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The Roles and Importance of Purchasing as a Business Activity in an Organisation

The Roles and Importance of Purchasing as a Business Activity in an Organisation

Project / Seminar Material
Reference ID: PS-4647-TM

DEDICATION

This research material titled “The Roles and Importance of Purchasing as a Business Activity in an Organisation” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Purchasing and Supply (PS), Book Authors and Profound Scholars of existing or related project material on “The Roles and Importance of Purchasing as a Business Activity in an Organisation” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    The Roles and Importance of Purchasing as a Business Activity in an Organisation

    CHAPTER ONE

    1.0 Introduction

    1.1 Background Of The Study

    Successful business management rely mostly on well co-ordinated function of activities, these include finance, personnel, production, marketing and purchasing.

    All of these functions form this activities that makes up a business organisation, however if one these functions is weak, it will definitely affect the overall efficiency of the other functions. Purchasing which is one of the business activities is as old as the birth of business enterprise itself and it is considered to be the basic function of activity in an organisation.

    Purchasing is the attempt by business organizations to acquire goods or services or materials needed in order to accomplish the goals of the enterprise. This can be viewed from two perspective namely as a function and as a system.

    Purchasing as a function is that aspect of business enterprise which ensures the uninterrupted flow of needed materials into the organisation having in mind profitability and economy, while purchasing as a system involves the acquisition of materials, equipment goods and services which are essential for the operations of a business organisation.

    Unfortunately, since top management historically had focus on Marketing, Finance, Research and Development and Production, purchasing which is a basic function was not given much recognition, it was seen as a minor function and this led to the recruitment of clerks who were not skilled in the profession as purchasing officers. These created a lot of quality problems to the firms and led to the closure of some, but the Second World War, industrial revolution and the emergence of competition created a problem of scarce resources, then there was the need for tactical purchasing, this was when management started given more recognition to purchasing.

    Purchasing simply mean procurement and this include some processes which are sourcing, preparation of purchase order, expediting, receiving and inspection of order, invoice audit and invoice settlement, all of those will depend on the purchase requisition sent by the needing department to the purchasing department.

    The purchasing department is the heaviest spender of the organisation resources and contributes directly to the profit of the organisation through purchase discount and efficient buying.

    The purchasing department is charged with the purchasing functions and any purchase made by this department is known as organizational purchasing.

    1.2 Statement Of Research Problems

    Every organization has the challenge of wanting to meet up with consumers expectation by making the product available at the right time and in the right quality while trying to meet up with consumers demand. Some of the areas in which problem have been sought include.

    1. How the purchasing department makes contribution to the profit goal of the organization.
    2. How the purchasing department acquires input do they make use of the normal purchasing process or there is a standard set by the organization.
    3. Keeping a perfect working relationship with the other departments and the suppliers.
    4. Is the purchasing department playing any role in quality control?
    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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