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Purchasing Contribution Towards Organization Profit Ability

Download complete project material on Purchasing Contribution Towards Organization Profit Ability from chapter one to five 

The industrial sector of the world economy has long age witnessed a sudden transition from producers market to consumer market, for this fact, manufacturer could no longer afford to nut just anything into the market as they used to do. This sudden change occasionally by the advent of individual revolution has made the business world more dynamic and violability therefore has lessened the degree of predictability of the business trend.



Cover page




Table of contents


1.1 Statement of the problem

1.2 Objectives of the study

1.3 Significance of the study

1.4 Scope and limitation of the study

1.5 Historical background

1.6 Definition of terms


2.1 The importance of purchasing

2.2 Purchasing objectives

2.3 Purchasing procedures and documentation


3.1 Method use for data collection

3.2 Instrument used in data collection


4.1 Data collection

4.2 Population of research

4.3 Research instrument

4.4 Procedures for data analysis

4.5 Research hypothesis


5.1 Summaries of findings

5.2 Conclusion

5.3 Recommendation




The industrial sector of the world economy has long age witnessed a sudden transition from producers market to consumer market, for this fact, manufacturer could no longer afford to nut just anything into the market as they used to do. This sudden change occasionally by the advent of individual revolution has made the business world more dynamic and violability therefore has lessened the degree of predictability of the business trend.

As a result of the forgoing development in then becomes imperative for profit. Oriented and service oriented organization that have the aim of attaining objectives of the other to exploit an available resources than can aid easy and prompt achievement of such social, this they can be allowing all the department units of the organization to put their professional enterprises into practice.

Among these departmental units is the purchasing division of the enterprises. By the very nature of its functions; the purchasing units has a lot to do towards ensuring easy attainment of corporate objectives and consequently profit of the organization.

In the discharge of its professional duty, the purchasing division is charge with the responsibility of saving available cost perpetually incurred with the organization as a result of worth dox.

It has to be emphatically stated that well over sixty-five percent (65%) of the company’s total expenditure goes to material purchase. This has made it a compulsion for an organization to address issue a fating such cost center very seriously.

If well organized the purchasing sector of an organization will find it absolutely easy to carry out their functions appropriately, for instance, the cost of engineering a defective material into the final product of the organization will have a telling effect on both the image of such company and its position in the competition market environment.

In order to redeem such image, the organization is going to pay for it very clearly again, the problem that will arise from late delivery of order by the company’s vendors will have almost equal effect as the conclusion of bad equality material into the product.

The researcher will have no sap in the efficient appraisal of the corporation enterprises through the efficiency of its purchasing unit of examining how purchasing contributes to profitability through cost savings, for analysis simplicity the research shall briefly examine the use of standardization variety reduction and simplification as well as the purchasing techniques as cost and value management tools.

There will be an x ray of the use of value analysis and value engineering which is one of the instrument the purchasing department is equipped with in aiding the proper attainment of an organization objective. In effect, an organization is researcher as efficient it if reached it goals on time with minimum cost possible.


The research study deals with purchasing contribution to the profitability of global soap and detergent industries and will attempt to solve the problem involve in the organization purchasing produce and efficient as an aid to the achievement of the objectives of the organization.

The research study attempts to inform the organization of the roles and great contribution of purchasing in the profitability of the organization without following the laid down purchasing process due to the organization.

The research work will help to know their purchasing department of global soap and detergent industry is doing right thing to ensure proper contribution to the company’s objectives i.e. profit.

Also the research work will investigate the scope of purchasing department influence on the purchasing department contribution, is sought for incorporation into the overall corporate plan of the organization.

However, at the end, the research work will help to convince the management of global soap and detergent industry that purchasing contribute the overall corporate plan of the organization in of vital important as lack of this may because the total collapse of the company cooperate plan.

The success of the conduct of this research work as not by any means been an easy task, the researcher is faced with a lot of problems which nearly threatened the success of this research, first of all the most prominent problem facing the researcher is how to get the approval of the management of the selected organization. This was because the information to be gathered from there is so vital and sensitive to the organization that, the organization would not want to reveal them, but after so much pressure, the researcher was able to get the needed information.

After setting the approval of the management then come the issue of when the purchasing manager would be quit able to attend to the researcher, this also cost the researcher a lot of time, efforts and money. Before the purchasing manager could be tracked down.

Finally the problem of finance, the financial commitment and disposition associated with the buying of materials typing and binding the project research made the whole exercise more demanding.


The research work has the aid of achieving some noble objective, one of the objectives is to pin-point area where the majority of Nigeria manufacturing concerns remarking great mistake by allowing the purchasing operation to be handle by quck purchasing personnel.

Another objective of the study is to allow companies in the industrial sector to see the role and important of purchasing in the attainment of the organization objectives.

With models such as blank cheque buying systems contracting blank order techniques manufacturing companies are not unlikely to be convinced that purchasing is not just buying and selling as they hither to believed but to known that the activities inherent than an avoidable cost is saved finally, the researcher study has the aim of making all profit oriented organization to realized how much is being lost daily as a result of non-organization of the purchasing as an eye opener for all profit conscious organization to see purchasing as a cost saving unit of the organization and as a direct contribution to the overall profit of the enterprises hence, an avenue that must be well exploited.


The primary objective of the research work is for research to be able to fulfill the NBTE pre-requisite for the award of national Diploma in Purchasing.

The secondary objective why writing this project is that the researcher has wanted to direct the public to vital aspect to purchasing what is the contribution of  purchasing to the profitability of an organization.

It is indeed very important to the research that through the research work has acquired more useful experience of happening in the industrial sector of Nigeria economy.


The scope of this study is an attempt by this researcher to look into ways and manner by which manufacturing concern within the crop of productive industry. In Nigeria perform their purchasing activities and how well the efficiency of this operating contribute to the profit motive of the organization.

With a particular reface to global soap and detergent the study will be more concerned with the activities of the purchasing department within the organization such that all necessary data information needed is expected to emanate from within the company except where it is viewed that such information will be inadequate validate the authenticity of this research work.

The study will attempt to establish the standard level of the department of an effective purchasing network. Designable for a manufacturing company due to cognizance of global soap and detergent industry.

The researchers believe that suggestion and recommendation made as a result of this study will be benefit to the management of the organization global soap and detergent industry. Particularly the purchasing department will be the organization of it researches its goal on times with minimum cost possible.


The identification or development of suitable source of supply, the systematic investigation and comparison of such sources the sourcing decision which suppliers to patronages, how many to use for a given items how to allocate available business. What terms to do business our.


Specification is a detailed statement providing a complete description or list of characteristic or equipment laid down for materials components process or services.

Right source is the supplier that can meet the requirement at the buyer.


Procurement is the term originated by the armed forces to defined one of several supply function involve in logistic. In the broadcast sense. It is defined as including the whole process whereby all classes of sources (people materials facilitates and services) required are obtained.


This can be used in purchasing to means suppliers and it could also means a person or form supplying goods or materials to buyers.


This involves the organization of some material usually those of some values and the insurance of the blanket order to the supplier for the entire requirement.


This is the time when the need is fully recognized to the time the goods and delivered.


Sometimes called expediting chasing and follow up. An important part of the supplier management task is to ensure that goods and services are received as an when required, many delivery problems can be avoided by sound source selection. Even the most careful selected sources sometimes proves unreliable in meeting agreed schedule.


This is the order size (quality) of materials that can be bought at which both cost of holding stock and the cost of ordering stock are equal giving a maximum total cost.


A purchase requisition is the document from used to record the need for purchase action.

The form gives necessary information on what is needed, the quantity and when it is need.


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