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ROLE OF PURCHASING IN THE ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVE

Format: MS WORD  |  Chapter: 1-5  |  Pages: 75  |  1007 Users found this project useful  |  Price NGN5,000

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ROLE OF PURCHASING IN THE ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVE

 

ABSTRACT

This topic role of purchasing in the achievement of an organizational objective has been chose in order to bring and focus the explicit importance of purchasing in any business environment organization it. Chapter one embrace the introduction background of the study objective of the study scope the study significance of the study limitations. Chapter two deals with literature review role of purchasing on an organization objective of purchasing and importance of purchasing in an organization Chapter three deals with the research design and methodology introduction Research design source/ method of data collection population and sample size sample techniques validity and reliability of measuring instrument and also method of data analysis. Chapter four equally gives the findings presentation and analysis of findings and the discussion of findings Chapter five on the other hands deals with the recommendation summary and the conclusion This project will be of immense important to student on research work but most to students of purchasing and supply and colleagues in the field of purchasing and supply. 

 

CHAPTER ONE

1.0 INTRODUCTION

The evaluation of mass production which so much relievers upon a continue flow of right materials has brought an impact and the need to improve purchasing participles and management. Furthermore, the effects of shortage high price of commodities and allied improvisation have caused the problem of material and services to intrude into boardrooms of many organization be it large or small, public or private and even in government agencies. As a result of this cost of materials and supplies for industrials and non- industrial purpose account for large proportion of he cost of the organization expenditure. When purchased items accounts for such of high proportion of the organization expenditure when prices of goods are fluctuating widely when numerous diverse items are constantly needed and when the quality of the materials a services appreciably influence the cost of service than an organization purchasing role becomes particularly very attention “ (Oyeoku) the purchasing role is to see that materials and services are provided at the lowest cost which is in correspondence with suitable quantity and safety. 

Purchasing must work other department of the organization as its role involves other factors some prior or subsequent to the actual ordering. These facts include the investigation and selection of sources of supply working for alternative materials, the expediting or follow up order which will eventually enable the buyer ensure prompt deliveries the transportation and packaging aspect the transportation storing and issuing the materials so revived it has there become a complex function and needs a help of practitioners to be effectively carried out and required adequate training in purchasing and supply management techniques. Practitioners need to belong to the appropriate purchasing and supply institutes.

1.1 BACKGROUND OF THE STUDY

It is important to note that the institution is guided by the procedure and purchasing manual being employed purchasing like modotels Nigeria Ltd Owerri is an act of procuring materials, supplies and services to further the services rendered for the consumption of the public the function has to be executed within the frame work of the law of the organization or the particular agency, which might be other wise executed in the private sector without fear of running foul of the law the organizational purchasing office has advantage, which is not available to those in the organization.

However, the manager of the organization in recent years has given much attention to the direct contribution which purchasing activities can make to the savings of modotels Nigerian Ltd Owerri the purchasing function has a whole wide lot to offer it outs across all through the different department in modotels, Account, store, house keeping food privilege, the maintance of cordial relationship with these department become increasingly important. Besides the “quantity” quality and the time factors are usually defined for the purchasing department by these department or others that may be responsible for specifying procurement requirements.

1.2 STATEMENT OF THE PROBLEMS

The purchasing department play a very important role to the success of any organization, whether in the public or private sector. The function is responsible for buying all the raw materials and supplies of the right quality of the quantity, from the right sources, at the right time and at the right price. Successful purchasing depends to a large extent on the ability to understand the various environment in which they operates. They should be fully aware of all legal requirements relating to purchasing practices within their organization. Knowledge of this will help them in the performance of their duties.

The major problem of this research is to determine the role of purchasing in the achievement of an organizational objectives with particular to its activities in modotels Nigeria Ltd Owerri to solve this problems in purchasing especially with relationship among the most critical of the variables, constraints and premises that bear upon the objective sought is very important. Purchasing decision result out of research investigation and findings which is a vital aspect of the typical research. The purchasing manager or any one concern with any branch of purchasing is faced with the problem of what quality. This question can be answered when data has been collected and analyzed for dependable information. It is wise to undertake reliable research before decisions are taken because most of the decision are made under dynamic conditions.

1.3 OBJECTIVE OF THE STUDY

To use quantitative statistical analysis method to derive the purchase volume for any of the sessions and if possible to ascertain the direct effect on contribution statement of any savings in purchase cost either directly in price or in efficiency of the handling materials.

Also, to define and evaluate the duties and performance of the purchasing unit and to review it’s methods of operation so as to recommend a better procedural operation for the unit.

To know if purchasing unit has fulfilled it’s mission buying the goods and services that will satisfy the desires of the user departments.

1.4 RESEARCH QUESTION

To guide the study the following research questions where posed:

(i) What are the use of quantitative statistical analysis method in the organization

(ii) What are the duties and performance of the purchasing unit in the organization 

(iii) How did purchasing unit fulfilled their mission the organization

(iv) What are the effect that contribute the savings in purchasing cost.

1.5 SIGNIFICANCE OF THE STUDY

The function performed by the purchasing department is concerned with the process of defining the organizations needs selecting goods and services. It is by its nature of a function oriented to providing a complete supply function service for users within the organization. In most manufacturing organizations producing consumer goods, purchasing is of primary importance and must be considered as one of the major functions along side marketing, production and accounting. However, the importance of purchasing and its activity may not be the same for all organizations. In manufacturing organization where materials and services accounts fro about 85 percent of it’s total input, there is no doubt that purchasing will become a very important function since it is known that if percent savings in purchasing can contribute the same amount as a mark up of 20 percent on sales.

1.6 SCOPE OF THE STUDY

The project focuses particularly on the relevance of purchasing function as it relates to the modotels Nigeria Ltd Owerri. More of the information needed for the study were received form questionnaire and interview administration to various department in the organization especially the bursary division where the purchasing unit is placed in other to ascertain the relevance of purchasing function in the organization.

1.7 LIMITATION OF THE STUDY

A number of limitation are encountered in the process of writing this project.
Time constraint : At first when I was about to start the project, I felt that all was going to be easy, but later discovered that the time I had was not enough because I had to combine writing the project with the normal day lectures.

1.8 DEFINITION OF TERM

Constraint a thing that limit or restricts something is also freedom to do something bursary an amount of money that is given to somebody so that they can study usually at a college 

Fluctuate- to charge frequently is size amount quality etc prior- a person who is in charge of a group of mouse dynamic the way people behave and react to each other in a particular situation.

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ROLE OF PURCHASING IN THE ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVE

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