ABSTRACT This study focused on the impact of inventory management on organization effectiveness. The study was guided by the following research objectives which were to identify inventory management practices employed by organizations, to examine the problems encountered in the use of Inventory Management Techniques and to establish the relationship between inventory management and organization effectiveness. The study used Uganda batteries Ltd as a case study; the study used 60 respondents from whom data was collected. The researcher used questionnaires in collecting primary data. The key findings of this study were that company used various technique and systems to ensure inventory management and these have greatly enhanced its effectiveness in a number of ways as earlier mentioned. For instance, economic order quantity system has facilitated automation in addition to the manual method of handling stock though the disadvantages was that this method was too slow and exhaustive since it involved double handling of stock.