assessment on the factors influencing - mzumbe university
TRANSCRIPT
i
ASSESSMENT ON THE FACTORS INFLUENCING
EFFECTIVENESS OF COLD MEDICINES SUPPLY CHAIN
PERFORMANCE IN TANZANIA:
A CASE OF MEDICAL STORE DEPARTMENT (MSD), HEAD
OFFICE, DAR ES SALAAM
ii
ASSEMENT ON THE FACTORS INFLUENCING EFFECTIVENESS OF
COLD MEDICINES SUPPLY CHAIN PERFORMANCE IN TANZANIA:
A CASE OF MEDICAL STORE DEPARTMENT (MSD), HEAD OFFICE, DAR
ES SALAAM
BY
MYONGA PENDO
A Dissertation Submitted in Partial Fulfillment of the Requirement for the
Awards of the Degree of Master of Science in Procurement and Supply Chain
Management of Mzumbe University
December, 2020
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CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for acceptance
by the Mzumbe University, a dissertation entitled” “Assement on The Factors
Influencing Effectiveness of Cold Medicines Supply Chain Performance In
Tanzania: A Case Of Medical Store Department (MSD), Head Office, Dar Es
Salaam in partial/fulfillment of the requirements for the award of the degree of
Master of Science in Procurement and Supply Chain Management (MSC- PSCM) of
Mzumbe University.
________________
Major Supervisor
________________
Internal Examiner
________________
External Examiner
Accepted for Mzumbe University, Dar Es Salaam Campus College
___________________________________________________________
CHAIRPERSON, DAR ES SALAAM CAMPUS COLLEGE BOARD
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DECLARATION
AND
COPY RIGHT
I, Myonga Pendo , declare that this dissertation is the researcher’s own original work
and that it has not been presented to any other university for similar or any other
degree award.
Signature …………………………
Date ……………………………
©2020
“This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act of 1999, and other national and international enactments dealing with
the protection of intellectual property. Therefore, it may not be reproduced by any
means in full or in part, except for short extracts in fair dealings, for research or
private study, critical scholarly review, or discourse with an acknowledgment,
without the written permission of Mzumbe University, on behalf of the author.”
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ACKNOWLEDGEMENTS
The researcher would like to express his unconditional thanks to almighty God for all
blessings in her life. She also likes to provide many thanks for the nonstop
opportunities that almighty give her, life, and studying at reputable University is of
most importance to the researcher. The researcher would also like to thank her
beloved parents for their lifetime care and love. They played a great part in her career
especially on the financial and technical part and moral development. Much thanks to
the incredible and very humble supervisor Dr. Noel Peter Mrope.
The researcher truly appreciates his support, care, love received from her supervision
and other colleagues at large. The researcher feels to be the lucky person for being
supervised by him. Finally, the researcher directs her sincere thanks to all participants
accepted to respond to the research questions presented in the study. Finally, the
researcher would like to direct thanks to her colleagues Mr. Elias Chaponde Justine
for his support during preparation of this dissertation.
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LIST OF ABBREVIATION AND ACRONYMS
ICT Information and Communication Technology
MSD Medical Store Department
PMU Procurement Management Unit
SC Supply Chain
SCM Supply chain Management
SPSS Statistical package for Social Science
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ABSTRACT
The general purpose of this study was to assess on the factors influencing
effectiveness of Cold Medicines Supply Chain Performance in Tanzania: A Case of
Medical Store Department (MSD), Head Office and Dar es Salaam. Specifically, the
study aimed to; examine the influence of technology level on the effective supply
chain of cold medicine, to find out the influence of distribution channel on the
effective supply chain of cold medicine, to examine the influence of staff competence
among the stakeholders on the effective supply chain of cold medicine and to
determine the influence of storage capacity on the effective supply chain of cold
medicine. The researcher used a descriptive research design with a quantitative and
qualitative approach. The targeted population of this study was the employees of
MSD whereby the researcher used a sample of 80 respondents. The researcher used
questionnaires and interviews to collect data from respondents. The factor analysis
was used to ensure the factorability of the data, and regression and correlation were
used to establish the relationship between the independent variables and dependent
variable, and descriptive analysis was used to describe the opinion of the respondents
about the study. The finding revealed that there was a strong positive relationship
between technology level and effective supply chain of cold medicine at P<0.05.
