This is a research study on the importance for creation and development of good suppier relationship in a competitive market. Which is part of the purchasing management function. The research study is written to analyze critically the factors affecting the establiment of supplier relationship.

The purpose of the study is to investigate the quality of relationship between the company and its suppliers and emphasize the importance for the certain and development of a mutually advantageous and continued supplier relationship.

It is also intended to make useful suggest and recommendation that might help to improve relationship in this industry.

This project begins with an introduction, the subject matter centre on importance for the creation and development of good supplies relationship in a competitive market with A case study of Aba textile mills limited, Aba. Following the introduction in chapter two where literature of some writers and authors as it concern supplier relations were reviewed adopted in undertaking the study Results of investigation conduced are presented and analyzed in chapter founder the heading finding.

Concluding the work in chapter five, the researcher summarized her work and made some recommendations, based on this finding the study was rounded up by setting out bibliography and appendix at the end.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In selecting sources of supply, purchasing makes decisions that influence not only the firm economic success, but the livehood of the suppiers and the efficiency of the entire economy. The purchase decision directly influences the financial situation of the supplying from and ultimately the economic welfare of employees and their families. Sourcing in finding suppliers who are willing and able to provide consistently quality, service, (delivery) at a competitive price.

We can not be talking about price and other things without source . In some cases, an extensive search, may be required to find one satisfactory supplier or even develop a source where none has previously been sourcing therefore may comprise the identification or development of suitable sources of supply, systematic investigation and comparison of such sources, the source decision and a plain for continuous relationship.

Good supplier is one who is at all time honest and fair in his dealing with their customers his own employees and himself, who has adequate plant facilities, and so to be able to provide materials which meet the purchasers spcificationsion the quantities required and at the time promised, whose financial position is sound, whose prices are reasonable both, to the buyer and to himself, whose management policies are progressive who is an alert to the need for continued.

Improvement in both his products and manufacturing processes, whose ethical behaviours are sound and who realize that in the last analysis his own interests are best served when he best serves his customers.

1.2 STATEMENT OF PROBLEM

For sometime now, evidence have shown that the company is facing some problems like.

1. There is no cordial relationship between the buyer and the suppliers.

2. The company has not be able to meat increasing demand of their customers in terms in terms of (product)

3. The company need to look at the factors affecting the establishment of good buyer/ supplier relationships.

4. The organizational structure of the company is not examined.

5. The company need to inspect any product supplied to them to know the ones to accept and the ones to reject.

1.3.PURPOSE OF THE STUDY

The aim of this study is to look at the following problems like:-

1. To investigate the relationship or the reason for the non cordially.

2. To know the reason why the company has not been able to meet increasing demand of their customers in terms of product.

3. To take a critical look at the factors affecting the establishment of good buyer/ supplier relationship.

4. To examine the organizational structure .

5. To inspect the products been supplied properly to know when to accept and when to reject.

1.4 RESEARCH QUESTIONS

In an attempt to find solutions to the problem of creation and development of good supplies relationship in a competitive market the researcher sought answers to the following questions:-

1. How is your relationship with your suppliers?

2. Has there been an accession where you visit your suppliers plant to offer practical help in production of your product?

3. Do you receive help from your suppliers in relation to the acquisition of good and services.

4. What sourcing technique does your company operate?

5. Does the company rejects the suppliers product for a reason of sub-standard?

1.5 STATEMENT OF HYPOTHESIS

In conclucing this research, the following hypothesis will be tested.

1. Ho – Good relationship with supplier does not improve companys purchasing efficiency.

Hi- Good relationship with supper improve company’s purchasing efficiency.

2. Ho- In selecting suppliers, reliability are not considered.

Hi- In selecting suppliers reliability need to be considered.

1.6 SIGNIFICANCE OF STUDY

The researcher intends to examine how suppliers are selected, source, evaluated and developed. It is also essential to know the process involved in the creation and development of good supplier/ buyer relationship and where problem are experienced.

To the researcher, the research really help me as an individual to research and in the same time inpart knowledge about this particular study and my course as well, so with the knowledge. If an in the field now, I will be able to defend myself.

Secondly, the research is for the partial fulfillments of the condition for the award of Higher National Diploma (HND) in purchasing and supply department.

To other students, my fellow students I know this research work will really serves them as a data bank in terms of research.

To the firm. I beloved that the study will help the company / firm to identity its draw backs and how to alleviate them.

To all industries, this study will also help various industries to know their weak point and also know how to tackle them, specially the industries that are facing some of problems solved above.

1.7 SCOPE OF THE STUDY

The study was initially designed for development of good supplier relationship, getting suppliers who will produce the things the purchasers wants to the delivery schedule required by providing technical assistance and advice. In order hand, all things be equal this particular area also focus on various department like store department, production department. Finance department sales/ maketing department etc. Since the study is all about good suppliers relationship that is getting all the items the company wants at the scheduled time that is to say it reference to the following department mentioned above.