effective inventory management strategies within
the retail sector.
3.6. The Research Approach
This paper utilises secondary research in the form of a literature review and a descriptive
qualitative approach to describing how to implement inventory management strategy within the

32
retail sector. This involved accessing a wide variety of secondary resources including articles from
journal databases such as ABI/Form Global, EBSCO, Google Scholar and journals such as
Production and Inventory Management. Further research was drawn from textbooks, seminal
publications and pertinent websites. All information relates solely to the research questions and
objectives set out at the beginning of this chapter. This was carried out in order to provide
recommendations for how the Irish retail sector can implement more efficient inventory
management strategies to reduce costs and maximise profits. The research took place over a
number of weeks in 2015 and 2016 and was assessed and analysed in order to draw out and
document the most relevant information for further analysis. The information formed the basis of
our subsequent discussion and recommendations for retail businesses at the end of this dissertation.
Primary data was taken from interviews conducted with employees working in Super Valu and
Tesco Limited to evaluate their understanding of inventory management and how they feel their
managements are working towards achieving the set goals.
3.7 Sampling
A sample is a small selection of the whole population as a representation of the element
under concern and after the study is complete, the results are generalized for the whole
population under the assumption that the results are congruent with the reality. Sampling (2006
p.1) describes sampling as the process of collecting information from a small population chosen
to represent the whole populace. In the study, there was no strict guideline concerning the
number of books to use or the total sources, but the data published in this study represents a
small section of the literature on inventory management. The sample used entailed three
members from the two companies under study. The low number of interviewees is based on the

33
fact that qualitative data is useful regardless of the number of participants as long as they serve
the purpose for which they were intended. The main purpose of qualitative data is to provide an
insightful reflection of the situation under study. The number of interviewees involved in the
study is fair and representative, considering they were drawn from the different positions and
departments. To avoid data saturation and wastage of time the number was deemed to be
satisfactory. Data saturation occurs at the instance all the questions have been addressed and no
additional data can be gathered even upon further interviews.
The participants of the interviews were drawn from the Abbeyfeale – Twohig (Inventory
Manager), Dungarvan - Garvey's (Store manager) and Cashel - Morrissey's (Store’s purchase
department manager) all from Super Valu retail stores across three different counties. On the
other hand, workers from Tesco,Ellon Superstore at Aberdeenshire (Storekeeper), Tesco Express
Leonards Corner Grocery Store (Assistant manager) and Tesco and Extra Wexford (Store
manager) were also interviewed. In particular, the focus of the paper was centred on groceries
and the participants were selected on the basis of their exposure with inventory and the power
they possess in their position to as employees in the organization. As such, the interviewees in
this study were selected randomly, as the aim of the study was to monitor the usage of different
inventory management tools and technology. The questions asked were relevant to the main
topic of study. The table below represent the demographic characteristics of the participants
STORE Interviewee Gender Experience Organization Position
Super Valu Interviewee 1 Male 4years Abbeyfeale –
Twohig
Inventory
Manager

34
Super Valu Interviewee 2 Male 3.5years Dungarvan -
Garvey's
Store
manager
Super Valu Interviewee 3 Female 10 years Cashel -
Morrissey's
Purchase
department
manager
Tesco Interviewee 4 Male 7 years Ellon
Superstore
Assistant
manager
Tesco Interviewee 5 Female 9 years Tesco
Express
Leonards
Corner
Grocery
Store
Store
manager
Tesco Interviewee 6 male 2 years Tesco and
Extra
Wexford
Storekeeper
3.8 Data Collection
The data was collected using secondary sources as they provided information related to
all the questions listed at the beginning of this chapter. The use of interviews helped gain an
insightful experience of concerns at the ground level. The use of interviewees with advanced
experience in the field was important and justified as they provided explanation of the advances

