TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1
BACKGROUND
OF THE STUDY
1.2 HISTORICAL BACKGROUND OF THE STUDY AREA
1.3 STATEMENT
OF PROBLEMS
1.4 OBJECTIVES OF THE STUDY
1.5 SIGNIFICANCE
OF THE STUDY
1.6 RESEARCH
QUESTION
1.7 RESEARCH
HYPOTHESIS
1.8
SCOPE OF THE STUDY
1.9
LIMITATION OF THE STUDY
1.10
DEFINITION OF TERMS
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 MEANING
OF PURCHASING
2.2 THE IMPORTANCE OF
EFFICIENT PURCHASING IN A MANUFACTURING ORGANIZATION
2.3
NEED
IDENTIFICATION
2.4 THE RIGHT QUANTITY
2.5 THE RIGHT QUALITY
2.6 THE RIGHT PRICE
2.7 THE RIGHT TIME AND PLACE
2.8 THE RIGHT SOURCE OF SUPPLY
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1
INTRODUCTION
3.2
THE RESEARCH DESIGN
3.3
THE QUESTIONNAIRE DESIGN
3.4
POPULATION OF STUDY
3.5
OTHER METHOD USED
3.5.1
APPLICATION OF INSTRUMENTS
3.5.2
OBSERVATION
3.6
DATA SOURCES
3.6.1
PRIMARY DATA
3.6.2
SECONDARY DATA
3.7
DATA ANALYSIS METHOD
CHAPTER FOUR
4.0
DATA PRESENTATION, ANALYSIS AND
TESTING OF HYPOTHESIS
4.1 INTRODUCTION
4.2
ANALYSIS OF DATA
4.2
TESTING OF HYPOTHESIS
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 SUMMARY
5.1 CONCLUSION
5.3 RECOMMENDATIONS
REFERENCES
APPENDIX I
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Purchasing is concerned with the
“process of defining the organization needs, selecting suppliers, agreeing
terms, placing order and receiving goods and services. It is by it’s nature of
service” function oriented to providing a complete supply service for users
within the organization.
Purchasing according to Oyeoku (1993)
is referred to as function of business that enters into contracts with the
organization suppliers and the final places orders with them. Where the
function of procurement is emerged with that of store, the receive and pay for
the goods and service in other to receive on behalf of the organization.
purchasing can also be define according to oyeoku (1993) as the act of
accomplishing through identifying and comparing the suppliers as well as their supplier that are
available to organization through the process of negotiation with the
sources available to them with sole
intention of arriving at an agreed term in order to limit cost and improve the organization profit.
According to Lyson (1984) he defines
organizational purchasing as that function that is responsible for obtaining by
purchase, equipment, material, lease or other legal means, supplies and service
required by an undertaking for production use.
In this definition, the word
purchasing has been used in an economic sense of definition the function of
creating utilities goods and service that satisfy human wants.
Purchasing does not confined to
manufacturing output but also applied to even distributing, and services
organization.
The importance of efficient
purchasing to manufacturing organization cannot be over- emphasized,
‘that is’ it is to created efficient supply of
equipment, fuel raw materials, component, power and other consumable
service for use by industries.
Long ago buyers where employed to buy
production material without a proper research on market to obtain the right
quality at the right price, and with a high increase of profit to organization.
Today purchasers are trash to have
organization need in an efficient economical and wiser from for equipments to
organization. This approach was only successful when services or goods are not
many substitutes, when there was an abundant material and when many managers
took resources for granted.
According to Baily (1987)
organizational purchasing is the process
by which organization define the needs
for goods and services, and compare
the supplies and suppliers available for them, and arrive at agreed terms of trading and make
contracts and place orders, also accept, revise and pay for the goods and
service supplied.
The numerous diverse item that are
constantly needed and when the quality of material influences the cost of
manufacturing the final product, then an organization purchaser function becomes particularly very
important and this demand close attention.
Therefore manufacturing organization
should realizes the fact that the buyers is the custodians of organization
purser and hence economists are derived purchasing provide direct saving on
cost and contribute to cash increase flow
According to the institute for supply
management purchasing is defined as a major function of required material
service and equipment.
1.2 HISTORICAL BACKGROUND
OF THE STUDY AREA
A case study of Nigeria bottling
companying coca-coca plot 82 industrial layout transamdi PH The Nigeria bottle company also know as
coca-coca situated at 82 plot industrial layout transamdi (ph) manufacture training of soft drink generally called
coca-coca product and produce Eva water ,the soft drink are in both cans and
bottle. the company are manager by professionals and expertriates with wealth
of experience, the class range of the company is from professional to the
casual workers, the product from the company have been approved by NATIONAL AGENCY
FOR FOOD,DRUGS ADMINISTRATIVE AND CONTROL(NAFDAC) the company have varieties
of product in the Nigeria market.
1.3 STATEMENT OF PROBLEMS
In recent years, it been notices that
purchasing has not been accorded the statue which it deserve in organization.
