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Effective Purchasing Planning As A Cost Reduction Tool In The Manufacturing Industry


The theme of study is “effective of purchase planning as a cost reduction tool in the manufacturing industry (A case study of Nigeria breweries plc ikeja Lagos) who main objective are two make an effective and efficiency patronization to acquires the improvement of Nigeria economy.

          This research is limited as a result of time constraint, financial and cost of gathering materials to be need in the project.

This research project is divided into five chapters for case presentation of the facts and figure gathered

Chapter one contain the introduction, statement of problem, significant of the study, limitation of study historical background of Nigeria breweries,

Definition of term.

Chapter two contain literature review chapter three contain, research methodology, instrument or tools use research size technical used in analysis data, testing of hypothesis

Chapter four contain, presentation of data analysis of data discussion of result

Chapter five contain, summary of finding, conclusion, recommendation, references and questionnaires.


Title of page

Approval page



Table of content


1.0 Introduction

1.1 Statement of problem

1.2 Significant of the study

1.3 Objective of the study

1.4 Scope of the study

1.5 Limitation of the study

1.6 Historical background of Nigeria breweries plc Ikeja lagos

1.7 Definition of terms


2.0 Literature review


3.0 Research methodology

3.1 Instrument or tools used

3.2 Research size

3.3 Technical used in analysis data

3.4 Testing of Hypothesis


4.0 Presentation of data

4.1 Analysis of data

4.2 Discussion of results


5.0 Summary of findings

5.1 Conclusion

5.2 Recommendation

5.3 References





Purchasing planning as a managerial function as really come a long way In the past when materials component, parts, energy etc. were abundant and available at ridiculously low prices, purchasing was not given proper chance to operate. That is, purchasing was looked upon as unimportant function. However, now that materials are in short supply there is generally an existence of what is called “GALLOPING


This results to high prices of materials or unfriendly supply market, it will be very unreasonable for any business firms and induced government to ignore purchasing planning function.

Based on the above reasons, purchasing tends to play an important role in any business organization whether profit or non profit oriented. In a nutshell the project is about the needs for any organization to focus it attention on the importance of purchasing planning functions.

To a layman, purchasing means the process of buying raw material component, part and services. But in a broader sense, purchasing can be defined as the procurement of the right quantity, the right quality, of goods at price from the right sources and delivered in good condition to right location as and when required.


Despite the company’s contribution to the promotion of industrialization in Nigeria generally some problems still face the establishment. Some of these problems are not known to the public and as a result of this, people try to understand that it is only the problem of finance they are facing.

The problems discovered in this study are as analyzed below.

1.The product supplied to the consumer are far below the requirement of the customers. The customers complained bitterly of not getting enough products when demanded.

  1. The N.B Ltd did not have enough storage facilities to store the product produced.

    This was why they were not able to meet the demand of their numerous customers.

The establishment complained    bitterly    of being starved of money by the & government and also  government intervention since it is money that can enable

them to discharge their duties well to their customers.


The primary objective behind the research is for the researcher to be able to fulfill the pre-requisites for the ward of professional in purchasing and supply, since the project forms as aspect of the course, the secondary objective in writing this research is that, the researcher has been waiting to directing attention is key performance is improving.

Therefore, clearly stated and will understand. Purchasing planning objectives are pre-requisites to purchasing measurement and evaluation.

Generally, purchasing planning objectives which are typical to many industries or  organization include:

a.Supplier Development.

b.Lowest total material costs

  1. Maintenance of adequate quality
  2. Continuous supply of needed materials component and services.


What are the objectives and responsibilities of the purchasing department unit?

The classical definition of purchasing planning objective is to buy materials and services of the right quality to the right quantity at the r right price from the sources at the right time and delivered to the right place.

The following are some of the objective of purchasing:

  1. Advising other function on the suitability and availability of supplies to meet material needs.

b   advising of formulation  of all policies affecting or affected by the purchasing function .

c   Developing good relationship with other department thus creating greater efficiently and material trust, confidence and understanding .

d   carrying out all activities involved in purchasing function in an efficient and business manner .

  1. Providing the organization with steady flow of materials to meet its needs andmanagement at the material times.
  2. Developing and maintain good relationship with both existing and potentialsuppliers to order create a reliable and confident services to the organization. This assists greatly in building up suppliers’ goodwill.       “~


This study covers the activities of purchasing officers in a large retail organization as a case study of Nigeria breweries Plc Lagos, since the company is the overall controller of other distributors and departmental stores in the state. The facts collected in this project only covers the activities performed in the chosen organization.


There can not be any successful research of this nature without encountering some difficulties which might cause its success or failure. The following are some of the dangers encountered:

(a) Difficulties are some of the dangers encountered :- some valid information relating to the object matter.

(b) Collection of relevant data is noted to consume

time and funds. Another problem faced is lukewarm attitudes of some officers who   supposed to attend and give reasonable response. The occurred with the view that such
a research can serve as a deterrent to items forgetting that it may be immense improvement in their performances.


Importance Of Management Information System
Sourcing For The Most Suitable Supplier For Raw Materials In Manufacturing Organizations.
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