Purchasing Research: A Tool For Improving Materials Prices And Quality (A Case Study Of Life Breweries Plc, Onitsha)

Project and Seminar Material for Purchasing and Supply (PS)

Purchasing Research: A Tool For Improving Materials Prices And Quality (A Case Study Of Life Breweries Plc, Onitsha)


The essence of this research is to Purchasing Research: A Tool for Improving Materials Prices and Quality reference to Life Breweries Plc, Onitsha.

The study is broadly divided into five chapters one comprises of the introduction aspect of the work, it identify the statement of problem, purpose of the study, research question and hypothesis, significance of the study etc. The two is made up of a review of literature related to the topic.

The three stated the research methodology. It expresses how data were collected, sorted and used in the research work. Chapter four is the presentation and analysis is carried out and result document. Chapter five is the last it contains the summary conclusion, recommendation and bibliography

Table Of Contents

Preliminary Page(s)

  • Title
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Statement of Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Research as a Veritable tool for Problem Solving
  • 2.3 The Research Process
  • 2.4 General Overview of the Purchasing Function
  • 2.5 Purchasing and Purchasing Research
  • 2.6 Why Purchasing Research is becoming Important
  • 2.7 Importance of Purchasing Research
  • 2.8 Organization of Purchasing Research
  • 2.9 Summary of Related Literature

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Sources/Methods of Data Collection
  • 3.4 Population and Sample Size
  • 3.5 Sample Technique
  • 3.6 Validity and Reliability of Measuring Instrument
  • 3.7 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of Data

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • References
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

Research has been identified as one of the most powerful tools and a panacea to many of the world’s greatest problems.

Research is a goal oriented and its goals determine its nature and form. Studies have shown that one of the profitability of human endeavour in general and organization in particular is lack of adequate research.

It is in the light of this that this research work is geared towards purchasing research and how it affects the materials and prices and quality of an organization using PZ Nigeria Ltd, as a case study.

1.1 Background Of The Study

As seen from the introduction, research affects all spheres of man’s activities. The companies are not therefore left out, especially in respect of sources of supply and other important and related issues about purchasing.

The first world countries have embraced research that they made remarkable and outstanding success and progress in the technological advancement of the world. This study seeks to encourage third world countries especially, universities and polytechnics research institutions and the like not to overlook the importance of research.

Companies are advices to pay good attention to the contribution of purchasing research for their increased materials and price and quality. They are encouraged to know that purchasing research is a tool that can assist them in their daily purchasing decisions.

As an aid to enhance purchasing activities, companies are against this background, expected to embrace purchasing research and provide the finance necessary to carry out this research for better performance of the purchasing functions, which in turn contribute to the overall organizational materials and prices and quality.

1.2 Statement Of The Problem

Strictly, this project is on the purchasing research, a tool for improving materials prices and quality, a case study of Life Breweries Plc, Onitsha.
The problems are stated thus;

  1. Lack of strict adherence to purchasing research
  2. Lack of well trained and professional purchasing research personnel in the organization.
  3. Problem of modernizing the overall purchasing research in the organization.
  4. Lack of research funds which discourage research all forms. For example, government, institutions, organization do not quite appreciate the contribution of research findings to economic development and therefore, do not provide sufficient amount for research of all types.
  5. Lack of research equipment like computers contribute to slowing down the growth of research.
  6. Inaccurate or lack of census figures put researchers in situation where they cannot determine easily the sample size of their materials prices and quality.

Due to the facts that many organizations do not compute purchasing research, they experience a lot of problems. These problems are: –

  1. Inadequate purchasing research has caused many companies’ product prices to be on a high rate.
  2. The problem of inadequate research has affected companies’ product quality.
  3. Inadequate purchasing research has led to poor selection of suppliers.
    These problems enumerated above necessitated the researcher to compute the research work in order to offer solution to them.

1.3 Objectives Of The Study

The general objectives of this study is to make an in-depth investigation in the following areas:

  1. To ascertain the important areas of purchasing research.
  2. To examine the reasons for purchasing research.
  3. To X-ray the relationship between purchasing research a tool for improving materials and prices and quality in an organization.
  4. To find out the relationship between purchasing, purchasing research and companies’ materials and prices and quality.

1.4 Research Questions

  1. Does the organization attach importance to purchasing research?
  2. How has purchasing research contributed to the company’s overall materials prices and quality?
  3. What impact has purchasing research been playing in your industry?
  4. What kinds of risk associated to purchasing research for improving materials?
  5. What are the effects of the purchasing research for improving materials prices and quality?

1.5 Statement Of Hypothesis

The following hypotheses have been stated in order to carry out this research work.

  • H0: Purchasing research does not contribute to company materials prices, and quality.
  • H1: Purchasing research contributes to company materials prices, and quality.

1.6 Significance Of The Study

This significance of the study work is very important to a number of persons. To me as the researcher carrying out this research is an adventure. In the course of the writing, it is a way of developing my talent and creative gift of writing as a student.

Again, it is a requirement for the award of the Higher National Diploma (HND) in Purchasing and Supply Management.

In addition, this study will serve as a data bank for reference point for other research. Furthermore, the department of any Higher institution by providing the necessary information for writing on similar or related topic or standard such student will provide a yard stick topic or standard, before making any reference to this material.

The department in every industry will appreciate the content of this research work as it assists them in their constant research for materials, products, or seminars, purchasing personnel, suppliers on commodities on purchasing procedures.

1.7 Scope Of The Study

Purchasing research is an important and vast area of study. it is carried out by a lot of manufacturing firms in order to increase their materials prices and quality. This research on purchased materials, products or service purchasing personnel, on suppliers of commodities and on methods purchase; that is purchasing procedure or system.

