The Effects of Supplier Selection Methods on Value for Money

Abstract

The study investigated the relationship between supplier selection methods in relation to their effects on value for money. The study adopted an explanatory, case study approach with a cross-sectional survey research design that used primary data collection instrument of questionnaire. Data was collected from a sample of 117 employees in the institution drawn from departments of Finance, Procurement, Stores and Pharmacy with a random sampling technique. The study further established that Supplier Quality Commitment exerts an insignificant effect on Value for Money and that Supplier Management Ability and Supplier Financial Capacity exert significant effects on Value for Money. The researchers recommended that the Tamale Teaching Hospital should assess the suppliers on the basis of their quality commitments, financial capacities and management abilities and ensure that they select suppliers who can collectively deliver goods and services to the Tamale Teaching Hospital to improve on value for money.