Project Materials

NEED FOR EFFECTIVE VENDOR SELECTION & RATING IN AN ORGANIZATION

ABSTRACT

This study is a survey on the need for effective vendor selection and rating in various Nigerian organisations, with a case study of Nestle Food Nigeria Plc. The study’s goal is to discover, assess, and analyse the various techniques of selecting suppliers in the purchasing department for optimal storekeeping and material management. The study also looks at the role of sales methods and how to increase prospects. Primary data was acquired by questionnaires, which were then analysed and interpreted mostly using simple statistics and percentages. The findings reveal that owning warehousing brokers/agent VSRs, rental outlets, and so on increases sales rates. In light of these findings, certain recommendations were offered. There were also recommendations for additional research.

Chapter one

Introduction

Nestle Food Plc, the case study for my thesis topic, is well-known for its vendor selection and ratings. The study of purchasing and supply management cannot be completed without properly selecting vendors and grading their performance.

Progressive manufacturing industries recognise the profit contribution of the supply department and have this department select suppliers in order to maintain the company’s competitiveness

which will also improve better supplier relationships, reliable supplier performance, easier administration, and fewer supply problems.

Vendor selection and rating are becoming increasingly important in every manufacturing organisation today, since the necessity for effectiveness cannot be overlooked within any manufacturing company’s budget.

Is on materials; therefore, it is critical that materials that meet the organization’s taste in terms of sources, quality, pricing, and delivery be considered.

Prior to this, it is critical to ensure that appropriate suppliers are chosen and graded based on their performance in order to meet the organization’s needs.

It is thus the responsibility of the purchasing and supply department to select the best supplier and identify the major sources of information about potential suppliers, such as trade journals, exhibitions, sales representatives, colleagues in the company, professional associates, chambers of commerce, and expensive international sources. These sources of information can be very useful to the success of vendor selection.