Also, it was revealed that the distribution channel had a positive relationship on the
effective supply chain of cold medicine at P<0.05, on other side staff competence was
viewed to positively relate to the effective supply chain of cold medicine at
P<0.05vand storage capacity had a positive relationship on the effective supply chain
of cold medicine at P<0.05. The study concluded that technology level, distribution
channel, staff competence, and storage capacity have a positive influence on the
effective supply chain of cold medicine. The study recommended that MSD and
government at large should ensure that they employ necessary technology and match
with technological advancement speed by ensuring reliable distribution channels and
well modern storage equipment.
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TABLE OF CONTENTS
CERTIFICATION ......................................................................................................... i
DECLARATION AND COPY RIGHT ........................................................................ ii
ACKNOWLEDGEMENTS ......................................................................................... iii
LIST OF ABBREVIATION AND ACRONYMS ........................................................iv
ABSTRACT .................................................................................................................. v
TABLE OF CONTENTS ..............................................................................................vi
LIST OF TABLES ........................................................................................................ xi
LIST OF FIGURES .................................................................................................... xiii
CHAPTER ONE ................................................................................................. 1
OVERVIEW OF THE STUDY ........................................................................... 1
1.1 Introduction ............................................................................................................. 1
1.2 Background of the Study ........................................................................................ 1
1.3 Statement of the Problem ........................................................................................ 3
1.4 Research Objectives ................................................................................................ 5
1.4.1. General Research Objectives .............................................................................. 5
1.4.2 Specific Objectives .............................................................................................. 5
1.5 Research Questions ................................................................................................. 5
1.5.1 General Research Question .................................................................................. 6
1.5.2 Specific Research Question ................................................................................. 6
1.6 Scope of the Study .................................................................................................. 6
1.7 Significance of the Study ........................................................................................ 6
1.8 Organization of the Dissertation ............................................................................. 7
1.9 Limitations of the study .......................................................................................... 7
1.9.1 Data was collected in a single organization ......................................................... 7
19.2 The Outbreak of Novel Corona Virus ................................................................... 8
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CHAPTER TWO ................................................................................................ 9
LITERATURE REVIEW ................................................................................... 9
2.1 Introduction ............................................................................................................. 9
2.2 Definitions of Key Terms ....................................................................................... 9
2.2.1 Supply Chain ........................................................................................................ 9
2.2.2 Effective supply Chain ......................................................................................... 9
2.2.3 Cold Medicine ...................................................................................................... 9
2.2.4 Cold Medicine Supply Chain ............................................................................. 10
2.3 Theoretical Literature Review ............................................................................. 10
2.3.1 Institution Theory ............................................................................................... 10
2.3.2 Principal Agency Theory ................................................................................... 11
2.3 Empirical Literature Review ................................................................................. 12
2.4 Research Gap ........................................................................................................ 16
2.5 Conceptual Framework of the Study .................................................................... 16
2.6 Operationalization of Variables ............................................................................ 18
2.6.1 Level of Technology and Effectiveness of Cold Medicines Supply Chain ....... 18
2.6.2 Distribution of Cold Medicine chanel and Effectiveness of Cold Medicines.... 19
2.6.3 Staff competency and Effectiveness of Cold Medicines Supply Chain............. 20
2.6.4 Availability of storage capabilities and Effectiveness of Cold Medicines ........ 21
2.6.5 Effectiveness of Cold Medicines Supply Chain performance ........................... 21
CHAPTER THREE ........................................................................................... 22
RESEARCH METHODOLOGY ....................................................................... 22
3.1 Introduction ........................................................................................................... 22
3.2 Area of the study ................................................................................................... 22
3.3 Unit of Analysis .................................................................................................... 22
3.4 Research Design .................................................................................................... 22
3.5 Target Population .................................................................................................. 23
3.4 Sampling technique and sample size .................................................................... 23
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3.4.1 Sampling techniques .......................................................................................... 23
3.4.2 Sample Size ........................................................................................................ 24
3.5 Types of Data ........................................................................................................ 24
