Impact of Vendor Selection on Procurement Performance : A Study of Pharmaceutical Industry in Pakistan

Abstract

This study investigated the impact of vendor selection on Pakistan's pharmaceutical industry procurement efficiency. The prime objective of this research was to figure out how vendor selection in Karachi, Peshawar, Rawalpindi and Islamabad is impacting procurement performance in pharmaceutical companies. In addition, the study aimed to investigate which factors are more important and critical for the smooth vendor selection process in pharmaceutical companies these days. Various vendor selection determinants are described in the literature. Moreover, the study also defines the significance of each determinant. A questionnaire was used to collect the data. A total of 150 respondents were contacted. Analysis has been carried out with statistical methods using SPSS software. Regression method has been used in inferential analysis so that hypothesis can be tested easily. These methods have been selected to know more about the topic in detail and according to the nature of the topic. The general finding of the study is that different factors in the selection of vendors have an impact on the procurement process. The study concluded that apart from other important factors, Quality, Services, Information and Communication and lead time from the vendor are more important in selecting the vendor. The outcome of this research can be helpful for the pharma companies for vendor selection. The study brings to limelight the determinants that ought to be focused more when a company carries out vendor selection and the factors that have more impact on procurement.