35
over time. The time coverage for the each interview was approximately 15-20 minutes as there
were questions of simple yes and no responses. The interviewees answered the questions in a
serene and quiet environment. The interviewers were played a central role in guiding the
interviewees in ambiguous situations and in explaining the questions and helped them in
validating their responses. The questions asked in the interview are found in the appendix
section of this dissertation. The interviews were kicked-off with introductory quotes with the
interviewers giving the respondents a peaceful response time. Whenever an interviewee needed
help at the middle of the conversation, the interviewer provided the necessary help. The
questions asked related to technology utilization and the perception of the workers interviewed
towards management’s ways of implementing inventory management strategy in retail supply
chain was addressed more specifically in the two stores under review.
3.9 Data Analysis Methods
In secondary analysis, the data collected was critically evaluated and the information
collected from the interview was analysed by content analysis. In essence, content analysis is the
technique used to analyse qualitative data in which the interview responses are grouped in terms
of themes and the transcript data. The content analysis technique was also used to analyse the
literature collected related to Ireland’s retail stores. The details are organised in relation to the
questions asked and the area of inventory management addressed.
The interview responses are further classified according to the company involved, making
comparison of different aspects of inventory management that are present in Tesco Stores Chain
and that what is present in Super Valu. The missing elements are also discussed as per the
companies and then the areas of concern in the industry are treated as a large factor in the Ireland

36
market in general. The clustering of information is important in as it helps formulate a thorough
argument for the evidence presented in the dissertation and otherwise, allows comparison between
the field data and the literature that have been documented by past authors Barbour (2008
p.20).Such areas as Supply Chain Network Optimization Tools, use of different technologies in
supply chain management and the relationship of customers and the suppliers in the chain will be
focused and information collected both from secondary sources and interviews.
3.10 Ethics
In the appendix section of this dissertation, a sample consent form has been provided. The
interviewees who participated in the study expressed their consent to participate by signing their
respective areas directed by the interviewer. Consent is important in the collection of data as
individuals get to know the options they have with regards to their participation. In that respect,
the individuals participated voluntarily. However, their participation was encouraged by
explaining to them the benefits of participation. Their identity was also hidden as their identities
were listed under the names interviewer one to interviewer 6 as shown in the demographic table
found in this dissertation. The freedom to have the interview terminated at any time was given,
although no participant left in this particular case.
3.11. Validity
Validity is defined as the ability of a tool to measure what it is designed to measure; the
types of validity include criterion, construct and content validity. It is clear that research outcomes
have no value if the methods used to obtain such results have no legitimacy (Newman, 1998 p.12).
Construct validity involves establishing correct operational measures for the concepts being

37
studied and to ensure this, this study will include multiple sources of evidence. In order to establish
internal validity, the researcher provided an explanation building strategy with a logical chain of
evidence and will tie all outcomes to existing research. Finally, to promote external validity, this
researcher tied the recommendations and research findings to the existing literature in the field.
Utilising the methodological approach described by Cresswell (2009 p.23), the research proposed
the adoption of a study which included member checking, clarification and rich descriptions.
Finally, the author engage with flexibility to ensure that the research process as a whole was
scrutinised. These have all been highlighted by Willig (2013 p.22) as important to ensuring
validity.
3.12. Reliability
Reliability stands as one of the most crucial elements that any research study should
address. Reliability or rigor is the consistency with which a tool of measuring a variable can be
relied upon. If the consistency of a tool is high, it is always more reliable and the converse also
applies (Polit & Beck 2008 p.34). There are three main aspects entailed in testing the reliability
and they include, equivalence, internal consistency and stability. One of the means used to adopt
the results is triangulation and was developed to specifically serve in this role. In triangulation,
multiple data collected from numerous sources is checked and rechecked. Fellow researchers are
called upon to check the data in question while at the same time making secondary conclusions in
order to make supporting arguments on the data. In order to ensure the consistency, similar
questionnaires were given to all the interviewees and similar time spans were allowed for each
person.
3.13. Limitations

