CHAPTER ONE
1.0 INTRODUCTION
The evaluation of mass production which so much relievers upon a continue flow of right materials has brought an impact and the need to improve purchasing participles and management.
Furthermore, the effects of shortage high price of commodities and allied improvisation have caused the problem of material and services to intrude into boardrooms of many organization be it large or small, public or private and even in government agencies.
As a result of this cost of materials and supplies for industrials and non- industrial purpose account for large proportion of he cost of the organization expenditure.
When purchased items accounts for such of high proportion of the organization expenditure when prices of goods are fluctuating widely when numerous diverse items are constantly needed and when the quality of the materials a services appreciably influence the cost of service than an organization purchasing role becomes particularly very attention “ (Oyeoku) the purchasing role is to see that materials and services are provided at the lowest cost which is in correspondence with suitable quantity and safety.
Purchasing must work other department of the organization as its role involves other factors some prior or subsequent to the actual ordering.
These facts include the investigation and selection of sources of supply working for alternative materials, the expediting or follow up order which will eventually enable the buyer ensure prompt deliveries the transportation and packaging aspect the transportation storing and issuing the materials so revived it has there become a complex function and needs a help of practitioners to be effectively carried out and required adequate training in purchasing and supply management techniques. Practitioners need to belong to the appropriate purchasing and supply institutes.
1.1 BACKGROUND OF THE STUDY
It is important to note that the institution is guided by the procedure and purchasing manual being employed purchasing like modotels Nigeria Ltd Owerri is an act of procuring materials, supplies and services to further the services rendered for the consumption of the public the function has to be executed within the frame work of the law of the organization or the particular agency, which might be other wise executed in the private sector without fear of running foul of the law the organizational purchasing office has advantage, which is not available to those in the organization.
However, the manager of the organization in recent years has given much attention to the direct contribution which purchasing activities can make to the savings of modotels Nigerian Ltd Owerri the purchasing function has a whole wide lot to offer it outs across all through the different department in modotels, Account, store, house keeping food privilege, the maintance of cordial relationship with these department become increasingly important. Besides the “quantity” quality and the time factors are usually defined for the purchasing department by these department or others that may be responsible for specifying procurement requirements.