A study on the Impact of Procurement in Promoting Effectiveness of Logistics Operations of Retail Organizations in the UAE
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Abstract
The retailing business has been expanding globally and many multi-national chains are getting established in almost all the countries of the world. From customer’s point of view, multitude options are available as all the brands in the global market is available everywhere. The market place has become market space and to link the customers, meta-marketers got established. In the wake of this retail market explosion, the retail sales organizations have been constrained by complex limitations imposed in the form of price wars, discounts, offers etc. Many of the retailers have adopted everyday low price strategies to attract massive customer traffic with the expectation to promote cross selling. Since price wars are rampant, it is difficult for retailers to earn better margin of profit as it can be found that their costs have been increasing whereas the prices are falling. In order to maintain and sustain the market share, firms are forced to reduce the cost by resorting to various operational measures related to procurement, inventory decisions and logistics management. Hence, in this paper an attempt is made to explore the impact of procurement and its various elements in promoting effectiveness of logistics operations in retail organizations in the UAE..
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