Effectiveness Of The Purchasing Information System In An Industry
(A Case Study Of Textile Mill Onitsha)
The efficacy of a Purchasing Information System (PIS) within an industry is paramount for streamlining procurement processes, enhancing decision-making, and optimizing resource utilization. Through meticulous data collection, analysis, and interpretation, the Purchasing Information System facilitates efficient supplier management, inventory control, and cost monitoring, thus ensuring timely procurement of goods and services while minimizing expenditure. Additionally, by integrating advanced technologies such as data analytics and artificial intelligence, the Purchasing Information System empowers organizations to forecast demand, identify market trends, and negotiate favorable terms with suppliers, thereby bolstering competitiveness and fostering strategic partnerships. Moreover, the Purchasing Information System serves as a cornerstone for regulatory compliance, risk mitigation, and performance evaluation, enabling stakeholders to adapt swiftly to market fluctuations and capitalize on emerging opportunities. Its significance extends beyond operational efficiency to strategic decision-making, thereby enhancing organizational agility and resilience in dynamic business environments.
The researcher choose to study this topic the effectiveness of purchasing information system in textile in dusting, a case study of textile mill limited onitsha in Anambra staff to enable the researcher evaluate information problems that helps mangers to manage the company appropriately, lack of timely information, inaccurate information system are in existence in the company.
In order to enable the researcher accomplish this study questionnaire oral interview and direct observation technique were used.
Moreso, the researcher found out that despite inadequacy of information generated by the company that , the available information is accurate timely and cost effective.
Also, he says that for the information generated to be adequate, the company must embank on employment of qualified staff to sue to the proper generation of information.
Furtherer, it was found out that general cotton mill does not generate information for their daily operations. And the investigation reveals that the information generated in the company is cost effective. Firm the hypotheses tested, it was found out that general cotton mill limited onitsha generates accurate information for its business activities.
Morteestill, it was found out that main in general cotton mild leads to profit maxima ion in the company. And from the data collected from the distributions, the was found out also that the company does not actually makes use of information’s given to them by the distribution and that is why they boil down to inadequate information.
The was research says that not only the distributors company of this, that the customers also send that the company does not makes use of their information.
Finally, it was found out that many customers came about the company’s product through mains from the above findings, the following recommendations were made.
1. the company on every activities catered on information generation.
2. they should improve on every activities centered on information generation
3. the company should try and be making use of the information generation by sales people, customers and distributors.
4. the company should see to the overall performance of reliant staffs.
5. also , he company should employ vilified staffs in heir computer department and try to retain their staff in the area of information generation in order to make for efficiency.
From the above recommendatory the researcher conclude that if the company strictly adopt and implement the recommendations made they will meet up with their expectations.
TITLE PAGE II
APPROVAL PAGE III
DEDICATION IV
ACKNOWLEDGEMENT V
ABSTRACT VI
TABLE OF CONTENT IX
CHAPTER ONE
1.1 Back ground of the study 1
1.2 Statement of problem 4
1.3 Objective of the study 6
1.4 Formulation of hypothesis 6
1.5 Significance of the study 8
1.6 Scope of the study 8
1.7 Limitation of the study
1.8 Definition of terms. 9
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 definition of purchasing information system 11
2.2 components of purchasing information system 17
2.3 The place of computer in purchasing information system. 20
2.4 Important of purchasing information system28
CHAPTER THREE
3.1 RESEARCH methodology 30
3.2 Population of the study 31
3.3 Sampling techniques 31
CHAPTER FOUR
4.0 presentation analysis and interpretation data 35
4.2 test of hypothesis. 50
CHAPTER FIVE
5.0 Summary Of The Findings, Recommendation AND Conclusion 59
5.1 summary of analysis 59
5.2 recommendations 60
5.3 conclusion 61
5.4 bibliography 63
5.5 appendix 71
1.1 BACKGROUND OF THE STUDY
It has been observed in the relent years that purchasing information system in any business is of great important.
Textile industry is not left out in the categories of business that needs purchasing in formation system.
Modern business management has proved to be of most difficult task in Modern and technological breast through and in formation explosion that is meant to break advancement; in communication research, he need for constant changes of company’s products or sources to keep pace with technological advancement an sophistication in customers its, has are some of the things which modern organization was to contend with.
