Procurement Practice On A Small Scale Industry (A Case Study Of Easy Life Superstore Port Harcourt)

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Project and Seminar Material for Purchasing and Supply PS

Project and Seminar Material for Purchasing and Supply PS


This research project is dedicated to God almighty who made it possible for me to finish this project and also my parents pastor & Mrs. Christopher Nwadigo who God has been using to keep me moving and finally to all lovers of the nation.


In writing this research project, I have assisted directly by a number of people.

Though it will be impossible to mention all of them, but then few deserve to be singled out.

I am grateful to my supervisor Mrs. G.C Ekeanyanwu for her untiring efforts, patient, and understanding in seeing me through while writing this project.

My gratitude goes to our lecturer who made me what I am today.

Some of them include, Mrs. Udoh, Mr. Obasi Raphael, Mrs. Genevieve, Chilaka and my HOD A.M Uzor.

Also my appreciation goes to my parents for their contribution to make this project a success. Finally, to all other who helped I various ways like, Mrs. Ngozi Ukanwa, Namdi Nwadigo my vote of thanks.


In this project, an attempt has been to find out them, many ways of procurement practice in a small scale industry. It is on this purpose that the research has undertaken to know more about procurement practice.

This study has attempted to identify and give a working description to procurement practice and the problem militating against the growth of the sub-sector.

This study is divided into fiver chapters, one being the introductory analysis providing the definition and nature of procurement practice.

Table Of Contents

  • Title page  i
  • Approval page ii
  • Dedication  iii
  • Acknowledgment  iv
  • Abstract  v
  • Table of contents vi

Chapter One

  • 1.0 Introduction  1
  • 1.1 Background of study 3
  • 1.2 Statement of the problem 6
  • 1.3 Objectives of the study 7
  • 1.4 Research questions 9
  • 1.5 Significance of the study 10
  • 1.6 Scope of the study 10
  • 1.7 Limitation of the study 11
  • 1.8 Definition of terms  12

Chapter Two

  • 2.0 Literature review 14
  • 2.1 Introduction 14
  • Others functions of the topic 15-24
  • References 25

Chapter Three

  • 3.0 Research design and methodology 26
  • 3.1 Introduction 27
  • 3.2 Research design 28
  • 3.3 Sources/method of data collection -30
  • 3.4 Population and sample size 32
  • 3.5 Sample technique 34
  • 3.6 Validity and reliability of measuring instrument-34
  • 3.7 Method of data analysis 34

Chapter Four

  • 4.0 Presentation and analysis of data 36
  • 4.1 Introduction 36
  • 4.2 Presentation of data 37
  • 4.3 Analysis of data 38
  • 4.4 Interpretation of result(s) 44

Chapter Five

  • 5.0 summary, conclusion and recommendations  46
  • 5.1 Introduction 46
  • 5.2 Summary of findings 47
  • 5.3 Conclusion 49
  • 5.4 Recommendations 49
  • References 50
  • Appendix 51
  • Questionnaire  52

Chapter One

1.0 Introduction

Purchasing and supply management although it is around discipline in Nigeria has existed since the evolution of man because earlier organization and individual were practicing purchasing unknowingly until 19th century when management started to look and think about procurement as an area of management in organization which have to do with careful attention and development.

Procurement was generally regarded as a routine clerical function or as a service function, which only concerned itself with spending the organization, or cooperates money.

The research discovered and found out that procurement practice is of a professional than a clerical function also it can contribute to profit. In this case, there are there basic types of procurement in the business world of procurement

  1. procurement for consumption
  2. procurement for conversion

Speculators and merchants perform procurement for resale. It has been the prime responsibility of merchant. The merchant devoted a large portion of their time to the search for procurement of new and desirable materials. They spent some of their time dealing with sales problems, but their basic problem has not changed.

Procurement managers buying for consumption are involved in the activity and function that involve more than determine or ascertaining customers’ requirement.

Referring to industrial buyer i.e. those that buy goods and services for tangible production or for commercial significant purpose such as manufacturers, primary producers, agricultural producers, etc. they determined what product their company should make,. What parts or components should be purchased from outside suppliers? They selected suppliers from whom purchasers can be made on a continuing and mutually profitable.

