The research work
is basically concerned with the international procurement and its
justification. The research work covers the purchasing activities of Global
Soap and Detergent Industry limited Ilorin. International buying is the
procurement activities which involved source and obtaining needs or requirement
from a foreign country for use in another country. International trade is
particularly important to consumer in all nations. Nations trade in what they
produce most efficiently in an atmosphere of competitive world, resulting
increase standard of living for all people of the world. This research work is
divided into five chapters in order to aid a better understanding. Chapter one
is the introduction of the subject matter, statement of the problem of
purchasing in the company, scope and limitation. The historical background of
the company understudy. Global soap and detergent industry limited Ilorin and
the definition of terms. Chapter two covers the literature review especially on
books that are more useful and relevant to the project under study. In addition
to the literature review is definition on international buying reason for
growth in international buying problem of international buying justification of
international purchasing and relationshi6 of local and international buying.
Chapter three is based on research methodology instrument used for data
collection, population and sample size statistical method used in analyzing
data. Chapter four is the presentation and analysis the data used. Chapter five
contains the discussion of the summary of findings, conclusion and
recommendations and references.
TABLE OF CONTENTS
OF CONTENT viii
Objectives of the Study 3
Statement of the Problem 4
Scope and Limitation of the Study 5
Significance of the Study 7
Historical Background of study of the Case Study 8
Definition of Terms 12
Literature Review 15
Benefit of International Procurement 22
Justification of International
Hypothesis Formulation 30
3.0 Research Methodology 32
Instrument used for Data Collection 33
Population and Sample Size 35
Statistical Method used in Data
4.0 Presentation And Analysis Of Data 37
5.0 Summary, Conclusion and Recommendation 50
Purchasing as a subject and as a
business function has really come along way. In the past when material,
component part energy etc were abundant and available at ridiculously low
price, purchasing was not given proper chance to operate that is why
procurement was looked upon as having unimportant function.
However now that material is in
short supply there is generally on existence of what is called galloping
These result to high price of
material or unfriendly supply market. It will be very unreasonable for any
business firms and indeed government to ignore purchasing function.
With these reason purchasing
tends to play an important role in any business organization whether profit or
non profit oriented. In a nutshell, the project is about the need for a company
to involve international procurement.
To a layman purchasing means the
process of buying raw material, component part and service. But in a broader
sense procurement can be defined as the purchasing of the high quality of goods
at the right price from the right sources and delivered in good condition to
the right location and when required.
Procurement these days for
organization especially profit oriented company has become very difficult
because of the international operation involved. The company has to buy
international to make its product. This nowadays firms in African countries or
content can now produce their material requirement and service from few
distance sources in American continent.
The researcher case study of
Global Soap and Detergent Limited Ilorin will at the long run benefit in the
are of appraisal made by the researchers on how foreign buying activities are
accomplished. At the end of the research work, recommendation to solve the
problem can be employed by the company to improve its purchasing performance
especially in the area of international buying.
To the reader, especially non
professional colleagues knowledge concerning foreign purchasing would be gained
and various reason for foreign buying would also be gain.
To the professional colleagues,
how international buying is practically carried out in a company would be
learnt in addition to the theoretical knowledge gained in the classroom.
Finally, the society as a whole
has its share or benefit to be achieved from the project.
1.1 OBJECTIVE OF STUDY
The research work is of
importance to the researcher because if forms part of the requirement for the
award of Higher
Diploma in Purchasing and Supply in the Department of Purchasing and Supply
Institute of Finance and Management
The research study will attempt
to inform the organization under the study on the roles and immense
contribution of international buying.
However, at the end of the
research work, it would help to convince the management of Global Soap and
Detergent Limited llorin, that Purchasing contribution is essential the overall
corporate the organization lack of this may cause total collapse of the company
1.2 STATEMENT OF THE PROBLEM
The research study deal with
international procurement and its justification in a company. An international
buying involves more complex procedure relating to local buying. There is
tendency for some problem to arise during the practice. Among some problem
encounter by the company are how to locate foreign supplier, how to get
traveling document, licensed, importation duties. More so, fluctuation in
exchange rates, instability in rate of exchange is one of the problems
frustrating the industry in which the cost important becomes higher.
Lastly, the distance between one
nation and another may so great that it makes the cost of transportation high.
1.3 SCOPE AND LIMITATION OF THE STUDY
This research works will cover
buying for organization. Thus its scope will be based only on international
Also, the study will be
restricted to the chosen company Global Soap and Detergent Ilorin by analyzing
the various procedures involved in international procurement. The study will
start right from origin of needs and ends with clearing of the goods at what or
port of entry.
They researcher faced some
problems in the course of carrying out the research work, which range from
financial problem and time factors. The researcher was also denied some accessibility
to copies of various document use in the organization when sourcing abroad for
security purpose. Also the attitudes of the respondent create much problem.
Most of them schedule a time in which they will never be around whenever you
Lastly, the organization lack
purchasing library in which
data can be yet for the researcher.
- Theoretical Scope: this refers to the area to
be covered during the period of research work. The area to be discussed
shall be limited to purchasing and supply.
- Geographical Scope: The researcher shall offer
useful suggestions where necessary so that the organization could be able
to advice much for progress and make valuable contribution to see the
economic depression of this great nation.
- Industrial Scope: The researcher will focus
more attention on the purchasing department with particular reference of
Global Soap and Detergent Industry as regard their activities.
- Time Scope: This is where the
researcher would use his time to spend for collecting data from the
organization in order to get facts from them.
1.5 SIGNIFICANCE OF THE STUDY
If international buying is
effectively and efficiently carried out, it is possible to derive vital in gain
from it. Global Soap and Detergent llorin derives the following important from
1. Better quantity material: Material of best
quality are got from overseas due to their technological advancement.
