PURCHASING FUNCTION IN THE PROCUREMENT OF CAPITAL EQUIPMENT
ABSTRACT
Precisely this piece of work which concerns itself with the topic” purchasing function in the procurement of capital equipment has it in details as chapter introduced us to the topic, chapter two obviously tells us all we need to known about the topic while the proceedings chapter relates about the data used as the sources of information. The fourth chapter served as a personal interview with the manager of Jacobs wine Limited and the fifth chapter the summary, conclusion and recommendation was drawn.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Purchasing has a very vital function to play here as the buying of capital equipment differs substantially from the purchase of production materials and supplies.
The purpose of this work is to conduct an in dept research on the function played by purchasing in the procurement of capital equipment in Jacobs wine limited. To star with, we have to understand what capital equipment procurement is and how it is done at Jacobs wine limited. Capital equipment procurement therefore, is the purchasing of those items of machinery and equipment whose long life and high value require that they be carried on the balance sheet and depreciates over a period of time.
Specifically, therefore, the purchasing department in Jacobs wine, limited plays a distinctive function in the acquisition of capital equipment (items) as compared with the acquisition of production materials. In the procurement of capital items the purchasing department acts primarily in a service capacity as it gathers information, a contract administrator and acts as purchasing consultant to management.
The focal point of this research work is on Jacobs wine limited Mgbidi that is why the research want to know the purchasing function in the procurement of capital equipment Jacobs wine limited, a wine distilling firm is located in Mgbidi, Imo state it was established in 1985 by Dr Jacobs Frank (Phd) and was later incorporated in 1989. The company is committed to integrating suppliers into their long-term business process, this is done by early improvement of their supplier into their business plan to encourage good buyer/suppliers relationship.
Jacobs wine is involved in large scale production of pineapple based wine. Their winery remains the first and only commercial pineapple winery in Africa and second in the worlds.
The company has the following range of products, Jacobs pineapple wine Jacobs red candid wine Jacobs while candid Jacobs candid pineapple and Jacobs Topman wine while the spirit include addles dry gin and top brandy. The company’s production capacity perineum is 1.09 million liters.
As a matter of policy, Jacobs wine Mgbidi, is committed to giving its numerous customers both in Nigeria and across the shores, good value for their money. Right from inception, the company’s watch word is: “quality” a policy which it has maintained which has made the product to enjoy consumer preference and high patronage in the face of competition.
