IMPACT OF STRATEGIC PROCUREMENT ON EMPLOYEE PRODUCTIVITY ENHANCEMENT AND ORGANIZATIONAL EFFICIENCY IN SELECTED MANUFACTURING COMPANIES IN LAGOS STATE

Manufacturing companies in Lagos State, Nigeria, faced significant challenges in achieving operational efficiency and enhancing employee productivity due to ineffective procurement practices. These inefficiencies led to increased production costs, supply chain disruptions, and workflow inconsistencies. The purpose of this study was to examine the impact of strategic procurement practices on employee productivity and organizational efficiency in selected manufacturing firms in Lagos State. A quantitative research design was adopted, and data were collected using a self-designed questionnaire titled Strategic Procurement and Organizational Performance Questionnaire (SPOPQ). To ensure validity, a pilot study was conducted with 30 employees from a similar industrial setting, allowing refinements to the instrument for clarity and accuracy. The Cronbach’s Alpha coefficient for reliability testing was 0.83, indicating a high level of internal consistency and reliability. A total of 240 participants from six purposively selected manufacturing companies within Isolo Industrial Estate were surveyed. The study employed descriptive statistics, Pearson’s correlation, and multiple regression analysis for data interpretation. The findings revealed that procurement costs and regulatory compliance were major challenges, while automation and supplier management presented significant opportunities. Additionally, strategic procurement practices significantly influenced employee productivity by improving supplier efficiency and risk management. Furthermore, strategic procurement enhanced organizational efficiency by driving cost reduction and operational effectiveness. The study concluded that manufacturing firms must embrace structured procurement strategies to optimize resources, improve workforce productivity, and achieve long-term business sustainability. It was recommended that companies adopt technology-driven procurement solutions and strengthen supplier relationship management to enhance procurement performance and maintain competitiveness in the manufacturing sector.