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DEBRE BERHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS


DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN
MANAGEMENT

PROPOSAL ON IMPACT OF PURCHASING ACTIVITIES ON QUALITY AND PERFORMANCE IN CASE


OF HABESHA BREWERY (IN DEBRE BERHAN)

PREPARED BY: GROUP-3

NAME IDNO.

1.Kalehiwot kone abera 3177

2. Aberham baye 2904

3. Tsion tafese 2632

4. Betelhem damene

5.Bezawit wubishet 2651


BACK GROUND OF STUDY

Every organization needs to purchase goods and services in order to carry out its mission and
goals (Zsidisin﹠Ellram, 2003). Purchasing is an important to any kind of organization as well as
in any activities which have been exercised by human beings. It’s one of the basic functions
which were very common to all organizations. It was the key factors which increase the profit,
productivity and quantity “David Burt, Prentice Hall, Englewood Cliff, N.J 1984”.It was common
to all types of the business operations “ Fearon, Harold E, Donald, Dobler, Kenneth, H.killen
:Purchasing hand book, M.C. Graw Hill NY 1992”.

Any human activities, organizations and companies were performed and become successful
very well due to the implementation as well as an applicable of purchasing activities. All
companies, Industries and others organizations would purchase the raw materials at the right
quality, right quantity, right price and right time from the right suppliers for their operations
“Leeder, Michael R, and Harold Fearon: Purchasing book, Irwin, Homewood 1993”.

Purchasing activities have been shown to contribute to and critically influence the financial
performance of firms (e.g. Chenet al., 2004; Ellram and Liu, 2002; Hendricks and Singhal, 2003).
Strategic integration and alignment of the purchasing function with overall corporate
objectives, also referred to as internal ‘‘fit’’ or purchasing competence, is a key element of
strategic purchasing activities (Baier et al., 2008; Gonza´ lez-Benito, 2007; Narasimhan and Das,
2001). Fit is referred to here as the congruency of the strategic goals of the entire company
with the strategic objectives pursued by the purchasing function. Purchasing strives to achieve
these objectives by engaging in specific purchasing activities and practices.
3. Objectives of the study

General objective

The general objective of this study concerned with to identify the impacts of
purchasing activities on quality and performance in debre berhan Habesha
brewery factory.

Specific objective

 to identify how the purchasing activities affect its quality and performance
of the company
 identify the factor that affect the quality and performance of the company
related with the purchasing activities
 Identified the purchasing activities in its relation to the fulfillment of the
company requirement for materials and their use.
 To determine the role of purchasing on the quality of input in
manufacturing organizations