DESIGN AND IMPLEMENTATION OF A COMPUTERIZED PURCHASING INFORMATION SYSTEM (A CASE STUDY OF SHOP AND SAVE SUPERMARKET, UYO)
- GENERAL INTRODUCTION
Purchasing information system is the activity of acquiring good or services to accomplish the goals of an organization. The major objectives of purchasing are to maintain the quality and value of a company’s products, minimize cash ties-up in inventory, maintain the follow of inputs to maintain the flow of outputs, and strengthen the organization competitive position. Purchasing may also involve development and review of the product specification receipt and processing of requisition, advertising for bids, bid evaluation, award of supply contracts, inspection of good received, and their appropriate storage and release. Purchasing system makes the purchasing process more efficient and help companies reduce supply costs. Computerized purchasing system can cut companies administration costs, shorten the length of purchasing cycle and reduce human error, thereby minimizing shortages. The can also simplify order tracking and make it easier to manage purchasing budget by quickly creating expenditure reports.
1.1 BACKGROUND OF THE STUDY
The art trading in materials i.e. the process of buying and selling is nearly as old as man himself. Before the advent of money as medium of exchange man bartered item surplus of his requirement for thing, which he needed from the time discovered that he could put his talents to produce or manufacture things, he began to specialize on whatever was his vocation, man found it more economical to purchase materials of quality suitable to his needs at prices which he considered favorably.
It was observed that 50 to 60 percent of shop and save expenditure is on materials. The purchase department therefore, become the biggest spending department of the shop and save. Material and supplies form the life blood, as it were of an industrial concern. These should be made available on proper place, time and at proper price. If all these do not happen the right way it may lead to the inefficient marketing techniques or out mode production skill can lead to a decrease of profit as inefficient system of purchase management can lead to a decrease in profit. Professional competence therefore, is important in managing the purchasing involves the activity directed towards securing the materials, supplies, requirement and services required in the operation of an enterprise.
These activities have to be performed with optimum efficiently, economy and effectiveness. These three factors are the key factors in obtaining excellence in managerial performance. since materials constitute the largest chuck of the creation of value (for which alone to customer is willing to pay a price), it is necessary for the purchase to exercise at most prudence in ensuring for the purchaser that the ultimate values is obtained for every ripe spent on material VFM (value of money) has to be the slogan of the purchase department.
Today purchasing is not the dame as buying of yester years. Buying is money the act of procuring at item of material at a price. On the other hand purchasing functions is the improvement of profit and actively searching out and in planning new ideas for improvement of the company’s product achieve this objective by cost of material. Finding out substitute materials that are more economical, by eliminating element of cost in purchasing that do not contribute to value and generally ensuring a higher degree of effectiveness in managerial performance functions right form participation, working capital management and profit improvement.
In order for the purchasing department to carryout operation accurately, timely, economically and effectively, it needs to process purchasing transaction setup files possible document as well as receipts of ordered items setup. Program to monitor the quantities and prices of received items.
Hence the user of computer is very important in purchasing department.
1.2 STATEMENT OF THE PROBLEM
Purchasing department of shop and save finds it difficult to handle the bulky job manually, especially files as a result of inaccurate and untimely processing of purchasing transactions. The inaccurate and untimely processing may be attributed to postal delays, bad handwriting, Loss of vital paper or documents transaction error, general validation features during processing and plain ignorance of what information is about, all course ions to many of the problems.
1.3 OBJECTIVE OF THE STUDY
The main goal of computerized purchasing system is to reduce unit labour requirements of each business operation.
- To examine the present mode of purchasing information.
- To find out the problem associated with present mode.
- To design an appropriate and suitable system of controlling purchase for the company.
The new system is thus designed to eradicate the problem of inefficiencies, inaccuracies and wastage in the manual processing or records and updating of purchasing files without human intervention.