Development of a Purchasing Portfolio Model for the Health Sector: A Case Study of a Central Hospital

Abstract

Over the years, the purchasing area has taken on an essential role in the management of companies in all activity sectors. In the health sector, purchasing medicines is highly important considering the amounts involved, the impact on the service quality, and the wide variety of purchased products. This research work combined action research with a case study and aims to apply to a Central Hospital a Purchasing Portfolio Model based on the Kraljic Purchasing Matrix (KPM). The KPM allows for the classification of different classes of medicines in accordance with their impact on profits and supply risk dimensions, making it possible to define differentiated purchasing strategies. This application used the Analytical Hierarchical Process (AHP) tool for criteria prioritization and used direct measurement for criterion rating. By applying the model to a Central Hospital, this study seeks to increase the areas of applicability of purchasing portfolio models. Moreover, the results confirmed the model's value in defining medicine purchasing strategy at the Central Hospital and also gave rise to guidelines for applying the model.