EFFECT OF PROCUREMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE (A STUDY OF NIGERIA BOTTLING COMPANY PLC IBADAN, OYO STATE)

This research study assesses the effect of procurement practices on organizational performance with reference to Nigeria Brewery Plc Ibadan Oyo State The study was guided by the following research objectives; to establish how supplier selection procedures affect organizational performance within the manufacturing organization, to analyze the effects of buyer-supplier relationships on organizational performance of Nigeria Bottling Company Plc, to evaluate the effect of procurement procedures on organizational capacity of Nigeria Bottling Company Plc, to investigate the impact of ethical practices on procurement procures of Nigeria Bottling Company Plc. The population of this research was based on the organization under study which is Nigeria Brewery Plc Ibadan Oyo State. These study populations of the company were 80 workforces. The sample size used has (67) workers chosen from various department in a company. This number was obtained through a random sampling method to generated response from the respondents. . The research study make use of descriptive research survey .Data were collected using both questionnaires and was analyzed descriptively. The research makes use of tables, charts and graphs in the analysis and presentation of data. Hypotheses were tested through the use of chi-square. The chi-square method is used to compare the actual or observed distribution against the hypotheses or expected distribution. There is significant relationship between supplier selection procedures and organizational performance. The finding of the study revealed that selection of the right supplier ensures quality products and services that conform to buyer standards and specifications. The findings revealed that selecting the right supplier makes it easier for the organization to achieve good quality, the right specifications and the necessary technical support when required. The study therefore recommends that the company’s website should be revived and updated with current information. Suppliers should be communicated to using the company’s website and their responses received in the same manner to ensure competitiveness, coverage of a large number of potential suppliers, transparency in the procurement process and consistency in the way specifications are received. Key Words: procurement, procurement practice, procurement ethic, Organization profitability, Buyer-Supplier Relationship, Nigeria Brewery, Suppler Selection Procedure, Organizational Capacity.