Effects of Global Procurement on Supply Chain Performance among Medical Supply Agents in Kenya

Abstract

Medical supply chains in Kenya predominantly relies on global procurement of both raw materials and final products, the pharmaceuticals and non-pharmaceuticals, it has been reported that pharmaceuticals in Kenya accounts for 1.65% of GDP making up 36.64% of the total health expenditure. The study analyzed the effects of global procurement on the performance of medical supply agents in Kenya measuring quality of supplies bearing in mind the rise in counterfeits and substandard pharmaceuticals that has been noted to critically affect the beneficiaries of the medical supply chains. This study employed descriptive research design, the target population of this study  consisted of all the 375 employees of Kenya Medical Supplies Authority and The Mission for Essential Drugs and Supplies who are directly involved in medical supply chain. A sample size of 96 was sampled randomly from this population and used in responding to questionnaires. Statistical Package for Social Sciences computer software will be used for analysis. Both descriptive and inferential analysis was conducted. The findings indicated that economic fluctuations and legislations have a negative and non-significant effect with supply chain performance. Supply chain management policies as well as technology had a positive and significant effect on supply chain performance. The study recommends that medical supply agents in Kenya should put in place hedging practices and better financial risk management strategies to counter the negative effect of taxes, inflation, exchange rate, recession and trade embargos which negatively affects supply chain performance. To the policy makers, the study recommends that the government and other policy makers in the Ministry of Health and at KEMSA should consider revising legislations regarding medical drugs especially legislations on taxation, drug registration, medical logistics companies and enrolment as they currently negatively affects supply chain performance among medical supply agents in Kenya. The medical supply agents in Kenya should also consider putting in place and practicing supply chain management policies more especially the policies ranging from procurement policy, handling policy, storage and means of transport as these affects supply chain performance among medical supply agents in Kenya positively. Lastly, the study recommends that medical supply agents should also use technology more in stock quantification, stock Management and forecasting since it affects supply chain performance positively  

Keywords: Economic fluctuations, Legislation, Supply chain management policies, Technology, Supply chain performance