COMPONENTS AFFECTING THE PERFORMANCE OF PROCUREMENT: CASE OF TEXTILE INDUSTRY KARACHI, PAKISTAN

Abstract

Purpose: In today's digital business environment, companies are turning to a variety of modem technologies and automation tools to expand their capabilities and gain a competitive advantage in the marketplace. To achieve this goal, more and more organizations are implementing enterprise planning (ERP) systems to effectively manage their resources. The aim of this study is to investigate, the components affecting the Performance of Procurement in the case of Textile Industry Karachi, Pakistan. resource Methodology & Design: Structured surveys using e-mail and electronic questionnaires are designed to explore the relationship between the independent and dependent variables. A sample of350 SMEs from Karachi, Pakistan, was used to collect data for further verification. The study was conducted to examine the impacts of staff competency, procurement procedure and resource allocation on procurement performance. Descriptive research design was used in executing the study. The targeted group of the study was top level managers, middle level managers and procurement staffs who are pertinent to the process, function and decision making of procurement. The proposed study design was tested using the data using confirmatory factor analysis, and regressions were performed to test the associations confirmed in the study design. Findings: The paper's results show that there is a positive correlation between ERP system control and procurement efficiency of SME manufacturers, and it was found that there is a positive correlation between ERP cost savings and business performance. Procurement, Faster Operational Flexibility, and Faster ERP Processes from Procurement indicators for SMEs. The calculated and tested Pearson correlation coefficient shows that there is a positive correlation between procurement planning and procurement performance (r = 0.125), and the same applies to employee efficiency (r = 0.777).). This ratio is statistically significant at the 1% level (p = 0.041, <0.01). There is a positive correlation between buying behavior and buying performance (r = 0.000). The resource allocation calculation shows a strong positive correlation (r = 0.024). We also found that this ratio was statistically significant at the 1% level (p = 0.000, <0.01). According to ANOVA, the value of 0.000 is less than 0.05, so the model is statistically significant in predicting how the independent variable affects the performance of Karachi fiber supply. The critical F at the 5% significance level is 2.64. This shows that the overall pattern is important. Limitations: The main limitation ofthis study is that the manufacturing industry in my country is very dispersed, so it is very difficult to collect data. Due to the lack oftechnical knowledge about public procurement, they are relatively hidden from the public, and due to the Covid-19 virus, people cannot meet and share their comments on our research papers, but this is becoming increasingly important for the proper functioning of public services. Regarding rules, practices and procedures, this report focuses on the pressure on procurement performance in the textile industry by adopting good procurement practices. Recommendations: Research shows that in the future it will be possible to conduct research to analyze the return investment (ROI) ofERP and Procurement Performance on the basis ofdependent variables. In addition, due to the epidemiology of COVID-19, current research is limited, so this study also recommends focusing on other textile sectors of Karachi, Pakistani SMEs