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The Importance Of Efficient Purchasing In A Manufacturing Organization
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1.4 OBJECTIVES OF THE STUDY
The researcher undertaking the study of the importance of efficient purchasing in manufacturing organization.
It
highlight the functions of purchasing which centers on the
co-ordination and control of material costs and maximizing profit
therefore the purpose of the study with special interest and the
manufacturing organization is narrowed down in the following point .
1. To examine the caliber of staff employ for the performance of purchasing function.
2. To ascertain the extend the purchasing important have been adopted
3. To find out purchasing contribution of profitability and efficient running of the organization.
4. To stress the importance of purchasing in a manufacturing organization
5. To find out the relationship between the purchasing and other department
1.5 SIGNIFICANCE OF THE STUDY
The
importance of the study lies on the profitability contribution of the
purchasing function to a firms operation especially in a manufacturing
organization where material and service account for about 85% of its
total input as it know that 4%saving in purchasing can contribute the
same amount and mark- up of 20% on sales.
The significance of the study derives the usefulness in the following ways.
1. To the company, it will highlight them on the impact of purchasing in profitability.
2.
Students or anybody that does not have an idea of the role of
purchasing function and it’s contributions to profitability. If come
across this project will also gain and have the knowledge as well. And
also use this project as a research book
3. Finally, It is hoped
that the findings and recommendation will help other organization to
begin to accord purchasing and supply function recognition if they must
make profit.
1.6 RESEARCH QUESTION
In the bid to achieve the objectives of this research work, the following research questions will be treated, thus;
1.
Does the role of the purchasing agents enhances the organizational
needs for selecting suppliers, agreeing terms placing orders and also
receiving service?
2. Does the role of purchasing regarding to
negotiation of the right price for the goods influences the productivity
of the organization?
3. Does the function of purchasing involve ensuring that goods arrived at the right time and place?
4. Is effective purchasing power necessary for the purchase of raw materials used in the manufacturing industries?
5. Does efficient purchasing ability promote the profitability and productivity of a manufacturing organization,
6. Does purchasing ensure good source of supply?
7.
Do purchasers help in the evaluation of potential supplier before
dealing with them for agreement into continuous supply of material to
the organization?
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