CHAPTER ONE
1.0 INTRODUCTION
In the recent, part emphasis was only on the balance sheet report without cognizance of their factors that made up the inflow and outflow of resources that sustain the body mechanism of given firm. With recent emphasis on cost control in the face of the rising cost of input resources and subsequent spill over of high cost of output. It is very essential to discuss the contribution and roles of purchasing in the achievement of an organization.
After the civil war, the attendant boon in production resulting from the growth of private sector enterprises form Europe and America, began to awaken other management inputs for eventual profit. The reason I based on the sophisticated resources put in by these multinationals into the mechanism of our business sector.
It is imperative to note that the concept of purchasing has been broadened since the turn of the century, to include all those business activities relevant to the securing of materials supplier and equipment as well as services needed by business and industries. Furthermore, the evaluation of right materials has bought purchasing principle and management and its effect on storages high price of commodities and the allied improvisations have cause of problems of the materials and service to intrude into broad rooms of many organizations large or small public or private and even government agencies. As at date, the cost of materials and supplies for industrial and non-industrial purposes accounts for large proportion of the cost of these organization. In most of them, this represents ever 655 of their total expenditure.
Therefore, purchasing is referred to as the department which is concerned with the process of defining the organizations needs selecting suppliers, agreeing terms placing orders, and receiving goods and function which is oriented to providing complete supply function service for user within the organization. English oxford Advanced learners dictionary of current English, third edition, simply defined the world “Purchasing as just buying”. E will however, take purchasing mission to selected of materials or services agreement of process and acquisition items. A well organized purchasing is one of the criteria for a company to minimize cost at the same time increase profit. The contribution of purchasing towards ensuring rapid growth of an organization’s achievement cannot be over-emphasized. It has been sample and proved that, a human in the filed of purchasing easily views purchasing function as more obtaining requisitions negotiating and placing order without the knowledge that purchasing goes beyond this areas of activities. The activities purchasing have the primary purpose apart from procurement of right qualified from the right source at the right price. They distributed these materials or resources to the user department. To do this involves requirement determination, taking procurement decision make or buy decisions bidding, vender selection, negotiation, re-negotiation, awarding of contracts, contracting order processing, expediting, taking delivering, materials handling, storage and distribution within the organization.
For a company to succeed or to achieve it desired objectives, it means that those required to man the materials section of the organization should be highly trained and knowledge in the filed of purchasing. And other materials related functions, in order to harness effectives and efficient achievement to their organization. In view of numerous challenges of the profession requires a caliber of person that can exercise prudence and sound judgement for any naira spent at any given point in time, in order to minimize cost and increase profit.
Sincerely speaking, these cannot be achieved if the buyer is not professional buyer that should adhere, strictly to the ethnics of purchasing profession and techniques or purchasing practice. Quite unlike untrained buyer, a trained and professional purchasing executive is aware that he is bound by the ethnics of the purchasing profession. Therefore, his first and primary obligation is integrity in spending his company’s fund, showing professional competence in representing his organization outside etc. it is in line with this that the researcher tends to study the contribution and roles suing Nigerian Bottling company Plc.
1.1 GENERAL OVERVIEW OF THE STUDY
This general induction cannot be concluded without giving a brief description of the company used in this reach. The Nigerian Bottling company plc. Producers of soft drinks or minerals in one of the numerous groups of companies owned by events Nigeria limited with their headquarters at Ikeja in Lagos state, which is controlled by an overall general manager. The Owerri Plant, which is the rearcher’s area of concentration, is located along the Owerri-Onitsha road, off control post roundabout. The company produces assorted types of soft drinks ranging from Coco-Cola, Fanta orange Fanta tanic, ginger ale, club soda, sprite and krest bitter lemon.
The organization does not have a centralized purchasing department. They operate a decentralized system of purchasing. It has four different purchasing/stores limits/stores as follows.
1. The various raw material sections.
2. The spare and equipment section
3. The various stationary section
4. The finished product stores