1.1 Introduction
A computer-based system is an organized combination of hardware, software, data, and procedures designed to process information automatically and efficiently (Laudon & Laudon, 2020). In the context of modern organizations, computer-based systems are essential tools that aid in the management, storage, and retrieval of data with high levels of accuracy and speed. Drug purchasing is an integral part of pharmaceutical operations that involves the acquisition of drugs, raw materials, and medical supplies necessary for production and distribution. According to Nwankwo (2019), the efficiency of the purchasing system determines the overall productivity of pharmaceutical firms, as delays or inaccuracies in procurement often lead to shortages, increased costs, and customer dissatisfaction. Traditionally, many pharmaceutical organizations rely on manual procedures for recording and tracking purchases, which often result in data redundancy, human error, and difficulty in generating timely reports.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitation of the study and Definition of technical terms.
1.2 Background of Study
A computer-based system is a technological innovation that integrates hardware, software, and database components to perform data processing, management, and retrieval efficiently. According to Laudon and Laudon (2020), computer-based systems have revolutionized how organizations conduct their daily operations by automating tasks that were previously handled manually. In today's dynamic business environment, the adoption of computerized systems in organizations has become essential for enhancing operational efficiency, reducing redundancy, and promoting transparency. Within the pharmaceutical industry, where data accuracy and timely decision-making are critical, the design and implementation of a computer-based drug purchasing system play a significant role in achieving operational excellence.
Procurement, which involves the acquisition of goods and services necessary for production and distribution, is one of the most crucial functions in any organization. Nwankwo (2019) asserted that effective procurement management determines the efficiency of pharmaceutical operations because it ensures the timely availability of drugs and raw materials needed for production. However, many pharmaceutical companies in developing countries still rely heavily on manual purchasing systems, which often result in inefficiencies such as delays, data loss, and errors in record-keeping. Okoro (2019) reported that manual procurement processes expose organizations to problems such as inaccurate inventory tracking, mismanagement of funds, and lack of accountability in the purchasing department.
Eze and Umeh (2021) affirmed that the use of computerized systems in drug procurement helps to reduce human error, improve accuracy in data handling, and promote transparency in purchasing activities. The system provides a centralized platform that stores supplier information, purchase orders, and payment records, allowing for quick access and easy retrieval of data when needed. On the other hand, the absence of such automation leads to time wastage, duplication of effort, and lack of coordination among departments responsible for procurement. Okafor and Eze (2020) stated that pharmaceutical organizations with computerized purchasing systems experience improved workflow management, better supplier relationship management, and faster decision-making processes.
Furthermore, technology-driven systems are not only limited to improving efficiency but also enhance control and accountability. Adebayo (2022) contended that automation in procurement processes ensures that management can monitor transactions in real time, detect irregularities, and make informed financial decisions. This form of transparency is particularly important in the pharmaceutical sector, where regulatory compliance and quality assurance are paramount. Olayinka (2021) reported that computer-based procurement systems contribute significantly to maintaining an accurate database of transactions and assist organizations in meeting industry standards and government regulations.
In Nigeria, pharmaceutical companies such as Juhel Pharmaceuticals Company Ltd, Emene, face challenges in maintaining efficient purchasing systems due to manual operations. These challenges include poor data management, lack of timely reporting, and the risk of stockouts or overstocking of essential drugs. Nwosu (2020) stated that implementing a computerized purchasing system addresses these challenges by integrating data management and reporting tools that provide real-time visibility into inventory and supplier performance.
The challenges encountered that led to the execution of the research work is that, the manual approach usually involves the use of paper documents to record transactions, supplier information, and inventory levels. According to Okoro (2019), manual procurement systems in pharmaceutical organizations lead to delays in drug supply and mismanagement of purchasing records, which adversely affect customer satisfaction and organizational productivity. This study is set against the backdrop of developing a reliable and efficient computer-based drug purchasing system for Juhel Pharmaceuticals Company Ltd, Emene, to enhance accuracy, transparency, and efficiency in the drug procurement process.
1.3 Statement of Problem
The existing manual drug purchasing system at Juhel Pharmaceuticals Company Ltd, Emene, has several operational and administrative challenges that have affected efficiency and accountability. These problems include:
- The manual documentation process often results in errors, data duplication, and incomplete records, making it difficult to track purchases and supplier history accurately.
- The lack of real-time data accessibility causes delays in decision-making, as management depends on manually compiled reports that are often outdated.
- Poor inventory tracking leads to situations of overstocking or stock shortages, affecting the smooth flow of production and distribution.
- Misplacement or loss of records is common due to the paper-based filing system, creating inconsistencies and making auditing difficult.
- The absence of an automated reporting system makes it challenging to analyze purchasing trends, supplier performance, and expenditure patterns.
- Time wastage and inefficiency occur as staff manually process purchase orders and approvals, slowing down the overall procurement cycle.
1.4 Aim and Objectives of the Study
The main aim of this study is to design and implement a computer-based drug purchasing system for Juhel Pharmaceuticals Company Ltd, Emene. The specific objectives are to:
- Create a computerized system that will automate the process of purchasing drugs within the organization, thereby reducing manual errors and delays.
- Develop a reliable and user-friendly software that will manage supplier records, drug inventories, and purchase transactions efficiently.
- Design a functional database structure that will store and retrieve purchasing information securely and accurately.
- Implement an interactive interface that enables staff to process purchase orders, generate reports, and monitor procurement activities in real time.
- Develop a system that will enhance decision-making by providing analytical summaries and reports on drug purchasing trends and supplier performance.
1.5 Significance of Study
The deployment of the proposed system will hold significant relevance in the following ways.
- The system will provide accurate data and reports that will support better planning, forecasting, and decision-making in procurement activities.
- It will simplify routine tasks, reduce paperwork, and improve workflow efficiency by automating key purchasing operations.
- It will enhance communication and transaction accuracy, ensuring timely order processing and payment transparency.
- The research will ensure the availability of drugs by improving inventory control and preventing stock shortages.
- The outcome of the implemented system will serve as a reference model to researchers and software developers for future studies and development of related procurement systems across industries.
1.6 Scope of Study
The scope of the research is focused on the design and implementation of a computer-based drug purchasing system for Juhel Pharmaceuticals Company Ltd, Emene, Enugu State, Nigeria. The system is limited to automating core procurement functions such as order processing, supplier management, and inventory record maintenance.
1.7 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).
1.8 Definition of Terms
Computer-Based System:
According to Laudon and Laudon (2020), this refers to a system that uses computer hardware and software to process, store, and manage information efficiently.
Drug Purchasing:
As stated by Nwankwo (2019), drug purchasing is the process of acquiring pharmaceutical products and raw materials required for manufacturing and distribution.
Procurement System:
Okoro (2019) defined it as an organized method for sourcing, ordering, and acquiring goods and services needed by an organization.
Automation:
Adebayo (2022) reported that automation involves the use of technology to perform tasks with minimal human intervention, increasing efficiency and accuracy.
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