Supply Chain Agility and Associated Factors among Pharmaceutical Suppliers in Sidama Regional State, Ethiopia

Abstract

Background: Supply Chain Agility allows pharmaceutical suppliers to operate effectively in a fast-changing environment by enabling quick and flexible responses. This study aims to assess the supply chain agility practices, identify factors influencing agility, and explore challenges in implementing these practices in both the public and private sectors of pharmaceutical suppliers in the Sidama region of Ethiopia. Methods: From June 2024 to July 2024, a mixed method study design was concurrently implemented among pharmaceutical suppliers in the Sidama region, Ethiopia. Quantitative data were collected through questionnaires using a five-point Likert scale. A stratified random sampling method was used to include a total of 327 participants, consisting of 126 from customers of the Ethiopian Pharmaceutical Supply Service (EPSS) and 201 from customers of private suppliers. The quantitative data were entered in Epidata V 4.6, and analyzed using SPSS version 25.0, where both descriptive and multiple linear regression analyses were conducted. For the qualitative component, a purposive sampling technique was employed to conduct interviews with 12 key informants. The resulting data were then analyzed using thematic analysis. Results: A total of 313 completed responses were obtained, resulting in a response rate of 95.7%. 141 (45%) expressed disagreement with the variety of products offered by suppliers. The majority, 173 (55.3%), reported experiencing delays in receiving their products. 92 (29.4%) agreed that suppliers frequently experience stock outs. The adjusted R-squared value of 0.339 indicates that 33.9% of the variance in supply chain agility is explained by the independent variables in the model. The study found that ICT (β=0.434, p<0.001), collaboration (β=0.101, p=0.044), innovations, budget, and data quality significantly affect supply chain agility. A one-unit increase in ICT adoption is associated with a 0.434-unit increase in supply chain agility. The p-values (<0.001) indicate a statistically significant association between ICT and supply chain agility. Major challenges identified in supply chain agility implementation included supply shortages, inadequate technologies, poor data quality, foreign currency fluctuations, import restrictions, and high tariffs on imported products. iii Conclusion: Supply chain agility is poorly practiced regarding order fill rate, flexibility, product variety, and lead time, though pharmaceutical suppliers demonstrate strong practice regarding competency. Major challenges to implementing supply chain agility include supply shortages, technological limitations, inadequate human resources, poor data quality, financial constraints, and reliance on foreign companies due to low local production rates. The study identified statistically significant associations between ICT, collaboration, innovation, budget, and data quality. Recommendation: The researcher recommends that pharmaceutical suppliers to enhance their use of information communication technology (ICT). It is also recommends that pharmaceutical suppliers to collaborate with customers to share knowledge and best practices, as well as work with other partners in the supply chain. Further recommends the Regional Health Bureau, Zonal Health Office, Woreda Health Office, and health facilities to work on providing adequate training and ongoing supervision to address and improve challenges related to supply chain agility.