Sourcing For The Most Suitable Supplier For Raw Materials In Manufacturing Organizations.

CHAPTER ONE

1.1 INTRODUCTION

Good supplier can be referred to as a tangible asset to manufacturers. It would not be possible to operate without supplier; this can be viewed for the aspect of division of labour or batch production process whereby the successful completion of one process depends on another. Therefore, I supplier fails to deliver materials especially raw materials at the right time of the operation is bound to paralyze.

Sourcing by definition is a management effort which is aimed at tie location or selection of effective and efficient supplier who are willing to respond to the needs of a manufacturing concern in the area of reliance supply of its raw materials, components and parts, quality insurance with reasonable price.

Selecting suitable supplier is one of the purchasing manager’s function or responsibility. The selection of supply source must be critically examined by the purchasing manager. The buyer must find the supplier who will furnish him with the optimum combination of good suppliers’ factors.

Sourcing involves much more than picking a supplier for each other in isolation. It involves continuing relationship both with preferred sources which are actually supplying goods and services and with the potential sources which may have been passed over for the present but are still in existence. There is no way a purchasing function could be carried out without paying special attention to the source of suppliers within and outside the environment with effective evaluation of such supplier.

One the problems facing most manufacturing organization in Nigeria are how to source for the right supplier and the rating of their performance. ‘[he careful planning of the buyer and production planning can be jeopardize by a poor sourcing or sources selection, It is already on cord that without knowing the source for the right supplier, the end product cannot be of good and right quality because the inputs which are the raw material may not be up to standard required for their production.

It is also on record that many organizations have to reduce production or close down entirely due to lack of source of supply of their raw materials (input) that will be processed to form the output or the ultimate product that will be offered for sale.

However, it reflects that the extent to which buyers search for supplier have received considerable attention in this days of economic instruction. Every organization has to find ways of getting adequate sources of materials for their operation.

1.2 STATEMENT OF PROBLEM

This study or research work is aimed at finding out the number of problems facing purchasing officers during the process of “SOURCING FOR THE RIGHT SUPPLIERS’. There are certain problems which usually faces the purchaser which ranges from determination of where source either internal or external (i.e. local or international market), to determination of who is best supplier and what system to be used in approving and rating them.

Another problem usually encountered while sourcing for suppliers include the situation where the purchasing officer find himself in the monopoly market where there only one seller who as all the power to exploit purchaser because there is no competition between seller.

1.3 RATIONALE FOR THE STUDY

First, the research work is carried out in partial fulfillment of the requirement for the .award of ordinary national diploma (OND), in business studies; Institute of finance and management studies (IFMS) Kwara State Polytechnic, Ilorin, Kwara State.

This area of project work has also attracted researchers because of the role it plays in any business. In view of the stated problem area of the project, the basic objectives of the study are stated as follows:

1.Find out the nature of the problem facing purchasing officers when sourcing for their inputs.

2.To find out the importance attached to “sourcing” as one of the five principles of good purchaser

1.4  SCOPE AND LIMITATION OF THE STUDY

The scope of the study is to focus on how manufacturing organization for their supplier for raw materials which is the life-wire of any ion concern.

The research is therefore limited to Nigerian bottling company Plc, Ilorin Kwara State as a case study and also to other areas considered as important to the topic in question. At the end of this project it is hoped that sourcing for the most suitable supplier for raw materials would be dearly understood

1.5 LIMITATION AND CONSTRAINTS OF THE STUDY

The study of project is limited to Nigeria bottling company Plc, Ilorin, Kwara State.

Researchers in Nigeria are often faced with number of problems which are inherited in the society. The researcher here was not exempted and so had a fair share of these constraints. These limitations are mainly environmental problems some of which are described below:

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