The Role And Contribution Of Purchasing And Supply In The Profitability Of An Organization (A Case Study Of Nigeria Bottling Company Plc, Owerri.)

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Project and Seminar Material for Purchasing and Supply (PS)

Project and Seminar Material for Purchasing and Supply (PS)


I dedication this work to the Almighty God the author and finisher of my faith and the giver of life and also my beloved brothers and to my mother I say may the good Lord forever bless you all. Amen.


The composition production and charity of the research project work owes the following people who help me directly or indirectly to attain to this high in education.

First of all, I would like to thank my Supervisor Mr Unegbu G.N and also my H.O.D Mr. Uzor Anthony Maduka for their support and their encouragement during the process of this project.

My earnest appreciation goes to my beloved brother Ohia Prince Obi who is always there to help out, who paid the price, who love education, who love me as sister, he started it and he finished it. He deserves endless thanks.

And also to my beloved brothers Hon. Mikado Ohia, Mr. Chima Ohia, Mr. Okechukwu Ohia, to my sister Miss Ngozie Ohia and to my beloved roommate and friends here in school, I say thanks for your encouragement and support may the good Lord favour you all. Amen.


For my organization continuous existence and complete favourably with it’s counter parts in the same industry its workers must be given sufficient training technically and otherwise to be able manipulates the machinery and policies at their disposal. One major reason for the tremendous emphasis place on, the role of contribution to the purchasing and supply management profitability of the organization from current realization that human resources available to any organization constitutates its life and therefore the need for development in order to attain efficient performance standards its is of primary important, to management of any kind of organization or industrial the management of human resources, of which training is the core is particularly important activities in companies.

There are so far two major reasons, first, companies in Nigeria is a labour intensive industrial the use of advance technology like the computer has not even changed it characteristic of industrial in the development economy such us Britain and Japour were great strides have been taken in the employment of Advance. Technology to improve company management. for instance, the role of purchasing agencies and institutions such as centre for management development, Nigerian institute for management in industrial training for development of 70s in this country.

Table Of Content

  • Title page
  • Approval page ii
  • Dedication iii
  • Acknowledgement iv
  • Abstract v
  • Table of content vi-vii

Chapter One

  • 1.0 Introduction 1
  • 1.1 Background of study 3
  • 1.2 Statement of problem 4
  • 1.3 Objective of the study 5
  • 1.4 Research Questions 6
  • 1.5 Scope of study 9
  • 1.6 Significance of the study 6
  • 1.7 Limitation of the study 10
  • 1.8 Definition of terms 11

Chapter Two

  • 2.0 Literature Review 13
  • 2.1 Roles of purchasing 14
  • 2.2 Purchasing function 15
  • 2.3 Importance of purchasing 17
  • 2.4 profitability contribution of purchasing 19
  • 2.5 The need for purchasing 21
  • 2.6 The effects of purchasing function 24
  • 2.7 The place of purchasing in an organization 25
  • 2.8 Duties and responsibilities of purchasing 26
  • 2.9 Ethics in purchasing 29
  • 2.10 Purchasing objective 31
  • 2.11 Management reason for the study 32
  • 2.12 Summary of related literatures 33

Chapter Three

  • 3.0 Research design and methodology 29
  • 3.1 Research design 29
  • 3.2 Sources / methods of data collection 29
  • 3.3 Population and sample size 30
  • 3.4 Sample techniques 31
  • 3.5 Validity and Reliability of Measuring Instrument 32
  • 3.6 Method of Data Analysis 32

Chapter Four

  • 4.0 Presentation and Analysis of Data 34
  • 4.1 Presentation of Data 34
  • 4.2 Analysis of Data 34

Chapter Five

  • 5.0 Summary, Conclusion and Recommendations 46
  • 5.1 Summary of findings 46
  • 5.2 Conclusion 47
  • 5.3 Recommendations 47
  • References 49
  • Appendix

Chapter One

1.0 Introduction

In the recent part, emphases was only on the balance sheet report without cognizance of other factors that made up the inflow and outflow of resource that sustain the mechanism of a given firm. with recent emphases on cost control in the face of the rising cost of input resources and subsequent spill over of high cost of purchasing and supply management in a manufacturing company.

After the civil war, the attendant from in production resulting from the growth of private sector enterprises from Europe and America began to awaken other management inputs for eventual profit. The reason is based on the sophisticated resources part in by these multinationals into the mechanism of our business sector.

It is imperative to note that the concept of purchasing has been broadened since the turn of the country, to include all those business activities relevant to the securing of materials suppliers and equipment as well as service needed by business and industries.

As at date, the cost of materials and supplies for industrial and non-industrial purposes accounts for a large proportion of the cost of these manufacturing company. In most of them, this represents over 65% of their total expenditure (Oyeoku O.K. 1993). Therefore, purchasing is referred to as department which is concerned with the process of defining the manufacturing company’s needs selecting suppliers, agreeing terms placing orders receiving goods and function which is oriented to purchasing complete supply function which is user within the manufacturing company (R.E.J. Nwanneka).

English Oxford Advanced Learners Dictionary of current English, third edition, simply defined the world purchasing as just buying. We will however, take purchasing mission to be selection of materials or services agreement of prices and acquisition items. A well organized purchasing is one of the criteria for a company to minimize cost at the same time increases profit. The impact of purchasing and supply management towards ensuring repaid growth in a manufacturing company’s cannot be over emphasized.

It has been sampled and proved that, a layman in the field of purchasing easily views purchasing function as obtaining requisitions negotiating and placing order without the knowledge that purchasing goes beyond this areas of activities.

