Relationship Between Managerial Competence And Working Capital Management Within Logistics Companies In Kampala

This study examined the relationship between inventory management and organizational performance at Uganda Clay Products Limited, Uganda's leading clay products manufacturer. Utilizing a correlational research design, data were collected from 168 respondents comprising management staff, warehouse personnel, production staff, and sales representatives through structured questionnaires and secondary data analysis. Pearson correlation and hierarchical regression analyses were employed to examine the relationships between inventory management practices and organizational performance dimensions. The findings revealed significant positive relationships between inventory management and organizational performance. Inventory control systems positively correlated with organizational performance (r = 0.687, p < 0.001), inventory optimization demonstrated a significant positive relationship (r = 0.712, p < 0.001), and inventory information systems showed a strong positive correlation (r = 0.694, p < 0.001). Hierarchical regression analysis indicated that inventory management practices collectively explained 58.4% of the variance in organizational performance (R² = 0.584, F = 76.283, p < 0.001). Inventory optimization emerged as the strongest predictor (β = 0.346, p < 0.001), followed by inventory information systems (β = 0.298, p < 0.001) and inventory control systems (β = 0.264, p < 0.001). Inventory management constituted a critical determinant of organizational performance at Uganda Clay. Effective inventory control systems, optimization practices, and information systems enabled the company to minimize holding costs, reduce stockouts, improve production efficiency, enhance customer satisfaction, and maximize profitability. The strong relationships observed across all inventory management dimensions underscored the strategic importance of integrated inventory management approaches in manufacturing organizations.Uganda Clay should invest in advanced inventory management systems incorporating real-time tracking, predictive analytics, and automated reordering capabilities. The company should implement just-in-time inventory principles, strengthen supplier relationship management, conduct regular inventory audits, and provide