38
The limitations to this literature review are that no new information is being collected and,
as such, the researcher is reliant on existing information. If there is limited information on
inventory management strategies, then this may negatively influence the quality of this paper.
However this researcher is confident that an abundance of literature currently exists in the field.
Another potential limitation is the fact that the researcher is relying partially on other people’s
research which may be subject to bias or misinformation. In order to address this potential
limitation is by ensuring that all research is cross-referenced and checked with multiple sources to
determine validity and reliability of the information collected. Another limitation could come from
the bias in information provided by the interviewees as personal attitudes could have led to
incorrect data.
3.14. Feasibility
A major strength of this study is in the fact that it is highly feasible, because as a literature
review it is dependent on desk research rather than on participants. In order to enhance the
feasibility of the study, enough time was dedicated to comprehensive review of the literature in
the field, analyse the data collected and assess the value it has to the research objectives. In
ensuring that enough time is provided for the researcher to carry out an extensive search for
pertinent literature, it helped to heighten the feasibility of the study and the quality of the results.
The time given to interviewees was also quietly extended, given only six questions were to be
answered in a duration of 15 – 20 minutes.
3.15. Chapter Summary

39
This chapter set out to explore the methodology this author used to use the study. It outlined
the research objectives and research questions, before exploring the value and pertinence of
research in general. The chapter then sought to examine and document the type of research this
author was using before analysing how the study’s validity and reliability was maximized. Finally,
this chapter explored the potential limitations of the study and its overall feasibility. The next
chapter explores the findings, analysis and evaluation of the results obtained through the interviews
and the findings of the literature analysis of methods used in inventory management in Ireland and,
more particularly, with regard to retail supply chain especially the groceries.
3.16. Conclusion
The research on how to implement inventory management strategy in retail supply chains
in Ireland entailed a number of methods. While secondary material from journals, books and
scholar cites played a huge role in influencing the results collected and discussed herein, there
remains a wide array of ideas to be sorted out. The last part conducted analysis of the methods that
would be used in future studies and which would categorically have proven useful if they were to
be implemented. The validity, feasibility and reliability of the results was ascertained by
exploration of many sources and involvement of the participants working in the retail chains. A
number of methods towards implementation were found and will be evaluated in the discussion
section.

40
CHAPTER FOUR: FINDINGS, ANALYSIS AND EVALUATION
4.1 Introduction
This chapter is set forth to analyse the literature regarding how to implement inventory
management strategy in retail supply chains in Ireland. The technological applications which can
be utilized to make the implementation will be highlighted as per the findings of the literature
analysis done herein. The interviews conducted also offered important data and reflections on the
retailers in Ireland. The areas of importance were discussed and thorough analysis conducted.
Upon analysis of the literature related to implementation of inventory strategy in retail chains
there were several findings on which this section seeks to elaborate.
4.2 Regular Use of Supply Chain Network Optimization Tools for Tactical Planning
According to the literature and the responses of the interviewed individuals, it was noted
that there is a need for optimized tools at a strategic level to facilitate the redesigning of the
entire grocery supply chain in Ireland. In Ireland, the redesigning by many firms, occurs at an
interval of five to three years. In fact, the literature specified that there are huge changes
happening in the retail market over recent years. Sometime it is the emergency mergers and take
overs that mitigates the changes. More importantly, they are the optimization tools used which
incorporate technological advances in their operations. The strategical tools are not only essential
when applied strategically, but also when used as a tactical tool. This hybrid utility enables is not
only beneficial in the current world due to globalization, but also because of the dynamism in the
market and change of consumer trends. The literature was categorically clear that establishing
changes in the supply chain could be a slow process and more so when it entails making