The major problem lies on the fact
that in an organization everybody wants to buy in purchasing decision. It is
also surprising that departmental manager or heads contract for the purchase of
raw material even as furniture and the general manager apart from the part
he play when capital items are concerns
is interested to know the particular vendor to whom the contract is awarded to
the selfish interest.
Company executives are not convincing
of the procurement or service of an efficient and effective service render by
purchasing department and the full benefit through purchasing department.
In some manufacturing the purchasing
departments is not constituted with qualified people and therefore are not
competent enough to tackle the trends in purchasing function.
1.4 OBJECTIVES OF THE STUDY
The researcher undertaking the study
of the importance of efficient purchasing in manufacturing organization.
It highlight the functions of
purchasing which centers on the co-ordination and control of material costs and
maximizing profit therefore the purpose of the study with special interest and
the manufacturing organization is narrowed down in the following point .
1. To examine the caliber of staff employ for the performance of
purchasing function.
2. To ascertain the extend the
purchasing important have been adopted
3. To find out purchasing contribution
of profitability and efficient running of the organization.
4. To stress the importance of
purchasing in a manufacturing organization
5. To find out the relationship between
the purchasing and other department
1.5 SIGNIFICANCE OF THE STUDY
The
importance of the study lies on the profitability contribution of the
purchasing function to a firms operation especially in a manufacturing
organization where material and service account for about 85% of its total
input as it know that 4%saving in purchasing
can contribute the same amount and mark-
up of 20% on sales.
The significance of the study derives
the usefulness in the following ways.
1. To the company, it will highlight
them on the impact of purchasing in profitability.
2. Students or anybody that does not
have an idea of the role of purchasing function and it’s contributions to
profitability. If come across this project will also gain and have the
knowledge as well. And also use this project as a research book
3. Finally, It is hoped that the
findings and recommendation will help other organization to begin to accord
purchasing and supply function recognition if they must make profit.
1.6 RESEARCH QUESTION
In the bid to achieve the objectives
of this research work, the following research questions will be treated, thus;
1. Does the role of the purchasing
agents enhances the organizational needs for selecting suppliers, agreeing
terms placing orders and also receiving service?
2. Does the role of purchasing regarding
to negotiation of the right price for the goods influences the productivity of
the organization?
3. Does the function of purchasing
involve ensuring that goods arrived at the right time and place?
4. Is effective purchasing power
necessary for the purchase of raw materials used in the manufacturing
industries?
5. Does efficient purchasing ability
promote the profitability and productivity of a manufacturing organization,
6. Does purchasing ensure good source of
supply?
7. Do purchasers help in the evaluation
of potential supplier before dealing with them for agreement into continuous
supply of material to the organization?
1.7 RESEARCH HYPOTHESIS
In the course of this research work,
the following hypothesis will be tested, thus
Ho: There is no significant relationship between
effective and efficient purchasing ability and the profitability of
manufacturing industries.
HA: There is significant relationship between
effective and efficient purchasing ability and the profitability of
manufacturing industries.
1.8 SCOPE OF THE STUDY
The scope of this researcher work
comprises all the factors that ensures efficient purchasing within the
manufacturing organization. For the sake of coherency, specification, and
distinctive, the study has chosen as a case study the Nigeria Bottling Company
coca cola plot 82 industrial layout transamadi Port Harcourt though the
findings can vividly and validly be applied to all the business organization at
large.
1.9 LIMITATION OF THE STUDY
The important limitation on this
research factor is the time involvement in gathering facts and compilation
especially the examinations the researcher are having other factors include
financial problem, lack of text books and as well as the attitude of respondents
in dividing information term as “classified”
1.10 DEFINITION OF TERMS
It is pertinent to state here that
words have meanings and there meanings are different according to their usage
either directly or indirectly
SPECIFICATION
This show the details description of
service materials, parts and components to be used in manufacturing
organization
PURCHASE REQUISITION NOTE
This is a document used by an
authorized person in a company requesting the purchasing department to order or
purchase particular items, materials stating the require quantity and quality
LOCAL PURCHASING ORDER [LPO]
A document used by a buyer to the
supplier for ordering the supply of specified goods and service are generally
specifying the quantity required and the price.
QUALITY ASSURANCE SCHEME
This means the process involved in
ensuring that right quality materials are obtain in carrying out purchasing
activities.
VENDOR APPRAISAL
This is act of assessing the supplier
capability to comply with organization specification.
QUOTATION CHART
This is a chart that shows supplier quotations
on how they are evaluated and in most cases it also show the supplier that won
the contract.
GOODS RECEIVE NOTE [G.R.N]
This represents a document that shows
the receipts of goods from a supplier
SUPPLY MARKET
This show the means on how different
sources of supplier desire can be selected
SUPPLY MARKEY RESEARCH
The process of examining the actual
and potential sources which constitute a supply market.
SOURCING
This entails a proper identification of suitable source of supply or
supplier
CONTRACT
This refers according to the study
that show the agreement reached by an organization purchaser and the supplier
for supply of material component.
Login To Comment