1.0 Introduction
1.1 General Overview of the Study
In some organization the Procedure to Purchase a particular item is based on the value and importance of the item. The purchasing department of any organization buys the flowing categories of organization materials capital equipment, raw materials, components indirect material (supplies) and industrial services.
The process involved in the procedure for the purchase of capital items is more complex than that of raw materials and operating supplies this is as result of huge sum of money tied to these equipment though much emphasis would be laid on the other chapters procurement of organizational material which is the responsibility of organization to which it exist under performs also the following function.
- Coordination with the user department to identify purchase needs.
- Discussion with sales representatives.
- Negotiation with potential suppliers.
- Issuance of purchase order.
- Conducting market survey to identify potential suppliers and products.
- Selection of purchase suppliers etc and others.
These among others include the functions performed by the purchasing department although many are ignorant of the course as a professional carrier which originates back to the early 1900s.
Brief History of Rokana Industries
Rokana Industries plc was incorporated in September 1978 as a private limited liability company with the objectives of manufacturing materials, house hold products and key personal hygiene products for the health care market.
The company with the objectives maintains its head office at 4 Ayayi street, off 52 Allen Avenue, next door to Lagos Hilton hotel, Ikeja, Lagos while its factory is located at the vast acre of land at Nuked at plot 5 mission road Umualum Nekede out skirt of Owerri, Imo State the industry has four separate existing manufacturing plants completed with quality control facilities the factory accommodates the company's raw materials and finished products warehouses utility service and plants humidified petroleum gas tank farm and factory administration offices.
The industry is responsible for the manufacturing of the following products Jordan tooth brush Rokana dry air-freshner number insecticide sparkle furniture and dry skin lotion Rokana Dental stick and plague remove sparkle took paste etc.
The company endeavors to maintain high competitive remuneration packages for its staff as evidence by the low incidence of industrial strike, low rate of staff turnover and high degree of loyalty and dedication within the organization. The company provides effective training scheme for its staff and there is a good relationship among workers and the company sponsors many social charitable and developmental programmers in all parts of the country.
1.2 Statement of Problems
In today's business environment, it is very amazing that everybody wants to be involved in the buying activities. It is also a thing of fact that any shout coming in the of inferior products, machine idle hour and other act that will of jeopardize the success of the firm and will be attributed to the purchasing ministering against the success of the purchasing procedure in the industry.
- No formal list specifying the appropriate procedures for the purchasing of materials in order to reduce the time spent during the process of procurement and to avoid writing requisition that would lead to irresponsible purchase request.
- Those who are responsible for the authorization procedure are not conscious of the quality rather they want to offer a supplier with the lowest price.
- Staffs that do not have knowledge about purchasing are involved in the approval stage of material purchase.
1.3 Objectives of the Study
General the purchasing department is known to be established for the procurement of goods and services of the right quality in the right time and at the right price. But for the purpose of this research the objectives which the researcher has in mind includes the following.
- The purchasing department being the head in the approval process so that effective buying is enhanced should carry out purchasing of material.
- Quality should be first criteria when it comes to approval of material to be purchased and appropriate procedure should be followed to avoid buying from the wrong source.
- Those responsible for handing the purchase procedures should be reduced to avoid more compactions and time.
1.3 Scope of the Study
The topic of this study is purchasing procedure in a manufacturing company, a case study of Rokana Industries Plc, Nekede Owerri. This study of Rokana Industries Plc, Nekede Owerri, and this study includes purchasing procedures for the purchase of material for organizations but for the sake of time, it is restricted to Rokana Industries Plc, Nekede Owerri. The result obtained will be used to generalize for other industries in the same industry.
1.4 Research Question
The researchers formulated the following questions to help guild the objective that will help in the execution of this work.
- Is there a laid down procedure for the acquisition of materials?
- Are there materials used in the organization that beyond the control of the purchasing department?
- Is there a quality control department in the organization that checks the quality of products supplied?
- Who approves the local purchase order for the organization?
- Who is responsible for purchase producers in the organization?
1.5 Significance of the Study
The significance of this study does not lie on the premise that on previous study has been carried out on the purchasing procedures as practiced by Rokana Industries Plc and other companies, but that the researcher to ensure that the research is of immense help to the researching student corporate bonier during the course of staff training and to the Nigeria economy as a whole.
1.6 Limitation of the Study
The successful completion of his work posed some limitation in the following areas.
Location and Access to the Firm:
Location the firm was not all that difficult because the firm was close to the area of research, but the access to the firm was a big challenge to the access on various occasions to go inside the firms premises for proper researching.
Finance and Time:
Finance was the major determinant of the success of this work because without it, it would not have been possible for visiting the firm during the period of the research work the economy of the nation was bad the time was another determinant as several postponement was made just to ensure that things are in their place.
1.7 Definition of the Terms
Procurement:
This is an interment purchasing activities where goods information and price are go them through the use of interment system.
Sourcing:
This is the process of identifying suitable sources of supply it is the method of searching the market place for potential suppliers who can meet the needs of the organization.
Negotiation:
This is process of planning reviewing and analyzing by a buyer and seller to reach an acceptable agreement.
Specification:
This is a process of planning and detailed description of what is wanted. It is the process of describing an item or object to enable its manufacture and further identical reproduction.
