CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The role of purchasing functions has long ago been taking as routine clerical function and services which merely concern with spending the organizational resources.

Therefore, it has been widely noted that the definition of purchasing function and it’s understanding has not been considered in those years back. Now purchasing function has become very important in the Nigerian industrial sector.

This has been originated from the fact that purchasing function have been playing a leading role in Nigerian industrial sectors and the economic activities of the people. The study of purchasing function is therefore very important because, it deals with the science of getting things done in the most efficient way in the industrial  sectors.  For this reason purchasing function has been lay down factor that ensure constant and efficient supply of raw materials, procurement of component parts, products both consumable and non consumable for the services and the growth of Nigeria industries.

Purchasing function also provide service for use of resale by an organization and to make them available at the right time in the right quality and the right place, in right quantity at lowest cost. All these are aimed at striving vigorously to extricate the industry from the batter system of economy that engulfed our industries for numbers of years.

Purchasing functions have been tailor made to involve in carrying out an efficient acquisitions, custody and issuance of goods and services that is required for meeting  corporate industrial objectives.

Therefore, the crucial role of an efficient and effective purchasing functions in the Nigeria industrial circle can not be overestimated.

It is against this background that this research examines the roles of purchasing functions in the industry and extricates the clerical function and services which purchasing function was known within those years.

The purchasing functions will at this juncture set standards and prove the point of meeting up with the rules regarding the progress of the industries with a set standard of industrial policy.                             

1.2     STATEMENT OF STUDY

The role of purchasing function in the Nigeria industries is a welcome development. Recognizing the power of purchasing functions they are extensively employed for the effective growth of the industries. On the other hand, purchasing function could serve as a plat form to promoting business progress and industrial growth which may cause economic boom in the country.

There is the danger of not employing purchasing function which may result in usage of local production and much dependency on the rules set by the management of the industry. Lack of purchasing function could pose a serious problem in the Nigeria industrial establishments. Adequate and orientated purchasing functions are needed for acquisition of materials and procurement of raw materials at lowest cost.

In effect, the various piece of equipments which the industries make their wok look complex. Then there is government interference in the material exporting.

Government exercise certain control over the industries like export duties,  tariff and import duties.

Finally, the objective of the purchasing function is concern with the spanding  the growth of the industries and the development of the Nigeria economy.

But regretably, however, lack of the industries to employ purchasing manager and their function have createda vacum which only the purchasing manager with its function can fill.