For a company to succeed or to achieve its desired objectives, it means that those required manning the materials section of the manufacturing company should be highly trained and knowledge in the field of purchasing. And other materials related functions, in order to harness effectives and efficient profitability to their manufacturing company. In view of numerous challenges of the profession requires a caber of persons that can exercise prudence and sound judgment for any naira spent at ay given point in time, in order to minimize cost and increase profit.

Sincerely speaking, these cannot be achieved of the buyer is not a professional buyer that should adhere, strictly to the ethics of the purchasing profession and techniques of purchasing practice. Quite unlike untrained buyer, a trance and professional purchasing executives is aware that he is bound by the ethics of the purchasing profession.

Therefore, his first and primary obligation is integrity in spending his company’s fund, showing professional competence in representing his manufacturing company outside etc. it is in line with this that the researcher tends to study the roles and cusing Nigeria Breweries company plc.

1.1 Background Of The Study

Nigeria Bottling Company Plc,

Nigeria bottling company plc was originated as a soda function beverage in 1886 selling for five least. Early growth was impressive, but it was only when a strong bottling system that coca-cola become the world-famous brand it is today.

1884 – A modest start for a bold idea. Since the emergence of this organization, it has snifter to the market and consumers different types of soda fountain beverages.

The number of soda fountain beverages sent to our market by this bottling company plc, in doubt has made tremendous impact on the reduction of the micro economic variables problems in this country through generating to our economy, creation of job opportunities etc the management of Nigeria bottling company plc is a public liability company.

1.2 Statement Of Problem

Business conditions during the recent past placed much strain and pressure on the purchasing management function and roles. Critical materials shortages, worldwide inflation and arbitrary action of government seriously interfered with the orderly operation of business.

Materialism is the source of out present day Nigeria society and people who are responsible for purchasing function in Nigeria bottling company plc Aba, and other good (public) companies however, purchasing management and its allied subject are the newest course read full-time in some higher institution of higher learning, and more than seventy percent of firms in Nigeria are yet to embrace this in its most meaningful and realistic dimensions.

Much corporate management has been made painfully aware of the shortcomings of the operation of their firms’ materials management function. Indeed, it is among the best of the specialized business functions, to be centralized and given the responsibility and authority for making profit progress in this area of business management is thus just beginning. The development of purchasing role and function in the (public sector) Nigeria bottling company plc Aba has been badly affected by the “buying syndrome”.

1.3 Objective Of The Study

This study is carried out with the following objective

  1. To examine the various, role of contribution of purchasing and supply on the profitability of an organization available and evaluate their application.
  2. To make critical study of problem in the services offered by the firm and suggest solutions to these problem.
  3. To formulate the role of purchasing strategies that would be.

1.4 Research Questions

  1. Does purchasing have any role to play in the manufacturing company?
  2. Is purchasing contributing to the profit in the manufacturing company.
  3. Is purchasing recognized in this manufacturing company?
  4. Is the purchasing manager solely responsible for buying materials and other items for your manufacturing company?
  5. Is the purchasing manage professional qualified in such areas the purchasing and supply management or is he/ she just qualified through job experience.

1.5 Significance Of The Study

This study intends to the beneficial to three main categories of people that is. To the manufacturing company, the student and researcher.

To The Manufacturing Company

The findings of this study will acquaint it and shall also discover through this study a competent and well trained professional who can effectively manage and handle the taste of buying or purchasing in the most economic manner hereby increasing the profitability and growth of the manufacturing company and reducing waste.

To The Student

The findings of this study will enable the student to appreciate the course the more, it will also make them to be more economical, wherever they are to purchase materials, they must purchase materials in high quality, but at a lowest cost.

To The Researcher

The findings of this study will help the researcher the more, the advantages, impact of purchasing and supply management in a manufacturing company. To know or to indentify problems area in purchasing and supply function and develop strategies to solve item. The data gotten can be used for reference purposes.

1.6 Scope Of The Study

  1. The study is the role and contributions of purchasing and supply in the profitability of a manufacturing company .
  2. The study was limited to the Nigerian Bottling Company due to time and other resources constraints the staffers to the company whose works relate to this topic were interviewed.

1.7 Limitation Of The Study

The researcher in the course of carrying out his research work has contended some factors that limited in one way or the other against the zeal posed, they include the following.


The research being a full time student at the time of making this research found it difficult to make ends needs with the little savings he made while working.


The researcher being a student and has a lot of academic work to pursue and some other things, has time constraint, instead of examine all the variables in purchasing n most of the notable industries, limits his study to only Nigeria Brewery plc.

Non- Response:

Most people interviewed were ignorant of what is called research, so they failed to give elaborate information about their manufacturing company despite the fact that the researcher told them that all information given would be confidential. Again, I found it very difficult to find good books relating to purchasing in the Federal Polytechnic Library, so I had to run round to many places for data collection of this

1.7 Limitation Of The Study

In carried this research, the research was cooperated with a number of limitations. Due to finance and time constraints, the research was unable to examine all the variable in purchasing in all the leading. Public and private companies, limitation his study to a few public enterprise themselves incomplete.

1.8 Definition Of Terms


Is the process involving planning, and strategy designed to obtain value for money spent.


This focuses on the knowledge of selling and buying the person that supplies goods to the buyer is the vendor.


Negotiation is a conference between one party or person with another party or person with a view to arriving at a consensus.

Material Handling:

This is the process by which materials are being moved, handed and stored with in and around an establishment with the use of hand or mechanical equipment.


An organization is a group of people who from a business with the aim of making profit or achieving an objective.

Store House:

A storehouse is a building designing to keep materials until when there are needed by the uses


Is a person who keep or operation the systematic procedure of recording transaction in the storehouse so that materials held in store will be safeguarded.


Storekeeping is a systematic procedure of recording transaction in the store, so that at any given time, the stock record we show the actual stock position of each material held within the store organization.

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.



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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