The Role of Strategic Sourcing in Organizational Performance: A Case of Medical Store Department

Abstract

In rapid changing business environment, many organizations struggle to balance between cost efficiency with long term value creation. Strategic sourcing has emerged as a critical approach to reduce supply risks, minimize procurement costs and enhance organizational performance. This study examined the role of strategic sourcing in enhancing the attainment of organization performance at Medical store department (MSD). A descriptive survey research design was adopted with the target of 214 employees across nine department, where 201 were sampled. The study adopted quantitative research approach where data was collected using questionnaires and analyzed through descriptive statistics and factor analysis. The study findings indicated that supplier selection and supplier experience have an important role in improving organization performance positively while supplier performance did not show a significant effect. The study highlights that effective supplier selection, collaboration with experienced suppliers and structured evaluation mechanisms enhance operational efficiency, flexibility and products and service quality. The study recommended that organizations should prepare a collaborative business environment with suppliers, ensure regulatory compliance during supplier selection and select experience suppliers in procurement-related functions. These findings underscore strategic sourcing as vital driver of organizational performance in public sector procurement.