3.6 Methods of Data Collection .................................................................................. 25
3.6.1 Questionnaire ..................................................................................................... 25
3.6.2 Interview ............................................................................................................ 25
3.7 Data Reliability and Validity ................................................................................ 25
3.7.1 Reliability ........................................................................................................... 25
3.7.2 Validity ............................................................................................................... 26
3.8 Methods of Data Analysis ..................................................................................... 27
CHAPTER FOUR .............................................................................................. 29
PRESENTATION OF THE FINDINGS ............................................................ 29
4.1 Introduction ........................................................................................................... 29
4.2 Response rate ........................................................................................................ 29
4.3 Preliminary analysis .............................................................................................. 29
4.3.1 Education level ................................................................................................... 30
4.3.2 Experience of the respondents ........................................................................... 30
4.3.1 Factor Analysis on Effective supply chain of cold medicine ............................ 31
4.3.2 Factor Analysis on Independent Variable .......................................................... 32
4.3.4 Factor Analysis on Distribution of cold medicine ............................................. 33
4.3.5 Factor Analysis on Procurement Staff Competency .......................................... 34
4.3.7 Factor Analysis of Storage Facilities ................................................................. 35
4.4 Simple Regression Analysis ................................................................................. 36
4.4.1 Correlation of the Study Variables .................................................................... 36
4.4.2 Regression Model Analysis ............................................................................... 37
4.5 Descriptive Analysis ............................................................................................. 41
4.5.1 Level of Technology on Cold Medicine ............................................................ 41
4.5.2 Electronic record information ............................................................................ 41
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4.5.3 Computerized modern storage system ............................................................... 42
4.5.4 Use of Tracking System ..................................................................................... 43
4.5.5 Online Order Processing System ....................................................................... 44
4.6 Distribution of Cold Medicine ........................................................................... 45
4.6.1 Transport System ............................................................................................... 45
4.6.2 Distribution Planning ......................................................................................... 46
4.6.3 Information System ............................................................................................ 47
4.6.4 Order Processing ................................................................................................ 48
4.7. Staff Competency among Stakeholders ............................................................... 49
4.7.2 Experience .......................................................................................................... 51
4.7.3 Periodical Training on Medical Supplies ........................................................... 51
4.7.4 Professionalism .................................................................................................. 52
4.7.5 Level of Education ............................................................................................. 53
4.8 Availability of Storage Capacities ..................................................................... 53
4.8.1 Storage Equipment ............................................................................................. 54
4.8.2 Collection Point ................................................................................................. 54
4.8.3 Special Storage for Cold Medicine .................................................................... 55
4.8.4 Correct Medical Storage Temperature ............................................................... 56
4.8.5 Availability of Functional .................................................................................. 57
CHAPTER FIVE ............................................................................................... 58
DISCUSSION OF FINDINGS............................................................................ 58
5.1 Introduction ........................................................................................................... 58
5.2 The influence of technological level on the effective supply chain of cold ......... 58
5.3 The Influence of Distribution Channel on Effective Supply Chain of Cold ......... 59
5.4 The Influence of Staff Competency Among Stakeholders on Effective Supply .. 60
5.5 The Influence of Storage Capacity on Effective Supply Chain of Cold Medicine62
CHAPTER SIX .................................................................................................. 64
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS ........................ 64
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6.1 Introduction ........................................................................................................... 64
6.2 Summary of the findings ....................................................................................... 64
6.3 Conclusion ............................................................................................................ 66
6.2.2 The influence of distribution channels on the effectiveness of the cold ............ 66
6.2.4 The influence of storage capacity on the effectiveness of cold medicines ........ 67
6.4 Recommendations of the study ............................................................................. 67
6.5 Suggestion for further studies ............................................................................... 68
REFERENCES ........................................................................................................... 70
APPENDIX 1: ............................................................................................................. 73
QUESTIONNAIRE .................................................................................................... 73
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LIST O F TABLES
Table 3.1: Population Distribution ................................................................................... 23