When it is understood than in addition to these problems, the modern manger runs a business organization which is intimidating by its share size in running the organisation h always aims at having an edge over competition. In this case efficiency become a watch word.
However, in order to cope with these strong demands of modern manger of an organisation has no alternative but to attempt his system approach to businesses management. This is become today’s business involutes huge amount of capital, that any mistake in decision making can be costly these risks are associated with compulsive decision, more especially in such a large organization.
In Nigeria, the component tribes have different ways of clothing themselves.
In the traditional Igbo society we have mould from “
Oji to Akwete the Yoruba’s have their fames “Ofi” now know as ASo OKe .
The hausa and many other tribes have their own way of dressing respectively.
Some of these materials are head woven especially Akwete cloth and Aso Oke they are very costly.
Marketers are nil anger local but are international in scope. The organisation in question has previously. Has a limited area of business to control it has now found itself on uncertain ground when competing with similar organisation around if
Moreso, he product life cycles of general cotton mill limited onitsha now required more sinful management in order to extract profit.
Since one manger has the responsibility for integrating a far-ranging rarity of purchasing activities. The general cotton mill limited onitsha nee a good deal of information for efficient and effective mining of the organisation.
The company has to increase their method of purchasing information system in order to proceed and develop information for such rapid planning and decision marking.
Again, the adherent of techniques which can provide information for effective business decision tools of the company, although the purchasing information system is not entirely dependent n the use of computer, the evolution of these machine to the role of a relatively common place article in the company (GCE) and the development of qualifies personnel to work with these computer means good deal of information which previously could not be handled by order methods, can now be handled efficiently in general Colton mill limited Onitsha.
In order to stand the test and trials of time, the management of these organization unbars on a series of development activities to enhance their operation,. One of such development in the pursuit of company’s goals.
1.2 STATEMENT OF THE PROBLEM
for over twenty four years now, general cotton mill onitsha has been on existence this study was designed to calculate or measure how effective purchasing information particular reference to general cotton mil onitsha.
The formulation of a successful purchasing strategy hinges upon the extent of knowledge on two key points, that is , the opportunities open to the enterprise and the resources available it responds therefore on the amount and quality of information emanating from both external and internal sources of the organization.
It was found that as far as general cotton mil onitsha is concerned, that purchasing information system is not all that effective does to the following reasons.
It was founds out that most of the information supplied to the organization are too current for use, it may also happen that some information provided are too absolute for use.
More so, the firm is not willing to finance a computer based information system, and this has resulted to romance effect on the system. This has rendered the organization absolute.
However, the firm is relevant in paying for the system. As a result of the defective acts mentioned above, the company is not enjoying flutter exploitation of the purchasing concept.
Further more, if the organization is competent in doing its ob very well, it will prevent important information from being suppressed, for instance, indication that a product should be withdrawn.
1.3 OBJECTIVE OF THE STUDY
from the problem defined the research has the following objectives
1. to find out if the general cotton mill limited onitsha generated information that is relevant to heir business requirements.
2. to find out if the general cotton mill limited onitsha generated timely information.
3. to find out if the general cotton mill limited onitsha generated by general cotton mill limited ontisha is cost effective.
4. to find out how accurate the general by general cotton mill limited onitsha is in relation to their business
5. to recommend ways of improving effectively in the use of mis in the general cotton mill limited onitsha.
1.4 FORMULATION OF HYPOTHESES
Hoi general cotton mill limited onitsha does not generate relevant information
Hi general cotton mill limited onitsha generate relevant information
Ho2 general cotton mill limited onitsha does not generate relevant information
H2 general cotton mill limited onitsha generates timely information
Ho3 the information generated by general cotton mill limited onitsha is not last effective.
H3 the information generated by general cotton mill limited onitsha is not last effective.
H04 the information generated by general cotton mill limited onitsha is not last effective.
H4 the information generated by general cotton mill limited onitsha is accurate.
1.5 SIGNIFICANCE OF THE STUDY
this study will help the general cotton mill limited onitsha to know the importance of purchasing information system on the purchasing of their products and how to manager it for cost reduction.
It will serve as a source of document to other in the same industry , not only in onitsha, but also the country in general.
