The study on the Impact of Stock Management on organizational success was conducted in Mukono district using Rwenzori Beverages (U) Ltd as a case study. A total of 30 respondents were selected as representative sample departments of purchasing, production and stores.

The objectives of the study were, to establish the inventory management systems and techniques in place, to find out the costs associated with holding stock in an organization, to establish the measure of success in an organization and to establish the relationship between stock management and organizational success

The findings indicate that Rwenzori Beverages hold stock. The findings reveal that there is formal stock management and several techniques are applied to manage stock which includes stock taking and inventory level tracking.

The research further reveals that many factors combine to bring the organizations success a reality. These according to the research findings are; total cost reduction, increase in daily sales and sales turnover, reduced waste, customer satisfaction and profit levels. Stock Management has got a big impact on the success of an organization. Therefore organizations need to put enough emphasis on the stores department

The research forwards some recommendations such as;

Costs: Management needs to be aware that there are a number of costs directly or indirectlyattributed to stock. These costs range from acquisition, storage and disposal costs. These costs need to be eliminated to absolute minimum.

Monitoring and evaluation; Precautionary measures therefore need to be put in place toguard against certain occurrences such as fire and theft. The researcher also put forward areas for further research and these are;

1.      Procurement and materials acquisition and organizational efficiency

2.      the relationship between stores department and other departments

This chapter covers the background of the study, statement of the problem, objectives of the study, the scope of the study, significance of the study and the operational definition of terms.

Many organizations in Uganda that do not have proper stock management systems in their operations face a lot of challenges most of which include dependency on the efficiency of the supplier, missed sales incase of stock outs, high costs of obtaining materials and poor customer service. However, organizations have recently found it as having a great impact on the success of the organizations (Frazelle, 2002; Jessop, 1986). Good stock management by a firm will lower costs, improve efficiency and ensure production while at the same time meet fluctuations in customer demand. It will give the firm a competitive advantage as more efficient production can feed through to lower prices and also customers are always satisfied as products will be available on demand.

Stock management has been defined by different scholars but all drive to the same meaning. The international dictionary of management (1995) defines stock management as the use of management techniques designed to determine and implement the holding of optimum levels of stock, whether raw materials stocks, bought out goods, work in progress, or finished goods. Stock availability is the most important aspect of customer service. The goal of stock management is therefore to increase financial returns on inventory while simultaneously increasing customer service levels (Frazelle, 2002).