The Role of Framework Agreement Practice on the Performace of Pharmaceutical Procurement in the Case of Marie Stops International Ethiopia
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Date
2022-07
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Addis Ababa University
Abstract
Background of the study: Globally, both developed and developing nations have realized the importance of the framework agreement (FA) form of procurement. Although there are some studies done on FA procurement efficiency in public procurement, there is information gap on none governmental and health sectors in Ethiopia. Hence, this research aimed to examine the FA procurement efficiency in pharmaceutical procurement in the case of Marie stops international (MSI) Ethiopia.
Objective: the aim of this research is to assess the role of framework agreement practice on performance of pharmaceutical procurement in the case of MSI Ethiopia.
Methods: A descriptive and explanatory research design was used to assess the role of framework agreement practice on performance of pharmaceuticals procurement in the case of MSI Ethiopia. The data was collected using self-administered questionnaires. The data was analysed using SPSS Version 23 software. Data was analysed using frequency distribution and mean scores. Correlation and regression analysis were carried out to understand the relationship between the variables.
Results: the results indicated that relatively well implementation of suppliers‟ election, procurement procedure assurance, and Terms and conditions of FA with overall mean score of 3.58, 3.53 and 3.78 respectively. However, there was inadequate suppliers‟ relationship management (Mean= 3.29) and suppliers‟ execution performance (Mean= 3.33). The study also showed significant role of FA on the performance of pharmaceutical procurement of MSI Ethiopia with overall mean of 3.66. The findings also indicated that supplier selection practice (β = 0.328), suppliers performance execution practice (β =0.238), general terms and conditions of FA (β = 0.209) have a significant positive effect on FA procurement performance in MSI Ethiopia (P-value<0.05). However, price fluctuations (β = -0.240, p-value = 0.005) and lack of qualified suppliers (β =-0.196, p-value =0.015) have a significant negative effect on FA procurement performance in MSIE.
Conclusion and recommendations: The study findings supported the assertion that the MSIE procurement performance exhibits a high degree of FA applicability. As a result, it was determined that introducing FA in MSIE improved procurement performance. In order to reduce overall procurement costs, the report suggests expanding the use of FA. Strengthen monitoring and evaluation and improve suppliers relationship management.
Key Words: Framework agreement, Pharmaceutical Procurement, Efficacy, Ethiopia.