SOURCING DECISION AND ITS EFFECTS ON MATERIAL AVAILABILITY

SOURCING DECISION AND ITS EFFECTS ON MATERIAL AVAILABILITY

ABSTRACT

This study was carried out on sourcing decision and its effects on material availability in 7up bottling company plc Kaduna plant. To achieve this 5 research questions were formulated. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of the entire  staff of 7up bottling company Plc. Kaduna Plant. In determining the sample size, the researcher randomly selected 60 respondents and all were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using mean and standard deviation. The result of the findings reveals that; the use of financial capability of supplier as a criteria will determine whether the supplier will perform well when he is awarded the contract, previous performance of supplier is an appropriate criteria to consider when selecting suppliers, in determining suppliers to select, they have to consider the plant capacity of the supplier in order to avoid late delivery of materials in the organization, supplying managerial skills and technical know how should be used as a yardstick for selecting suppliers, to mention but a few. The paper recommends that the organization should establish a purchasing department and allow them to authorize purchase of goods for the organization. This is because when competent procurement personnel are used to carryout procurement activities, they will ensure that the organization joys all the 7 rights there by reducing cost and increasing profit for the organization, the organization should source for the materials both locally and internationally so that in the event of shortage locally, the required quantity and quality can be gotten across, national border that way there will not be shortage of materials in the organization, idle time for both machines and labourers, name it, the organization should ensure that inspection department be established in the organization so they can inspect incoming and outgoing materials for quality to avoid accepting sub-standard materials into the organization and supplying low quality output to suppliers so they can continue to enjoy brand loyalty from their numerous customers.The company should use both single and multiple source of supply depending on the nature of material and how urgent the material is needed by its consumers.Rather than buying all its machines outrightly, it should lease some because of the continuous advancement in technology we are witnessing now so they won’t end up using money they would have used for other projects to buy one machines that can become obsolete in no time.

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