Impacts Of Effective Sourcing On The Attainment Of Organizational Objectives (A Case Study Of Doyin Investment Nigeria Limited Ilorin)

Project and Seminar Material for Purchasing and Supply PS

Impacts Of Effective Sourcing On The Attainment Of Organizational Objectives (A Case Study Of Doyin Investment Nigeria Limited Ilorin)


The purpose of this project work is to assess the impacts of effective sourcing on the attainment of organizational objectives with reference to Doyin investment Nigeria limited Ilorin. Sourcing is the process of searching for the right supplier’s capable of meeting the requirement of the buying company. Whether an organization succeeds or fail depends how effective and efficient suppliers are. Therefore the impacts of survey on the attainment of an Organizations corporate goals and Objective significance of the study cannot be underestimated. In order to ensure easy comprehensive of the research project, the whole project has been divided into five Chapters as follows: Chapter one consist of introduction, historical background of the case study, significance of the study, scope of the study, limitation and constraint, definition of terms. Chapter two will focus on literature review consisting of the opinions of various authors of different texts consulted. Chapter three will highlight the research methodology, research design, source of data, data collection tools, research population and sample sizes, sampling procedure employed and method of data analysis. Chapter four will be based on the data presentation and analysis. Chapter five being the last chapter and Summary of findings, Conclusion, Recommendations and References

Table of Content

  • Title page
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Historical background of Doyin investment limited, Ilorin
  • 1.2 Statement of the problem
  • 1.3 Objectives of the study
  • 1.4 Significance of the study
  • 1.5 Scope of the study
  • 1.6 limitations of the study
  • 1.7 Definition of terms

Chapter Two

2.0 Literature review

  • 2.1 Single sourcing
  • 2.2 Multiple sourcing
  • 2.3 Reciprocity
  • 2.4 Information on sources of supply
  • 2.5 Sourcing decision
  • 2.6 Sourcing as purchasing function
  • 2.7 Importance of sourcing

Chapter Three

3.0 Research Methodology

  • 3.1 Research design
  • 3.2 Sources of data
  • 3.3 Data collection tools
  • 3.4 Research population and sample size
  • 3.5 sampling procedure employed
  • 3.6 method of data analysis

Chapter Four

4.0 Data Presentation and Analysis

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendations

  • 5.1 Summary of findings
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Reference
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

Sourcing for supplier is of paramount important to business organization. Therefore selection of supplier or sources of supply should be handle with great care.

This is so because wrong choice or bad supplier can ruin firm’s operations failure to deliver or late delivery of materials by the suppliers can ruin firms operation. Failure may lead to production stoppage or uneconomical urgent order both which may have negative effects on manufacturing firms operations.

The importance of sources selecting to business organizations has called for proper sourcing policy which will assured material availability without materials there would be nothing to convert to finished products at the same time it is desirable to reduce the cost of the materials in order to optimize the use of working capital the major objective of sourcing is to search who can best supply goods or service required satisfactory it also stretches to cover the supplier’s

Development all attention must focused on finding the best supplier. The best supplier is referred to as those suppliers. Who can supply the material of the right quality and quantity at the right price time and place?
Theses five factors must be put into consideration, when selecting supplier coupled with assurance of continual supply and better pre-post sales services should be the target of a good buyer.

Evaluation of supplier (to detect the extent to which they can satisfy the five right) can be done by carrying out plant survey (plant visit) to inspect their facilities and technical know how, investigation into their management competence likewise their post performance in terms delivery and quality are all important considerations to be made as to determine whether or not to buy from local or foreign sources. Whether to use one source or two or more sources at a time whether to develop a supplier or engage in a reciprocal trade any decision reached must be in the overall benefits of the company putting into consideration the benefits and the prevailing considerations.
It must be noted that researching into market is necessary in order to have the fall information on the material needed. This information can be obtain from trade journals supplier catalogue, purchasing files, supplier information file, sales personnel etc performance of the existing supplier must be evaluated to find out whether the suppliers are performing satisfactory or not. The supplier is performing satisfactory or not. The supplier is on the list buy yet to be awarded contract too must be considered and the market situation reviewed.

The unsatisfactory supplier is to be dropped and any opportunity provided by market should be optimally used.
It must be noted that sourcing is a major purchasing function and should be performed and carried out by competent buyer with necessary skill in sourcing when carried out by a procurement expert who act in accordance with purchasing code of conduct will contribute tremendously to effective and efficient buying.

1.1 Historical Background Of Doyin Investment Company, Ilorin.

Doyin investment industry plc was located along Asa dam road in form capital Kwara state. It was established in 1983 and was incorporated as first indigenous company competing with western industries in the production of detergent. It belongs to Doyin group of companies with prince (or) Samuel Adedoyin as chairman and managing director.

Prince (Dr) Samuel Adedoyin is a native of Agbamu in Irepodun local government Area of Kwara state.

Doyin investment industry plc started operation 10th December 1985 it comprises of five factories which include soap and detergent plants source plants suppurations plant and glycerin plant. The product of Doyin group of company ltd through its subsidiaries engages in the business of soap and water, toothpaste and medicament, paints farming property hospitability and agro chemical in Nigeria.

It manufactures pharmaceutical soaps detergent body creams juice and drinks the company also provides beef cubes chicken cubes fish cubes creams detergent powder and blood tonic.

Prince (Dr) Samuel Adedoyin industrialist 76 June 4 Born in Ilorin Kwara state he is chairman Doyin industries limited starve Motors limited Doyin manufacturing company limited Adedoyin established a foundation for the handicapped and the physically challenged children at the university of form the is a merged children at the university of Ilorin He is a member Ikoyi club Lagos.

