Factors Affecting Pharmaceutical Supply Chain Performance In The Public Health Sector: The Case Of Oromia Regional Health Bureau
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Date
2018-06
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Publisher
aau
Abstract
The study assessed and examined to what extent Supply Planning/Forecasting,
Procurement, Warehouse/Inventory Management, and Distribution practices of Oromia
Regional Health Bureau (ORHB) are affecting its pharmaceutical supply chain
performance. In addition, the study identified which of these functions/practices is
dominantly affecting the pharmaceutical supply chain performance of the bureau.
It was found that computed Cronbach Alpha for all variables were above 0.7 which
makes the reliability test acceptable to continue the study. Correlation analysis result has
shown that there is a strong correlation between supply planning and supply chain
performance (r=0.662, p=0.000, p<0.01). Thus, the two variables are positively related.
The analysis has also shown that there is strong correlation between procurement and
supply chain performance (r=0.749, p=0.000, p<0.01) and warehouse/inventory
management and supply chain performance (r=0.707, p=0.000, p<0.01). The variables
are again positively related with supply chain performance. Finally, the analysis has
shown positive relationship between distribution system and supply chain performance
(r=0.722, p=0.000, p<0.01). With a p-value of 0.037, supply planning/forecasting was
found to be the dominant factor affecting pharmaceutical supply chain performance of
ORHB followed by procurement with p-value 0.034 and distribution with p-value 0.007
which are all below the cut-off point 0.05 to be considered as dominantly affecting.
In general, supply planning/forecasting, procurement, warehouse/inventory management
and distribution practices and pharmaceutical supply chain performance of ORHB have a
positive relationship. In addition, supply planning/forecasting was identified to be
dominantly affecting pharmaceutical supply chain performance of the bureau; followed
by procurement and distribution practices; while warehouse/inventory management is
not. This is in line with (Management Science for Health (MSH) Report, 2012; Foster S.
et. al (2006); Seiter A, 2010) that clearly stated that the root causes of stock outs at the
health clinics may be due to problems in procurement, forecasting and requisitioning by
the region or district, tardiness in ordering or poor forecasting by the clinics, or lack of
transport at any stage in the system
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Keywords
procurement distribution, practices, warehouse/inventory management