41
adjustments at high levels. However, the changes in the supply chain are as fundamental as the
essence of existence Way over the top. The optimization tools are important in the supply chain
as they will be useful in telling 1. The product to source and the oriented-market, 2. The existing
trade-off between the transportation logistics and the optimal trade-off. 3. The direction of
product flow in the market. For example, Tesco Ireland and Dunnes stores, the two largest
supermarket stores in Ireland, would benefit greatly via use of optimization tools. Employees in
both companies insisted on use of strategical tools as they felt they would be an extra injection
into the company.
One of the most important aspects of using optimization tools is the ability to produce
results using the tool. If hired, upon completion of a decision making plan, the software becomes
part of the routine appliances of the company. In a common trend, the market has seen vendors
dealing with software, creating and distributing software for hire and providing retailers with
personnel to assist in installation and consultations. With Ireland situated at the centre of
developments in technology in Europe, the literature clarifies the need for involving strategic
development in inventory management in retail trading.
4.3 Use of RFID as Enabling Technology
The growth of the retail market in Ireland has necessitated the utilization of a technology
that provides sufficient access to continuous intelligent control and planning constructs to bring
about a perfectly operative supply chains. Via the utilization of RFID, it will close the niche
between the occurrence of an event and the correction time. When used in conjunction with
Electronic Product Code Global (EPCglobal), RFID would help retailers both at the consumers’
end and the main distributors in accessing real-time information, perhaps more than the

42
traditionally used barcodes. As such, the points from which information can be obtained span
across all the users in the distribution chain.
In 2015, the use of RFID was found to be increasing rapidly at a sporadic pace in the
industry. In Ireland, the cost of RFID was found to be estimated unusually low. Due to its
versatility, the technology demand is rising and usage across all levels in the supply chain and,
more importantly, in developing solutions to technologically accompanied problems. The main
problem with use of RFID technology in the increase of availability of information, is that it is a
tandem technique for implementing inventory management strategy in retail supply chains in
Ireland.
According to Tajima (2007 p.1), the use of RFID in the supply chain is at its initial stages
and with time, the information processing in the chain and the workflow can significantly
increase.
The interviewees from Tesco and Super Valu insisted that use of RFID would
significantly strengthen the efficiency of the supply chain.
4.4 Building Supply Chain Relationship
According to multiple reports, with some taken from polls on traders conduct in Ireland,
the need to have good relationships amongst members of the supply chain has been repeatedly
highlighted as one of the most fundamental aspects of implementing strategy management in the
nation. The interview conducted with workers in the firms working in this line also highlighted
the need to establish positive relationships with customers (see Appendix). Tesco’s trading
Responsibility Report in the year 2010, published comprehensive coverage of the means of
building proper coordination with grocery distributors, playing up such products as bananas, rice,

43
citric fruits and meat products as the main areas of focus since their sales were far reaching. A
report did not only centre its attention in products produced in the nation, but also the imported
produce from other United Kingdom countries. In the year 2013, The Daily Mail published an
article criticizing top ranked members in the supply chain for discrediting the importance of
suppliers in favour of profits. An example was Tesco Retailers who require suppliers to pay £30
for every product to be placed on the shelves of retail stores, an amount that could go up to
£18,000 considering there are nearly 600 stores across the Republic of Ireland. However,
according to Tajima (2007 p.1), suppliers should be highly regarded as they play a huge role in
the distribution chain. As such, the experience of the customers in the retail chains becomes
highly enhanced. When the customers have good rapport with retailers, they enjoy a feeling of
understanding and can reciprocate making implementation of inventory management strategy
more smoothly in retail supply chain.
4.5 Chapter Summary
The results obtained from the interview integrated in the chapter with literature data
contains the main information gathered. Although the chapter did not cover all requisite areas,
the main information was included. It was observed that use of planning tools, incorporation of
technology and elevating customers’ relationship are the main areas to be addressed by operators
in this line of operation in Ireland. Another feature that came out entails application of planning
and optimization tools in tactical inventory management.

