Procurement is the acquisition of goods, works and services. The process covers a whole cycle from the identification of needs through the supply of the product and to the end of the service contact and even the end of the useful life of the asset procured.
This chapter explains the background of this research work, the problem discussion and the overview of the structure adopted in this dissertation.
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The speed of technological advancement is so much now that no part of the global world can afford to be left behind especially now that the world has become a global village.
Businesses all over the world are hence looking for strategies that will position them and make them have a competitive advantage whatever it takes. Such competitive advantage could be gotten from doing business at a low cost achieving lot of savings or having an effective work system. That is what a good procurement best practice strategy can deliver to any organisation.
Many Organizations are now seen trying to focus on making their procurement strategies as efficient and cost effective as possible to ensure they have a competitive edge in their industries.
According to source one management services, LLC, (2008) the advent of Best Practice Procurement Processes has suddenly seen a lot of companies realizing substantial cost reductions through:
Having a proper understanding of the cost drivers used in determining total cost of ownership.
Elimination of all non-value adding process thereby Increasing efficiency across the entire supply chain.
Aggregation of demand, supplier rationalization, strategic sourcing, and enhanced supplier relationships resulting in improved cycle time.
Electronically enabling the supply chain through the use of paperless e-Procurement tools and e-commerce portals.
Reduction of carrying costs, warehousing, movement, obsolescence and shrinkage through the alternative inventory ownership agreements – retained consignment and vendor managed inventory.
Different strategies are often used in achieving the best procurement processes in various industries. The need for developing countries especially Nigeria industries not to be left behind in utilizing these opportunity has necessitated this research work.
For the purpose of this study, I will consider the extent to which procurement practices in Nigeria has adopted the three key strategies discussed in the work namely the lean supply, the e-procurement and the green supply strategies as it relates to environmental friendly policies adopted by various organisations in Nigeria.
Kirk Zylstra (2007 p 10), argued that the main objective of all supply chain executives today is he to ensure that future business forecasts, ever changing customer demand, and other variations across the supply chain do not upset their carefully laid cost-reduction plans. Its however been discovered that the main obstacle to this vision is the ability to model budgets,
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