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Prime Vendor/Hospital Purchasing Relationships

International Journal of Physical Distribution & Materials Management

ISSN: 0269-8218

Article publication date: 1 September 1989

295

Abstract

Sourcing research to date has concentrated on manufacturing, primarily in the form of just‐in‐time purchasing systems. This study examines sourcing in an important service industry – hospitals. Hospital materials management integrates purchasing, inventory control and distribution. A prime vendor relationship, an agreement between a multi‐line distributor and a hospital, streamlines the purchasing process by reducing the number of vendors and paperwork for the buyer. An examination of 22 general hospitals in Georgia, USA, yielded preliminary evidence the prime vendor relationship led to better materials management performance. This article explores the potential advantages and disadvantages for hospital buyers and vendors and the implications for performance.

Keywords

Citation

Young, S.T. (1989), "Prime Vendor/Hospital Purchasing Relationships", International Journal of Physical Distribution & Materials Management, Vol. 19 No. 9, pp. 27-30. https://doi.org/10.1108/EUM0000000000337

Publisher

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MCB UP Ltd

Copyright © 1989, MCB UP Limited

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