1. Discuss the importance of identifying the best suppliers by explaining the impact of source selection on supply chain performance.

Your efforts with Midland Hospital have paid off! The corporation has hired SPI and your staff to provide supply chain management consulting services. (Please read the scenario doc attached). Your team has begun analyzing the existing processes, and you’ve been tasked with developing the purchasing policies and procedures, with focus on ethics in the supply chain.

Remember: from a supply chain management perspective, a company produces services or products. Clearly, Midland Hospital produces a service. This means that sourcing analysis must consider the raw materials necessary for producing this service (e.g., bandages, needles, blood, and medical equipment).

Using course materials and other resources, develop a paper for the hospital management consisting of the following sections:

1. Discuss the importance of identifying the best suppliers by explaining the impact of source selection on supply chain performance.
2. In conjunction with #1, discuss whether the hospital will insource or outsource its sourcing needs.
3. Develop a high-level ethics policy for the purchasing department at Midland Hospital, identifying general responsibilities and prohibited behaviors.

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