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A Review of Procurement Performance Measurement Techniques: A Case Study of PZ Cussons Nigeria in Kebbi State

  • Project Research
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Background of the Study
Effective procurement performance measurement (PPM) is essential for organizations to optimize their supply chain and achieve strategic goals. PPM techniques provide insights into the efficiency and effectiveness of procurement activities, helping organizations control costs, improve supplier relationships, and enhance operational performance (Ogundele & Akinyemi, 2023).

PZ Cussons Nigeria, a multinational company with operations in Kebbi State, relies heavily on robust procurement systems for sourcing raw materials and maintaining production efficiency. Despite the availability of various PPM techniques, the organization faces challenges in applying these methods to achieve desired outcomes, especially in a dynamic and competitive market environment (Yusuf & Suleiman, 2024).

Statement of the Problem
Procurement inefficiencies often lead to higher costs, delayed production, and suboptimal supplier relationships. For PZ Cussons Nigeria, the inability to effectively measure procurement performance using appropriate techniques has led to challenges in achieving strategic objectives in Kebbi State. While various PPM techniques are available, their adoption and impact on procurement outcomes in this context remain underexplored (Abiola & Eze, 2023). This study aims to bridge this gap by reviewing PPM techniques and their effectiveness.

Objectives of the Study

  1. To identify procurement performance measurement techniques used by PZ Cussons Nigeria in Kebbi State.
  2. To evaluate the effectiveness of these techniques in enhancing procurement outcomes.
  3. To propose recommendations for improving PPM at PZ Cussons Nigeria.

Research Questions

  1. What procurement performance measurement techniques are used by PZ Cussons Nigeria in Kebbi State?
  2. How effective are these techniques in enhancing procurement outcomes?
  3. What strategies can improve procurement performance measurement at PZ Cussons Nigeria?

Research Hypotheses

  1. H0: Procurement performance measurement techniques do not significantly enhance procurement outcomes at PZ Cussons Nigeria.
  2. H0: The current PPM techniques are not effective in achieving procurement efficiency.
  3. H0: Proposed strategies do not significantly improve PPM at PZ Cussons Nigeria.

Scope and Limitations of the Study
The study focuses on PPM techniques at PZ Cussons Nigeria in Kebbi State, analyzing their application and effectiveness. Limitations include restricted access to internal procurement data and variability in supplier performance.

Definitions of Terms

  1. Procurement Performance Measurement (PPM): Techniques used to evaluate the efficiency and effectiveness of procurement activities.
  2. Procurement Outcomes: Results achieved through procurement processes, such as cost savings and supplier reliability.
  3. Supplier Relationships: Collaborative and transactional interactions between an organization and its suppliers.




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