Exploring the role of ICT in pharmaceutical supply chain practices and operational performance in Ethiopia: a structural equation modeling approach.

BACKGROUND: A well-coordinated supply chain ensures the sustainable availability of life-saving medicines that improve public health outcomes. Information Communication Technology (ICT) is one of the strategies for optimizing supply chain coordination. However, there is a paucity of data on how it affects supply chain practice and performance at the Ethiopian Pharmaceutical Supply Agency (EPSA). OBJECTIVE: This study aimed to explore the relationships between information and communication technology, supply chain practice, and pharmaceutical supply chain operational performance using a structural equation modeling approach. METHODS: We conducted an analytical cross-sectional study between April and June 2021. Three hundred twenty EPSA employees participated in the survey. We used a pretested, self-administered five-point Likert scale questionnaire to collect the intended data. A structural equation modeling confirmed the relationship between the constructs (information communication technology, supply chain practices, and performance). Thus, the measurement models were first validated using exploratory and confirmatory factor analysis in SPSS/AMOS software. A p-value of less than 5% indicated statistical significance. RESULTS: Of the 320 questionnaires distributed, 300 participants (202 males and 98 females) duly responded. In this survey, supply chain practices (mainly customer relationship management and information sharing) and ICT had significant positive direct effects on operational performance with standardized regression weights (ß) of 0.65 (p < .001) and 0.29 (p < .001), respectively. On the other hand, 73% of the variations in operational performance were explained by ICT and supply chain practices, wherein ICT played moderate mediation effects between supply chain practice and performance (VAF = 0.24, p < .001). Despite the significant positive influence of ICT, the agency still faced data visibility problems with customers and other supply chain partners. CONCLUSION: The findings revealed that supply chain practices and ICT implementation impacted the agency's supply chain performance positively and significantly. The ICT implementation practice in the agency posited a significant positive partial mediating role between supply chain practice and operational performance. Thus, if the agency focuses on the automation and integration of customer relationship management and the practice of information exchange, the essential supply chain practices, it can further improve operational performance.

The mediating effect of information sharing on pharmaceutical supply chain integration and operational performance in Ethiopia: an analytical cross-sectional study.

BACKGROUND: Information is crucial in enhancing partnership, reducing uncertainties and inventory costs, improving order fulfillment, and increasing customer satisfaction. However, there is a scantiness of studies on how information sharing affects pharmaceutical supply chain practices and performance. Hence, this study aimed to examine the mediating effect of information sharing between supply chain integration and operational performance. METHOD: We conducted an analytical cross-sectional study complemented with a qualitative assessment between May and July 2021. The study populations (n = 343) were selected employees working at the Ethiopian pharmaceutical supply agency's head office and selected hubs. The quantitative data were collected by self-administered five-point Likert-scale questions and analyzed using SPSS®-version 23. The mediation effect was determined using sequential linear regression based on the Baron and Kenny stepwise approach. A 95% confidence interval and a p-value less than 5% were used to determine statistical significance. We gathered the qualitative data through in-depth face-to-face interviews with nine key informants and analyzed them using a thematic analysis technique. RESULTS: Among 320 completed questionnaires returned (with a response rate of 93%), we used 288 in the analysis. Of the respondents, 97 (33.7%) disagreed that information sharing with the agency is simplified. One hundred seventeen (40.6%) disagreed that customers share information via an online system. Most respondents (76.4%) agreed that internal integration in the agency reduced total order time. Information sharing (ß = 0.270, p < 0.001), customer integration (ß = 0.265, p < 0.001), and internal integration (ß = 0.151, p < 0.001) were predictor variables that had a direct positive effect on operational performance. Information sharing posited a partially mediating role between customer integration and operational performance with ß = 0.136 at p < 0.001. Data quality problems, human-resource-related issues, and natural and human-made calamities were the major challenges affecting information sharing and the overall supply chain practices. CONCLUSION: Customer integration, internal integration, and information sharing influenced operational performance positively. Although coordination among the units in the agency is reasonable, there was a lack of communication and quick response from partners, as well as data quality problems and the absence of an automation system in most health facilities. The key informants suggested end-to-end supply systems connections with partners through Enterprise Resource Planning and other means.

