A STUDY ON THE RELATIONSHIP BETWEEN THE VARIOUS COMPONENTS OF PROCUREMENT WITH THE ACHIEVEMENT OF OBJECTIVES OF LOGISTICS MANAGEMENT IN THE SUPPLY CHAIN SYSTEM

Various changes have been taking place in procurement, manufacturing, and physical distribution system globally. The manufacturing firms have been facing challenging tasks in managing complex logistics and supply chain management issues. Due to the intensity of competitive forces, firms attempt to focus on various aspects of logistics to reduce cost, improve quality, and manage responsiveness and thereby develop a competitive advantage. Multiple procurement activities such as material specification, value analysis, supplier relationship management, negotiation, buying, quality assurance, and inbound transportation are essential for firms due to their overall impact on profitability, customer service, and quality management. These factors are given importance by manufacturing firms while setting logistics objectives in a supply chain system. The logistics objectives such as minimization of inventory, consistent and reliable delivery, freight economy, minimization of product damages, quick response system, and quality improvement are closely linked to the management of procurement systems in modern organizations. Hence, the study attempts to analyze the impact of procurement activities on the setting of logistics objectives by the manufacturing firms in the UAE.