Project Materials

AN APPRAISAL THE ROLE OF PURCHASING FUNCTION IN THE NIGERIA INDUSTRIES

Chapter one

INTRODUCTION

1.1 Background of the Study

Purchasing functions have long been regarded as ordinary clerical functions and services that are solely concerned with spending organisational resources.

As a result, it has been widely observed that the definition and comprehension of the purchasing function were not explored in those years. The purchasing function has become increasingly essential in Nigeria’s industrial sector.

This stems from the fact that the purchasing function has played a significant part in Nigeria’s industrial sectors and people’s economic activities.

The study of purchasing functions is thus critical since it deals with the science of getting things done in the most effective manner in the industrial sectors.

As a result, the purchasing function has been established as a key aspect in ensuring the consistent and efficient supply of raw materials, the purchase of component parts, and both consumable and non-consumable items for the services and expansion of Nigerian companies.

The purchasing function also provides services for resale by an organisation, making them available at the appropriate time, in the right quality, in the right location, in the right number, and at the lowest cost. All of this is geared at working hard to free our industries from the battered economic system that has consumed them for many years.

Purchasing functions have been designed to facilitate the effective procurement, custody, and issuing of products and services required to satisfy corporate industrial objectives. Thus, the importance of efficient and effective purchasing functions in the Nigerian industrial circle cannot be overstated.

Against this backdrop, this study investigates the roles of purchasing functions in the sector and distinguishes between the clerical function and the services that purchasing functions provided throughout those years.

At this time, the purchasing functions will establish standards and demonstrate compliance with the regulations governing the evolution of industries in accordance with industrial policy.

1.2 Statement of the Problem

The importance of the purchasing function in Nigerian industry is a positive development. Recognising the value of purchasing operations, they are often used to drive industry growth.

On the other hand, the purchasing function might serve as a platform for supporting commercial success and industrial growth, potentially resulting in an economic boom in the country.

There is a risk of not using a purchasing function, which could lead to the use of local production and a reliance on industry management norms. A lack of purchasing function could be a severe issue in Nigerian industrial companies.

Adequate and focused purchasing functions are required to acquire materials and procure raw materials at the lowest possible cost.

In effect, the different pieces of equipment that industries use make their work appear complex. Then there’s government meddling in material exports. The government exercises various controls on industries, such as export duties, tariffs, and import charges.

Finally, the purchasing function is concerned with promoting industry expansion and the development of the Nigerian economy.

Unfortunately, the lack of industries that employ purchasing managers and their functions has created a void that only the purchasing manager and their function can fill.