ABSTRACT
This
project work is centered on role of souring in the achievement of profit
objective of organization with a case study of Nigeria bottling company plc
Kaduna. It begins with the first chapter which dealt with the background of the
study, given a brief introduction about the subject matter under study.
Statement of problem which is the reason why the research undertook the study
to identify such problems and come up with recommendation which will be
beneficial to the organization and the entire society. Research question is
drawn up which is in line with the objective of the research work to be opened
up to get variables for questionnaires to be administered. Chapter two deals
with the review of previous work carried by other authors on a similar topic.
Chapter three deals with the research methodology with research design. The
study have a sample size of 25 which is 12% of the population of 200 drawn from
the material related unit and the sample size selected randomly and
questionnaire were administered to them for their response. The findings of the
study shows that profit maximization can only be achieved where organizational
is able to meet their customers demand satisfactory. Thus, it was concluded
that sourcing in Nigeria bottling company plc is treated with very importance.
Therefore recommendation was made that give appropriate attention to sourcing activities
in the organization. This will ensure that the supplier provide standard
material to the organization through adequate sourcing.
TABLE OF CONTENTS
Title page i
Approval Page ii
Declaration iii
Dedication iv
Acknowledgement v
Abstract vi
CHAPTER ONE: Introduction
1.1
Background of the
Study 1
1.2
Statement of the
Problem 2
1.3
Objectives of the
Study 2
1.4
Significance of
the Study 3
1.5
Scope of the Study 4
1.6
Research Questions
4
1.7
Definition of
Terms 4
CHAPTER TWO: Literature Review
2.1 Sourcing
Concept 6
2.2 Sources
of Suppliers Information 8
2.3 Sourcing
Policies 10
2.4 Criteria
for Source Selection 15
2.5 Supplier
Evaluation 17
2.6 Managing
Buyer and Supplier Relationship. 20
CHAPTER THREE: Research Methodology
3.1 Area of Study 23
3.2 Research Design 23
3.3 Population of the Study 24
3.4 Sample, and Sampling Techniques 24
3.5 Instrument for data Collection 24
3.6 Administration of Instruments 24
3.7 Techniques for Analyzing Data 25
CHAPTER
FOUR: Presentation and Analysis of Data
4.1 Presentation of Result 29
CHAPTER FIVE: Summary, Discussion, Conclusion and
Recommendation
5.1
Summary of Procedure 30
5.2 Discussion of Findings 31
5.3 Implication of the Findings 32
5.4 Conclusion 33
5.5 Recommendations 34
5.6 Suggestion for Further Studies 34
Bibliography
Appendix
CHAPTER I: Introduction
1.1
Background of the Study
The most important thing in the hierarchy of all
organizations objectives is profit maximization, and this can only be achieved
where organization is able, to meet their customers demand satisfactorily as at
when due and for this objective to be met there must be a right source of
supply that is, if the correct source decision is made in a particular
instance, then the buying company’s need would be met perfectly. In such circumstances
it would received the required goods or services at all times. Sourcing thus
involves much more than simply picking a supplier or contractor for each
requirement in isolation. It involves continuing relationships, both with
preferred sources which are actually supplying goods and services, and with
potential sources which may have been passed over for the present but are still
in the running. It involves decisions about how to do business on. For its
proper performance sourcing requires supply market research. This is a normal
part of procurement and supply work, undertaken informally by buyers when they
talk to representatives, visit exhibitions read trade journals and investigate
the market before placing orders. In addition,
it is the primary responsibility of purchasing to find out suitable sources of
supply and ensure that the right quality and quantity of material is obtained
at the right prices, and also spending time and effort in investigating and
evaluating prospective supplies and continuously appraising the performance of
current suppliers. In such a manner that there will be regular inflow of
materials supply to avoid stoppage in production and its attendant costs and
for the organization to be able to maximize its customer requirement in order to
achieve its profit objective.
1.2 Statement
of the Problem
Apparently in many organizations, it is clear to
observed the effect of poor sourcing procedure in the award of contracts to the
supplier who are not financially and technical capable of meeting the demand or
the need of organization. This is often base on irrational decisions of many
purchaser, as such the organization always suffer set backs in achieving their
profit objective.
Most other problems
associated with sourcing ranges from high price of materials, late deliveries,
supply of substandard products, mostly traced to inappropriate sourcing
decisions.
1.3 Objective
of the Study
The objective of this study is to assess role of
sourcing in the achievement of the profit objective of organization of Nigeria
bottling company Kaduna plant.
Specifically the study is set out to
1.
To identify the sourcing
policy employed by the organization in the procurement of materials need.
2.
To identify
criteria for source selection.
3.
To identify the criteria
used by the organization in rating their suppliers
4.
To identify the
type of buyer and suppliers relationship.
1.4 Significance
of the Study
The research study focuses on role of sourcing in the
achievement of the profit objective of organization of Nigeria bottling company PLC Kaduna, therefore the research study will be of benefit to the
organization, the executives, the students and other researcher in this field
also the research study will be of
benefit to the entire Popolance
To the organizations the study will explain in detail
what sourcing is all about, it important and benefit they stand to derive if,
they give sourcing the necessary any attention required, and also why should be
proactively a proactively in the organization thus the study will broaden their
knowledge of understanding sourcing.
To the executives the research work will bring to
their lime light the various sourcing methods available which they can use when
sourcing for supplier in their organization, also the type of relationship
needed to be used to foster good relationship with their supplier in order to guarantee
timely delivery of material at the right time, price and at the right place.
To the student the study will serve as a study
materials and a reference book as well thereby adding valve to the knowledge
and to the researcher in this field the study can be use as a guide and a
stepping stone for further research.
To the student the research study will help to broaden
perspective in what sourcing is all about, is also a requirement for partial
fulfillment for the award of higher national diploma in purchasing and supply
department Kaduna polytechnic.
1.5 Scope
of the Study
The study will be restricted to Nigeria bottling
company Kaduna plant. The study will address the sourcing policies and
procedures of the organization being studied. The work will also look at the
nature of relationship existing between the organization and its suppliers as
well as supplier rating or evaluation.
1.6 Research
Questions
This study will attempt to provide answer to the
research questions below.
1.
What are the
sourcing policies employed by the organization for the procurement of their materials?
2.
What are the
criteria used for source selection?
3.
What are the
criteria used by the organization for rating their supplier?
4.
What type of
relationship exist between the buying organization and their suppliers?
1.7 Definition
of Terms
Sourcing: as the process of identifying, selecting and
developing suppliers is a key purchasing activity.
Out Sourcing: May be defined as a management strategy by which
major non-core functions are transferred to specialist efficient, external
providers.
Partnering: is generic and refer to arrange of collaborative
relationships.
Intra-Company
Trading: applies to large enterprises
and conglomerates where the possibility arises of buying certain materials from
a member of the group.
Subcontracting: involves the total restructuring of an enterprises
around core competences and outside relationship.
Tactical and
Operational Sourcing: is concerned with
low risk, non, critical items.
Reciprocity: often referred to as selling through the order book is
a policy of giving preference to suppliers that are also customers of the
buying organization.
Single Sourcing: describes a situation where the buyers places all
order with one single supplier.
Dual or Multiple
Sourcing: is a situation where the
buyer shares the order among two or more supplier especially where the order is
large.
Categorical Plan: the method relies heavily on the experiences and
ability of the buyer and the personnel of other departments.
International Sourcing: it means buying
beyond national boarders of the buyer or importers country.
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