Assessment of Procurement Lead Time Reducing Practices and Challenges: The Case of Ethiopian pharmaceutical Supply Service Central, Addis Ababa
No Thumbnail Available
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Background: The government of Ethiopia is focusing on availing of pharmaceuticals at an affordable
price, accessible to all citizens through the Ethiopian pharmaceutical supply service. Procurement lead
reduction has strategic importance for service to increase the availability of pharmaceuticals. But, there
are no clear strategies and practices devised to reduce the procurement lead time in Ethiopia
pharmaceutical supply service central.
Objective: To assess procurement lead time reducing practices and challenges in the Ethiopian
Pharmaceutical supply service central
Methods: Descriptive and explanatory studies were designed. Primary and secondary data were
collected using self-administered questionnaires and data collecting tools respectively. For collecting the
primary data, all technical staff of inbound logistics were involved in filling out the questionnaire whereas
for the secondary data, 229 pharmaceuticals were selected using stratified and systematic random
sampling techniques from 2769 pharmaceuticals received in the first semiannual of 2012 E.C. The data
were analyzed using Statistical Package for Social Science and Microsoft excel. The results were
presented in tables, figures, and narratives.
Results: The majority of the respondents said that the Ethiopian pharmaceutical supply service uses six
practices to tighten its supply chain and strengthen partnerships, automates six procurement processes
and uses seven practices to streamline its procurement operations. However, the majority respondents
rated the supply chain integration and strengthening partnerships, procurement processes automation
and procurement operations streamlining are poorly effective. Regarding the effect of the key procurement
lead reducing practices; frequent procurement, and the fast mode of shipment have a significant positive
effect on procurement lead time. But sourcing from local suppliers, and automating purchase order have
an insignificant positive effect on the procurement lead time. The majority of respondents strongly agreed
on two and agreed on ten challenges that they negatively affect procurement lead time reduction in
Ethiopian pharmaceutical supply service.
Conclusion and Recommendation: In Ethiopian pharmaceutical supply service central, all procurement
lead time reducing practices are not used. But, all challenges of procurement lead time reduction were
identified. By using all practices and minimizing the challenges, Ethiopian pharmaceutical supply service
can increase the effectiveness of the strategies. It is also important to analyze the cost-benefit of the key
practices that have a significant positive effect on procurement lead time.
Description
Keywords
Challenge, lead time, practice, pharmaceutical, procurement lead time, strategy