INTERNATIONAL PROCUREMENT AND ITS JUSTIFICATION(A CASE STUDY OF GLOBA SOAP AND DETERGENT, ILORIN)

ABSTRACT

The research work is basically concerned with the international procurement and its justification. The research work covers the purchasing activities of Global Soap and Detergent Industry limited Ilorin. International buying is the procurement activities which involved source and obtaining needs or requirement from a foreign country for use in another country. International trade is particularly important to consumer in all nations. Nations trade in what they produce most efficiently in an atmosphere of competitive world, resulting increase standard of living for all people of the world. This research work is divided into five chapters in order to aid a better understanding. Chapter one is the introduction of the subject matter, statement of the problem of purchasing in the company, scope and limitation. The historical background of the company understudy. Global soap and detergent industry limited Ilorin and the definition of terms. Chapter two covers the literature review especially on books that are more useful and relevant to the project under study. In addition to the literature review is definition on international buying reason for growth in international buying problem of international buying justification of international purchasing and relationship of local and international buying. Chapter three is based on research methodology instrument used for data collection, population and sample size statistical method used in analyzing data. Chapter four is the presentation and analysis the data used. Chapter five contains the discussion of the summary of findings, conclusion and recommendations and references.

CHAPTER ONE

1.0 INTRODUCTION

Purchasing as a subject and as a business function has really come along way. In the past when material, component part energy etc were abundant and available at ridiculously low price, purchasing was not given proper chance to operate that is why procurement was looked upon as having unimportant function.

However now that material is in short supply there is generally on existence of what is called galloping inflation.

These result to high price of material or unfriendly supply market. It will be very unreasonable for any business firms and indeed government to ignore purchasing function.

With these reason 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 need for a company to involve international procurement.

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

Procurement these days for organization especially profit oriented company has become very difficult because of the international operation involved. The company has to buy international to make its product. This nowadays firms in African countries or content can now produce their material requirement and service from few distance sources in American continent.

The researcher case study of Global Soap and Detergent Limited Ilorin will at the long run benefit in the are of appraisal made by the researchers on how foreign buying activities are accomplished. At the end of the research work, recommendation to solve the problem can be employed by the company to improve its purchasing performance especially in the area of international buying.

To the reader, especially non professional colleagues knowledge concerning foreign purchasing would be gained and various reason for foreign buying would also be gain.

To the professional colleagues, how international buying is practically carried out in a company would be learnt in addition to the theoretical knowledge gained in the classroom.

Finally, the society as a whole has its share or benefit to be achieved from the project.

1.1   OBJECTIVE OF STUDY

The research work is of importance to the researcher because if forms part of the requirement for the award of Higher

National Diploma in Purchasing and Supply in the Department of Purchasing and Supply Institute of Finance and Management Studies Kwara Poly.

The research study will attempt to inform the organization under the study on the roles and immense contribution of international buying.

However, at the end of the research work, it would help to convince the management of Global Soap and Detergent Limited llorin, that Purchasing contribution is essential the overall corporate the organization lack of this may cause total collapse of the company corporate plan.

1.2   STATEMENT OF THE PROBLEM

The research study deal with international procurement and its justification in a company. An international buying involves more complex procedure relating to local buying. There is tendency for some problem to arise during the practice. Among some problem encounter by the company are how to locate foreign supplier, how to get traveling document, licensed, importation duties. More so, fluctuation in exchange rates, instability in rate of exchange is one of the problems frustrating the industry in which the cost important becomes higher.

Lastly, the distance between one nation and another may so great that it makes the cost of transportation high.

1.3   SCOPE AND LIMITATION OF THE STUDY

This research works will cover buying for organization. Thus its scope will be based only on international buying aspect.

Also, the study will be restricted to the chosen company Global Soap and Detergent Ilorin by analyzing the various procedures involved in international procurement. The study will start right from origin of needs and ends with clearing of the goods at what or port of entry.

They researcher faced some problems in the course of carrying out the research work, which range from financial problem and time factors. The researcher was also denied some accessibility to copies of various document use in the organization when sourcing abroad for security purpose. Also the attitudes of the respondent create much problem. Most of them schedule a time in which they will never be around whenever you are there.

Lastly, the organization lack purchasing library in which secondary data can be yet for the researcher.

• Theoretical Scope: this refers to the area to be covered during the period of research work. The area to be discussed shall be limited to purchasing and supply.
• Geographical Scope: The researcher shall offer useful suggestions where necessary so that the organization could be able to advice much for progress and make valuable contribution to see the economic depression of this great nation.
• Industrial Scope: The researcher will focus more attention on the purchasing department with particular reference of Global Soap and Detergent Industry as regard their activities.
• Time Scope: This is where the researcher would use his time to spend for collecting data from the organization in order to get facts from them.