Background of the Study
Vendor selection is a crucial decision-making process in procurement management, as it directly influences the quality, cost, and delivery of goods and services to an organization (Owolabi & Asiri, 2023). In the context of large manufacturing companies such as BUA Cement, the selection of suppliers or vendors plays a pivotal role in ensuring the smooth operation of production lines, meeting demand deadlines, and maintaining profitability. Vendor selection criteria encompass various factors, including cost, quality, delivery time, reliability, and capacity, among others (Oni & Adedeji, 2024). The procurement performance of a company is highly dependent on how well these criteria are met by the chosen vendors.
BUA Cement, one of Nigeria's leading cement manufacturers, operates in a competitive and highly regulated industry where vendor selection is vital to its operations. In Gombe State, where BUA Cement has significant market reach, procurement decisions have a direct impact on the company's overall performance. Poor vendor selection can lead to delays, increased costs, and substandard materials, negatively affecting production schedules and customer satisfaction (Aliyu et al., 2023). On the other hand, strategic vendor selection can enhance procurement performance by ensuring timely delivery, superior quality, and cost efficiency.
While there is a growing body of literature on procurement performance and vendor selection, much of the research has been centered on other industries such as retail, technology, and healthcare, with limited attention to cement manufacturing in Nigeria. This gap in literature highlights the need for research focused on the construction and manufacturing sectors in Nigeria, particularly in regions like Gombe State, where infrastructure development and demand for cement are on the rise. The present study seeks to explore the impact of vendor selection criteria on procurement performance within BUA Cement’s operations in Gombe State, providing insights into best practices that can be applied in the cement industry and beyond.
Statement of the Problem
In the cement manufacturing industry, procurement decisions are critical to the overall success of a company. However, there is often a lack of systematic processes in selecting the most suitable vendors, leading to issues such as inconsistent product quality, delivery delays, and high procurement costs. This is particularly problematic for companies like BUA Cement, which operate in regions like Gombe State, where supply chain challenges are prevalent. Despite the importance of vendor selection, there is limited empirical research on how specific vendor selection criteria affect procurement performance in the cement manufacturing industry in Nigeria.
The absence of a structured approach to vendor selection in many organizations, including BUA Cement, poses a risk to procurement efficiency and overall organizational performance. Without an adequate understanding of how vendor selection impacts procurement performance, companies in the cement industry may fail to make informed decisions, which can have long-term negative effects on cost-effectiveness, quality, and competitive advantage. This research aims to bridge this gap by examining the influence of vendor selection criteria on procurement performance at BUA Cement in Gombe State.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
This study focuses on BUA Cement in Gombe State and its procurement practices. The research is limited to the cement manufacturing sector in Nigeria and does not extend to other industries or regions. Limitations include the potential reluctance of BUA Cement to disclose sensitive procurement data, which may affect the depth of the analysis. Additionally, the research is focused on a single company, limiting the generalizability of the findings to other companies in the cement industry.
Definitions of Terms