44
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
Upon clear reflection of the literature incorporated and the interviewees’ responses, this
chapter provides the conclusion of the project findings and make some recommendations for
retailers in the grocery industry in Ireland.
5.2 Recommendations
The problems which exist in the retailers’ inventory management are the basis for the
implementations of select mechanisms in the chain. Evaluating literature and focusing on further
developments expected in the supply chain, the following recommendations are outlined to
improve effectiveness of coordination between different elements. The recommendations below
are specifically suited for retailers plying their trade in Ireland, but alterations could be made to
adapt them to another nation with situations similar to those in the subject nation.
1 Irish Grocery Sector retailers and stakeholders should have technology advances and all
the useful ICT implementations in place, including use of RFID technology, Enterprise
Resource Planning (ERP) and Electronic Data Interchange systems. This will create a
solid understanding of the subject components, while observing the principal issues in
inventory management.
2 Irish grocery sector retailers should build a good relationship between the customers and
the suppliers. Since information flow is one of the factors that defines the effectiveness of
a supply chain, interacting with different parties could prove important as distribution of
data can impact inventory flow and storage.

45
3 Irish grocery sector retailers should identify the quality and quantity demanded in the
market to ensure the influx is not more than the out flux. The most important aspect
should be identifying when to apply manual determination and automated determination
of stock requirement.
4 Irish grocery sector retailers should establish the right technology to minimize cost and
maximize earnings as that is the most important aspect of a comprehensive inventory
management strategy.
5 Irish grocery sector retailers should embrace a future expansion mentality in selection of
the inventory management strategy well as the technology and software choices.
Interchanging the technologies and techniques would be good, but adopting the ones that
have been tried and recommended should prove the best path for retailers.
6 Irish grocery sector retailers should embrace On Shelf?? Availability (OSA).
Mechanisms such as supermarkets and other large retailers have already gained
significantly from deployment of the technique.
5.3 Identification of Opportunities for Further Research and Development
Be it as it may, there is much to discuss under this topic. The methods identified and
utilised in this research paper were exclusively partial secondary and partial primary. The
secondary data used could have been too old and easily misleading. Additionally, the use of
interviews could have limited the extent of comprehensiveness, as the interviewees could have
concerns of exposing themselves in the spotlight, regardless of their confidentiality being
safeguarded. In future studies, the likelihood of accomplishing more conclusive research is
higher than it is now.

46
The researchers conducting future studies should avoid overreliance on qualitative data
and consider the weight that comes with quantitatively analysing the importance that comes with
implementation of the inventory management strategies in the retail supply chains in Ireland.
This dissertation would also encourage future studies, while integrating both qualitative as well
as quantitative methods in the study to dissect the areas of concern under the inventory
management strategies. Such methods that would be recommended are use of statistical analysis
to evaluate the cost benefits of having the implementations in place. Additionally, use of
observational research would be paramount, as it helps to perceive the running of the stores in
real-time. Furthermore, the use of more samples would help to increase the validity of the results
obtained from the research study.
5.4 Conclusion
In conclusion, the reality at ground state is that the Ireland is experiencing a transition
towards advancements in a supply chain in unprecedented global development. The literature
suggests the need for numerous changes in the way retail stores operate in Ireland. The literature
review section highlights many unresolved challenges in the supply chain. Consequentially,
nearly all the stakeholders ranging from consumers’ end to the production point, need to be
involved in the establishment of better policies. The introduction of new technologies and
network optimization tools are among the necessary efforts to facilitate developments in the next
era of retailing in Ireland. The importance of adapting technologies have been emphasized in the
majority of the literature covered in this dissertation.
Essentially, there are numerous factors that influences the mechanisms to be employed.
The complexity and the size of the supply chain in Ireland makes the need for adopting the

47
strategies espoused herein. Of course, the application of technology accompanies a wide array of
challenges but in overall reflection, the benefits outweigh the problems. For all the stakeholders,
inventory management will require deployment of simple but effective tools and techniques. The
need for change in inventory management in the nation cannot be undermined under any
grounds, but caution must be taken to ensure the strategies put in place maximize both
consumers satisfaction well as the suppliers in the chain.

48
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