Critical factors of supplier selection and their impact on supply chain performance in hospitals
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Date
2018
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UMT Lahore
Abstract
Supplier selection is a well-studied subject, but for healthcare sector it needs further exploration. Supply chain management practices are now being followed by many industries including healthcare. This significant part of supply chain is performed by the suppliers or also known as strategic business partners. Suppliers’ performance is highly influential on the value chain of the company whose ultimate purpose is to provide high quality service to the customers. Healthcare sector in Pakistan is somehow unstructured and there are various private and public sector institutions are operational to provide healthcare services in Pakistan. This research study focuses on the factors that are highly influential in supplier selection process for the hospitals in Pakistan and their potential impact on the supply chain performance. The researcher used quantitative research strategy to collect data from managerial supply chain staff for the hospitals. Data was collected using a questionnaire and empirical tests were run to measure the association between the research variables. The results showed a strong association between costs, quality and service delivery on supply chain performance of the hospitals. However, supplier profile and risks association with supplier’s location were not significantly affecting supply chain performance of the hospitals. The research findings have implications for the supply chain managers of the hospitals to think beyond the cost model only and focus on the other factors such as service delivery and quality of the supplier while making supplier selection decisions.