Factors Affecting Distribution Performance on Pharmaceutical Products: In Case of Ethiopia Pharmaceutical Supply Service (Headquarter)
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Date
2024-01
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Addis Ababa University
Abstract
The general objective of this study was to identify the factors affecting distribution performance in the case of the Ethiopian Pharmaceuticals Supply Service (Headquarter). This study used an explanatory design and a quantitative research approach. Because of the limited population size, the study conducted a sample survey to collect data using a census sample method. With 92 valid responses out of 100 questionnaires, the survey had a 92% response rate. Descriptive statistics and inferential analysis, including Pearson’s correlation and multiple linear regression, were used to examine the relationships between the variables. Upon computing Pearson’s correlation coefficient, Pearson’s correlation results showed significant and positive correlations between distribution performance and inventory management (r = 0.689, p < 0.01), warehouse management (r = 0.577, p < 0.01), and transportation management (r = 0.612, p < 0.01). Multiple linear regression analysis indicated that the model had a strong overall fit, with an R² of 0.582, suggesting that 58.2% of the variability in distribution performance was explained by the predictor variables. Inventory management had the strongest effect (β = 0.433, p < 0.001), followed by transportation management (β = 0.294, p = 0.001), and warehouse management (β = 0.181, p = 0.043). These findings confirm that inventory management, transportation management, and warehouse management practices significantly and positively affect distribution performance at EPSS, headquarter. Based on the study findings, the investigator concludes that the strongest and positive association exists between distribution performance and inventory management practices, followed by transportation management and warehouse management practices, respectively. The study found that focusing on inventory management, transportation management, and warehouse management practices was essential for improving distribution performance at EPSS. It was recommended that EPSS enhance inventory management (use advanced forecasting tools and implement real-time inventory tracking systems), optimize warehouse operations (provide staff training, optimize warehouse layouts, and invest in better equipment), revise transportation practices (upgrade vehicles, improve maintenance, and provide training), and streamline overall distribution processes while strengthening coordination among teams.
Key Words: Inventory management practices, Warehouse management practices, Transportation management practices, Distribution performance, Ethiopian pharmaceutical supply service.