EVALUATING THE INFLUENCE OF MATERIAL HANDLING AUTOMATION ON PROFITABILITY OF MEDIUM-SCALE MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA

Terry Noelline Muhati, Dr Isaak Mokono Abuga

Abstract


Efficiency and profitability are key concerns in the manufacturing industry, particularly for medium-scale manufacturing firms in Nairobi County, Kenya. The study assessed the influence of material handling automation on profitability and it was anchored in Reesource-Based View Theory. The research aimed to analyze the impact of stock control on profitability. This study employs a descriptive research design, with a sample size of 309 respondents. Through a robust methodology including both primary and secondary data collection through questionnaires, interviews, and analysis of previous reports, the research explores specific indicators and emphasizes ethical considerations, ensuring originality and confidentiality. The findings from this research are expected to shed light on practices that could be optimized to enhance the profitability of medium-scale manufacturing firms in Nairobi County, and potentially, the entire Kenyan manufacturing sector. Our findings indicate that material handling automation emerged as a game-changer, significantly improving operational efficiency, reducing labor costs, and enhancing inventory management. This automation also fosters adaptability to market changes and contributes to workplace safety, ultimately bolstering financial success. The study's conclusions affirm that automating material handling practice is fundamental to medium-scale manufacturing firms' profitability in Nairobi County. It is recommended that firms in Nairobi County invest in material handling automation. The practice has been proven to streamline operations, reduce costs, and enhance profitability.

Keywords: Material Handling Automation, Profitability, Medium-Scale Manufacturing Firms


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