PURCHASING PROCEDURE AND PRACTICE IN KALITI METAL PRODUCTS FACTORY (KMPF)

Abstract

The paper is aimed at examining the purchasing procedure and practice of Kaliti Metal Products Factory. By observing the current situation of the factory, the efficiency of purchasing division is not increasing from time to time because, the importance of purchasing division is not recognized in the factory. The study is based on both secondary data, which are collected from company publications and records and primary data which are collected through interview conducted with key officials of different department and division heads of the factory and also used observation and distributed questionnaire. Information that gathered through interview and questionnaire are analyzed qualitatively by referring to concepts cited in the literature review. The basic objective of this study is to assess the purchasing practices and its overall impaction on organizational objective of Kaliti Metal Products Factory. The policy of the factory encourages most of purchasing decisions to be made by purchasing committee, general manager or board of directors, because of these purchasers do not strive to achieve larger cost savings. In order to achieve higher efficiency and increased cost saving through dedicated and competent