AHP Approach for Supplier Evaluation and Selection in a Pharmaceutical Manufacturing Firm in Ghana

Abstract

In today’s highly competitive environment, improper evaluation and selection of the right suppliers can hinder anorganizations supply chain performance. The aim of this study is to present a suitable methodology for theevaluation and selection of suppliers in a pharmaceutical manufacturing firm in Ghana. Specifically, the studysought to use the Analytic Hierarchy Process methodology to select the most appropriate raw material suppliersof the artemether-lumefantrine anti-malarial drug for the case study organization. A review of literature identifiedquality, cost, reliability, regulatory compliance, risk, financial position and supplier profile as the most importantcriteria for supplier selection. The study however used the three criteria of quality, price and reliability/capacityfor selecting the best suppliers. The results suggest that the AHP makes it easier to evaluate, rank and selectefficient suppliers for manufacturing firms in a timely and reliable manner. Based on the research findings, thequality selection criterion is most favoured, followed by reliability/capacity, and price. Regarding the selection ofthe suppliers, the research recommended S & D Chemicals as the best supplier of Active PharmaceuticalIngredients (APIs) and Hellmuth Carroux as the best supplier of Excipients for the case study firm.