Table 3.2: Sample Size Distribution Source .................................................................... 24
Table 3.3: Reliability test ................................................................................................. 26
Table 4.1: Response rate .................................................................................................. 29
Table 4.2: Education level ............................................................................................... 30
Table 4.3: Experience ...................................................................................................... 30
Table 4.4: KMO and Bartlett's Test effective supply chain of cold medicine ................. 32
Table 4.5: KMO and Bartlett's Test on the level of technology ...................................... 33
Table 4.6: KMO and Bartlett's Test Distribution of cold medicine ................................. 34
Table 4.7: KMO and Bartlett's Test on staffs competency .............................................. 35
Table 4.8: KMO and Bartlett's Test on storage facilities ................................................. 35
Table 4.9: Correlations ..................................................................................................... 37
Table 4.10: Model summary ............................................................................................ 38
Table 4.11: ANOVAa ....................................................................................................... 38
Table 4.12:Regression model ........................................................................................... 39
Table 4.13: Electronic record information ....................................................................... 42
Table 4.14: Use of computerized modern storage systems .............................................. 43
Table 4.15: Use of tracking system .................................................................................. 44
Table 4.16: Online order processing system .................................................................... 45
Table 4.17: Transport system ........................................................................................... 46
Table 4.18: Distribution planning .................................................................................... 47
Table 4 19:: Information system ...................................................................................... 48
Table 4.20: Order processing ........................................................................................... 48
Table 4.21: Inventory management system ..................................................................... 49
Table 4.22: Sufficient knowledge of cold medicine ........................................................ 50
Table 4.23: Experience .................................................................................................... 51
Table 4.24: Periodical training on medical supplies ........................................................ 52
Table 4.25: Professionalism ............................................................................................. 53
Table 4.26: Level of education ........................................................................................ 53
Table 4.27: Storage equipment ........................................................................................ 54
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Table 4.28: Collection point ............................................................................................ 55
Table 4.29: Special storage for cold medicine ................................................................. 56
Table 4.30: Correct medical storage temperature ............................................................ 57
Table 4.31: Availability of functional .............................................................................. 57
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LIST OF FIGURES
Figure 2.1: Conceptual framework ........................................................................................... 17
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CHAPTER ONE
OVERVIEW OF THE STUDY
1.1 Introduction
This chapter highlights the background of the problem, the statement of the problem,
research questions, research objectives, scope of the study, the significance of the
study, organization of the study, and limitation of the study.
1.2 Background of the Study
Ibrahim (2015) propounded that due to an increase in dynamic competition which
results due to change of technology as a result of globalization, there is a need to
ensure the effective use of scarce organizational resources in supply chain
performance. Central to developing competitive strategies is the notion of
comparative advantage, a strategic framework should allow a firm to gain an
advantage in existing and new markets. High speed is not always synonymous with
better use of time, but attacking and eliminating delays invariably improves
throughput and customer services.
Measures for reductions in design times, cycle times, setup times, throughput times,
and delivery times are appearing with greater regularity on performance reports.
Eliminating delays and improving product flows involves creativity, specialized
skills, capital investments, and behavioral changes that challenge the status quo.
Frequently, significant improvements can be attained with relatively little, if any,
additional capital investment (Kinyua, 2013). Fierce competition in today’s global
markets, the introduction of products with shorter life cycles, and the heightened
expectations of customers have forced business enterprises to invest in, and focus
attention on, their supply chains.
Also It has been suggested that firms and companies can not compete alone in its
daily activities, in modern business firms undertakes its activities in the supply chain
networks where all companies work as a collaborative scenario and its performance is
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measured in totality not individual to determine the rate of customer satisfaction to its
customers and total supply chain Profitability (Okinyi, 2016).
Due to emerging globalization through advanced communication and technologies,
expansion of markets, trade liberalization and stiff competition throughout the world
increases the performance of medical supply chain through the use of computerized
storage systems, increased competency and awareness of procurement personnel
involved in the medical supply chain as well as the use of modern storage equipment
as well as handling equipment which results into effective cold medical supply chain
(Auma, 2011).
Sakka et al. (2009) explained that the challenge of the supply chain has been realized
to changes in global environment resulted from the expansion of world market,
development of advanced technology and increased competition from day to day
which enforces may firm to concentrate on providing quality services to the
customers through reduction of lead time in delivery of orders which led to a higher
competitive edge in the cold medicine supply chain.
Managing cold medicine supply chain effectively improves the quality of medicines,
reduce lead time, reduce damages during handling (Loading and unloading) of cargo,
increased profitability, and improved reputation to its customers (Okinyi, 2016).
