Project Materials

NEED FOR EFFECTIVE AND EFFICIENT PROCUREMENT IN THE LOCAL GOVERNMENT SUB-SECTOR

ABSTRACT

This project work is being prepared to examine and argue the necessity for effective and efficient procurement in the local government sub-sector in order to increase profitability. The goal of this research is also to determine the best procurement operations to save costs and to demonstrate how successfully and efficiently the purchasing departments are now organised in various local government sub-sectors. However, one item stands out in the researcher’s mind: the purchasing function has not received appropriate acknowledgement as a specialist field in materials management operations by local government administrators and industrial undertakings.

Chapter one

Introduction

Despite the fact that purchasing is a relatively new profession in the field of management, the wind of change is blowing in purchasing and supply, according to Baidy (1987, p. 67). The modifications enable organisations to thrive and succeed in any competitive climate.

However, purchase and supply are critical functions in practically every organisation, from private households to federal, state, and local governments. As members of the industry begin to boost their purchases of new materials, we dictated to the department that used them.

As time passed, purchasing evolved into a functional specialisation that now accounts for approximately 63% of the organization’s budget. Purchasing is not a money-making activity, as some may believe; rather, it is intended to reduce and save costs.

In the local government sub-sector, such as Owerri Municipal and Ngor Okpala L.G.A, through wise purchasing. When purchasing understood the potentials of these functions and the countless chances, they realised the importance of making organised efforts towards self-improvement and education in purchasing, and it became a professional discipline.

These are bodies that regulate the ethical codes and standards of practice that its members are bound to observe. In Nigeria, for example, the Nigeria Institute of Purchasing and Supply Management (NIPSM) and in Britain, the chartered institute of purchasing and supply (CIPS) regulate these codes of practice.

Purchasing is consequently closely related with other organisational functions. Inventory management, store management, transportation, production, planning and control in manufacturing industries, and merchandising in distribution organisations must all work together to achieve effective and efficient procurement.

Without a viable purchasing department, effective and efficient procurement cannot be achieved in any local government administration, such as Owerri municipal and Ngor Opkala L.G.A, or even in a private or non-government organisation.