EFFECT OF PROCUREMENT PRACTICES ON THE PERFORMNACE OF MANUFACTURING FIRMS IN NORTH-CENTRAL, NIGERIA
Abubakar, Huzaifa Agida and Aliyu Yahaya
Volume 12 Issue 1
Abstract
The decline in manufacturing sector’s contribution to the Nigerian economy necessitated this study which examined the effect of procurement practices on the performance of manufacturing form in North-central, Nigeria. The survey research design method was adopted. The population comprises all the manufacturing firms in North central, Nigeria and this study used survey research design. Taro Yammane formula was used to determining the sample size 251manager of manufacturing firms for this study. Primary source of data collection was used using 5-point likert scale questionnaire. Data was analyzed using Partial Least Squares Structural Equation Model (PLS-SEM). The study revealed inventory management has positive and significant effect on performance of manufacturing firm while contract management has negative and significant effect on the performance of manufacturing firms in North-central, Nigeria. The study recommended that organization should provide training for staff on best practices in inventory management. Ensure that employees understand the importance of efficient inventory handling and the impact on overall performance also, they should conduct regular inventory audits to identify discrepancies and areas for improvement. This can help maintain accuracy and streamline processes. In addition, manufacturing companies should invest in contract management software that offers features like tracking, reminders, and reporting. This can improve oversight and ensure compliance with contract terms. They should also foster better communication between departments involved in contract management (e.g., legal, procurement, and finance). Clear communication can help prevent misunderstandings and ensure all parties are aligned. Keywords: Procurement Management, Inventory Management, Contract Management, Performance
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