Application Of Purchasing Concept And Its Implications On Organizational Objective Service Industry
(A Case Study Of Imo Transport Company (ITC))
The application of the purchasing concept within the service industry is fundamentally anchored in the strategic procurement of goods and services to meet organizational objectives. In this dynamic sector, where customer satisfaction is paramount, effective purchasing practices play a crucial role in ensuring the seamless delivery of high-quality services. The procurement process involves meticulous planning, negotiation, and acquisition of resources essential for maintaining service standards. Key considerations encompass supplier selection, cost-effectiveness, and the ability to adapt to evolving market trends. The implications of a well-executed purchasing strategy reverberate across various facets of the service industry, influencing cost management, resource optimization, and ultimately enhancing the organization’s ability to meet customer needs. Strategic procurement not only aids in securing competitive advantages but also fosters innovation and efficiency within the service delivery framework, contributing significantly to the attainment of organizational objectives in this service-oriented landscape.
This study focused on application of purchasing concept and its implications on organizational objective service industry (a case study of Imo Transport Company (ITC).
To carry out he research work some of the find out the problem faced by the from in purchasing their service.
– t ascertain the possibility of applying the purchasing concept and its implications on organizational objective service purchasing.
– To recommend efficient and effective ways of purchasing Imo Transport Company (ITC).
– Four hypothesis were formulated data were sourced using questionnaire. Extensive literature review on past work text books, on the area of study were carried out. Top man‘s formula was used to determine the sample size of the customer while a census of the staff was carried out.
The data collected were presented on statistical table analysed and interpreted while chi- square. Based on the analysis the following finding is lack of proper integration that there is lack of proper integration of the purchasing concept and its implications on organizational objective of the firm.
That most customers chose their cleaning firm because of their service efficiency and I prompt delivery rather than n location.
The firm’s in ability to meet customer’s service needs / requirements through adequate provision of enough collection centre and patrol vans is contributory to customers use of direct visit to firm approach. It therefore deports tack of well panned and good distribution service
Conclusively, this has shown enough that there exist adequate demand for Imo Transport Company (ITC) which is capable of sustaining transport firms and enhancing their growth, his latent demand can only be stimulated into effective demand by the use of appropriate purchasing and management strategies.
TITLE PAGE II
APPROVAL PAGE III
DEDICATION IV
ACKNOWLEDGEMENT V
ABSTRACT VII
TABLE OF CONTENT IX
CHAPTER ONE
1.0 Introduction 1
1.1 Statement of problems 4
1.2 Objective of the study 5
1.3 Formulation Of hypothesis 6
1.4 Significance of the study 7
1.5 Scope of he study 8
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 an overview of purchasing 10
2.2 an overviews of service 12
2.3 what is purchasing concept 14
2.3 nature of service 16
2.4 characterises of service 18
2.5 service purchasing premise and strategy 21
2.6 purchasing mix for service 22
2.7 The role of purchasing concept and its implications on organizational objective law dry –
Industry. 25
CHAPTER THREE
3.0 Research methodology 29
3.1 population of the study 29
3.3 sampling techniques 30
3.4 sample instrument used 30
3.6 methods of data treatment and analysis 32
CHAPTER FOUR
4.0 presentation analysis and interpretation of dates33
4.1 presentation and analysis of data 44
4.2 text of hypothesis 44
CHAPTER FIVE
5.0 summary of the finding
recommendations and conclusions 51
5.1 summary of the findings 51
5.2 recommendations 53
5.3 conclusions 54
5.4 bibliographies 56
5.5 appendixes 69
BACKGROUND TO THE STUDY
The purchasing concept is an important management philosophy used in the operation of business today. But before this other business philosophiser such as the production and selling concepts. However with the change of circumstances and prefiguring competition in the business world the purchasing concept emerged and came into focus.
As competition between business geared up, it become imperative to turn attention to customers needs and wants. The purchasing concept arose to change all other previous concepts. The purchasing concept holds than that the key to achieving hunting the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than, competitors.
The; purchasing concept is a management philosophy orientation or frame of mind which the marketer work with it is based on a purchasing focus, customer orientation co-ordinated marketer works with it is based on ;a market works with orientation co-ordinated purchasing and profitability (kotter 1997: 19-23)
Purchasing have argent that the purchasing concept is the appropriate philosophy for conducting business simply stated he purchasing concepts suggest that an organization should satisfy consumer needs and wants in order to make project to implement the purchasing concept organizations must understand their consumers and stay close to them to provide service that consumers will purchase and use appropriately (peter and solemn 1996:6)
From what is being seen an real today’s in the society not all business organisation adopt the purchasing concept for example, midst of scarcity the customer is not the king. Rather it is the seller that is the king most companies do not relay group or embrace the purchasing concept unit they are driven to it by circumstance like sales growth, changing of buying increase in market expenditure there is now force competition in the foundry and dry cleaning service industry in Nigeria.
Fewed with competition it becomes imperative to engage in sustained and appropriate purchasing strategy. So laund and dry cleaning service in Nigeria today appreciate the need for purchasing their service because they know they cannot survive without using purchasing strategies, untaken before when most laundry same did not consider purchasing as being necessary department which plan their purchasing strategies, customer satisfaction has become he focus of transport company in owerri operations.
Customers are complain that they are not satisfied with the service of there Landry and dry transport firms they do not show that they are practising the purchasing concept on attaching importance to customer satisfaction with straight comic Landry purchasing concept for improved performance.
1.2 STATEMENT OF THE PROBLEMS
for many years, the purchasing concept has not been firms in Nigeria especially in the Transport service. Service firms that accentual the purchasing concept required that organisation to change it’s purchasing concept as a purchasing text rather than something in which the entire organisation has been involved.