It will widen the knowledge of the writer on research writing as information technology
1.6 SCOPE OF TE STUDY
This study is concentrated on the effectiveness of the purchasing information system in textile industry with emphasis on the general cotton mill operations within onitsha.
1.7 DEFINITION OF TERM
some of the terms used in the study have other meaning outside they were used here therefore, for easy and quick comprehension of this report, the following terms are used.
1 INFORMATIION- this is term for date that help the user to achieve his desired objectives.
2. MANAGEMENT – this group of people whose duty is to co-ordinate the affairs of an organization.
3. SYSTEM – this is a computer terminology that can be used to represent the computer as a whole
4. MARKETIING – this is a managerial process that deals with the satisfaction of consumers through exchange process.
5. DUTY DRAW BOOK – a term used by federal government of Nigeria to reply manufactures of export product for duties they pay for raw materials.
6. EXPORT EXPASION GRANT – this is a grant aimed for expanding export base of Nigeria. It ground entire prenurs the find for research
7. EXPORT DEELOMENT FUND – this is a fund seaside by the federal ministry of finance to help enter prenurs who specialise on export product.
8. BACK GROUND INTEGRATION –this is a situation which arises when a manufacturer source its new materials himself instead of buying if from another manufacturer or producer.
Effectiveness Of The Purchasing Information System In An Industry:
The effectiveness of a Purchasing Information System (PIS) in an industry can have a significant impact on the overall success and efficiency of the procurement process. A well-designed and properly implemented Purchasing Information System can provide numerous benefits to an organization, including cost savings, improved supplier relationships, better inventory management, and enhanced decision-making. Here are some key factors that contribute to the effectiveness of a Purchasing Information System in an industry:
Accurate and Timely Data: The Purchasing Information System should provide accurate and up-to-date information on suppliers, prices, lead times, and inventory levels. This ensures that purchasing decisions are based on reliable data.
Integration with Other Systems: A Purchasing Information System should be integrated with other systems within the organization, such as Enterprise Resource Planning (ERP) and Inventory Management systems. This integration helps in streamlining processes and sharing data seamlessly.
Automation: The system should automate routine purchasing tasks, such as generating purchase orders, sending requests for quotations to suppliers, and tracking order status. Automation reduces manual work, minimizes errors, and speeds up the procurement process.
Supplier Performance Monitoring: An effective Purchasing Information System should include tools for monitoring supplier performance. It should track metrics like on-time deliveries, product quality, and adherence to contract terms. This information helps in supplier evaluation and selection.
Cost Analysis: The Purchasing Information System should support cost analysis and cost-saving initiatives. It should allow for price comparisons, volume discounts, and negotiation strategies to help reduce procurement costs.
Demand Forecasting: Integrating demand forecasting capabilities into the Purchasing Information System can help organizations better plan their purchases. This minimizes excess inventory and stockouts, leading to cost savings and improved customer satisfaction.
User-Friendly Interface: The system should have an intuitive and user-friendly interface that allows procurement professionals to easily access and navigate through the system. Training and onboarding should also be straightforward.
Security: Given the sensitivity of procurement data, the Purchasing Information System should have robust security measures in place to protect against unauthorized access, data breaches, and cyber threats.
Reporting and Analytics: A Purchasing Information System should offer robust reporting and analytics capabilities. It should allow users to generate reports on procurement performance, spending trends, and other relevant metrics. These reports can inform strategic decisions.
Supplier Collaboration: Effective Purchasing Information System should support collaboration between the organization and its suppliers. This can include electronic data interchange (EDI), online portals, and communication tools to facilitate information exchange.
Compliance: Ensure that the Purchasing Information System helps the organization comply with relevant regulations and industry standards, such as ethical sourcing practices or environmental sustainability requirements.
Scalability: The system should be scalable to accommodate the growing needs of the organization. As the business expands, the Purchasing Information System should be able to handle increased data and transaction volumes.
Feedback and Continuous Improvement: Regularly gather feedback from users and stakeholders to identify areas for improvement in the Purchasing Information System. Continuously update and enhance the system to adapt to changing industry conditions and technology advancements.
In conclusion, the effectiveness of a Purchasing Information System in an industry depends on its ability to streamline procurement processes, provide accurate and timely information, support decision-making, and contribute to cost savings and supplier relationship management. It should align with the specific needs and goals of the organization and be adaptable to changes in the business environment.