Portfolio Matrix Analysis Of Pharmaceuticals Procurement: The Case Of Epsa
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Date
2020-06
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Addis Ababa University
Abstract
The objectives of this research areto assess the spend in the total expenditure, and supply risk
(supplier availability rate) of regular medicines; to identify the category or position of each
regular medicine according to: Leverage, Critical (strategic), Routine (non-critical), or Bottle
neck items quadrant; and to assess tender processing periodat Ethiopian Pharmaceuticals
Supply Agency (EPSA). The study used descriptive research design with quantitative research
approach and documentary analysis of pure secondary data. The position of each regular
medicine has been quantified empirically using secondary data from three years procurement
record of the agency. Based on rigorous analysis of these data, 7.65% and 0.76% of the total
items procured within these years have been found to fall in leverage and strategic item
quadrant while 60.09% and 31.5% fell in non-critical and bottle neck quadrant of the matrix
respectively. The finding on item category analysis indicates a profound problem of deviation
from the typical item positioning feature which occurred because of the presence of least
procured items and lack of suppliers for some number of items. The limitation of this study is
that only the total FOB price and supplier availability rate of pharmaceuticals were taken as
the basic variables to categorize items on the vertical and horizontal axes of Kraljic portfolio
model.
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Keywords
Procurement portfolio matrix, Pharmaceuticals procurement category, Pharmaceutical spends and supply risk