| Summary: | Automobile firms have deployed delivery of quality after-sales service as strategy to stay ahead of competition through genuine reasonably priced inventory of spare parts. The provision of spare parts in the automobile industry to match the required service level come with the challenge of forecasting accurately what spare parts would be needed at what time. Forecasting for spare parts with erratic failure and limited demand history results in mismatch between what is ordered and what is needed by customers, overstocking and obsolescence. Huge capital is locked up in the wrong type of inventory. The objective of this study is to assess whether the company could save cost through effective inventory management. The research which was a case study employed the means of both quantitative and qualitative research techniques, targeting all members of staff of the company from the parts department, workshop, audit, and accounts that have responsibilities with inventory management. Poor communication among major stakeholders as well as lack of expert consultation, coupled with attempts to forecast products with stochastic demand resulted in the company’s inability to match imported parts with customer needs. Also lead time management was identified as a major issue. The study recommends that, JMTC encourages effective communication and consultation between management, inter and intra departments to facilitate knowledge sharing and synchronize ideas to improve productivity and to consider ordering only parts with deterministic demands records. They are to consider the use of Radio Frequency Identification Device (RFID).
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