1.1 Background Of The Study

The superstore started as a small business in 1996, marketing of items (varieties). It metamorphoses in Easy Life in 1998. The founder guiding principle of preservative handwork honesty and integrity, helped set Easy-Life stores on the path to resumption of business and strong believe in almighty, he nurtured Easy Life stores through the most critical time. In 1999, it was incorporated and together with their enormous trading experience and distributive network started the same year. Determination lead to the establishment of a pharmaceutical store in 2000 and chemist shops modernized to present a credible outlet for our ever increasing range of products. It is interesting to note that a vertical system existed between the superstores and pharmaceutical store.

Easy Life senior management is that procurement activities, be it for resale consumption of conversion require a good degree of knowledge of the market and the requirement of the user or customers.

On the final note it must be understood that the major purpose of nay business is profit maximization profit is an essential prerequisite for maintaining a business. As a result procurement practice in a small scale industry should aim at exploiting all possible avenues towards contributing to the overall profit earning of the company.

However the extent of application can depend on the expenditure value the system in place, and the resources available.

In this case, the researcher has examined the nature of purchase activities in a small scale industry to determine the following:

  1. Determination of requirement
  2. Authority of purchasing personnel
  3. Quality control value analysis
  4. Under rating activities.
  5. Procurement audits with a view to identify the problems associated with those functions and suggesting process of improvement.
  6. Purchasing process and organization
    • Selection of possible source of supply
    • Pricing determination and availability
    • Placing order.

1.2 Statements Of Problem

A detailed analysis of the procurement practices in the smalls scale industry regards both its internal and external environment will indicate the following problems:

  1. The purchasing as an organization function has always been associated with neglects by management, thus it is yet to be given its pride of place in industries.
  2. There is a tendency of fewer and often large source of supply.
  3. The imposition of high impact duties a purchasing abroad and the need to exploit alternative sources of supply pose a lot of uncertainties to the profession.

The above outlined problems are however not exhaustible as others may exist hence the aim of this research is not only to identify problems but most important to fined out alternative sources with the organization constraints and yet accomplish the set objectives use to solve them.

1.3 Objective Of The Study

Within purchasing, we have a responsibility top contribute positively to our company survival by improving on our efficient.

Today’s economic condition and environment within the small scale, industry for a proactive and in some cases, reflective approach to achievement.

The purpose of this study includes the following:

  1. To evaluate the future requirement of the customers so that materials or goods could be ordered before they runs out.
  2. To analyze the major factors effecting to day buying decisions making in the small scale industry and to determine the what factor towards a successful buying decision.
  3. To appraise the purchasing performance ion reducing purchased materials costs, through sourcing, vendor rating, price indexing and contractual agreement.
  4. To examine the purchasing system and techniques in practice and to develop ways to improve their overall performance.

1.4 Research Question

  1. What are the types of perishable goods?
  2. Who is a buyer?
  3. What type of goods are been purchased?
  4. Does purchasing have any effect in stock management
  5. What is the quality control value analysis?
  6. What is the contribute of purchasing and supply in manufacturing industry
  7. What is purchasing and supply management?

1.5 Significance Of The Study

This research work is of relevance to the organizational purchasing in Nigeria in the area of procurement practice, it will serve as a reference guide to those who may want to write on this similar topic in procurement.

The research will help use to know the importance and essentials of procurement in an organization which include buying materials at the five rights, to met organization needs, it also help to find out procurement methods and the organization needs and strategic plans. It will equally help to find out problem affecting problems affecting procurement practices in an organization environment.

1.6 The Scope Of The Study

The scope of this study is limited to the activities of Easy Life Superstores portharcourt I rivers state. It will embrace all the activities of procurement function and the procurement associated with it. This organization (E.L.S) is considered as the key on which has a lest of material to purchase for their respective activities.

Furthermore, as the research project on procurement in the small scale industry with particular reference to (E.L.S) portharcourt organization.

1.7 Limitation Of Study

The finding of this research will be limited by on availability of vital data and information from the store which would have thrown more light on the analysis of data. The superstore may regard some information to be confidential to the economy by the government or not being familiar with the purpose of student research studies.
Furthermore, time act as another constraint as students are required to combine the work with normal academic studies.

1.8 Definitions Of Terms

Accessory Equipment:

These are durable major equipment used to facilitate the production of goods and services or to enhance the operation of organizations.

Operating Equipment:

These are semi-durable minor equipment which is movable used in but not generally essential to the production of goods and services.

