IMPACT OF A GOOD BUYER SUPPLER RELATIONSHIP TO THE PURCHASING AND SUPPLY CHAIN MANAGEMENT

IMPACT OF A GOOD BUYER SUPPLER RELATIONSHIP TO THE PURCHASING AND SUPPLY CHAIN MANAGEMENT

ABSTRACT

The main aim of embarking on this project is to know the need for a good buyer/supplier relationship to the purchasing and supply chain management. This study attempts on finding out whether the company has a good (cordial) relationship with its suppliers and buyers of its product. Certain factors like ineffective sourcing, lack of specialist in the field, neglect of purchasing and supply functions and falsification of documents so that they will destroy the image of the profession were found out to be problems of this study. Based on these findings, it is recommended that the different types of sourcing should be adopted to know which is suitable for the company and professionals in the field of purchasing supply should be used.

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY: A BREIF HISTORY OF STAR PAPER MILL LIMITED;
It was founded by one industrialist Chief Nnanna Kalu an ex- officer of the Federal Republic. The company was set up in 1977 with the factory located at Aba for the production of exercise books, envelops, writing pads, typing sheets, that is to say production of stationeries.
By 1984, as the started progressing, another production line was opened and the factory located at Owerenta for the production of tissue paper. The tissue paper factory also produces napkin tissue, that is, the serviettes. They produced about three categories of the product, that is, the special white or the double wrapper, the blue wrapper and the red wrapper. The prices vary as the final analysis based on the input of production process.
The structure is managed by the board of directors and the managing directors through whom the staff are reached. The decisions made by the board are channeled through the aid of administration in the person of the human resources manager who is also the head of the department. The company operates with sets of manners, the human resources managers, production manager, administration manager, the chief accountant both at Aba and Owerenta plus dues of engineers and technical support teams .Its other divisions are located at Abuja, Onitsha, Lagos, Kaduna and Kano. These divisions are used as serving point of the finished products and at the same time as collection centers for raw materials in the form of waste paper.
The purchasing unit is under the production department. The various units of the company have their own purchasing officer, like transport purchasing officer, purchasing officer for production etc. all report to the head of the units overall boss. Many of their raw materials are sourced locally through selective tendering system whereby invitations are given to selected number of contractors. Another source of the raw materials is the waste gathered from waste products from the stationeries which is added value for the production of tissue papers; they buy raw materials in bulk which are stored in the store house to avoid operational risk and for continuous production to satisfy there numerous customers.

IMPACT OF A GOOD BUYER SUPPLER RELATIONSHIP TO THE PURCHASING AND SUPPLY CHAIN MANAGEMENT