Tracer Pharmaceuticals Availability and Distribution Trends Prior to and During the Covid-19 Pandemic: A Comparative Study.

BACKGROUND: Coronavirus disease 2019 (Covid-19) has had an unprecedented impact on the health products delivery system. To maintain routine health services, tracer pharmaceuticals (TPs) should always be available and accessible in healthcare institutions. Thus, this study aimed to explore the influence of the Covid-19 on TPs availability and distribution trends in the context of the Covid-19 pandemic in Ethiopia. METHODS: An institution-based comparative study was undertaken on 25 TPs in the pharmaceutical supply agency. From the agency's logistical data, we collated the amount of TPs ordered, received, and distributed, as well as the stock status, by using an observation checklist. The collated data were recorded in Microsoft Excel and transferred to SPSS for analysis. A frequency and percentage analysis were performed to evaluate the fill rate, product availability, and stock-out duration. A dependent t-test was used to compare if there was a significant mean difference in TPs distribution before and after the Covid-19 at a p-value less than 5%. RESULTS: Before Covid-19, 18 (72%) of the TPs were refilled above 80% of amount ordered. After the pandemic, however, the fill rate dropped to 48%. The availability of TPs during the Covid-19 was 60%. During the six months of Covid-19, the average stock-out duration for all TPs was 34.68 days, with Cimetidine 200mg/mL injectable (line-item fill rate = 0, days out of stock = 180 days) being the most stocked-out item. Tracer pharmaceuticals distribution before Covid-19 (M = 81,317, SD = 139,274) were significantly different after the pandemic (M = 60,212, SD = 94,966) at the 5% significance level (t (24) = 2.289, p = 0.031). CONCLUSION: This survey reveals how Covid-19 has influenced service providers' logistics systems. Following the pandemic, the line fill rate fell below half with a three-fifths availability of products. To effectively manage supply chain disruptions experienced in Covid-19 and beyond, the agency in collaboration with stakeholders should make an effort to enhance end-to-end inventory visibility, establish a resilient logistics system, strengthen domestic manufacturers' capabilities, and develop contingency plans with supplying partners.

Healthcare Facilities' Satisfaction with the Ethiopian Pharmaceutical Supply Agency's Pharmaceutical Logistics Services: An Exploratory Study.

PURPOSE: The pharmaceutical logistics service is concerned with meeting the needs of customers in a public healthcare setting. When customers' needs are addressed, they will be satisfied. As a result, the objective of this research was to identify major logistics factors that influence customer satisfaction in the Ethiopian pharmaceutical supply agency hubs, as well as to evaluate their satisfaction with the pharmaceutical logistics delivery process. METHODS: We conducted a cross-sectional study with 262 randomly selected pharmacy unit employees from healthcare facilities. The information was acquired using a pre-tested self-administered questionnaire, then analyzed using SPSS statistical software. We performed an exploratory factor analysis to determine relationships (between observed variables and factors) and used the results in the subsequent analysis. To identify the explanatory variables that can significantly predict the outcome variable, a multiple linear regression model is used. A confidence interval (CI) that did not include zero and a p-value of less than 5% were considered statistically significant. RESULTS: In terms of customer satisfaction, approximately 68% of respondents were satisfied with the pharmaceutical logistics services. Most pharmaceutical logistics service attributes, such as ordering procedure [ß=0.075, 95% CI (0.005, 0.150)], personal contact quality [ß=0.189, 95% CI (0.087, 0.240)], product availability [ß=0.206, 95% CI (0.123, 0.303)], timeliness (ß=0.192, 95% CI (0.099, 0.225)], order accuracy [ß=0.190, 95% CI (0.097, 0.236)], order discrepancy handling [ß=0.225, 95% CI (0.137, 0.287)], and complaint handling [ß=0.177, 95% CI (0.089, 0.257)] had significant positive effects on satisfaction, explaining 72% of variations. CONCLUSION: The study revealed that a notable proportion of customers feel dissatisfied with the pharmaceutical services they receive. To further satisfy pharmaceutical customers and maintain service competitiveness, proactive measures to improve pharmaceutical logistics service attributes should be implemented, and logistics managers at all levels should strive for operational excellence in light of ever-changing customer expectations.

