Impact of the Critical Success Factors of Supplier Selection on Supply Chain Performance: A Study of the Healthcare Industry of Pakistan

Abstract

The study aimed to identify and prioritize critical success factors (CSFs) for improving supply chain performance in the context of healthcare industry of Pakistan. Five factors of supplier selection were identified from the literature and the relative importance of each was evaluated in determining the supply chain performance of the healthcare providers. 83 valid questionnaires were used to measure the factors with the results showing quality, cost and service as pivotal among other CSFs of Supplier Selection for SCP. Supplier quality was the most significant factor positively influencing improvements in supply chain performance of the buying hospital. Cost associated with purchasing from suppliers as well as supplier services also had an impact, but supplier profile and risk showed no significant effect. Overall, the research results highlighted the significant correlation between the multi-criteria decision factors of supplier selection and supply chain performance in the healthcare sector.