Furnishing And Fittings:

These relate all goods and material employed to fit building for their organization purpose but not that equipment used specifically in production of goods or services.

In case in which operation requirement re not severe, a used machine in sound condition frequently provides economic services for many years.

I bet you, the complete material is fully loaded. This is just an excerpt. The Material is in MS-Word Format which you can easily edit and is comprehensive for a complete research work for this topic

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How to nail it on the head during your project defence

You are through with writing that project. Now what?

You have found yourself at that point where you have to defend what you have written. Of course you have to stand in front of your supervisor and other literary personalities to prove that you know what you wrote in your project paper. Unfortunately, the more you think about it, the more it looks like you are about to face a legion. It is not a war. But the emotion of dread welling up inside of you makes it look like one. So now you are asking yourself questions.

  • How am I going to start?
  • I hope I will do well enough to get an A.

You really want to nail it, but you need to come to terms with exactly how to get everything in perfect control. Especially your emotions of fear that seem to make a wreck of you every time you think about public speaking.
So here is the deal. I want to help you avoid that feeling that would ruin your precious moment if you dare to let it. And we are going to do it together.

I am going to highlight some very important tips to help you get in control for you to be comfortable enough to move from that feeling of DREAD to CONFIDENT; and making an awesome Impression for that great rating your supervisors should be giving to you so freely.

Consider these tips as you prepare for your defence. We will be taking them one after the other so here we go.

Watch Your Body Language And Keep It Confident:

Can you tell that a person is falling apart if they look confident? … If I can second guess you rightly, am sure you answered no to that question. Remind yourself that you need to come out that way. Now this might seem like a huge big deal when you are dealing with the foreboding. Maintaining a poise of confidence is very important. So find your most comfortable position, sitting or standing and draw up your body. You must exude confidence. It is something you need to do for yourself. People can only see what you allow your body language to show. So you must endeavour to put that out. Remember the story of David and Goliath? … At the end of your defence day, you want to be David.

Dress In Your Most Comfortable And Impressive:

Am sure this one is a no brainer. However I must highlight that you choose comfortable pieces. You don’t want to look so good and yet look like you were forced to wear something that does not belong to you. It’s great to ensure that as impressive as your clothes are on you, that they are also very comfortable.

Speak With Authority:

Going hand to hand with that aura of confidence is your most powerful asset:your words. If you look that confident, your words must not come out like whimpers. To be able to pull this off, you definitely need to speak as deliberately as possible in expressing yourself. Let them also hear what they see.

Use, Your Gestures:

I have often found this to come to my rescue in dealing with shyness and conveying my confidence. Usually it gives you an edge to also drive home your point. You must, however, ensure that you do not over use it. It doesn’t mean that your hands should be flying all over the place. That would be absolutely unnecessary. If you do this well, after a while you will realize that you are not as self-conscious as you used to be at the very start. For most situations, it would have completely disappeared altogether; leaving a really confident you talking.

Have A Good Opening And Closing Line:

Make sure you have perfected a good opening line. You should also be armed with a good closing line too. Try and rehearse it to a friend. If for the first time you presented it, your friend does not say “wow, that’s beautiful” or something like that; just know you need to keep refining it until you get the perfect line. Both opening and closing lines will go a long way in how impressed your panel gets to rate you high.

Make Sure You Know Your Work:

Certainly you should understand how important it is to know your own work from start to finish. Not having in-depth knowledge of your own work is tantamount to a suicide mission. Why should you kill yourself?
When all is said and done, this is what you came to defend in the first place. You should know your work from A to Z.

Prepare For The Questions:

Now this part is truly essential. You must be sure you do not floor all the good work you did on your presentation by not answering correctly. You must pay attention to the questions you are asked to be sure you will give the right answer. Many people get it wrong at this stage and spoil their good presentation. When you do not understand any question do endeavour to ask the person to expatiate what they mean before you answer.

These tips are by no means exhaustive, but applying these tips will give you some necessary advantage you need for a great outcome. Of course that outcome would mean that you eventually earn all your points on this project.

The structure of a good project work

Undergraduate projects in Nigeria is a prerequisite for graduation amongst Nigerian tertiary students who will which to obtain bachelors degree in their respective courses of study such as accounting, banking and finance, business administration and a host of others. Writing an undergraduate project in Nigeria for final year students entails a lot both financially and otherwise. Being able to develop any final year project depends on getting a researchable topic whether it is Accounting Undergraduate project topics, Banking and Finance research topics or banking and finance project topics and materials and it all requires diligent hard work of students who are willing to develop best undergraduate projects in Nigeria and graduate in flying colors.

