MJAMR

Stock Controls On Management Of Costs In Organizations. A Case Of Mukwano Group Of Companies.

Nakalyango Hildah, Dr Arinaitwe Julius


Abstract

This research paper aimed to investigate the role and impact of stock control strategies in managing costs within organizations using Mukwano Group of Companies, a leading manufacturing conglomerate in Uganda, as a case study to analyze how effective stock management strategies could have helped reduce inventory holding costs and optimize operational efficiency. By implementing comprehensive inventory control techniques to regulate stocking levels, monitor consumption patterns, minimize overstocks and outdates, conduct regular cycle counting and reconciliation, leverage automated re-order alerts and stock takes, and analyze overall stock-turnover rates, companies were better positioned to lower their costs of carrying excess or obsolete inventory, avoid shortages that disrupted production schedules, and ensure value-adding resources were deployed most judiciously for optimal return on investment. At Mukwano Group, which consisted of over a dozen manufacturing units across several sectors, understanding current stock control procedures across divisions and plants, examining areas where wastage existed, benchmarking leading global practices, and developing customized improvement plans tailored to each business line's requirements became crucial to strengthening governance over inventory, cutting capital locked in unnecessary stock, and freeing financial resources for other value-driving initiatives imperative for sustained competitiveness in the market. From the findings, there was a moderate positive relationship between stock planning and performance of utility organizations in Uganda, (r=0.607 p=0.000 N=58). The relationship was statistically significant at 95% confidence level since pvalue<0.050(=0.000). With a detailed case investigation and recommendations implemented, it was expected the company would have seen notable gains from an optimized stock control environment where critical metrics were constantly reviewed to drive sustained enhancements in working capital management, cost optimization, minimal downtimes, and overall productivity enhancement - outcomes important in the manufacturing sector's goal of maximizing value for all stakeholders involved in the process. Utility organizations should introduce tighter security for stock control so that theft, obsolesce, and vandalizing of inventories by staff is eliminated. This will ensure reduced cost on expenditure on inventories.

Keywords

Stock Controls Management Costs and Organizations
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Nakalyango Hildah & Dr Arinaitwe Julius (2024). Stock Controls On Management Of Costs In Organizations. A Case Of Mukwano Group Of Companies. Metropolitan Journal of Academic Multidisciplinary Research, 3(6). https://journals.miu.ac.ug/pages/article.php?article_id=1773

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