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THE ASSESSMENT ON THE IMPORTANCE OF PURCHASING PROCEDURES IN AN ORGANIZATION (A CASE STUDY OF NIGERIA BOTTLING COMPANY, ABA)

ABSTRACT

This is a procedures study on the Assessment of Purchasing procedures in an organization. This procedures  project is written to analysis critically the strategies involved in the assessment of purchasing procedures  how it will profit the organization and the basic need to adopt the purchasing procedures  for the profitability of an . It will help to gather useful information about the product which is to be purchased and to ensure the quality and the quantity and at a good price. It is also intended to make useful suggestions and recommendation that will help in purchasing materials for the organization. The language used is simple enough to be understood by the headers. This procedures  project has been specially and carefully prepared in five chapters and the materials, which has been collected personally by full observation and study. Chapter one of the project is focus on the background of the study, brief history of the company, statement of the problems, objective of the study, significance of the study, scope of the study, limitation of the study. Chapter two deals on procedures  review the related literature. Chapter three is based on the presentation of data analysis chapter four, it centers on testing of hypothesis, while chapter five is al about the summary, conclusion and recommendation also with bibliography.

 

CHAPTER ONE
1.0    INTRODUCTION
Procedures has been identified as one of the most powerful tools and a panacea to many of the worlds greatest problems. Procedures  is a goal oriented and its goals determine its nature and form.
Studies have shown that one of the major problems militating against the profitability of human endeavour in general and organization in particular is lack of adequate procedures .

It is in the light of these, that this procedures  work is geared towards the assessment of purchasing procedures  and how it affects the profitability of an organization using Nigeria bottling compaby  as a case study.

1.1 BACKGROUND OF THE STUDY

As seen from the introduction, procedures affects all spheres of man’s activities. The companies are not therefore left out, especially is regards materials sources of supply and other important and related issues about purchasing, hence, purchasing procedures . The first world countries have embraced procedures that they have made remarkable and outstanding success and progress in the technological advancement of the world. This study seeks to encourage third world countries especially universities and polytechnics procedures  institutions and the like not to overlook the importance of procedures . Moreso, companies are advised to pay good attention to the contribution of purchasing procedures  for their increased profitability. They are encouraged to know that purchasing procedures  is a tool that can assist them in their daily purchasing decisions. As an aid to enhance purchasing activities, companies are against this background, expected to embraced purchasing procedures  and provide the finance necessary to carry out this procedures  for better performance of the purchasing functions, which in turn contributed to the overall organizational profitability.

1.2 STATEMENT OF THE PROBLEMS

The essence of purchasing procedures  in any organization is to identify those salient activities as regards materials, sources of supply and other important and related issues about purchasing. In view of this fact, it is imperative to take insight into the purchasing procedures  activities of an organization, using Nigeria bottling company  Aba as a case in point in the light of its procedures  efforts and how the impacts has contributed to the profitability of the organization. Closely related to this are the needs for price in the purchasing of materials for production, lack of inadequate raw materials as it affects production etc. In undertaking this study, the procedures er intends to investigate to what extend, procedures es on price and lack of adequate raw materials have affected the profitability of Nigeria bottling company  Aba. OBJECTIVES OF THE STUDY As earlier stated, purchasing by its nature is a basic and integral part of business management. In addition, the basic goal of any business organization is to produce goods and services which can be marketed at a profit. However, this goal is achieved by blending appropriately the five M’s of management viz machine, manpower, materials, money and management of all the five, materials have seen as the life blood of industries and as such need not be treated carelessly. Purchasing procedures  is therefore undertaking to solve problems such as sudden shortages or an unacceptable price increase, or in response to other exceptioned situation such as a change in the law governing such as a change in the rate of exchange. From the foregoing the objective of the study are: -

  1. To ascertain the important areas of purchasing procedures
  2. To investigate into important areas of purchasing procedures
To examine the reasons for purchasing procedures  To x – ray the relationship between purchasing procedures  in an organization    To find out the relationship between purchasing, purchasing procedures  and company’s profitability.   THE SIGNIFICANCE OF THE STUDY This study or procedures  work is very important to a number of persons. To me as the procedures er carrying out this procedures  is an adventure. In the course of the writing, it is a way of developing my talent and creative gift of writing as a student. Again, it is a requirement for the award of the Higher National Diploma (HND) in Purchasing and Supply chain management. In addition, this study will serve as a data bank for reference point for other procedures er. Furthermore, the department of purchasing in every industry will appreciate the content of this procedures  work as it assist. There is their constant procedures  for materials, products or seminars, purchasing personnel, suppliers on commodities on purchasing procedures. In addition, this procedures  will profit a number of students in the purchasing and other department of any higher institution by providing the necessary information for writing on similar or related topic. It will therefore provide a yards tick topic or standard for such student when they shall make reference to this materials.   PROCEDURES  QUESTION Does the organization attach importance to purchasing procedures ? If purchasing is given a top management, approval is purchasing procedures  of important concern to management? How has purchasing procedures  contributed to be company’s overall profitability? What are the greas that purchasing procedures  is carried out in your industry? What impact have purchasing procedures  been playing in your industry? HYPOTHESIS FORMULATION The following hypothesis have been put forward in order to carry out to validate the essence of this procedures  work. HYPOTHESIS I Ho:    Purchasing procedures  does not contribute to the company’s profitability Hi:     Purchasing procedures  contribute to the company’s profitability   HYPOTHESIS II Ho:    The impact of purchasing procedures  does not affect the entire industry Hi:     The impact of purchasing procedures  affects the entire industry SCOPE OF THE STUDY Purchasing procedures  is an important and vast area of study, moreso, it is carried out by a lot of manufacturing firms in order to increase their profitability. This being the case, this procedures  on purchased materials, products or service purchasing personnel, on suppliers on commodities and on methods purchase that is purchasing procedure or system. Furthermore, this work will concentrate more on profit making organization preciusely manufacturing industries with particular reference to Peterson Zochonis Plc (Pz Industries Plc, Aba Abia State.)

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