EFFECTIVE PROCUREMENT AND PROFIT MAXIMIZATION IN A MANUFACTURING ORGANIZATION (A CASE STUDY OF NIGERIA BOTTLING COMPANY, IBADAN)

The aim of this study was to determine the enhancement of effective procurement through a profit maximization system using Nigeria Bottling CompanyPlc as a study area. In this chapter a summary of findings from the study is provided. The chapter also presents conclusions and recommendations made upon careful consideration of the findings. It also provides suggestions on areas where further research is required. The survey findings indicate that effective procurement has transitioned from a largely operational concern and now has taken a more strategic position in organizations. Profit maximization has increased in both extent and scope, with the adoption of Effective Procurement. However, whilst progress has been made a number of challenges still remain. As Effective procurement has become a more strategic activity within organizations the role of the procurement professional also appears to be changing. This is seen in the greater requirement for staff development and training to enhance business analysis skills in areas such as strategic/competitive sourcing and supplier analysis. Effective procurement involves efforts to change how procurement functions, cost reductions such as spending and budgets, employing staff, buying goods and services, and managing technological and organizational activity are carried out. It also has the potential to transform the relations between suppliers and customers. The findings from the study further indicate that the five independent variables: cost reduction, transparency in process, information flow, Accountability and competitive sourcing and bidding explain the variance in profit maximization.