THE SUPPLIER ‘S AND BUYER’S RELATIONSHIP IN A MANUFACTURING ORGANIZATION (A CASE STUDY OF DANGOTE FLOUR MILL, ILORIN)

PROPOSAL

This project is to focus on the supplier’s and buyer’s relationship in a manufacturing and a case study of Dangote flour mills Ilorin. For easier understanding of the research work, the research will be divided into five chapters. Chapter one of this research work will contain introduction, objectives of study, statement of the problem, objective of the study, scope of study, limitation of the study, and definition of terms. Chapter two will contain the conceptual fraud work and literature review, introduction, definition of product, classification of products, products quality and value, products mix and products line, definition of packing, types of packaging, function of packaging characteristic of good package, factor contributing to packaging growth, and problem associated with packaging as promotion tools. Chapter three entails the research methodology, historical background, type of data used and method of data collection and population size. Chapter four contain the presentation and analysis, data presentation, analysis and interpretation, data analysis and testing of hypothesis. Chapter five contains the recommendation, summary, and conclusion, summary of findings, conclusion, and recommendations.

CHAPTER ONE

BACKGROUND OF THE DANGOTE FLOUR MILLS PLC.

Dangote flour mills plc recommenced operation in 1999, as a division of Dangote industries Limited [DIL]. One of Nigeria’s largest and fastest growing conglomerates. Following the strategic division of DIL to  unbundle its various operations. Dangote flour mills was incorporated in 2006, the restructuring was completed in January, 2006 when the federal High Court sanctioned a scheme of arrangement where in all the assets, liabilities and undertaking of the erstwhile flour division of DIL was transformed to Dangote flour mills.

From the initial installed capacity of 500MT per day at its Apapa mills, Dangote flour has expanded rapidly by opening in quick succession three other flour mills in Kano [2007]. Calabar [2001] and Ilorin [2005]. Each of the mills started with an installed capacity of 500MT per day but all of them have subsequently expanded resulting in a total installed capacity of 500MT per day distributed as follows:.

Apapa- 1,000 MT per day

Kano- 500 per day

Calabar- 1,500 per day

Ilorin- 1,000 MT per day

These expansions were in response to a national demand for flour and flour based products in addition to the company drive for increased market share.

Thus from a modest beginning the company has grown to become one of the industry leaders within a six-year period. The company has 3 wholly owned subsidiaries, namely Dangote agro sacks limited, Dangote pasta limited and Dangote Noodles limited.

1.1 HISTORICAL BACKGROUND OF DANGOTE FLOUR MILLS PLC.

The groups milling business was commissioned in 1999 and consists of facilities in Lagos-Apapa, Ikorodu, Kano and Ilorin. All mills have a combined milling capacity of 2.7 million metric ton per annum. The company imports hard wheat from the U.S which is then milled into 50kg bags of flour. The company also produces confectionery flour, semolina and Alkama – a grain consumed in Northern Nigeria. The flour milling business was operated as a division of DIL until January, 2006 when it was spain-off as Dangote flour mills plc [DFM].

The division has three wholly owned subsidiaries Dangote pasta limited, Dangote Noodles limited and Dangote Agro sacks limited.

BOARD OF DIRECTORS:- which comprises executives directors i.;e those involved in the day to day running of the company business and (external) directors who do not partake in the daily running of the company but have voting power at board levels on top company decisions.

The chairman is assisted by the vice chairman has size (6) executives director namely.

Mr. Olakunle Alake                          Operating officer

Mr. Knut Ulvmoen                           Managing director

Alhaji Abdul Dangote             Logistic and distribution

Alh. Sada Ladan-Baki             Transport manager

Alh. Tajudeen Sijuade             Accountant

These directors formulate policies in their directorate that the adjudge would facilitates efficient running their directorates. The directorates are divided into division and the division are divided into smaller units called department assistant managers and supervisor.

Each manager performs specific and report to his divisional heads who will brief the manager director and Deputy managing director.