An assessment of cost reduction tools as a means of improving organizational profitability - case study of Unilever Brothers Nigeria plc, Aba Department: Purchasing and Supply By: Arinze1 Project ID: 5828 Rating: (5.0) votes: 1Rate this project12345 Price:₦2000 Get the Complete MaterialAbstractThis research work investigated with a particular reference to Unilever Nigeria plc, the existing assessment of cost reduction tools in operation. Their effectiveness as veritable cost reduction tools and above all, how much or less they have contributed to reduction of cost operation/production of the company. In carrying out a case study, three modes of gathering information were used which includes, questionnaires, personal discussions and interview and observations in the firm the data which were collected through questionnaires administered, were analyzed with the use of a simple percentage method. However, the study revealed that the company adopted and used the following cost reduction tools among others, staff training (to enhance efficiency and skill), good inventory management through the Economic Order Quantity (EOQ) model, maintenance of low labour turnover rate, strict supervision of activities, responsibility accounting system, turn around strategy, and periodic preparation of cost analysis and investigation of material variances. These strategies have not been without problems. It was found that staff members who have been denied some welfare facilities and fringe benefits as a result of cost reduction tools in vogue have developed a like ward altitude of work and a declining moral for productivity. Based on these findings, it was concluded that these tools were adopted by Unilever Nig. Plc is suitable for modern day operation/productions for a manufacturing company of its caliber. Also, these tools have equally led to a significant difference in materials costs of the integration strategies, reviews of contracts, the establishment of a separate purchasing department and approval of overtime allowances for workers on essential duties are areas to be looked into within a view to enhancing preference of the workers' areas recommended being seriously encouraged including the accounting system in operation. ...Preview Download Preview +Other Purchasing and Supply project topics and materials you might be interested in»The impact of material management on organization productivity»The role of physical distribution function in a manufacturing company (A case study of 7up bottling company Aba) »The impact of new product development on performance of commercial banks in Nigeria (a case study of three banks in Owerri) »The need for effective stock control in an organization (a case study of Jacobs wine limited, Mgbidi)»Stock control: a tool for the attainment of organizational objectives in a manufacturing company (a case study of PZ industry Aba, Abia state) »The impact of manpower training and development on purchasing personnel in the manufacturing industry (a case study of PZ Cussons plc)»The need for efficient supply management in the public sector (a case study of ministry of finance Imo state)»The impact of the application of health and safety regulations in stores (a case study of consolidated brewery, Awo-Ommama) »The need for training and development of suppliers personnel in the public sector (a case study of ministry of agriculture and natural resources) »Effective purchasing planning as a cost reduction tool in the manufacturing industry»The impact of effective and efficient stock control in a manufacturing organization»The role and contribution of purchasing and supply in the profitability of an organization - a case study of Nigerian Bottling Company Plc, Owerri»Impact of store functions on achieving organizational objectives»A critical analysis of negotiation as a vital tool for effective buying in a construction company»Impact of stock taking as a control measure in a manufacturing company