This project is to focus on the
supplier’s and buyer’s relationship in a manufacturing and a case study of
Dangote flour mills Ilorin. For easier understanding of the research work, the
research will be divided into five chapters. Chapter one of this research work
will contain introduction, objectives of study, statement of the problem,
objective of the study, scope of study, limitation of the study, and definition
of terms. Chapter two will contain the conceptual fraud work and literature
review, introduction, definition of product, classification of products,
products quality and value, products mix and products line, definition of
packing, types of packaging, function of packaging characteristic of good
package, factor contributing to packaging growth, and problem associated with
packaging as promotion tools. Chapter three entails the research methodology,
historical background, type of data used and method of data collection and
population size. Chapter four contain the presentation and analysis, data
presentation, analysis and interpretation, data analysis and testing of
hypothesis. Chapter five contains the recommendation, summary, and conclusion,
summary of findings, conclusion, and recommendations.
TABLES OF CONTENTS
Title page i
Table of contents vi
background of the case study 1
1.2 An organization structure of Dangote flour plc 4
1.3 Statement of the study 5
1.4 Aims and objective 6
of the study 6
1.6 Scope and limitation of the study 7
1.7 Limitations and constraint 7
1.8 Definition of
TWO- CONCEPTUAL FRAUD WORK AND LITERATURE REVIEW
2.1 Introduction 12
THREE- RESEARCH METHODOLOGY
3.1 Research design 30
3.2 Sources of data 31
3.3 Population and sample size 31
3.4 Instrument used in data collection 35 3.5 Sampling
procedure employed 33
3.6 Statistical method of data analysis 33
FOUR- DATA PRESENTATION AND ANALYSIS
of data analysis 35
FIVE- SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of finding 43
5.2 Conclusion 44
5.3 Recommendation 45
1.0 BACKGROUND OF THE DANGOTE FLOUR MILLS
flour mills plc recommenced operation in 1999, as a division of Dangote
industries Limited [DIL]. One of Nigeria’s largest and fastest growing
conglomerates. Following the strategic division of DIL to unbundle its various operations. Dangote
flour mills was incorporated in 2006, the restructuring was completed in
January, 2006 when the federal High Court sanctioned a scheme of arrangement
where in all the assets, liabilities and undertaking of the erstwhile flour
division of DIL was transformed to Dangote flour mills.
the initial installed capacity of 500MT per day at its Apapa mills, Dangote
flour has expanded rapidly by opening in quick succession three other flour
mills in Kano . Calabar  and Ilorin . Each of the mills started
with an installed capacity of 500MT per day but all of them have subsequently
expanded resulting in a total installed capacity of 500MT per day distributed
1,000 MT per day
500 per day
1,500 per day
1,000 MT per day
expansions were in response to a national demand for flour and flour based
products in addition to the company drive for increased market share.
from a modest beginning the company has grown to become one of the industry
leaders within a six-year period. The company has 3 wholly owned subsidiaries,
namely Dangote agro sacks limited, Dangote pasta limited and Dangote Noodles
1.1 HISTORICAL BACKGROUND OF DANGOTE
FLOUR MILLS PLC.
groups milling business was commissioned in 1999 and consists of facilities in
Lagos-Apapa, Ikorodu, Kano and Ilorin. All mills have a combined milling
capacity of 2.7 million metric ton per annum. The company imports hard wheat
from the U.S which is then milled into 50kg bags of flour. The company also
produces confectionery flour, semolina and Alkama – a grain consumed in
Northern Nigeria. The flour milling business was operated as a division of DIL
until January, 2006 when it was spain-off as Dangote flour mills plc [DFM].
division has three wholly owned subsidiaries Dangote pasta limited, Dangote
Noodles limited and Dangote Agro sacks limited.
BOARD OF DIRECTORS:-
which comprises executives directors i.;e those involved in the day to day
running of the company business and (external) directors who do not partake in
the daily running of the company but have voting power at board levels on top
chairman is assisted by the vice chairman has size (6) executives director
Olakunle Alake Operating
Knut Ulvmoen Managing
Abdul Dangote Logistic and
Sada Ladan-Baki Transport
Tajudeen Sijuade Accountant
directors formulate policies in their directorate that the adjudge would
facilitates efficient running their directorates. The directorates are divided
into division and the division are divided into smaller units called department
assistant managers and supervisor.
manager performs specific and report to his divisional heads who will brief the
manager director and Deputy managing director.
are solved at the directorate level except a major policy shift is imminent
before the managing directors are involved.
is the organizational structure.
and supplier relationship is a continuous exercise and when carried out this
programme, there certain problem being faced by the company under study.
of the problem is the rating of supplier on the basis of service depends on the
buyers institution which is not from bias.
problem facing the management of the company under study is how to evaluate
suppliers on the basis of service thereby eliminating unfair judgment by the
buyer. In addition, another problem which the writer is agitating is that
whether supplier evaluation has a positive impact on the procurement function.
