1.1 Introduction
The application of computer systems in materials management has become increasingly crucial in today's fast-paced industrial landscape. Materials management encompasses the planning, sourcing, purchasing, moving, storing, and controlling of materials in an optimal manner to meet organizational goals. Traditional methods, often reliant on manual processes, are becoming insufficient to handle the complexities and demands of modern supply chains. Implementing computer systems offers a robust solution, enhancing efficiency, accuracy, and responsiveness across all stages of materials management. The integration of computer systems in materials management facilitates real-time tracking and monitoring of inventory levels, which helps in maintaining optimal stock levels and avoiding both shortages and overstock situations. This real-time capability is essential for just-in-time (JIT) inventory systems, which aim to reduce waste and improve productivity by receiving goods only as they are needed in the production process. According to a study by Smith and Zsidisin (2020), the use of computer-aided materials management systems can lead to a significant reduction in inventory costs and improvement in order accuracy.
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, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
The shift towards automation in materials management began in the mid-20th century with the introduction of the first computerized inventory management systems. These early systems were basic and primarily focused on automating repetitive tasks, such as inventory tracking and order processing. However, they laid the groundwork for more sophisticated applications. According to Russell and Taylor (2009), the development of these early systems marked a significant step forward in reducing manual workload and improving accuracy. The late 1990s and early 2000s brought about the rise of the internet and e-commerce, further emphasizing the need for advanced computer systems in materials management.
According to Chopra and Meindl (2021), the integration of internet technologies into materials management processes enabled companies to achieve greater visibility, agility, and responsiveness in their supply chains (Chopra and Meindl, 2021). The need for the application of computer systems in materials management arises from the evolving complexities and demands of modern supply chains. Traditionally, materials management involved manual processes and paper-based systems, which often led to inefficiencies, inaccuracies, and delays. With the rapid advancement of technology and the increasing globalization of supply chains, these traditional methods have proven inadequate to meet contemporary business needs.
Materials management plays a critical role in ensuring that the right materials are available at the right time and in the right quantities, minimizing costs while maximizing efficiency. The introduction of computer systems into this domain has revolutionized the way organizations handle their materials. According to Ballou (2007), the implementation of technology in logistics and materials management has significantly improved inventory control, order processing, and warehouse management, leading to substantial cost savings and operational efficiencies.
One of the primary drivers for adopting computer systems in materials management is the need for real-time data and enhanced visibility across the supply chain. Real-time tracking and monitoring of inventory levels help prevent both overstocking and stock outs, which can disrupt production schedules and lead to increased costs. As noted by Johnson and Flynn (2015), real-time data enables more accurate demand forecasting and inventory planning, allowing companies to respond swiftly to market changes and customer demands.
Computerization in materials management means converting the manual system into computer system for efficient operations and much procurement organization are now using computer system. Thousand of requisition are received and processed daily, many requests for quotation are sent out to suppliers, may quotation are receive from suppliers and also analyzed and the volume of the involve in materials management in large s and required computer system to mark it fact and easier to manager.
The application of computer system in materials right is to ensure the immediate availability of much more complete data for sued in making purchase and related materials decision because of its fantastic speed, the computer can supply management era with virtually instantaneous reports which right otherwise takes an army f clerks weeks or months to prepare and to update. The timeless of such reports enables materials management executive to manage by exception an to do a more effective and economical job of purchasing and managing the flow of materials throughout the operation in Nigeria bottling company.
1.3 Statement of Problems
Investigation revealed that the need for the application of computer systems in materials management is driven by several critical problems inherent in traditional methods. One significant issue is the inefficiency and inaccuracy of manual processes. Manual inventory tracking, order processing, and data entry are time-consuming and prone to human errors, which can lead to stock discrepancies, lost materials, and increased operational costs. According to Johnson and Flynn (2015), these inefficiencies often result in substantial delays and resource wastage, hampering overall productivity.
