Role Of Purchasing In National Development

5 Chapters
|
36 Pages
|
7,833 Words

Purchasing plays a crucial role in the advancement of a nation’s development by serving as a strategic driver for economic growth and sustainability. At its core, purchasing encompasses a dynamic set of activities involving procurement, sourcing, and acquisition of goods and services, acting as a linchpin in fostering economic progress. Effective purchasing practices contribute to resource optimization, cost efficiency, and the cultivation of a robust supply chain infrastructure. This, in turn, stimulates local industries, bolsters employment opportunities, and enhances the overall economic landscape. Furthermore, the judicious selection of suppliers and negotiation of favorable contracts underscore the significance of strategic decision-making within the purchasing domain. By integrating innovative technologies and fostering collaboration between public and private sectors, purchasing emerges as a catalyst for national development, fostering a resilient economic foundation that aligns with the imperatives of progress and prosperity.

ABSTRACT

This project is on the, “Role of Purchasing in National Development”. They way purchasing societies use to train and educate their workers. The structure and achievements of PURCHASING IN NATIONAL DEVELOPMENT were studied and reported. The sources of funds to the purchasing were studied also. The way purchasing inspectors use to supervise and enlighten the management of purchasing and committees were also reported. And to carry out research functions and benefits of purchasing to the socio-economic growth of the society. It also studies about the problems, which make the purchasing societies not to do what the are supposed to do in a national development and also the way to solve their problems.

TABLE OF CONTENT

Title Page
Abstract
Table Of Contents

Chapter One
1.0 Introduction

1.1 Background Of The Study
1.2 Statement Of The Problem
1.3 Purpose Of The Study
1.4 Significance Of The Study
1.5 Research Questions
1.6 Objective Of The Study
1.7 Scope And Limitation Of The Study
1.8 Limitation Of The Study
1.9 Definition Of Terms

Chapter Two
2.0 Literature Review

2.1 Concept Of Economic Development
2.2 Purchasing And Economic Development
2.3 Historical Survey Of Purchasing In National Development
2.4 Achievement Of Purchasing In National Development
2.5 Structure Of Purchasing In National Development

Chapter Three
3.0 Research Design And Methodology

3.1 Sources Of Data
3.2 Population Of The Study
3.3 Sample Size
3.4 Sampling Techniques
3.5 Research Instruments Used
3.6 Questionnaire Administration And Reponses Rate
4.0 Presentation, Analysis And Interpretation Of Data

Chapter Four
4.1 Questionnaire Administration

4.3 Findings

Chapter Five
5.0 Summary Of Findings, Recommendations And Conclusion

5.1 Summary Of Findings
5.2 Conclusion
5.3 Recommendations
Reference
Questionnaire

CHAPTER ONE

1.0 INTRODUCTION
Since the existence of Nigeria, various government both the colonial and post independence governments devised to different means of developing the nationals economy. The colonial government of Nigeria introduced the concept of purchasing aspect in Nigeria after studying its concept in Europe as a strategy for developing the country economy.

1.1 BACKGROUND OF THE STUDY
Purchasing aspect can be traced back to Britain into a second half of the 21st century. Purchasing aspect came into being as a result of capital owners introduction of new method of production in order to increase productivity and as well accumulate more wealth at the expense of labour. According to Onuoha (1986), ‘with the invention of the system engine, the process of mechanizing in the textile industry was completed and the stage was set for the classic capitalist exploration of labour moreover, Okonkwo (1989) went further to say that these capitalist, employed thousands of workers in their factories. But the factory owners were more interested in making profit. This exploration of workers by the capital owner led to agitation by workers for better conditions by their employers because of problem encountered in their labour areas they decided to from an organisation, which will help to ameliorate their economic conditions. According to Okonkwo (1989), the year 1844 marks the birth of purchasing aspect in the world’ he went further to say that “a group of 28 working class people, most of the weaves, launched the first ever successful purchasing society. These 28 working class the early fathers of the purchasing aspect are know in purchasing history as the Rochdale equitable pioneers with a capital of 128.
Following its enormous role in great Britain, some of the countries borrowed the idea of purchasing aspect in developing their economy. As a result of these positive development the government of Nigeria, under Britain colony appointed Mr C. F. Strickland in 1933 to study and report on the feasibility of forming purchasing societies in Nigeria, as a way of curbing her economics problems. Mr Strickland recommended the introduction of purchasing aspect in Nigeria in the report be submitted in 1934.
According to Okonkwo (1986), his (Mr. Strickland) report was accepted by government and so in 1933, the Nigeria purchasing society ordnance was enacted and in the following year, 1936, regulation was drawn up for the running of purchasing societies. The cocoa marketing society at Gbedum was the first registered purchasing aspect in Nigeria still in 1936, there was a regionalization to purchasing which were grouped into three namely purchasing in western Nigeria, purchasing in eastern Nigeria and northern. Purchasing aspect. In 1936, the regional concept was abolished and as such the central state emerged among others. Apex organisations were established such as the east central state purchasing Development Association (E.C.S.D.A) which came into existence in 1973 to monitor and lend funds to the primary societies.

