Abstract
In recent times, healthcare organizations have increasingly been placing a lot of emphasis on improving hospital supply chain performance. This is because healthcare organizations have been striving to improve operational efficiency while reducing costs. This paper identifies the role of supply chain integration in enhancing hospital supply chain performance. The paper reviews some of the factors that affect the integration of supply chain management and concludes that supply chain integration has a very strong impact on hospital performance.
1. Introduction
A smooth running Supply Chain Management (SCM) system ensures that an organization can establish a sustainable competitive advantage. This involves high quality of products and services while maintaining minimum operational costs. Supply Chain Integration is one of the best practices that can enhance hospital supply chain performance. This is because it creates an effective linkage among various activities of the hospital supply chain system. Additionally, the link presents an opportunity for a hospital to establish effective supply chain practices for optimum performance. Therefore, an effective hospital supply chain should pay attention to integration. This paper aims at analyzing supply chain integration along with quality management system to come with the most important factor. The results of the study will assist hospital managers to identify the best approach to integrate the organization’s supply chain for maximum performance.
1.1 Problem Statement
In order to remain relevant in the current competitive global market, healthcare organizations need to enhance their hospital supply chain performance. The organizations can achieve such an objective by integrating the internal functions of a hospital and linking them with the operations of external stakeholders. These stakeholders include suppliers, customers, and other members of the hospital supply chain.
1.2 Research Questions
Q1. What is the relationship between quality management system (QMS) and supply chain integration (SCI)?
Q2. What is the validity of the independent variables of supply chain management for hospitals?
1.3 Research Objectives
a. To discuss the concept of supply chain integration and quality management system in healthcare organizations.
b. To determine the SCI and QMS factors that hospital staff members perceive as the most important for superior performance.
1.4 Research Hypotheses
H1. There is a correlation between quality management system (QMS) and supply chain integration (SCI).
H2. The independent variables of supply chain integration have different items.
H3. There is a variance between the independent variables of supply chain integration
2. Literature Review
Supply Chain Management (SCM) Practices
According to Narasimhan (1997), the success of any supply chain management practices aimed at improving supply chain performance largely depends on integration. This means that the success of SCM practices requires internal functional integration and external integration with customers and suppliers. Practically, it is very difficult to integrate all the activities of a supply chain system within an organization. This is because the supply chain consists of numerous different activities that involve different types of operations and use different systems. However, Waters (2003) states that the best approach to handle such a challenge is to let the integration process develop gradually. For instance, one department can assume all the activities involving ordering and receiving of materials. On the other hand, another department can assume the task of delivering finished products to the market.
Mehra and Agrawal (2003) note that the evolution of global markets has led to supply chain managers facing a myriad of challenges. The most common challenges include stressful competitive markets and an ever changing market. Consequently, there have been a number of changes in the field of supply chain management, especially among hospitals. For instance, there has been a shift in the supplier selection process. Hospitals no longer select suppliers on the basis of prices but rather on the basis of compliance, knowledge about the supplier, and level of risk. These are the new practices that can guarantee a competitive advantage in the global market.
Quality Management
According to Flynn, Schroeder and Sakakibara (1995), various quality management applications reduce process variance. This means that quality management applications have a direct impact on supply chain performance because they affect processes such as cycle time. Whenever there is a reduction in the process variance, an organization minimizes demands for safety stock and cycle stock inventory. This is because quality management practices reduce instances of rework thereby speeding product output. Eventually, an organization shortens its product cycle times and respond to market demands. When a hospital implements quality management practices, the organization synchronizes such practices across the entire supply chain hence improved performance. For instance, hospitals using certified suppliers are able to reduce pre-processing cycle time delays related to inspections. Total quality management ensures that healthcare organizations comply with processes and that customers get value for their money.
Total Quality Management (TQM)
Total Quality Management is arguably the most famous philosophy of quality management. This philosophy is famous because of its impact on Japanese products during the 1950s and 1960s. According to Holness (2001), TQM has helped create the perception that Japanese products and services have the highest quality in the world. Organizations have responded to such perception by adopting TQM practices in their processes. However, organizations find it difficult to implement TQM because of its abstract nature. There are unclear guidelines on how to implement TQM elements. Despite this challenge, some organizations have managed to implement TQM elements and are experiencing improved effectiveness, motivation, and efficiency. Therefore, hospitals can enhance their performance by adopting TQM (Tutuncu & Dogan, 2003).
The factors that past research studies describe have limited merits and only suit general applications. However, they are inadequate in their application to healthcare organizations. An empirical analysis of the relationship between supply chain integration (SCI) and quality management system (QMS), with reference to hospital supply chain performance will provide a solution. This will ensure that managers of healthcare organizations are able to reduce the high costs of operations while ensuring quality. Therefore, this research study will address the existing gap by exploring the relationship between SCI and QMS through an empirical analysis.
References
Flynn, B. B., Schroeder, R. G. & Sakakibara, S. (1995). The impact of quality management practices on performance and competitive advantage. Decision Sciences, 26(5), 659-692.
Mehra, S. & Agrawal, S. P. (2003). Total quality as a new global competitive strategy. International Journal of Quality and Reliability Management, 20(8/9), 1009-1025.
Narasimhan, R. (1997). Strategic supply management: a total quality management imperative. Advances in the Management of Organizational Quality, 2, 39-86.
Waters, D. (2003). Logistics: An Introduction to Supply Chain Management. New York: Palgrave Macmillan.
Tutuncu, O. & Dogan, O. (2003). ISO 9001: 2000 in context of total quality management: Computer aided application in hospitality organizations. Izmir: DEU Press.