The problem is question are:-
can a buyer enjoy better services?
supplier evaluation enhance effective procurement?
so, inefficient sourcing buying and suppliers system make for inefficient
sourcing management of the organization, this affects the production and profit
level and the high increase of exchange rate in the foreign materials have an
adverse effects on the level of production and on the level of effective
sourcing performance in Dangote flour mills.
of question; this study is conducted to address the gap in the literature. It
offers three important questions that had not been previously investigated in
other studies and in the Dangote flour mills. What is the extent of Dangote
Flour Mills management practice in Dangote flour mills. Does Dangote flour
mills practice affect firm performance?
AND OBJECTIVES OF THE STUDY
flour mills are committed to best practice and procedures in corporate governance
overseen by the Board of Directors. Corporate under review in line with the
dynamics of the business environment. The corporate governances policies
adopted by the Board of Directors are designed to ensure that the company’s
business is conducted in a fair honest and transparent manner which conforms to
high ethical standard.
OF THE STUDY
researchers work was designed to know the cordial relationship between buyer
and supplier in a manufacturing organization, also the research work will be
useful to aspiring student of purchasing and supply in the polytechnics and
recommendation at the end of this research study will be relevance to the
organization chosen as a case study of Dangote flour mill plc Ilorin.
OF THE STUDY
research work is based on the supplier and buyer relationship in manufacturing
organization with the consideration to purchasing activities of Dangote flour
mills plc, Ilorin Kwara State.
scope of the research centers its attention on the supplier and buyer
relationship. The objectives of the purchasing in achieving organizational
goal. The sources if materials used, buying decision. Also, it covers the
review of literature text books where the contribution of different authors,
scholars, and professional concerning the study were reviewed and acknowledge.
any research work there must be one or two problems to be encountered before
having a successful finding.
One if the problems faced was the lack
of co-operation from staff of Dangote flour mills plc.
Find and time has been one of the
major constraints in carrying out this research work, another problem faced was
that staff of Dangote flour mills are afraid of gin=ving accurate information
in other not to expose them.
OF THE RELATED TERMS
the process of reading this project, one will come across some words or phase
which may not be familiar. It is useful to keep the record of such expressions
in the future project from the time to time. Quality control is a procedure or
set of procedures intended to ensure that a manufactured product or performed
services adheres to a defined set of quality criteria or meets the requirement
of the client or customer.
An order can contain a variety of
information such as item information, subtotal, shipping, discount and tax
information total order cost customer name address currently used, the date the
order was place.
Delivery is the process of
transporting goods which can be through road, air, seas or rail.
An inspection is an organized
examination exercise, it involved the measurement, test and gauges applied to
certain characteristics in regards to an object or activity.
Standard is the performance levels and
characterized that have been determined as a general expectation for a given
A specification that make requirement
for technical aspect of a commodity,
which eliminates competition.
This is a structure designed for
In the purchasing context , it refers
to the suitability of items for its intended purpose. It is related to
suitability of items for its intended purpose. It is related to suitability of
items for its intended purpose. It is that which can be purchased at the lowest
post to fulfill the need or satisfy.
This can be determined by present
market price. It is the exact price at which the supplier is ready to dell out
their materials to the buyer.
Any individual or company who agrees
to provide materials regardless of whether that party is manufacturing.
Supplier development can be define as
any efforts a buying firm expands on a supplier to increase the buying firms
own short term of long term needs.
It is a bargaining between parties in
dealing with one another such as maybe applied in procuring of defined terms
Determining the usage rate of an
inventory and controlling the level of support deemed acceptable by the
warehouse operations management.
It is the proactive management of a
supply market to ensure access to adequate resources required for long term
needs of the organization.
It is the delivery periods i.e. the
time between the ordering and delivery. It is an essential tool in setting
stock, failure to put into consideration may result to serious production
Is a document generalized by an
internal organization to notify the purchasing department of items it needs to
order their quantity and the time frame. It may also contain the authorization
to precede with the purchase? It is also called purchase order request.