1.2 STATEMENT OF THE PROBLEM
This research work intends to study the purchasing societies and their roles in national development from the point of observation, it is quite clear that in spite of government patronage of purchasing, they have performed below expectations. Consequently have the purchasing actually fulfilled the aims of establishing them, in order words, what role have they played in the following area.
I Poverty reduction
Ii Price stabilization
Iii improvement in technology
Iv inflation reduction
V increase in production
Vi employment.

1.3 PURPOSE OF THE STUDY
Based on the Criticisms levelled against the purchasing aspect in the way they render their services to its customers, it is the wish of the researcher to perform various job and task so as to serve as a practical guide to the study.
i. To find out if the purchasing aspect has any economic and development benefit to the society.
ii. To know what the movements organic-gram looks like.
iii. To find out the socio-economics, advantages which its.
iv. To state the function of purchasing body to find out how far the society has gone in achieving its objectives/goals.

1.4 SIGNIFICANCE OF THE STUDY
Having learnt of the criticism levelled against purchasing body the researcher wants to carry out a research on what functions and its benefits is the purchasing to the socio-economic growth of the society. The researcher also want to have an empirical has either to support all the sources about the poor impression people have of the movement and to advice them on how to improve their service by going through the researchers recommendation.
This is one of the reasons why this study became very necessary. The study sough to x-ray the continued importance and problems of Purchasing in national development with a view to finding lasting solution to its problems. Increasing PURCHASING IN NATIONAL DEVELOPMENT efficiency and reawakening the government to the need to give prompt attention and assistance to PURCHASING IN NATIONAL DEVELOPMENT in order to enable them to play a role in national development very well. This study will also be a useful document to purchasing societies, economic planners, students, instructors and general public. It is hope also that this study will be a reference document for pestering.

1.5 RESEARCH QUESTIONS
The following research questions were used to develop questionnaires through which data on role of purchasing in the national development were collected:
i. Has the purchasing aspect any economic and development benefit?
ii. Does the purchasing aspect operate on dynamic functional structure?
iii. What impact has the movement played up-liftmen of the socio-economic welfare of its member that is meant to gear them toward productivity?
iv. What are the functions of this movement?
v. Has the purchasing aspect made achievement that might be geared towards economic growth?

1.6 OBJECTIVE OF THE STUDY
This research work is designed to establish the role of the purchasing societies in the national development. In the light of findings, to recommend how the contributions of purchasing societies in national development can be improved. Similarly the findings will provide useful information for the incoming generation who wish to carry out more research on this subject matter.

1.7 SCOPE AND LIMITATION OF THE STUDY
This study is primarily focused on the role of purchasing in national development, with emphasis on their role towards socio-economic growth of the nation.
Nevertheless, there was still the need to move out of PURCHASING IN NATIONAL DEVELOPMENT to the individual purchasing and co-operators to know how they react to the national development and then, know how PURCHASING IN NATIONAL DEVELOPMENT impacts either positively or negatively to the national development.

