Procurement Planning Technique: A Strategy for Sustaining Production Capacity of Bread-Baking Firms in Port Harcourt, Rivers State, Nigeria

Abstract

The small and medium-scale industry is considered to be an informal section in the Port Harcourt Rivers State, Nigeria. However, the volume of business activity carried out in the sector was perceived to be capable of opening and increasing the per capita income of the city Port Harcourt if their mode of operation is mainstreamed to size procurement of materials geared towards increasing productivity amongst bread baking firms. Thus, the general aim was to evaluate how procurement technique enhances production capacity among firms in the bread-baking industry in Port Harcourt. The study was necessitated as a result of the inability of firms to strategically increase production capacity, given the apparent local means for material procurement in practice. A correlation design was adopted for the study, with the aid of a structured questionnaire on a total population of 96 firms. Questionnaires were administered to 96 production supervisors; hence, it was a judgmental census study. Findings upheld that all dimensions measured were of strong positive correlation at the least measure of 0.6 (p) ≥ 0.00. Among the conclusions reached was that making decisions was more strategically viable for firms to adopt in the industry. Thus, an empirically proven approach to procurement selection technique would be more reliable for sustaining the production capacity of the firms studied.