Abstract

This chapter contains the background of the study, statement of the problem, purpose of the study and the objectives of the study, the scope of the study and the justification of the study. 1.1 Background of the study The Group’s headquarters are located on Mukwano Road in Kampala, Uganda’s capital city. The coordinates of the company headquarters are:OO 18 50N, 325923E (Latitude:O.3 137; Longitude:32.5923) The group has manufacturing facilities and assets in Masindi District, Lira, and Kampala in Uganda, Mombasa in Kenya and Dar-es-Salaam in Tanzania, among other locations. The group was established in 1986, although it did not start operations until 1989. Today, the group is involved in five (5) main areas of business. These include manufacturing, Agriculture, Bulk storage and shipment, Real estate investments, Cargo clearing and forwarding. This industry also has different departments like marketing, human resource, transport, sales, production and procurement and all these departments a being headed by different managers. Mukwano has embarked on developing strategic partnerships with the farming communities. These activities which include extension services and a guaranteed market for farmers’ produce, will positively impact poverty alleviation. Currently, Mukwano is the largest buyer of cottonseed, sunflower, Soya beans, sesame seeds and green tea from out-growers in Uganda and has commissioned a modern oil mill in Lira — Uganda, in close proximity of the farm locations The Group also has substantial investments in commercial crop farming in Masindi Port of The Masindi District In Uganda. Cultivation blocks for crops such as maize, Soya and Sunflower have been created in a total area exceeding 17,000 acres. Today the most compelling changes facing most industries in Uganda and in the world at large is how to manage their inventories, yet inventory management is the active control program which allow the firms to manage their manufacturing of goods, marketing, sales, payment, purchasing.