Another major problem is the lack of real-time data visibility. Traditional materials management methods struggle to provide up-to-date information on inventory levels, order status, and material movements. This lack of visibility can lead to overstocking or stockouts, disrupting production schedules and affecting customer satisfaction. Ballou (2007) highlights that real-time data is essential for effective decision-making and agile response to market demands, which traditional systems fail to deliver.
The complexity of coordinating across different departments and external partners also poses a challenge. Manual and fragmented systems make it difficult to ensure smooth communication and collaboration between procurement, production, and distribution functions. This often results in misalignments, delays, and increased lead times. As noted by Christopher and Holweg (2011), integrated systems are crucial for maintaining efficient and responsive supply chains, which traditional methods cannot achieve.
Additionally, the growing complexity and globalization of supply chains exacerbate the need for advanced materials management solutions. Managing a global supply chain involves dealing with multiple suppliers, varying lead times, and diverse regulatory requirements. Traditional methods lack the scalability and flexibility to handle these complexities effectively.
Chopra and Sodhi (2014) point out that advanced computer systems are necessary to manage the risks and uncertainties associated with global supply chains, providing the agility and resilience needed in today's business environment. It is against the backdrop that this study seeks to address these problems by evaluating the need for the application of computer system in materials management.
1.4 Aim and Objectives of Study
The aim of the study is to evaluate the need for the application of computer system in materials management. In achieving this aim, the following specific objectives were laid out as follows:
- To explore how computer systems facilitate improved communication and coordination across different departments and with external suppliers;
- To investigate the contribution of computer systems to sustainability and environmental goals within materials management;
- To examine the role of real-time data and analytics in enhancing decision-making processes within materials management;
- To evaluate the scalability and flexibility of computer systems in managing the complexities of global supply chains; and
- To provide recommendations for the effective implementation and integration of computer systems in materials management practices.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does the organization achieve maximum advantage with respect to the application of computer system in operation?
- Is it true that computerization system reduces cost time wastage and the volume of work involved?
- Does the operation of computer system depend on the management policy?
- Does the existing organization structure permit computer system?
- In what ways do real-time data and analytics enhance decision-making processes within materials management?
- What is the role of computer systems in managing the complexities and risks of global supply chains?
- How do computer systems contribute to sustainability and environmental goals in materials management?
- How do computer systems improve communication and coordination across different departments and with external suppliers?
- What are the best practices for implementing and integrating computer systems into existing materials management processes?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no need for the application of computer system in materiel management
- H1: There is need for the application of computer system in materials management
Hypothesis Two
- H0: The cost of computerization of materials management system is not limiting factor to it applications.
- H1: The cost of computerization of materials management system is a limiting factor to its application.
Hypothesis Three
- H0: The application of computer systems in materials management does not significantly improve the accuracy and efficiency of inventory tracking and control.
- H1: The application of computer systems in materials management significantly improves the accuracy and efficiency of inventory tracking and control.
1.7 Significance of Study
This research intends every organization to gain from it as much that computer system is concerned therefore computer system are encourage to be used in the rightly manner in order to improve and update the management activities.
The application of computerization system will improved the method of issuing purchase order, purchase requisition and reduce time wastage cost and the volume of work involved, it will also constitute in solving the problem of mismanagement in an organization as it will prove room for efficiency and effectiveness.
Furthermore it is believed that the study will help the company to identify its drawbacks and how to alleviate them which will ultimately contributed to profitability organization there by reducing number of staff cost and obsolescence.
This in a nutshell will help t expose the student who is prepared to enter into the field, the challenges she is contribution, it will equally help our industries or the company. The Nigeria bottling company PLC, Owerri and other big companies to utilized the service of computerization system in materials management so as to benefit from their contribution profitability and to correct the abnormalities cause by the use of “uniformed general” in carrying out management duties.
The findings of this research work on the need for the application of computer system in materials management is principally structure d to encourage proper distribution of the company's product. The findings also provide the ways by which problems of distribution encountered in our companies are wisely treated.
