PROCUREMENT PRACTICE IN A SMALL SCALE BUSINESS
ABSTRACT
In this project, an attempt has been made to find out many ways of procurement practices in a small scale industry. It is on this purpose that the research has undertaken to know more about procurement practice. This study has attempted to identify and give a working description to procurement practice and the problem militating against the growth of the sub-sector. This project is divided into five chapters, chapter one being introductory analysis providing the definition and nature of procurement practice. Chapter two explains different author’s view on the subject matter or topic. Chapter three is the research methodology which explains the method the researcher used in achieving her results. Chapter four is the presentation and data analysis. Data are provided in a tabular form and analyzed using simple percentage method. Chapter five, conclusion are drawn based on the research findings and recommendation are made on how to improve on procurement practice on small scale industry.
CHAPTER ONE
1.0 INTRODUCTIONÂ
Purchasing and supply management in Nigeria has existed since the evolution of ma. Earlier organization and individual were practicing purchasing unknowingly until the 19th century when management started to look and think about procurement as an area of management in organization which has to do with careful attention and development. Procurement was generally regarded as a routine clerical function or as a service function, which only concerned itself with spending the organization or co-operates money. The research discovered and found out that procurement practice is of a professional than a clerical function, also it can contribute to profit in this case, there are two basic types of procurement namely:
1. Procurement for consumption
2. Procurement for conversion
Speculators and merchants perform procurement for resale. It has been the prime responsibility of merchant. The merchant devoted a large portion of their time to the search for procurement of new and desirable materials. They spent some of their time dealing with sales problems, but their basic problem has not changed. Procurement managers buy for consumption are involved in the activity and function that involve more that determined or ascertaining customer’s requirement.
Referring to industrial buying i.e. those that buy goods and services for tangible production or for commercial significant purpose such as manufacturers, primary producers, agricultural producers etc. They determined what product their company should make, what parts or components should be purchased from outside suppliers? The selected suppliers from purchasers can be made on a continuing and mutually profitable.