2. Increase in prefer to buy foreign goods
because it is mostly cheaper when compared to local source because of lower
wage, longer runs, better product, better plant and some other important which
might at long run reduced the amount to be paid for the gods. In this wise,
this tends to increase the profitability of the company used as a case study,
Global Soap and Detergent Ilorin.
3. Better quality material spark parts,
component are got from international market.
1.6 HISTORICAL BACKGROUND OF GLOBAL SOAP AND DETERGENT
INDUSTRIES LIMITED COMPANY PROFILE AND CITATION
Global Soap and Detergent Industry
Limited is a member of the Doyin Group of Companies and the first indigenous
company licensed to manufacture soap and detergent in Nigeria. It was in
corporate on 8th October, 1984 with head office at Lagos and the factoring
situated at Amuda Aluko way llorin, Kwara State.
The company is operated managed
and directed by full blooded Nigerians. Owned by courageous and experienced
industrial 1st prince (Dr) Samuel Adedoyin who led for many years been
championing indigenous technology, backward integration and the use of local
raw material in Nigeria.
Global Soap and Detergent
Industry was established in response to the call of the Kwara State Government
in industrializing Kwara State. Price Adedoyin is the chairman and managing director.
The affairs of the company are managed under the Leadership of Mrs. Omolola
Olobayo, the Executive Director. Member of the management team also include a
list of manager with Engr T. N Njoku as the general manager.
The company operates the following
department: personal and administration, technical, production, accounts, sale,
marketing, audit, purchasing laboratory/quality control raw materials silicate,
sulphonation and distribution department.
The company has greatly
contributed to the growth of the Nigeria economy through industrialization.
Despite the economy downturn, the company has metamorphosed from its one
detergent factory and a pioneer staff strength of 40th in 1985 to the present
conglomerate of seven factories with a staff strength of over 1000.
The detergent plant is a Sabiz
Italian plant. In 1993 it was up graded to a 10 ton per hour capacity. The
product are mainly detergents and the following one the brands presently being
produced: flash blue detergent (200gm) bold detergent (10kg, 5kg,lkg, poly and
sack) wash (10kg, 5kg, 2kg,lkg poly and sack) and super deal (200gm).
This is a 10 ton per hour plant
commissioned in 1994 upgraded to 1.6 ton per hour. The main product is
sulphonic acid which is a raw material used for the production of detergent
powder and detergent bar.
This soap comprises 1.0 per hour
each of toilet soap and laundry soap. The plants were commissioned in 1990. The
product are Hielean bar soap (600gm), Bold tablets (110gm) Bold tablets (200gm)
vogue toilet soap (95gm) grand tablets (150gm) vogue quest soap (30gm) med soap
antiseptic soap (25gm).
The glycerin plant uses lye which
is a by product of soap
as a raw material to produce glycerire. The plant is a 0.1 ton per hour
capacity and was commissioned in 1992.
The detergent bar plant which has
a capacity of 1.0 ton per day commissioned in 1994. The product is bold
detergent bar (400gm).
This furnace produces sodium
silicate which is a raw material for the production of detergent, soap and
detergent bar. The plant which is a 10.0 ton per day was commissioned in 1993
two similar furnace are sited in Lagos.
This is 1.0 ton per plant within
the detergent plant, it was commissioned in 1989 and produces Hiclearn scouring
powder (600gm). Ninety nine percent of the raw material used to produced
scouring powder are obtained from Kwara State.
The company’s range of product
has confirmed to enjoy good patronage from Nigerians due to the consistently
high quality, it is on record that global soap and detergent industries is the
first company to have received the NIS certification mark for quality within
its first 3 years of operation. The company’s products which have NIS
certification mark for quality are flash blue detergent, super deal blue
detergent, wash rite blue, detergent and vogue toilet soap.
As a way of researching the nooks
and crannies of the country the company has 22 sales deports located all over
the federation viz Aba, Abeokuta, Benin, Enugn, Gombe, Ibadan, liorin, llupeju
Lagos, Marinland, Jimeta, Jos, Kaduna, Kano, Maiduguri, Gusau, Katsina, Ondo,
Onitsha, Sokoto, Uyo, Minna and Ado Ekiti. In addition, their product have been
introduced to countries within the ECOWAS sub-region as a way of earning
foreign exchange for the country. This is achieved through direct consumer
contract opening of depots and encouraging distributors.
1.6 DEFINITION OF TERMS
simply means Cost Insurance Freight which indicate that the seller is
responsible for the goods until they get to the port of destination and the
selling price includes ocean freight and insurance up to that point.
made to the government either for import or export.
C and F: Cost
and Freight This is similar to C.I.F except that buyer has to pay for insurance
Bill of Lading: This
is a document similar to delivery note used in shipping. The sender retains one
copy is held by the master of ship and note also for consignee.
Port of Entry: This
is importer! buyer country part i.e through which consignment will entre its
country of destination.
Time of Department:
This is a note send to the importer
stating the time the vessel leaves the port of exporter.
time of Arrival: It is a note send to the importer given him
the time consignment will arrive at his country port.
CRF Clean Report of Finding: Pre-shipment inspection of goods to be
shipped to Nigeria must be ensured that they are of correct quality and that
only normal contract material importer are shipped.
Carrier: This is a company offering the service of transporting good from
one area to another.
F.O.B Free on Board: This
is a contract in which good are delivery t the ship (no board).
A note accompanying consignment of goods indicating quantity, description,
number of package in the consignment.
person or company to whom goods are addressed or sent.
Commercial Invoice: The
invoice is often employed as basis for custom clearance at the port