Contract Management Performance of Ethiopian Pharmaceuticals Supply Agency
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Date
2020-02
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Addis Abeba University
Abstract
Background: The government of Ethiopia spends more than 4.9 billion birr per annum for the
procurement of pharmaceuticals. However, little is known how well performance is managed.
Objective: To assess contract management performance at Ethiopian Pharmaceutical Supply
Agency
Methods: Descriptive study design using quantitative and qualitative data collection techniques
was employed. 159 declared purchase orders (from July 1, 2017 to June 30, 2018)were taken
using simple random sampling method after listing chronologically by time of purchase orders
issuing. Six informants were selected with purposive sampling for interview. Quantitative data
were analyzed and summarized in descriptive statistics using Microsoft excel for percentage
analysis and Statistical package for Social Science version 20.0 for suppliers’ lead time analysis.
Qualitative data were analyzed by classifying factors affecting contract management
performances. Results were presented in tables, figures and narratives.
Results: Asian (64.64%)and African (24%)manufacturers were found to be the top suppliers of
agency. Domestic manufacturers’ market share was 24% of which Addis Pharmaceuticals
Factory (68%)was the top supplier of agency. Average foreign and domestic suppliers took 98
and 186 days to deliver products. Suppliers’ fill rates were 97.6%. Perceived causes of the
agency strong performances were the implementation of public procurement agency guideline,
restructuring of contract management internal process, the start of monitoring and evaluation,
commitments of employees, collaboration with relevant stakeholders. The main factors perceived
to weak performance were delay in contract management activities, weak use of technology, and
weak monitoring and evaluation practices.
Conclusion and Recommendation: Indian and Chinese manufacturers were top foreign
suppliers. Almost all suppliers delivered ordered medicines with the required amount. However,
it took longer lead time than agreed. Workflow reform, using of public procurement agency
guideline, protracted operations, competency gaps, shortage of hard currencies and weak system
automation and integration were factors affecting contract performances.
Working with selected suppliers carefully, automating and integrating contract activities,
implementing performance improvement tools like Plan-Do-Check-Act cycles, and capacitating
the staffs should be done to improve contract management performance of the agency.
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Keywords
Suppliers’ compliances, contract performance, and contract terms and conditions