Redefining supplier selection in healthcare sector: a novel framework for supplier classification
Authors: Harikrishnan R. , Shivdas Avinash , Ananthu S. 
Published: January 2025

PurposeThis paper aims to delve into the critical aspect of supplier selection in the healthcare sector, emphasizing the significance of strategic sourcing in enhancing operational efficiency and quality of services. The primary aim is to develop a comprehensive framework for supplier evaluation that aligns with the unique requirements of hospitals, ultimately improving procurement processes and patient care outcomes.Design/methodology/approachThe study leverages the renowned Carter’s 7 C model as a foundational framework for supplier assessment, supplemented by insights gathered from interviews with experts in the New Product Introduction, Purchasing and Procurement departments of a leading hospital in India. Data collection involved a combination of primary interactions through Google Forms and secondary data extraction from Purchase Inquisition Brochures and Hospital Information Systems. The weighted average method was employed to determine the significance of various criteria based on expert recommendations, ensuring a fair and consensus-driven evaluation process.FindingsThrough the synthesis of expert inputs and data analysis, the study unveils a nuanced set of criteria weights that guide supplier selection decisions in the healthcare setting. The research highlights the dynamic nature of supplier evaluation criteria, underscoring the importance of tailoring assessments to suit the specific needs of each hospital. By emphasizing effective communication, technological advancements and collaborative supplier relationships, the study underscores the potential for strategic supplier selection to optimize supply chains, drive innovation and enhance patient care delivery in the healthcare sector.Research limitations/implicationsThe framework for supplier selection in the healthcare sector has limitations, including limited generalizability, subjectivity in expert opinions and a static framework. The framework assumes the constant importance of selection criteria over time, which could be affected by dynamic changes in the industry. Its focus on the healthcare sector may require adaptation to other sectors.Practical implicationsFor hospitals, it also supports cost optimization by focusing on critical variables like cost efficiency and quality. For suppliers, the framework provides clear expectations, performance benchmarking and collaborative growth. It encourages performance benchmarking and encourages collaboration between the hospital and its supply chain partners. The framework is a replicable model that can be adapted by other hospitals or organizations to optimize supplier selection processes. It promotes standardization in supplier evaluation, fostering consistency across the sector. For patients, the framework improves care delivery by ensuring reliable access to high-quality supplies and services.Originality/valueThis research intends to provide a novel framework for the classification of suppliers in the healthcare sector for operational excellence which enhances the strategic sourcing decision in the domain.