1.8 LIMITATION OF THE STUDY
Every study has its own constraints and limitations. These goes a long a way to affect their overall exercise, the attainable result not with standing. In the same way this research has its own limitation which include the followings.
i. The research has limited access to records and statistical data relevant to this work.
ii. Time factor was another limitation as there was not enough time to do some field work in which would have proved invaluable to the success of this work.
iii. Another problem is the financial constraints in buying the materials needed for the study, transportation cost of going to the area of study to distribute and collect the research questionnaire is highly forcing the researcher to financial squeeze.
iv. The indifference attitude of the purchasing officials towards organizing and managing their records properly made it very difficult to obtain correct data.
v. Some of the co-operators were ignorant of the purpose and significance of this study, thus most evident low percentage of the questionnaire returned.

1.9 DEFINITION OF TERMS
i. Apex Co-operative: This is a registered purchasing society formed by other societies to facilitate their operation at the state purchasing Development Association.
ii. A.C.F.A: Anambra purchasing financial Agency. These groups look over from (E.C.S.D.A) and their work is also to monitor and lend funds to the primary societies.
iii. NACA: Nigeria Agricultural and Purchasing Bank. It was formerly known as Nigeria Agric Bank “NAB and the major objective of the bank were to finance the operational scheme of the primary societies through A.C.F.A Anambra State Purchasing Financial Agency.
iv. A Purchasing: antone who feels, he desire needs the services of a purchasing business enterprises and belongs to one or more. It who believe and share membership of a purchasing.
v. PURCHASING IN NATIONAL DEVELOPMENT: Purchasing aspect limited. And it is stated of formed in the year 1991.
vi. Development: this simply means an increase in the skill, knowledge, power and responsibility of employees.
vii. Role Functions/Responsibilities: This simply means the job or work carried out by the purchasing aspect. To enable the growth and development of the organisation.

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Role Of Purchasing In National Development:

The role of purchasing, particularly in the context of government procurement, plays a crucial role in national development. Here are some key aspects highlighting its significance:

  1. Economic Growth and Stability:
    • Government purchasing contributes to economic growth by stimulating demand for goods and services. Large-scale procurement projects can create jobs and boost economic activity.
    • It provides stability to industries by ensuring a consistent demand for their products or services, which can lead to sustained economic development.
  2. Infrastructure Development:
    • Purchasing is instrumental in the development of essential infrastructure such as roads, bridges, schools, hospitals, and other public facilities. These projects contribute to the overall development of a nation.
  3. Innovation and Technology Transfer:
    • Through strategic purchasing decisions, governments can drive innovation by supporting research and development initiatives. Purchasing from technologically advanced companies can also facilitate the transfer of technology and knowledge.
  4. Social Development:
    • Procurement can be used as a tool for social development by promoting inclusivity and diversity. Governments can implement policies that encourage the participation of marginalized groups and local businesses in procurement processes.
  5. Environmental Sustainability:
    • Purchasing decisions can influence environmental sustainability. Governments can prioritize environmentally friendly products and services, leading to the development of a more sustainable and eco-friendly economy.
  6. Fiscal Responsibility:
    • Efficient and transparent purchasing practices contribute to fiscal responsibility. Governments need to ensure that public funds are spent wisely and that procurement processes are fair, competitive, and accountable.
  7. Capacity Building:
    • Through procurement, the government can support the development of local industries and build their capacity. This, in turn, can lead to increased self-sufficiency and reduced dependence on imports.
  8. Strategic Planning:
    • Effective purchasing involves strategic planning to align procurement activities with broader national development goals. Governments can use purchasing as a tool to address specific challenges and meet long-term objectives.
  9. Job Creation:
    • Large procurement projects often require a significant workforce, leading to job creation. This can have a positive impact on reducing unemployment rates and improving the standard of living.
  10. Quality of Public Services:
    • Government purchasing affects the quality of public services. Procuring high-quality goods and services ensures that the public receives value for money and experiences improved services.

In summary, the role of purchasing in national development is multi-faceted, encompassing economic, social, and environmental aspects. Strategic and responsible procurement practices can contribute significantly to a nation’s progress and well-being.