A typical Undergraduate project in Nigerian tertiary institutions can be said to be divided into five or six chapters depending on the format of the school and course of study which are

1. Introduction

The introduction of an undergraduate project states the main research problem and research argument. What precisely the study is all about and why it is important. It looks at the originality of the research work and how it will fill the gap in other studies. Justification for a research undergraduate topic should not be lengthy before it has been explicitly stated.

Below are the contents in chapter one of an undergraduate research project which includes;

  • Background of the study,
  • Statement of the problem,
  • Objectives or aims of the study,
  • The research questions,
  • Research hypothesis,
  • Significance of the study,
  • Scope of the study,
  • Limitations of the study and
  • Operational definition of terms.

2. Literature review

Literature review of any undergraduate research work, be it business administration project topics or Economics project topics just to mention a few is very critical to securing a high grade in one’s project work. The literature review of a research process uncovers what other writers have written about the student’s topic. A student’s undergraduate research work should include a discussion or review of what is known about the subject and how that knowledge was acquired. The review could conclude with a brief summary of the literature and its implications. The contents of the literature review are the theoretical review, conceptual framework, empirical review and summary of literature review.

3. Research Methodology

This section includes a description of the research methods used in the undergraduate research work such as the sample size, data collection methods, measurement instruments, research data analysis procedures and the population from which the sample was selected.  This section also describes the method used in selecting the sample or samples, validation and reliability of the instruments used in the research work. There are different research statistical techniques used in undergraduate research work such as SPSS, e-views etc.

4. Results & Discussion

This section presents and discusses the data analysis results used in an undergraduate research work, the results of each analysis is being summarized, tabulated, and then discussed for each research question.  Then for each research hypothesis, the statistical test of significance selected and applied to the data is briefly described, followed by a statement indicating whether the hypothesis was supported or not supported.  In presenting the result analyses/summary in an undergraduate project tables and figures and or graph are used to add clarity to the presentation.

5. Summary, Conclusions And Recommendations

This section summarizes the findings of the study in an easy to understand manner.  It also explains the practical implications of those findings, and points to recommended directions for future research in that area.


This is where every source cited in the undergraduate research work is being included. Every undergraduate research work must be properly referenced for its authenticity.

Choosing A Good Project / Research Topic

Students in Nigerian universities these days wish to choose a very simple project topic/material. There is no issue choosing a simple project topic; the only problem is your ability to choose a good project or research topic that your supervisor will easily approve for you.

Most project supervisors really want to see how good his or her project student understands his or her surrounding through the kind of topic he or she chooses for their project work.

There are some project topic that are not reject-able; for instance in Nigeria of today; what do you think is the major issue on ground now?

If a project student can choose or craft a topic on the effect of dollar increment on the economy of Nigeria. Such project topic will be very interesting to write on.

Now what are the qualities of a good project topic?

  1. The materials for the project topic must be easily assessable.
  2. The project topic itself must be meaningful.
  3. The variables must be able to give a clear aim of the project topic.

What do I mean by variable?

Well I am deriving my point from the area of project writing; the variables here are those main words in the project topic.

Like the above project topic; the effect of dollar increment on the economy of Nigeria. You can see the main variables that really define this project topic are:dollar, increment and economy.

Before you present your topic to your project supervisor, first of all understand your project topic, and then secondly try to do some research for your topic to see if at least you can get up to 60% of what you need to write the complete project.

I said that above because you might have a very nice topic that the materials are not available online and there are no books as regard the topic; in this case the project topic becomes difficult for you even though the topic is catchy.

What do I mean by your topic being assessable?

Well what I mean is very simple and easy to understand. Simply pick your project topic, type it on google and see if you will have at least a good background for the topic you are writing on.

If you can have a good background for your project topic and you can understand the problem associated with the project topic, then I believe the aim of the project is not far-fetched.



Samuel Obiora Blessed is the CEO and founder of Samphina Academy ( a.k.a Nigeria Students Media, the youngest engineering graduate of Federal Polytechnic Nekede in 2017 and the engine brain behind this great platform. He is the man behind the scene, filled with many potentials, a musician as well as a pro developer with the interest of Nigerian students at heart.

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