NEED FOR EFFECTIVE AND EFFICIENT PROCUREMENT IN THE LOCAL GOVERNMENT SUB-SECTOR
ABSTRACT
This project work is being written to analyse categorically and to justify the need for effective and efficient procurement in the local government sub-sector so as to enhance and profitability. It is also the aim of this research work to find out how best procurement operation should be done in order to effect cost reduction and show how effectively and efficiently now purchasing department is organized in these local government sub-sector.
However, one thing stand out glaringly in the researcher’s mind and that is the purchasing function to a great extent has not been given adequate recognition as a specialist area in the materials management activities in the local government administrator and in industries undertakings.
CHAPTER ONE
1.0 INTRODUCTION
Despite the fact that purchasing is a young profession in the fiel of management the wind of change are blowing in purchasing and supply according to Baidy (1987 page 67).
The changes are helping organization to survive and succeed in every competitive environment.
However, purchasing and supply is an important function in almost every organization, right from private house to the federal states and local government. As well as industry as the members of companies industries begin to increase their purchases to new materials we dictated to the department that used it.
As times goes on, purchasing later became a functional specialization which holds about 63% of the organization purse, purchasing is not a money making function as people may think rather, it is meant for reducing and saving cost. In an organization like local government sub-sector such as Owerri Municipal and Ngor Okpala L.G.A through wise buying. When purchasing recognized the potentials of these function and the numerous opportunities they realized the needs for making an organized efforts towards self improvement and education in purchasing and it has become professional discipline. These are bodies that regulate the ethical codes and standards of practice while it’s members are bound to observe in Nigeria for example, the Nigeria institute of purchasing and supply management (NIPSM) and in Britain the charted institute of purchasing and supply (CIPS) regulate these codes of practices
Purchasing is therefore, closely associated with other organizational function. Like inventory management, stores management, transportation, production, planning and control in manufacturing industries and merchandising in distribution organization have to work closely will buying effective and efficient procurement cannot be achieved in any local government administration such as Owerri municipal and Ngor Opkala L.G.A or even in an organization be it private or non-government establishment, it there is no viable purchasing department.