Investigating the effect of pharmaceutical logistics service performance on customer satisfaction: a two-step approach with structural equation modeling.

BACKGROUND: These days, pharmaceutical customers are the utmost stakeholders in the healthcare supply chain, and ensuring their satisfaction with the logistics services has become worthwhile. This study aimed to investigate the effect of perceived logistics service performance on customer satisfaction in the public health facilities served under the Ethiopian Pharmaceutical Supply Agency of the western cluster. METHODS: An analytical cross-sectional study was conducted between January and February 2020. We selected 269 respondents using a multistage sampling technique. A pretested semi-structured questionnaire was used to collect the intended data. We employed SPSS version 26 and AMOS 22 software to analyze the quantitative data. The findings obtained from the open-ended questions were summarized in word document manually and used to discuss the quantitative data. We tested the hypotheses using structural equation modeling. RESULTS: Of the 269 questionnaires, 247 were duly completed and returned, making a 92% response rate. The findings indicated that the pre-transaction logistics service components (ß = 0.31, p < .001), the transaction logistics service components (ß = 0.54, p < .001), and the post-transaction logistics service components (ß = 0.62, p < .001) influenced customer satisfaction positively and significantly explaining 77.1% of variations. The respondents indicated that the right person with appropriate qualifications, adequate knowledge, and experience should be employed to provide specific logistics services to please clients. CONCLUSION: It is worth pointing out that the higher logistics services performances are likely to enhance customer satisfaction. Therefore, logistics managers should strive to ensure customers get the desired products and services reliably to increase their satisfaction even better than the current performance.

How is Information from ABC-VED-FNS Matrix Analysis Used to Improve Operational Efficiency of Pharmaceuticals Inventory Management? A Cross-Sectional Case Analysis.

PURPOSE: The categorization of inventories using various techniques optimizes the efficiency of warehouse operations. The ABC (always, better, and control); VED (vital, essential, and desirable); and FNS (fast-, normal-, and slow-moving) analyses provide items according to cost significance, criticality value, and consumption rate respectively. Thus, this study aimed to identify the categories of items requiring focused managerial control, priority, and replenishment intervals, as well as to evaluate whether the ABC-VED-FNS matrix is fit for effective and efficient inventory control of the Ethiopian Pharmaceutical Supply Agency (EPSA). METHODS: An institution-based cross-sectional descriptive study was conducted on 393 pharmaceuticals distributed by the EPSA-Jimma hub. The annual sales list with respective total quantity and unit price was collated from the logistics data records to perform the ABC analysis. The VED data were generated from the agency's pharmaceutical procurement list. To perform FNS analysis, we take into account the number of issue transactions as well as the average monthly consumption pattern for each item. Microsoft office Excel 2013 statistical functions were used to analyse the collated data. RESULTS: The ABC-VED analysis revealed that 187 (47.58%) of category I items account for 90% annual sales value; of which the highest proportion (63%) was AV items (36, 9%). Remarkably, there was no desirable (D) commodity that belongs to Class A. From the ABC-VED-FNS matrix analysis, category I consisted of 12 combinations with 187 (47.6%) items. Moreover, 28 (7.13%) items (CDN = 4 and CDS = 24) constituted category-III. CONCLUSION AND RECOMMENDATION: The ABC-VED-FNS matrix analysis can help organization implement inventory control policies and techniques, narrow down a group of items that require more managerial monitoring and control, prioritize a storage location (pick-face) plan, minimize the time and labor cost of put-away, picking, and packing, and dictate when products should be reordered or replenished.