Logistics Management Performance for Program Commodities at the Upstream Pharmaceutical Supply Chain System of Ethiopia: The Case of Central Pharmaceutical Supply Agency and Ministry of Health

Abstract

Background: In the supply chain management system, building a resilient and sustainable health services system depend on the achievement of logistics management. In Ethiopia the launching of the free program treatment initiative was characterized by a large infusion of commodities which require strong logistics management capacity. Objective: To assess logistics management performance for program commodities at central pharmaceutical supply agency and Ministry of health. Method: A descriptive cross-sectional study design complemented with qualitative data collection techniques was conducted from February 21-April 20/2019. One hundred ten professionals involved in study from central pharmaceutical supply agency and Ministry of health. Seventy program commodities with its logistics management documents included in the study. The data were collected through document review, self-administered questioner, observational checklist and in-depth interview. Quantitative data were entered and analyzed using the Statistical Package for the Social Sciences version 23. Results obtained from 25 face to face in-depth interviews were analyzed using thematic analysis techniques. Result: A total of 70 program commodities included in this study from Human immunodeficiency virus and acquired immune deficiency syndrome, maternal and child health, Malaria, and Tuberculosis programs. All commodities were from the national essential medicine list, and the mean percentage of the international price paid was 99.48%. Forecasts mean absolute percentage deviations were 29.08%. Average of suppliers’ lead time 137.33 days and wastage rate of program commodities was 2.1%. The central pharmaceutical supply agency, mean order fill rate 52.9% and, the average stock out days was 8.5. The poor data quality from pharmaceutical supply agency hubs and health facilities was the major challenge for central pharmaceutical supply agency which led to unacceptable forecasting error which intern caused wastage and stock out of essential medicines. Conclusion: The study showed a weak logistics management performance at the upper stream supply chain system of the country, which was evidenced by inaccurate forecasting, long stock out duration, high wastage rate, and distribution malpractice. Poor data quality from the downstream supply chain was one of the major challenges affecting the logistics practice.