The company has been able to achieve the following aims successful challenge and monopoly of the western company detergent production won the awarded of quality from the standard organization of Nigeria in (1988 to make herself widely known as spread nationwide provide employment opportunities for Nigerians expand and add to her product life.

1.2 Statement of the Problems

Investigation has revealed that many manufacturing organizations left sourcing activities in the hand of non expert this might be due to total ignorance of the firm.

Some organizations purchasing officers has little or no say at all in making sourcing decision. This deprived the organization of the benefits best buy.

Many organizations do not carry out sourcing in the way it ought to be carried out (i.e. failure to put into consideration all necessary factors and this in most cases lead to unproductive sourcing.

1.3 Objectives of the Study

The primary aim of this research work is to satisfy one of the requirements for award of National Diploma certificate in purchasing and supply awarded by purchasing and supply department Institute of finance and management studies Kwara state polytechnic Ilorin.

It is also aimed at widing the scope of knowledge of the people on sourcing as in manufacturing organization with the sound knowledge of sourcing the public will be able to appreciate its significance in manufacturing firm.

1.4 Significance of the Study

This study is significant because it will equip the researcher with the necessary practical skills involved in the application of sourcing by manufacturing organizations.

This study is also significant to the company under study in that it will enlighten the management on the impacts of effective underlying the sourcing policy and in the attainment of the organization’s corporate frees and objectives.

The study will be an indispensable source of information to future researchers writing in a similar.

The study will broaden the knowledge of the researcher in the subject matter

1.5 Scope of the Study

The scope of this study simply means the area of coverage of the study this project will specifically focus on the impacts of effective sourcing on attainment of organizational objectives. The study will be limited in scope to Doyin investment Nigeria Limited Asa Dam Road Ilorin.

1.6 Limitations of the Study

Limitation of the study are three factors that have necessited the narrowing down or the study to a specific area.

Prominent among these factors were time constraint this research could not be conducted on a comprehensive basis because of the limited time allowed for the writing and submission of the project.

Secondly, financial constraint, this stands as a big barrier as a lot of money was required to finance the research study.

Lastly, lack of cooperation from the case study the responses of respondents (staff) were not encouraging in terms of releasing of required information data they declined to release some vital information based on the secrecy policy place in many organization.

1.7 Definition of Terms

1. Sourcing:

Simply means the selecting, identification, selecting of suitable sources or supply as effect sourcing decision with respect to those suitable sources and relationship both with preferred and potential supplier.

2. Effective:

This can be defined as change produced by an action or cause. The changes that lead to positive productivity.

3. Buying:

This can be defined as acquisition of goods and services in exchange for money or its equivalent.

4. Manufacturing:

The process of converting raw materials, componenets or parts into finished goods that meet a customer’s expectation or specifications.

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

5.1 Summary of Findings

In the course of this study it was observed that Doyin Limited have a standard purchasing department staffed with trained personnel who can handle the purchasing tasks successfully it was also disclosed that these personnel carry out their duties in line with purchasing practices techniques and can be described as professional buyer. This is evident by the result of this research work.

Sourcing in this company is carried out effectively with regard to the information gathered through the market research effort. It can be seen that normal procedure in sourcing are followed this result in selection at good source of supply the company make use of this tools: sourcing in a commendable way.

Notwithstanding, It was also observation that purchasing department was lot given property authority by the management in performing in most cases there is undue stature of the purchasing department limit the contribution with purchasing.

A purchase who is refrained from handicapped position. Thereby, not able to exercise much of its skills which can be of paramount benefits to the company as a whole. It was found out that though purchasing officers carry out almost all the activities involved in sourcing the final decision is influenced much by higher authorities.

5.2 Conclusion

In conclusion this research work has reveal sourcing as a tool to better supplier selection in purchasing it has shown sourcing on its true color sourcing is of paramount importance to manufacturing organizations in general. It must not be overlooked it must not be viewed as a waste of time and money.

Sourcing when effectively carried out ensures purchase of material of better quality precise and most economical price and the right quantity delivered to the right place at the right form a reliable supplier who can give assurance to trained buyer who is objectively pursuing purchasing aims and objective.

5.3 Recommendations

The researcher therefore recommend that the management of Doyin Investment Nigeria Limited should time by to provide the necessary incentive to purchased to enhanced better performances strive.

Purchasing on its part should make maximum utilization of professional use of its personnel in an attempt to contribute maximally to the objective of the organization.

The management should give purchased the opportunity to per take in decision affecting materials purchase is of a good source of information which the management could use in formulating effective position on material. All other department should recognize purchasing department and the role they of carrying out their best own duties.

The purchasing department should improve on its performance be providing the required services better and more economical way. This will increase purchasing contribution it profitability’s and promote is goodwill in the eye of the management.

Purchaser should be cost conscious and must strive in all ways to eliminate unnecessary cost in the it’s operations purchaser must put in mind quality of services or materials.

Lastly the purchasing department must observe profession& code of conduct in its practices this will help in achieving the aims and objective of organization it will also help purchasing to build a good reputation that enable his company to entrust into his hand. Purchasing activities which in his legal obligation.

Impacts Of Effective Sourcing On The Attainment Of Organizational Objectives (A Case Study Of Doyin Investment Nigeria Limited Ilorin)

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Impacts Of Effective Sourcing On The Attainment Of Organizational Objectives (A Case Study Of Doyin Investment Nigeria Limited Ilorin)


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