Challenges of Global Pharmaceutical Supply Chain Managment: In the Case of Selected Private Pharmaceutical Importers in Addis Ababa Ethiopia
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Date
2022-06
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Addis Ababa University
Abstract
The purpose of the study is to assess the challenges of global pharmaceutical supply chain in the case of private pharmaceutical importers, in Addis Ababa Ethiopia, the largest metropolitan in Ethiopia. A mixed method of quantitative and qualitative research designs was employed. A non- probability purposive sampling procedure were used for the reason of not losing pharmaceutical importers that have enormous active participation in the global pharmaceutical supply chain and importing a vast variety of items. Primary data were collected and analyzed using descriptive and inferential statistics such as mean, correlation, and regression by using SPSS version 20 as statistical tool the data for the study was collected from 65 active private pharmaceutical importers via well-organized questionnaires in order to identify the major bottlenecks in the system. This was followed by semi-structured in-depth interviews of 15 key informants in order to gain further insight into the underlying causes of the challenges. The research discovered that multiple challenges related to each of major stakeholders involved. Long duration of time for quality test approval of pharmaceuticals that comes from foreign countries, delays in pharmaceutical product registration, lack of motivation for work, lack of transparency, unable to give market authorization paper on time, shortage of skilled manpower and weak collaboration between regulatory bodies were the main challenges discussed in relation to regulators
Private pharmaceutical importers‟ challenges with respect to access of foreign hard currency, shortage of financial capacity & working capital and unavailability of market data for proper demand forecasting are investigated. Private pharmaceutical importers‟ challenges regarding high cost of storage, high fright cost & the time permission that is allowed for storage is short at terminal, delaying of shipment due to lack of containers, long lead time of products due to transportation, Product expiration & loading & unloading problems were the main challenges discussed in relation to customs.
Finally it is recommended that the Ethiopian government shall simplify the regulatory procedures and introduce advanced registration software technologies to facilitate the registration process and other related problems observed in the global pharmaceutical supply chain management.
Key words: challenges, Addis Ababa, pharmaceuticals, Global pharmaceutical supply chain, private importers