Furthermore, this scope of the study work will concentrate more on profit making organization precisely manufacturing industries with particular reference to purchasing research, a tool for improving materials prices and quality (A case study of Life Breweries Plc, Onitsha).

1.8 Limitation Of The Study

In carrying out this research work, a lot of things interested me for example, the joy of ending my first degree with writing of my project. However, I was constrained with time because we were given a short period to write and defend out project immediately after our exams.

I was therefore hurrying to meet up with the date given to us, and there was also no time to visit other libraries for vital information.
In addition, there was also the problem of finance to move around in order to visit the industry used as a case study.

There was also problem of insufficient research materials on the topic. These problems were however adjusted to by the researcher in order to ensure that this research work is a success.

1.9 Definition Of Terms

It is also important to define some unfamiliar terms so that other researcher can find their meaning easily in case they want to make use of this work.


This is defined as planned buying. It is a function in the organization that fulfils organizational needs through acquisition of the right materials, suppliers, plants, tools, machineries, and services that will enable the organization to attain its targeted goals.


This is a sustained inquiry into problems and seeking out ways to solve it.
According to Anyanwu (2006), research is the systematic and objective search for and analysis of data with a view to generate information necessary for the solution to problems.


These are the people who supply materials, goods or service to the buying organization.


This is a firm that may be either profit or non-profit oriented that exist for the sake of producing goods and services at the profit or rendering services.

Materials Prices And Quality:

This is the end target of every profit oriented firm increasing their capital base in the form of additional revenue which can be ploughed back into the business as retains earnings.


A statement of put position which can be investigated to either be true or false.

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.1 Introduction

This chapter summarizes the research work and also makes the necessary recommendations that will aid the beneficiaries of this research work especially, this case study in making sound purchasing decision.

5.2 Summary

In summary, the research has succeeded to cover areas like introduction of the research topic, the background of the research work, statement of this research work, the research question, the hypothesis, areas of coverage of this work, the constraints faced in the course of this research work and in definition of the relevant terms.
From what I wrote in chapter two, we can see that purchasing research is important and relevant to company materials and prices and quality. By carrying out purchasing research on purchasing materials, sample information can be provided on the features of the product care of, definitely, profit is saved. In addition, it is also pertinent that the purchasing department take up their assessment in purchasing research in order to boost their status otherwise this assessment will be assumed by other department.

In this chapter three, the research discussed how the data was collected which include the questionnaires and observation method. Also, method of data collection was also X-rayed by the researcher as well as data analysis method how to test the hypothesis which will be presented in the hypothesis which was presented in the subsequent chapter (chapter four).

In this chapter, it sets out to analyze and presents the data obtained in chapter three and goes ahead to test the hypothesis stated in chapter one to arrive at either accepting or rejecting each hypothesis. It also discusses on major findings of the data analysis.

In this summary, it comprises all the chapter done in this research work on the background of the study, statement of the problems, objective and significance of the study, research question and testing of hypothesis, scope and limitation of the study. In chapter two, the researcher reviewed the related literature and discussed briefly historical background of the case study. In this third chapter, the researcher carried out a research presented the analysis of data of the study.

5.3 Conclusion

The important of purchasing research cannot be over-emphasized as stated earlier, the research helps in resolved problems. It is a problem oriented ventures, so as purchasing research. The problem of materials shortages, substandard materials, lack of reliable, inefficient purchasing problems, have necessitated purchasing research. After an extension work on this topic, purchasing research a tool for improving materials and price and quality an organization, (a case study of PZ industry Plc, the researcher therefore have drawn the following conclusion.

  1. The information provided by purchasing research assists purchasing manager, purchasing/research analysis and purchasing.
  2. Furthermore, because such decision are done in environment filled with uncertainties for example inflation which is a consistent rise in the price level of goods services including raw materials, it is therefore be houses in purchasing personnel to combat and tackle the uncertainties inherent in purchasing activities. By reducing these uncertainties to profitability, sound purchasing decision, therefore be made.
  3. The benefits of purchasing research justifies the involvement because it affects the entire industry positively.
  4. The purchasing department has a lot assessment to play in purchasing research if this assessment is over looked, it is assumed by other departments and purchasing will only be regarded as a routine function.

5.4 Recommendation

From the foregoing, the researcher decided to make the necessary recommendations.

  1. That the purchasing functions be separated from other department, like marketing, production, accounts, etc. in industries that merge the purchasing function under these departments. This will enable purchasing to assume its proper assessment of making materials from the right source in the right quality and quantity and at the right price using purchasing principles concepts and techniques.
  2. That purchasing research should be given top management and support.
  3. If purchasing research should be given top management priority, fund should also be made available for such research to be carried out.
  4. That research education and training be given to procurement staff or purchasing department and analysis on how to carry out the purchasing research.
  5. There should be good inter-department liaison and relationship between the purchasing department and other department. This ensures a good communication flow among the departments because purchasing department may, for example need information from the production department in order to carry out purchasing research.
  6. That purchasing research in contribution of the company materials and prices and quality should be used to boost the status of the purchasing department.
  7. That purchasing research be cushioned in the company’s policies so that sound purchasing decision can be made.
  8. That purchasing research can be carry out by competent personnel who are professionals and knowledgeable in the work.
  9. That purchasing research can be extended in areas like purchasing techniques, purchasing ethics and purchasing methods.
  10. That the organization for purchasing research can be made then function of experts who are versatile and knowledgeable in the work.

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