Effect of Supplier Selection on the Performance of the Medical Supply Chain at the Medical Stores Department, Dar es Salaam, Tanzania

Abstract

The provision of standardized and effective healthcare services is often hindered by challenges in the procurement and availability of medical supplies, undermining the goals of the National Health Policy and National Health Plan. Despite the government's prioritization of medical supplies, stockouts continue to be a persistent problem in many public healthcare organizations, impacting service delivery. This study investigates the effect of supplier selection practices on the performance of the medical supply chain at the Medical Stores Department (MSD) in Dar es Salaam, Tanzania. The study is grounded on the Principal-Agency Theory and focuses on the relationship between the MSD and its suppliers. The study is cross-sectional, mixed-methods. The study population was determined to be employees who work at MSD consisting of 270 staff members and 150 employees from various departments were randomly selected through stratified random sampling. A structured questionnaire was used to gather data which were analyzed quantitatively using descriptive statistics and regression analysis. The results showed that a good supplier selection process had a positive impact on the performance of the medical supply chain. Supplier Qantas higher support diagnostic and supply critical benefits, frequent and continuous keeping the highest level from the resources. The analysis suggested a strong relationship between supply chain performance and supplier reliability, delivery timeliness, and cost-effectiveness. The research finds that the decision of selecting their supplier is at the core of securing high-quality medical supplies that get passed down the healthcare delivery pipeline. The study suggests that MSD should focus more on developing and establishing long-term collaboration relationships with more stable and reliable suppliers through frequent communication, performance measurement and assessment, and feedback systems to facilitate the improvement of the entire supply chain performance.