This research looked at the effectiveness of computerized inventory management in the manufacturing industry throughout the world as well as in Zimbabwean organizations. Just like all organizations world wide Zimbabwean organizations are also striving for excellent performance in order to be globally competitive. Technology has caused transformations in the organizational environments over the past years and computerization is needed to ensure that an organization is operating at maximum capacity to deliver effectiveness and efficiency in the operations and activities Johnson ( 1995). Thus organizations in the manufacturing industry mainly use fast moving stock items which need to be distributed to the user departments quickly because they are critical stocks that could hinder productivity so these stocks are vital to ensure continuity in production.
This chapter therefore gives the statement of the problem, research questions, purpose and significance of the study, conceptual framework, assumptions, limitations and delimitations of the study, acronyms and definition of terms and background of the study.
Background Information to the study
Mega Pak Zimbabwe Founded in 1993 as a joint venture between Delta Corporation Zimbabwe and Nampak South Africa, Mega Pak Zimbabwe is now a leading manufacturer of plastic packaging products. Mega Pak produces a diverse range of plastic products, which includes crates, drums, tanks, bottles and closures supplied by two plants in Ruwa. The organizations quality management system and skills in injection moulding, stretch blow moulding, blow moulding and rotational moulding, as well as the backing from the Nampak group, keeps them at the forefront of packaging technologies. Megapak is ISO 14001 accredited and Green Band rated by Coca-Cola. Mega Pak serves the following markets:
• Carbonated soft beverages
• Beer and sorghum beer
• Alcoholic beverages
• Edible oils
• Chemicals
• Water
• Detergents
• Bakery
• Meat and poultry
• Cordials
• Paint
Not only do they supply numerous leading local brands, Mega Pak also exports to SADC and COMESA countries such as Mozambique, Zambia and Malawi.
Mission Statement
Our business is to manufacture and market a wide variety of packaging products. Our overriding objective is to grow total shareholder return in real terms on a sustainable basis. By so doing we will seek to enhance the value we create for all our stakeholders.

In five years, Mega Pak will transform into a highly efficient packaging company, offering total packaging solutions across a wide variety of market segments. We will strive to be number one in all market segments we choose to play.

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• Integrity, honesty and discipline
• Fairness, equity and respect for the individual
• Commitment and accountability
• Quality and customer orientation
• Open-mindedness and open-heartedness
Origination of the problem
Employees, mainly from the stores department have been facing major problems and drawbacks due to the present inventory system. Inventory at Mega Pak is managed by use of the computerized system as well as the manual way. The various inventory management activities conducted at Mega Pak are costing of stocks, raising online requisitions, raising GRV’s just to mention a few. A computerized system has been employed to aid in the day to day activities of the organization. The system currently installed at Mega Pak is the SYSPRO system. The system has some challenges and limitations that employees face when using it therefore this research is triggered by these challenges which deprive the SYSPRO system from being used effectively and efficiently.
Past Research Studies
A research termed, ” Impacts of computerized Management Process of stocks in Building Material Firms” carried out in ASIA (BRASIL) by Vanessa Ramos Da Silva and Graciela Dias Coelho Jones { European Scientific Journal May 2013 Edition} pointed out that many organizations in Brasil have sought out solutions to help them stay competitive and market their material. The study focused on analyzing the impacts of computerized inventory management on the effectiveness of inventory movement and this was done using the qualitative approach. The research assessed that manual management of inventory had some advantages such as it did not have to depend on other external factors such as power supply or internet connection for use of recording products in stock. However the research pointed out noteworthy the benefits of using computerized management systems and these advantages include, stock query to find stock levels was much faster, inventory was controlled through journal reports, close monitoring of products incoming and out going among other advantages.
A research termed ” an assessment of the factors influencing Effectiveness of Inventory Control” carried out in Europe {London} by Philip Ranger {international Journal of Business and Commerce} focused on finding the effectiveness of inventory control and the findings revealed that frequent stock outs and delays in procurement of goods were some of the effects of long bureaucratic procurement procedures. According to the study inadequate and untimely dispatch of funds has an effect on inventory control. The study also revealed that unavailability of stationaries and stores records, lack of skilled and well trained staff hinders effective performance however this research excluded that fact of computerized inventory management systems as a factor contributing to effectiveness of inventory control.
Another research termed ” computerized Inventory Management for a Manufacturing Industry”. A case study carried out in Africa {Nigeria} by Emmanuel Seye Owoeye African Journal of Science, Technology, Innovation and Development 2014 Edition reflected that inventory management is the act of keeping track of quantity of material and number of items that should be present in inventory at all times. Over the past years inventory managers have been operating inefficiently and ineffectively because of use of manual systems of control. Questions arose from how to monitor inventory? , how much should be ordered an when? Just to mention a few. The research suggested and recommended the implementation of computerized inventory system to help improve effectiveness of all activities performed at the Stores department.
Statement of the problem
The research problem has been triggered by the fact that end users of the SYSPRO system face major drawbacks such as unnecessary time consumption due to the limitations associated with using the SYSPRO system. This also leads to the stores people failing to meet set deadlines, high frequency in stock variances between figures in the SYSPRO system and those physically on the ground. Failure to effectively use the system leads to an increase in the amount of work to be done.
Research Questions
1. Does the organization consider effective inventory management?
2a. Does the SYSPRO system bring advantages and disadvantages to the organization?
2b. to what extent do the limitations affect the effectiveness of the SYSPRO system?
3a. what can be done within the stores department to improve effectiveness of computerized inventory management?
3b. if improvement is not possible what will be the alternative aimed at improving effectiveness.
4 if the alternative is change, will it give a supporting contribution to effective inventory management.
Ho= there is no significant relationship between the effectiveness of computerized inventory systems and performance of the organization
Purpose of the study
This study aims to analyze the extent to which computerized inventory management contributes to effectiveness of inventory control and determine problems that attribute to it and recommend solutions to deal with the problems.
Significance of the study
This research should highlight benefits and importance of computerized inventory management and will benefit various institutions
1. Significance to the instituition: this study will stand to benefit Mega Pak in the sense that inventory control will be made more efficient and effective. This study seeks to highlight the advantages and disadvantages that are acquired by use of computerized inventory systems. Employees will be able to carry out tasks easily and effectively.
2. Significance to the academic world: this research is going to stand as a point of reference in the academic sector not only in Zimbabwe but the world over. It will help other researchers on the issue or maximizing efficiency and effectiveness in the manufacturing industry.