A Supplier Performance Evaluation Model for Risk Reduction and Compliance in Healthcare Procurement

• Author(s): Oluwafunmilayo Kehinde Akinleye
• Paper ID: 1711924
• Page: 434-460
• Published Date: 31-08-2020
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 4 Issue 2 August-2020

Abstract

Procurement in the healthcare sector is a highly regulated and risk-sensitive process that requires consistent supplier performance monitoring to ensure patient safety, cost efficiency, and regulatory compliance. This study proposes A Supplier Performance Evaluation Model for Risk Reduction and Compliance in Healthcare Procurement, aimed at enhancing transparency, accountability, and value-based purchasing decisions. The model integrates quantitative and qualitative assessment metrics that capture supplier reliability, quality assurance, delivery performance, and adherence to healthcare regulations such as FDA, HIPAA, and ISO 13485 standards. It employs a multi-criteria decision-making (MCDM) framework supported by data analytics to evaluate supplier performance using risk, compliance, and sustainability indicators. By combining analytic hierarchy process (AHP) for criteria weighting and fuzzy logic for uncertainty handling, the model facilitates objective evaluation in complex procurement environments. The framework emphasizes proactive risk management through early detection of non-conformance and performance deviations using key performance indicators (KPIs) and predictive analytics. It also introduces a compliance dashboard that integrates with enterprise resource planning (ERP) systems to enable real-time performance tracking, supplier audits, and automated reporting. In addition, supplier segmentation based on performance scores helps procurement teams develop targeted improvement strategies and ensure supply chain resilience during crises such as pandemics or regulatory shifts. Empirical validation through case studies in hospital supply chains demonstrates the model?s capacity to identify underperforming suppliers, reduce procurement risks, and enhance compliance consistency across multi-tier supplier networks. The integration of sustainability and ethical sourcing parameters further supports institutional goals of social responsibility and environmental stewardship. Ultimately, the proposed model provides a structured and data-driven approach for healthcare procurement professionals to optimize supplier selection, strengthen governance, and achieve operational excellence. This research contributes to both theoretical and practical dimensions of supply chain management by aligning supplier performance evaluation with risk reduction, compliance assurance, and sustainable procurement principles essential factors for modern healthcare institutions operating under increasing regulatory scrutiny and dynamic market conditions.

Keywords

Supplier Performance Evaluation, Healthcare Procurement, Risk Reduction, Compliance Management, MCDM, Fuzzy Logic, ERP Integration, Sustainability, Supply Chain Governance, Data Analytics.

Citations

IRE Journals:
Oluwafunmilayo Kehinde Akinleye "A Supplier Performance Evaluation Model for Risk Reduction and Compliance in Healthcare Procurement" Iconic Research And Engineering Journals Volume 4 Issue 2 2020 Page 434-460

IEEE:
Oluwafunmilayo Kehinde Akinleye "A Supplier Performance Evaluation Model for Risk Reduction and Compliance in Healthcare Procurement" Iconic Research And Engineering Journals, 4(2)