EFFECTIVE PURCHASING PLANNING AS A COST REDUCTION TOOL IN THE MANUFACTURING INDUSTRY(A CASE STUDY OF NIGERIAN BREWERIES PLC IKEJA LAGOS).

ABSTRACT

This research is centered on organization with principal attention to planning for the attainment of organization goals the management of an organization is carried out through the aim of several people that comprises the procedure of achieving the mission through transmission of organization requirement in which individuals working together.

Management is a process by which the organization set objectives are achieved through coordinated purchasing staff efforts. Purchasing personnel management is that part of the process of management that is concerned with the maintenance of resources and ensuring the physical nature of materials and equipment being employed to contribute to organization profitability.

The research consist of five chapters which shows how purchasing planning serves as a tools for effective achieving the organization objectives.

The chapter one will consist of the introduction statement of problem, significant of the study, objective of the study, scope and limitation of the study, historical background of the company and definition of the term.

Second chapter shows the literature review and how each-author deals with the mentioned topic.

The third chapter also mentions about the research methodology instrument or tool used, research size, technical used in analysis data, testing of hypothesis.

The fourth chapter deals with data presentation and analysis of data, discussion of result.

Chapter five will be summary and finding, finding, recommendation, conclusions and references, questionnaires.

CHAPTER ONE

1.0     INTRODUCTION

Purchasing planning as a managerial function as really come a long way In the past when materials component, parts, energy etc. were abundant and available at ridiculously low prices, purchasing was not given proper chance to operate. That is, purchasing was looked upon as unimportant function. However, now that materials are in short supply there is generally an existence of what is called “GALLOPING INFLATION”.

This results to high prices of materials or unfriendly supply market, it will be very unreasonable for any business firms and induced government to ignore purchasing planning function.

Based on the above reasons, purchasing tends to play an important role in any business organization whether profit or non profit oriented. In a nutshell the project is about the needs for any organization to focus it attention on the importance of purchasing planning functions.

To a layman, purchasing means the process of buying raw material component, part and services. But in a broader sense, purchasing can be defined as the procurement of the right quantity, the right quality, of goods at price from the right sources and delivered in good condition to right location as and when required.

1.1     STATEMENT OF PROBLEM.

Despite the company’s contribution to the promotion of industrialization in Nigeria generally some problems still face the establishment. Some of these problems are not known to the public and as a result of this, people try to understand that it is only the problem of finance they are facing.

The problems discovered in this study are as analyzed below.

1. The product supplied to the consumer are far below the requirement of the customers. The customers complained bitterly of not getting enough products when demanded.
2. The N.B Ltd did not have enough storage facilities to store the product produced.
   This was why they were not able to meet the demand of their numerous customers.

The establishment complained    bitterly    of being starved of money by the & government and also  government intervention since it is money that can enable them to discharge their duties well to their customers.

1. SIGNIFICANCE OF THE STUDY.

The primary objective behind the research is for the researcher to be able to fulfill the pre-requisites for the ward of professional in purchasing and supply, since the project forms as aspect of the course,the secondary objective in writing this research is that, the researcher has been waiting to directing attention is key performance is improving.

Therefore, clearly stated and will understand. Purchasing planning objectives are pre-requisites to purchasing measurement and evaluation.

Generally, purchasing planning objectives which are typical to many industries or  organization include:

1. Supplier Development.
2. Lowest total material costs
3. Maintenance of adequate quality
4. Continuous supply of needed materials component and services.
   1. THE OBJECTIVE OF PURCHASING PLANNING FUNCTION

What are the objectives and responsibilities of the purchasing department unit?

The classical definition of purchasing planning objective is to buy materials and services of the right quality to the right quantity at the r right price from the sources at the right time and delivered to the right place.

            The following are some of the objective of purchasing:

1. Advising other function on the suitability and availability of supplies to meet material needs.

b         advising of formulation  of all policies affecting or affected by the purchasing function .

c          Developing good relationship with other department thus creating greater efficiently and material trust, confidence and understanding .

d          carrying out all activities involved in purchasing function in an efficient and business manner .

e.       Providing the organization with steady flow of materials to meet its needs and management at the material times f. Developing and maintain good relationship with both existing and potential suppliers to order create a reliable and confident services to the organization. This assists greatly in building up suppliers’ goodwill.