Factors influencing industrial procurement for supply chain professionals in Bangladesh

Abstract

Procurement is one of the key re-investing areas for business. Where 55% of revenue is spent on procurement of raw materials (Baily, 1987). For procurement, Supplier selection is core activity, as  Shen and Yu (2013) and (Jafarnejad and Salimi, 2013) considers the efficiency of suppliers and is one of the most important competencies for the success of the entire supply chain. This study learns and contributes the factors that affect Industrial Procurement decision while selecting suppliers. The purpose of this study  is to observe the  effect of independent variable (Cost of Product, Ease of Business Transaction, Delivery Performance, Reliability)  on  dependent  variable  (Procurement decision).The  study describes that the relation between dependent variable have significant relationship with Procurement intention. This is quantitative study and sample size of this study is 204 and 12 questionnaires were used for collection of data. All of the respondents were supply chain/Procurement professionals from 140 organizations in Bangladesh. The results of the study identified the mutual relationship among the all variables. But Cost of Product and Reliability are highly considered followed by medium extent of consideration for Ease of Business and Delivery performance.