FACTORS AFFECTING EFFECTIVENESS OF SUPPLY CHAIN MANAGEMENT PRACTICES: A CASE OF SELECTED PHARMACIES AND DRUG STORES IN HAWASSA CITY SIDAMA REGION, ETHIOPIA

Abstract

Supply chain management is the coordination and management of activities involved in the production and delivery of products or services to customers. The main objective of this study is to investigate factors affecting the effectiveness of supply chain management practices at selected pharmacies and drug stores in Hawassa City, Sidama Region, Ethiopia. Independent variables namely; counterfeiting, global economic condition, inventory management, procurement process, regulatory requirements, technology utilization, transport, and logistics, were identified and examined. The effectiveness of supply chain management practices was a dependent variable in the study. To achieve study objectives, quantitative and qualitative research approaches with an explanatory and descriptive research design were used. The study used the judgmental sampling method, considering certain characteristics. The primary data was collected from 154 respondents by using Likert-scale survey questionnaires. Qualitative data was also collected through a semi-structured interview. Quantitative data was analyzed using descriptive and inferential statistics with the help of Statistical Package for Social Science (SPSS) version 25 software. The correlation result of the study indicates that all independent variables have a positive and significant relationship with the dependent variable. The regression result also shows that, except for counterfeiting, the remaining independent variables have a positive effect on the effectiveness of supply chain management practices. The study concluded that there was a significant and positive association between all independent variables and the dependent variable. All independent variables positively and significantly affect the effectiveness of supply chain management practices, except counterfeiting. Counterfeiting negatively affects the effectiveness of supply chain management practices at selected pharmacies and drug stores in Hawassa City. To enhance the effectiveness of supply chain management practices, the study forwarded recommendations to key stakeholders such as regulatory authorities, pharmacy associations and professional organizations, government and development agencies, and educational instructions.