The performance of the cold medical supply chain is influenced by the level of
technology on cold medicine, appropriate distribution channel, competency from
personnel involved in the cold medicine supply chain, and availability of storage
facilities (Chopra et al., 2007). Formally, the performance of the cold medicine
supply chain was not sufficiency due to poor storage systems, poor choice of
distribution channel, inadequate competent staff involved in the medical supply chain,
and use of outdated technology hence reduced the performance of the cold medicine
supply chain (Fredrick, 2018).
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In Tanzania, the factors affecting the effectiveness of cold medicine supply chain
includes poor government policies, poor infrastructures during distribution, lack
competent personnel involved on the cold medicine supply chain which results into
poor performance of supply chain in terms of cost, quality and timely delivery of
medicines (Ibrahim, 2015). This justifies that the performance of the medical supply
chain is still a challenge that needs to be well addressed.
According to Fredrick (2018) who studied factors influencing the performance of the
pharmaceutical supply chain in Tanzania recognized the factors which include
employee competency, technological infrastructure, and inventory control. These
factors may lead to the ineffective effective performance of the pharmaceutical
supply chain. Also, these factors may influence the performance of the cold medicine
supply chain.
Basing on the above studies, the researcher endeavored to assess whether
technological level influence effectiveness of cold medicines supply chain
performance at MSD, distribution channels influence effectiveness of the cold
medicines supply chain performance at MSD, staff competency among stakeholders
influence effectiveness of cold medicines supply chain performance at MSD and
storage capacity influence effectiveness of cold medicines supply chain at MSD.
1.3 Statement of the Problem
Cold chain supply performance is a measure to detect the extent to which
procurement and supply chain functions can achieve their goals at the lowest cost.
Procurement performance includes two key aspects, including effectiveness and
efficiency (Molel, 2015). Understanding the factors affecting the effectiveness of
supply chain is very important because it enables the management of the cold
medicine supply chain to allocate the scarce resources and utilize the current
technologies, select appropriate distribution channel and use proper storage
equipment which increases cold medicine supply chain in terms of cost savings,
quality improvement and timely delivery of medicines (Clemency et al., 2017).
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However, various challenges affect the effective cold medicine supply chain such as a
lack of financial resources, poor technology, lack of government support, poor
infrastructures, lack of competent personnel that affects the cold medical supply chain
performance negatively and to increase the performance in the overall supply chain,
supply chain managers need to take into consideration on the relationship among
stages in the network (Kiromo, 2015).
The supply chain can be shortened as the all activities in a management, knowledge,
information, and fiscal resources related to the flow and conversion of goods and
services of raw material suppliers, parts suppliers and other suppliers, so that users
and companies meet or exceed expectations (Lyson & Farrington, 2006). Ayertey
(2015) pointed out that, in Africa, the critical factor that needs to be given more
priority in supply chain management is not addressed as a result of the poor
performance of the supply chain.
For the supply chain management to perform its tasks as required, it must ensure that
it contracts with suppliers so that they can do so. This can be completed by evaluating
the supplier’s strategic factors connected to the supplier, these strategic factors can
affect the execution of the procurement function, and before awarding them various
goods or services supply contracts to be strictly analyzed, effective supply chain
contains some motivation.
Saraja (2013) noted that despite the importance of the supply chain, it is very
necessary to keep into consideration to all factors that may influence its performance.
The study noticed that most of the public organizations have been experiencing poor
performance and some of them have been successful. Although the literature has
emphasized that supply chain integration is essential for productivity, there is a lack
of empirical evidence that tests the impacts on the performance of the supply chain.
But, companies have not realized until recently that the individual performance in the
supply chain regulates the supply chain the success. A highly integrated supply chain
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requires an efficient workforce with the correct organizational characteristics to
conduct internal and external operations (Ayertey, 2015).
Most of the related similar studies have been done to address the factors influencing
effective cold medical supply chain, for example, Fredrick, 2018; Clemency, 2015)
but they failed to address directly the specific factors affecting effective cold medical
supply chain such as the level of technology, distribution channel, staff competency
and storage equipment that affects its effectiveness. Due to the gap observed from the
reviewed studies, the study is hereby by motivated to bridge the said gap by exploring
the factors affecting the effectiveness of the cold medical supply chain in Tanzania
with the case of the Medical store department
1.4 Research Objectives
1.4.1. General Research Objectives
To investigate the effective cold medicines supply chain in Tanzania at MSD.
