CONTRIBUTION OF PURCHASING IN ACHIEVING ORGANIZATIONAL OBJECTIVES
ABSTRACT
The issue of little or no recognition of the need for purchasing department in industries and firms has been affecting efficient and effective buying and mismanagement of industry’s fund (cash). This work “The contribution of purchasing in achieving organizational objectives” is designed to lay down the need for effective and efficient purchasing department in today’s industries in other to enhance their profit.
This research work has five chapters, one deals with the introductory aspects, giving a general overview of the topic and the background “The contribution of purchasing in achieving organizational objectives, incorporated there-in are sub-headings as statement of problems, scope of the study etc. The review of literature as it relates to the contribution of purchasing in achieving organizational objectives is in chapter two. The method used in carrying out the analyzed together with finding from interviews and observations are in chapter three, while chapter four present the presentation of the findings and analysis of the data and chapter five deals with recommendation, summary and conclusion.
CHAPTER ONE
1.0 INTRODUCTION
1.1 GENERAL OVERVIEW
The evaluation of mass production, which so much relies upon a continuous flow of right materials has brought an impact and the need to improve purchasing management. Furthermore, the effects of shortages after production, high prices of commodities and allied improvisation has caused the problem of materials and services to intrude into many organizations, be it large or small, public or private.
“When purchased items (materials and supplies) account a high proportion of the organsiations expenditure, when prices are always fluctuating widely, when numerous diverse items are constantly needed and when the quality of materials or services appreciably influences the cost of manufacturing the final product or rendering the services, then the contribution of purchasing in achieving organizational objectives becomes important or rather particularly very important and thus demands close attention.
The contribution of purchasing in achieving organizational objectives is therefore achieved when the buyer or purchase purchases the required quality and quantity of raw materials, supplies, parts, tooling and equipments at the right time and at the lowest possible price, conversely, it must also be borne in mind that buying at the lowest price may become uneconomical that not achieving organizational objectives, if the required quantity of material is not delivered and received at when needed, if the quality required does not meet up to the quality delivered.
The success and future continuity of an organization to a large extent depends on the activities of its purchasing unit.
However, effective and efficient performance of purchasing function is important for the smooth operating of any organization in achieving its objectives.
