Practice and Challenges of Global Medical Equipment Supply Chain Management: The Case of EZM Trade and Investment, Addis Ababa, Ethiopia.
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Date
2024-06
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Addis Ababa University
Abstract
Medical equipment is crucial for the functioning of a healthcare system, playing a vital role in the prevention, diagnosis, treatment, and rehabilitation of patients. This study aims to examine the challenges faced in managing the global supply chain of medical equipment, focusing on EZM Trade and Investment in Addis Ababa, Ethiopia. The research employs both quantitative and qualitative methods within an explanatory and descriptive research framework, with a sample size of 62 out of a population of 92. Data was collected through simple random and purposive sampling methods for quantitative and qualitative data respectively, using structured questionnaires and open-ended interviews. Analysis of the data involved descriptive and inferential statistical techniques, including mean, frequency, standard deviation, correlations, and regression analysis. Statistical Package for Social Science version 20 was utilized for data interpretation and analysis.
The majority of participants (62.9%) in the study indicated that fluctuations in currency exchange rates significantly impacted the global supply chain management practices of the company. Additionally, responses from 53.2% of participants highlighted procurement issues with medical equipment, leading to instability in relationships with suppliers. Furthermore, 78.9% of respondents acknowledged facing minor challenges in logistics (transportation and warehouse) during global sourcing activities within their company. The study revealed that 88.8% of the variation in the efficiency of the medical equipment supply chain could be explained by the variance in explanatory variables, with the remaining 17.2% attributed to other factors not included in the model. Consequently, it is recommended that the Federal Ministry of Health take steps to enhance global medical equipment supply chain management practices by updating national and facility-specific medical equipment lists and developing a health commodities procurement policy.
Overall, the findings suggest that global medical supply chain management in this context faces a range of complex challenges.
Keywords: Medical Equipment, Health service, Global Supply Chain Management, Efficiency