-
Purchasing Role In The Achievement Of An Organizational Objective
CHAPTER ONE -- [Total Page(s) 4]
Page 1 of 4
-
-
-
CHAPTER ONE
1.0 INTRODUCTION
In the recent, part emphasis was
only on the balance sheet report without cognizance of their factors
that made up the inflow and outflow of resources that sustain the body
mechanism of given firm. With recent emphasis on cost control in the
face of the rising cost of input resources and subsequent spill over of
high cost of output. It is very essential to discuss the contribution
and roles of purchasing in the achievement of an organization.
After
the civil war, the attendant boon in production resulting from the
growth of private sector enterprises form Europe and America, began to
awaken other management inputs for eventual profit. The reason I based
on the sophisticated resources put in by these multinationals into the
mechanism of our business sector.
It is imperative to note that the
concept of purchasing has been broadened since the turn of the century,
to include all those business activities relevant to the securing of
materials supplier and equipment as well as services needed by business
and industries. Furthermore, the evaluation of right materials has
bought purchasing principle and management and its effect on storages
high price of commodities and the allied improvisations have cause of
problems of the materials and service to intrude into broad rooms of
many organizations large or small public or private and even government
agencies. As at date, the cost of materials and supplies for industrial
and non-industrial purposes accounts for large proportion of the cost of
these organization. In most of them, this represents ever 655 of their
total expenditure.
Therefore, purchasing is referred to as the
department which is concerned with the process of defining the
organizations needs selecting suppliers, agreeing terms placing orders,
and receiving goods and function which is oriented to providing complete
supply function service for user within the organization. English
oxford Advanced learners dictionary of current English, third edition,
simply defined the world “Purchasing as just buyingâ€. E will however,
take purchasing mission to selected of materials or services agreement
of process and acquisition items. A well organized purchasing is one of
the criteria for a company to minimize cost at the same time increase
profit. The contribution of purchasing towards ensuring rapid growth of
an organization’s achievement cannot be over-emphasized. It has been
sample and proved that, a human in the filed of purchasing easily views
purchasing function as more obtaining requisitions negotiating and
placing order without the knowledge that purchasing goes beyond this
areas of activities. The activities purchasing have the primary purpose
apart from procurement of right qualified from the right source at the
right price. They distributed these materials or resources to the user
department. To do this involves requirement determination, taking
procurement decision make or buy decisions bidding, vender selection,
negotiation, re-negotiation, awarding of contracts, contracting order
processing, expediting, taking delivering, materials handling, storage
and distribution within the organization.
For a company to succeed or
to achieve it desired objectives, it means that those required to man
the materials section of the organization should be highly trained and
knowledge in the filed of purchasing. And other materials related
functions, in order to harness effectives and efficient achievement to
their organization. In view of numerous challenges of the profession
requires a caliber of person that can exercise prudence and sound
judgement for any naira spent at any given point in time, in order to
minimize cost and increase profit.
Sincerely speaking, these cannot
be achieved if the buyer is not professional buyer that should adhere,
strictly to the ethnics of purchasing profession and techniques or
purchasing practice. Quite unlike untrained buyer, a trained and
professional purchasing executive is aware that he is bound by the
ethnics of the purchasing profession. Therefore, his first and primary
obligation is integrity in spending his company’s fund, showing
professional competence in representing his organization outside etc. it
is in line with this that the researcher tends to study the
contribution and roles suing Nigerian Bottling company Plc.
1.1 GENERAL OVERVIEW OF THE STUDY
This
general induction cannot be concluded without giving a brief
description of the company used in this reach. The Nigerian Bottling
company plc. Producers of soft drinks or minerals in one of the numerous
groups of companies owned by events Nigeria limited with their
headquarters at Ikeja in Lagos state, which is controlled by an overall
general manager. The Owerri Plant, which is the rearcher’s area of
concentration, is located along the Owerri-Onitsha road, off control
post roundabout. The company produces assorted types of soft drinks
ranging from Coco-Cola, Fanta orange Fanta tanic, ginger ale, club soda,
sprite and krest bitter lemon.
The organization does not have a
centralized purchasing department. They operate a decentralized system
of purchasing. It has four different purchasing/stores limits/stores as
follows.
1. The various raw material sections.
2. The spare and equipment section
3. The various stationary section
4. The finished product stores
CHAPTER ONE -- [Total Page(s) 4]
Page 1 of 4
-
-
ABSRACT - [ Total Page(s): 1 ]Purchasing being a department that is responsible for procurement of all materials need in the organization and also making sure that all the materials procured are delivered on time to user departments in order to avoid stoppage of production.In this research work, the contribution and roles of purchasing in the achievement of an organization are highlighted. Purchasing functions are not only to identify the organization needs, source for suppliers, select suppliers, place order, relieve goods, ... Continue reading---
