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The Impact Of Sourcing As A Supply Chain Function On The Profitability Of A Company
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CHAPTER ONE
1.0 INTRODUCTION
Over the years, procurement
function contains activities that have attracted the attention of many
researchers and companies worldwide. However, most studies conducted
focused only on the manufacturing industries and associated with
functional indicator.
This research presents and discusses
some key points and noticed important changes recording the ways
business are carried out. In connection with the market worldwide
process managerial models have been customer constantly reviewed and
improved, as well as new concepts and paradigms, such as the
contemporary business and mass customization, have quickly emerged. It
is this competitive context that the supply chains management (SCM)
should be understood.
A supply chain can be represented by a
group of integrated logical process that originates from source of raw
materials and comprises several companies, until products are delivered
to final customers in form of goods and aggregated services.
In the past, every layman in Nigeria were ignorant of what exactly
purchasing and supply is all about. Most people believe that procurement
of raw materials is non-task or a non-issue matter.
Foremost, most manufacturing companies of which ZARTECH LIMITED MAYA
happens to be one of them, dispose more than half of its income on
materials, supplies and services. We would bear in mind that intensive
sourcing is the rudiments of purchasing.
Sourcing comprises
of the identification or development of suitable sources. Sourcing
decision indicates which supplier to patronize. How many suppliers are
needed to supply a given item?
How to allocate available
business and in what term to do the business, the continuing
relationship both with preferred sources which are still in the running
although they have been passed over for the present.
For
its proper performance, sourcing requires supply market research. This
is often undertaken informally by the buyers as part of their buying
work, when they interview salesman, visit exhibition, read trade
journals, obtain catalogues and research the market before placing an
order. It is sometime undertaking formally by research personnel, in a
purchasing services section as a support function to the buyers. Supply
market research identifies the set of actual and potential supply
sources which contribute the market, investigates their capabilities
analyses the structural features of the market trends and long term
supply prospects, and generally keep on ear to the ground.
Purchasing does not mean buying raw materials Only, but it involve
determining the needs, selecting the supplier (S), arriving at
affordable price, terms and condition issuing the contract or order and
following basic elements involved in performing the purchasing function
which are: Obtain the procurement of materials, goods and services of
the right quality, in the right quantity, from the right source at the
right price and at the right time.
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ABSRACT - [ Total Page(s): 1 ]A visit to most production company as shows that sourcing now have a great impact on the profitability of a company. Such as lowering cost structures, maintaining the product quality of a company, ability to meet customer requirements, and lot of other benefits.This study attempts to evaluate the impact of sourcing in the profitability of company using ZARTECH LIMITED as a case study. It seeks to examine the responses of the procurement department on how suppliers are selected during the process ... Continue reading---
