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The Impact Of Material Sourcing In Enhancing The Organizational Profitability
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1.4 Significance of the Study
The study will add to the knowledge of the interested individual or group on the subject matter.
The
researcher chose this topic to highlight the inherent danger and
consequence of adopting poor performance in material delays as problem
associated with sourcing with a view of providing solution or applied to
sourcing activities in the organization like Nigeria Breweries Plc. It
will show the impact in the organization performance and profitability
in Nigeria Breweries.
Another vital reason of the study is to
contribute to the existing literature in the area of sourcing, types of
sourcing, sourcing policy, sourcing process etc for future reference. It
will enable a layman in the profession to have first hand information
on bio sourcing activities is being carried out. Also the students of
the department and other department will find this project an important
relevant source of literature review in the area of sourcing ‘material
sourcing’ further study will suggest ways that the organization can
carryout its sourcing efficiently.
1.5 Scope of the Study
The
research will be looking at improve on materials sourcing for
organization profitability. This chapter will make use of population
size of 100 staff and the research will use the sample size of 20 was
adopted from the population of which describe the characteristics of the
population.
Secondly, this chapter will strict to the procurement,
production and administrative department. The study will take activities
of materials and sourcing of Nigeria Breweries Plc in the last 5 years
from 2009 to 2013.
1.6 Research Questions
The research question includes:
i) What are the determining factors affecting sourcing policies adopted by Nigeria Breweries?
ii) What are the criteria for selecting suppliers in Nigeria Breweries?
iii) What are the challenges facing managers in materials sourcing?
iv) What are the factors that lead to impact of material sourcing on the profitability of Nigeria Breweries?
1.7 Definition of Terms
§ Raw Materials: Are items, which are to be processed through production process to obtain desired finished goods.
§
Purchasing: it is the process of ensuring that all the materials
required for production made available at the proper time, in the proper
quality at a proper place and price.
§ Information: Data can be
interpreted by an individual to provide meaning, a tangible or tangible
entity that reduce uncertainty about a state or an event.
§ Sourcing: The event to which buyers search or suppliers to build long term relationship.
§
Outsourcing: An arrangement by which one organization provides a
service or services for another organization that choses not to perform
them in house.
§ Negotiation: Is the art and science of arriving
at a common understanding through bargaining with essentials of a
control, such as price, quality, quantity, delivery, time, terms and
condition of services.
§ Selecting: Is the process of selecting the right suppliers to source or outsource.
§
Bid/Tender: Is an offer made by a supplier, contractor or services
provider to a buyer in a response to a direct “written†or indirect
“advert†enquiry.
§ Biding/Tendering: Is a purchasing procedure
by which potential suppliers invited without collusion to present to an
organization, a firm and clear offer of price, terms and conditions
which upon acceptance of contract.
§ Time: When organization
cannot meet up with time or cannot complete the whole task within the
specified period, the organization can outsource a part of the product
in other to meet up with schedules.
§ Quality Specification: Is
the description of an item, its dimension, analysis, performance or
other relevant characteristics in sufficient detail to ensure that it
will be suitable in all respect for the purpose it is wanted.
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