EXAMINING THE IMPACT OF SUPPLIER SELECTION ON PROCUREMENT PERFORMANCE OF PHARMACEUTICAL FIRMS IN PAKISTAN

Abstract

The purpose of the study is to determine the impact of supplier selection on procurement performance of pharmaceutical companies in Pakistan. The framework of study is based on five independent variables i.e. supplier’s ability to meet delivery due dates, supplier’s quality, financial stability, supplier’s capacity and supplier’s continuous improvement of product and services  and dependent variable is  procurement performance. Primary data was collected using a structured research questionnaire and 150 questionnaires were filled by the employees of pharmaceutical companies. For analysis we used descriptive statistics, Pearson correlation analysis and regression analysis. The results show that supplier’s ability to meet delivery due dates, supplier’s quality has a significant impact on procurement performance. While financial stability has no significant impact on procurement performance of pharmaceutical industry.  The results also shows that supplier’s capacity and supplier’s continuous improvement have less impact on procurement performance then other independent variables. It is concluded that quality commitment must be considered as important factor in supplier selection. It is also recommended that supplier’s capacity and delivery dates should be considered properly when giving supplier contracts.