1.1 Introduction
Purchasing is the first phase of Materials Management. Purchasing means procurement of goods and services from some external agencies. The object of purchase department is to arrange the supply of materials, spare parts and services or semi-finished goods, required by the organisation to produce the desired product, from some agency or source outside the organisation. The purchased items should be of specified quality in desired quantity available at the prescribed time at a competitive price. For the survival of any organization, be it public or private the efficiency is the most vital factor. Therefore means the coordination and maximum contribution from each basic function of the organization such as creation, finance, personnel, conversion and distribution, especially the purchasing, function towards the success of the entire organization.
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, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Nigeria bottling company plc was originated as a soda function beverage in 1886 selling for five least. Early growth was impressive, but it was only when a strong bottling system that coca-cola become the world Famous Brand It Is Today. 1884 – A modest start for a bold idea. Since the emergence of this organization, it has snifter to the market and consumers different types of soda fountain beverages. The number of soda fountain beverages sent to our market by this bottling company plc, in doubt has made tremendous impact on the reduction of the micro economic variables problems in this country through generating to our economy, creation of job opportunities etc the management of Nigeria bottling company plc is a public liability company.
The important of effective planning in purchasing activities in any business organization be it small or large is an obvious and important. In any purchasing activities effective planning is the fundamental and primary managerial function for any sp w operation which made it essential for successful strategy implementation and strategy evaluation because all other element of management depend upon good planning and control.
The only thing certain for the future of any organization is change and planning is the essential bride between present: and there future. In designing and maintaining an environment for effective performance of individuals working together in groups the most important task is to see that: purpose and objective and method of attaining them are clear understood.
Therefore, in Nigeria Bottling Company Owerri Plant Irete where the research was carried out, the activities that was conducted is to know the Impact of Purchasing Planning and Control in Improving Purchasing Performance in a Manufacturing Company.
1.3 Statement of Problems
Investigation revealed that some years back and even in recent time many company have been faced with the problem of planning in the sense that they have not recognized the importance of effective planning in purchasing there materials. The issue of effective planning in purchasing activities in any business organization helps the organization to get quality materials from a good supplier at the right time.
Most times the organization will have a problem of getting good material due to lack of planning. Sometime it might be lack of planning of efficient of the supplier to supply at the right time. Therefore this research is aimed at solving the problem that will occur when planning step is not taking and offering good way to be used in planning step.
1.4 Aim and Objectives of Study
The aim of the study is to scrutinize the Impact of Purchasing Planning and Control in Improving Purchasing Performance in a Manufacturing Company. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the contribution of purchasing planning and control management on improving the performance of Manufacturing Company;
- To make critical study of problem in the services offered by the firm and suggest solutions to these problem;
- To examine the existing purchasing planning step that is being utilized and its effectiveness; and
- To suggest the alternative ways for effective purchasing planning and control in enhancing Organizational Performance.
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:
- What is the contribution of purchasing planning and control management on improving the performance of Manufacturing Company?
- What are the problems of the services offered by the firm?
- What is the existing purchasing planning step that is being utilized and how effective is it?
- What are the alternative ways for effective purchasing planning and control in enhancing Organizational Performance?
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 significant factor affecting the place of purchasing planning and control management in an organization
- H1: There is a significant factor affecting the place of purchasing planning and control management in an organization
Hypothesis Two
- H0: There is no significant contribution of Purchasing Planning and Control Management towards Improving Purchasing Performance in a Manufacturing Company
- H1: There is a significant contribution of Purchasing Planning and Control Management towards Improving Purchasing Performance in a Manufacturing Company
1.7 Significance of Study
The relevance of this research work will keep both the government and industrialists, in setting up their industrial to realize that without efficient purchasing officer the envisaged profit will remain that no previous study was been carried out on purchasing activities in the public sector, but this will in particular reshape the financial profitability of Nigeria.
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of Study
The scope of the study focused on the Impact of Purchasing Planning and Control in Improving Purchasing Performance in a Manufacturing Company using Nigeria Bottling Company Owerri Plant Irete as a case study.
1.9 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.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- 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, questionnaire and interview).
1.10 Definition of Terms
Purchasing: Is the process involving planning, and strategy designed to obtain value for money spent.
Vendor: This focuses on the knowledge of selling and buying the person that supplies goods to the buyer is the vendor.
Negotiation: Negotiation is a conference between one party or person with another party or person with a view to arriving at a consensus.
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