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In almost all business area purchasing information system has been indispensable. The operation of this system has over decade been practiced manually in most business organization. However this project will show how computerized purchasing information system will aid Shop and Save Supermarket, Uyo. The manual operation of the purchasing system has been helpful to some extent, but they along with inefficiencies and inaccuracy. These has therefore given rise to errors, mistake and wastage of resources and precious time. This is because of limited ability of human being to handle batch jobs over long period of time. Consequently, the thesis was prepared in view of showing how computerized purchasing information system can enhance the processing of records, storage of record and retrieval of files and updating of purchasing files. It also establishes the advantage of computerized purchasing information system over the manual system in shop and save supermarket, Uyo. The new system, computerized purchasing information system is thus designed to eradicate the problems of time wastage, inaccuracy and inefficiencies that are associated with manual processing of records and updating of purchasing files with little human intervention.
1.0 GENERAL INTRODUCTION
Purchasing information system is the activity of acquiring good or services to accomplish the goals of an organization. The major objectives of purchasing are to maintain the quality and value of a company’s products, minimize cash ties-up in inventory, maintain the flow of inputs to maintain the flow of outputs, and strengthen the organization competitive position. Purchasing may also involve development and review of the product specification receipt and processing of requisition, advertising for bids, bid evaluation, award of supply contracts, inspection of good received, and their appropriate storage and release. Purchasing system makes the purchasing process more efficient and help companies reduce supply costs. Computerized purchasing system can cut companies administration costs, shorten the length of purchasing cycle and reduce human error, thereby minimizing shortages. The can also simplify order tracking and make it easier to manage purchasing budget by quickly creating expenditure reports.
1.1 BACKGROUND OF THE STUDY
The art trading in materials i.e. the process of buying and selling is nearly as old as man himself. Before the advent of money as medium of exchange man bartered item surplus of his requirement for thing, which he needed from the time discovered that he could put his talents to produce or manufacture things, he began to specialize on whatever was his vocation, man found it more economical to purchase materials of quality suitable to his needs at prices which he considered favorably.
It was observed that 50 to 60 percent of shop and save expenditure is on materials. The purchase department therefore, become the biggest spending department of the shop and save. Material and supplies form the life blood, as it were of an industrial concern. These should be made available on proper place, time and at proper price. If all these do not happen the right way it may lead to the inefficient marketing techniques or out mode production skill can lead to a decrease of profit as inefficient system of purchase management can lead to a decrease in profit. Professional competence therefore, is important in managing the purchasing involves the activity directed towards securing the materials, supplies, requirement and services required in the operation of an enterprise.
These activities have to be performed with optimum efficiently, economy and effectiveness. These three factors are the key factors in obtaining excellence in managerial performance. since materials constitute the largest chuck of the creation of value (for which alone to customer is willing to pay a price), it is necessary for the purchase to exercise at most prudence in ensuring for the purchaser that the ultimate values is obtained for every ripe spent on material VFM (value of money) has to be the slogan of the purchase department.
Today purchasing is not the dame as buying of yester years. Buying is money the act of procuring at item of material at a price. On the other hand purchasing functions is the improvement of profit and actively searching out and in planning new ideas for improvement of the company’s product achieve this objective by cost of material. Finding out substitute materials that are more economical, by eliminating element of cost in purchasing that do not contribute to value and generally ensuring a higher degree of effectiveness in managerial performance functions right form participation, working capital management and profit improvement.
In order for the purchasing department to carryout operation accurately, timely, economically and effectively, it needs to process purchasing transaction setup files possible document as well as receipts of ordered items setup. Program to monitor the quantities and prices of received items.
Hence the user of computer is very important in purchasing department.
1.2 STATEMENT OF THE PROBLEM
Purchasing department of shop and save finds it difficult to handle the bulky job manually, especially files as a result of inaccurate and untimely processing of purchasing transactions. The inaccurate and untimely processing may be attributed to postal delays, bad handwriting, Loss of vital paper or documents transaction error, general validation features during processing and plain ignorance of what information is about.
1.3 OBJECTIVE OF THE STUDY
The main goal of computerized purchasing system is to reduce unit labour requirements of each business operation.
· To examine the present mode of purchasing information.
· To find out the problem associated with present method of purchasing.
· To design an appropriate and suitable system of controlling purchase for the company.
The new system is thus designed to eradicate the problem of inefficiencies, inaccuracies and wastage in the manual processing or records and updating of purchasing files without human intervention.
1.4 SIGNIFICANCE OF THE STUDY
The study will show how accuracy is attained in using computerizing purchasing system. It also shows how time is saved when using designed programs. The significance of the study is to prove how computer can be used to achieve easy calculation and account processing storage and reference of purchasing policies for decision-making. To access and maintain the account, determining quickly and easily what total are in the goods purchased. The computerized purchasing system is more efficient accurate and take less time in processing than manual. The design can be adapted for order big trading companies.
1.5 LIMITATION OF THE STUDY
A lot of constrains were encountered during this research.
They are time and financial aspects; this could not allow me to carryout the work at the expected level. My inability to get an already written project on this topic was also a constraint towards the study. Also there were some problems of unwillingness of the respondent to give accurate information.
1.6 SCOPE/DELIMITATION OF THE STUDY
These research projects were restricted to the purchasing department of the shop and save supermarket, Uyo. The following activities have been identified with the department:
· Periodic physical checking of items purchasing with the view to ascertain the level of goods in stock.
· Keeping an accurate record of all entries, including all purchase made.
· Placing an order for the purchase of the needed items.
· Determination and review of stock level for different products.
1.7 DEFINITIONS OF TERMS
In a write up like this there are going to be some definitions of terms. The terms considered important to explain because it will make it easy for other people who are not in this field to understand the basic filed used in this project. They are the following:-
COMPUTER: - An electronic device capable of accepting data as an input and process it to give the information as an output.
PROGRAM: - A list of instrument that tells the computer what to do.
DATA: - A raw fact that convey little or no meaning.
FILE: - A collection of related records.
RECORD: - It is a data structure that contains a number related filed in a predefined fixed order.
INPUT: - Data supplied to the computer
OUTPUT: - Result of processed data.
FLOW CHART: - This is a diagrammatic representation of the required solving a problem.
SYSTEM: -This is a group interactive element that forms a unified whole.
STORAGE DEVICE: - This is a device used for storage
APPLICATION PROGRAM: - This is a program which process data for a particular functions e.g. payroll.
DIRECTORY: - A list of the content of a program library or the files contained on a magnetic dist, floppy disk or hard disk.
HARD COPY: - A printed record from computer
HARD WARE: - All the physical print of computer that is visible to the eye and can be touched.
SOFT WARE: - These are written programs that enable the computer to work it can also be defined as the component of computer system that one cannot see or touched.
IMPLICATION: - The stage in system development in which there is putting into practice the design so development to work in an organization.
INPUT/OUTPUT CONTROL: - It is a control reconciles input and output to establish accuracy of processing.
PURCHASING: This is act of buying of goods and services mainly in qualities.
INFORMATION: - This is product of data processing. This processing includes retiming, summarize and otherwise manipulate data into useful form of decision-making.
RECORD ACCOUNT: - It is control total produced by a computer program of a number of records proceeded during a given run.
BUSINESS: -This is a commercial or merchantable activities engaged in as a means of livelihood.
WHOLE SALE: - The act of buying and selling of commodities in la
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