Factors influencing industrial procurement for supply chain professionals in Bangladesh

Abstract

Abstract: Procurement is one of the key re-investing areas for business. Where 55% of revenue is spenton procurement of raw materials (Baily, 1987). For procurement, Supplier selection is core activity, as Shen and Yu (2013) and (Jafarnejad and Salimi, 2013) considers the efficiency of suppliers and is one ofthe most important competencies for the success of the entire supply chain. This study learns andcontributes the factors that affect Industrial Procurement decision while selecting suppliers. The purposeof this study is to observe the effect of independent variable (Cost of Product, Ease of BusinessTransaction, Delivery Performance, Reliability) on dependent variable (Procurement decision).The studydescribes that the relation between dependent variable have significant relationship with Procurementintention. This is quantitative study and sample size of this study is 204 and 12 questionnaires were usedfor collection of data. All of the respondents were supply chain/Procurement professionals from 140organizations in Bangladesh. The results of the study identified the mutual relationship among the allvariables. But Cost of Product and Reliability are highly considered followed by medium extent ofconsideration for Ease of Business and Delivery performance.