It is believed that this study will not only be of greater benefit to Nigerian Bottling Company but also other companies' to aid them to effectively distributing their products. It will also provide other researcher with ready-made information for more research.
1.8 Scope of Study
The scope of the research is focused on the need for the application of computer system in material management is a wide area of study. But this project will focus attentions on computerization system in materials management as related to Nigeria Bottling Company Plc Owerri.
The study embrace all the activities that are involved in the materials management in an industry like stock control design engineering and other activities which involved in materials cost more so the researcher also carried out an indebt investigation on the reason why the concept is not being adopting to the fullest despites the tremendous benefits derived from materials management that are computerized.
1.9 Limitations of the Study
While carrying out this research, the researcher was confronted with numerous limitations which include;
- Research Biases: Most respondents although knowing the aim of this research refused to cooperative. The researcher has to waste sometime persuading them to answer one question the other.
- Financial Constraints: Due to economic realities enough financial that should have allowed a most diversified research was not available.
- Time Constraints: The researcher combined he class work with the research. This made the researcher to experience a very tight scheduled as she had no transport of her own the problem became even worse.
- Transportation: Transportation a big trait to the project. The researcher wasted much time due to transportation delays thereby getting t the research place very late. At times interview arrangement will be missed and repeating the journal becomes inevitable.
- Attitude of Nigerian's To Research: The tendering of respondents m=not regarding questionnaires as important as well as non-challant attitude of people to research in this country led to some questionnaire not been returned some that were returned due to comply to instruction of the research questionnaires. This militated adversely on the progress of the research work.
- Other Factors: Other factors that limited this work project were fact that there is scarcity of materials management text book by Nigeria authors in this country, ever our lectures. This made references to the work project very cumbersome.
1.10 Definition of Terms
Computers System:
According to lenders and fearon (1997:102) the analysis of procures used in performing the purchasing and supply function have been based largely in the use of traditional office equipment and clerical (manual) methods.
The computers is an electronic mechanical; devise which has the ability of accepting data (input) string the information and retrieving same for further usage under the control of step wise set of instruction called the programmed.
Data Control:
The need for timely and adequate formation system which is a set or organized procedures which when executed provided information for planning decision making a controls in organization.
Management Control:
Anthony defined management control as ensuring that resources are obtained and used effectively and efficiently in the accomplishment of the organization objectives.
Sourcing:
Sourcing according bally and farmer (1979:113) is said to be the identification of suitable sources of supply.
Electronic Funds Transfer (EFT):
Electronic funds transfer describes system whereby a computer user can use his computer system to transfer fund e.g. make payment to a supplier or pay salaries in employees bank account, Deposit account to current account by sending electronic data to his bank.
Quality:
This is seen as the totality of features and characteristics of a product or a service that bears on the ability to satisfy a state on implies needs.
Specification:
Specification according to lee and Doubler (1981:48) are detailed description of the materials parts, and components used n making a product.
Procurement:
This is defined as the acquisition of goods and services by firms industries. Government and their subside ring agencies such as parastatals uzor (2004:422)
Negotiation:
According to UZor 92009:299) defined negotiation as conferring discussing or bargaining to reach agreement in business transaction.
Lead Time:
According to Oyeoku (2001: 48) defined lead-time as the interval between when a need is perceived and the fulfillment of tat need.
Engineering Process:
This means a situation whereby there will be a co-operation between supplier engineering and that of the buying company.
Research:
A research is a systematic investigation for the purpose of gaining new knowgement in order words, it is any study that lead to knowledge the person undertaken the research.
Data:
Data is defined as the gathering of information either from primary source or secondary sources.
Fax Machine:
This has been the first choice in a large organization that is used to reduced the purchase cycle time and reduce an easy relatively cheap means of survival an growth in the present business environment.
Electronic Mail: (Email):
This is process of the users to transmit massage back and forth within the organization and to external parties.