There is poor implementation of the purchasing concept and its implications on organizational objective Nigeria . most consumers of dry cleaning service are not actually satisfied. There has been a lot of complaints ranger from those o in efficiency favouritism , unfriendly attitude of workers considering now ITC in Owerri metro is could we say that these criticism and complements are justified? Ha Imo Transport company failed to implement the purchasing concepts? Are customers dissatisfied from there Imo Transport company these question and other are focus of this study.
1.3 OBJECTIVE OF THE STUDY
the major objectives of the study is to ascertain if adopt the purchasing concept or purchasing management philosophy as a corporate policy and whether this concept is being implemented according by transport personnel
more specifically, the objective f the study includes
1. to find out if customers of itc service are satisfied with quality of service they receives.
2. to ascertain if he service behaviour of ITC is in consonance with the requirements of the purchasing concepts
3. to find if Imo Transport company gives adequate tanning and instruction to heir staff on the importance and mechanism for implementing the purchasing concept.
4. to find out customers get their washed clothing on time.
5. to ascertain if the environments of the Imo Transport company are comfortable and conclusive for customers service and transactions
6. to determine if customer’s complaints and problem are adequately and effectively addressed.
1.4 HYPOTHESIS FORMULATION
the following hypothesis were formulatal to give focus this study
Ho Imo Transport company not consider the needs of their customers in their purchasing act unties
HI ITC company not consider the needs of their customers in their purchasing activities
Ho customers are not satisfied with the purchasing activities of snow – white Imo Transport companys.
Hi customers are satisfied with the purchasing activities of snow – white Imo Transport companys.
Ho customer in Imo Transport company listen to the complain of their customer
Hi ITC in owerri listen to the complain of their customer
Ho ITC in owerri practice of purchasing concept impacts negatively on the customers patronage
Hi ITC in owerri practice of purchasing concept impacts positive
on the customers patronage
1.5 SIGNIFICANCE OF THE STUDY
the most critical factor in satisfaction transport company in owerri performance is going satisfied to its customers.
This is especially the in recent times where many transport are now operating in the country and competing for customer’s patronage, and here in Owerri state we how many of such transport.
The battle to win customers patronage, survive and grow is predicated in the ability to give the expected or required satisfaction to customers this is why thus study is very crucial and dry cleaning services would know where it actually stand in its ability to give quality and satisfactory service to its customers and then tactical policies to adopt.
A above all, this study will also be of beneficial both the researcher and he reach, as the study will promote an in depth knowledge and understanding in the area which could stir up further study.
1.6 SCOPE OF THE STUDY
this study is restricted is restricted to Owerri metropolis and surveyed the customers an personnel of the raw transport company.
The study is focused to determine weather the transport company in owerri has adopt and are implementing the purchasing concept and extent to which the transport company in owerri is giving satisfactory service to customers.
Application Of Purchasing Concept And Its Implications On Organizational Objective Service Industry:
The concept of purchasing, often referred to as procurement or supply chain management, plays a crucial role in the service industry, just as it does in manufacturing and other sectors. Effective purchasing in the service industry can have significant implications for achieving organizational objectives. Here are some key applications and implications of the purchasing concept in the service industry:
Cost Management:
Cost reduction: Purchasing departments in service organizations focus on sourcing goods and services at the best possible prices. This can lead to cost savings that directly impact the organization’s profitability.
Budget control: Effective procurement helps control expenditures and ensures that service providers stay within their budgetary limits, supporting financial objectives.
Quality Assurance:
Supplier selection: Purchasing teams play a vital role in selecting reliable suppliers and vendors. In the service industry, this is critical to ensuring the quality of materials and services that ultimately affect the quality of the service offered to customers.
Compliance and standards: Ensuring that suppliers meet quality standards and adhere to contractual agreements is essential in maintaining service quality.
Risk Management:
Supply chain resilience: Service providers often rely on a network of suppliers and partners. Managing supply chain risks, such as disruptions or quality issues, is essential to prevent service interruptions and maintain customer satisfaction.
Legal and regulatory compliance: Purchasing professionals need to be aware of relevant laws and regulations, ensuring that the organization remains in compliance to mitigate legal and reputational risks.
Supplier Relationships:
Collaboration: Building strong relationships with suppliers can lead to better terms, improved communication, and joint problem-solving, ultimately benefiting service quality and cost-efficiency.
Performance evaluation: Regularly assessing supplier performance and providing feedback helps maintain accountability and encourages continuous improvement.
Sustainability and CSR (Corporate Social Responsibility):
Ethical sourcing: Procurement departments can support organizational objectives related to sustainability and CSR by selecting suppliers who adhere to environmentally responsible and socially ethical practices.
Green procurement: Choosing eco-friendly products and services aligns with sustainability goals and may attract environmentally conscious customers.
Strategic Sourcing:
Strategic alignment: Purchasing decisions should align with the overall strategic goals of the organization. Strategic sourcing can help identify opportunities to improve efficiency and competitive advantage.
Market analysis: Monitoring market trends and identifying new opportunities or risks is crucial for long-term success.
Customer Satisfaction:
Timely delivery: Procurement teams ensure that necessary resources are available on time to support service delivery, which directly impacts customer satisfaction.
Quality control: Ensuring that the materials and services used in service provision meet or exceed customer expectations is essential for maintaining a positive reputation.
In summary, the application of the purchasing concept in the service industry is instrumental in achieving various organizational objectives, including cost management, quality assurance, risk management, supplier relationships, sustainability, and customer satisfaction. Effective procurement practices can enhance efficiency, competitiveness, and overall performance in the service sector.