1.4.2 Specific Objectives
i. To examine the influence of technological level on the effectiveness of cold
medicines supply chain at MSD.
ii. To find out the influence of distribution channels on the effectiveness of the cold
medicines supply chain at MSD.
iii. To examine the influence of staff competency among stakeholders on the
effectiveness of cold medicines supply chain at MSD.
iv. To determine the influence of storage capacity on the effectiveness of cold
medicines supply chain at MSD.
1.5 Research Questions
This study had two types of research questions namely general and specific questions
as Stated below:-
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1.5.1 General Research Question
What are the factors influencing the effectiveness of the cold medicines supply chain
at MSD?
1.5.2 Specific Research Question
i. What is the influence of technological advancement on the effectiveness of the cold
medicines supply chain at MSD?
ii. What is the influence of the distribution channel on the effectiveness of the cold
medicines supply chain at MSD?
iii. What is the influence of staff competency among stakeholders on the effectiveness of
the cold medicines supply chain at MSD?
iv. What is the influence of storage capacities on the effectiveness of the cold
medicines supply chain at MSD?
1.6 Scope of the Study
The scope of this study covers the factors influencing the effective supply chain of
cold medicine in Tanzania taking the Medical store department (MSD) as a Case
study. The researcher concentrated on exploring the influence of technological level,
distribution channels, and competency of supply chain staff on the effectiveness of
the cold medicine supply chain in Tanzania. The supply chain of cold medicine
requires sustainable practices as a means of promoting prosperity and development in
the country. The study was conducted at MSD due to budgetary and time constraints
where the findings represented other organizations concerning with supply,
procurement, and distribution of cold medicines.
1.7 Significance of the Study
The study offers value in understanding various supply chain best practices such as
ICT infrastructures, competency of stakeholders in supply chain stakeholders, and
best channel of distribution concerning cold medicine supply chain which increases
the effectiveness of the cold medicine supply chain. To academicians, this study
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provided information about factors affecting the effective supply chain of cold
medicine in Tanzania so it saved as reference and literature materials to those who
will be interested to explore this area and thereafter add value for academicians and
use it for advancing further academic activities related to the study.
1.8 Organization of the Dissertation
The research report is organized into six Chapters where chapter one contains an
introduction, the background of the research problem, statement of the problem,
research questions, research objectives, scope of the study, the significance of the
study, and organization of the study. Chapter two includes literature reviews such as
theoretical and empirical reviews and conceptual framework of the study. Chapter
three is concerned with research methodology such as research design, study area,
unit of analysis, population, sampling procedures, and sample size, types of data, an
instrument of data collection and methods of data, chapter four comprises of an
analysis of the finding which included factor analysis, inferential analysis, and
descriptive analysis, chapter five included discussion of the finding and chapter six
included summary, conclusion, and recommendation relating to study findings.
1.9 Limitations of the study
1.9.1 Data was collected in a single organization
Data were collected in only one single organization which is MSD- Head office at
Dar Salaam region. This was convenient for data collection but also limits the
generalization of the study. If more organizations from different Organizations for
example Muhimbili National hospital (MUHAS), Ministry of Health, and other
similar health service organizations, the generalization of the study could be more
reliable. Using only MSD as the area of the study was coursed by the fact that the
financial, human and time resources were very limited to expand the scope of the
study in terms of organization. This limitation was addressed by using an adequate
sample of 88 to get the generalization of the study.
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19.2 The Outbreak of Novel Corona Virus
This study faced a hard way especially during the collection of data due to the
outbreak of very dangerous virus known as corona virus which leads to COVID-19
epidemic disease, this virus posed difficulty in collection of data because the virus
transmitted from one person to another through touching each other or touching an
affected item, this lead to a social distancing policy which was implemented
worldwide. To cope with the outbreak researcher used alternative way in collecting
data as some of the questionnaires was administered by using drop and pick
techniques and researcher entered commitment with one of the employee at MSD
who helped in gathering all questions from her fellow employee hence data were
collected in the late times which made the researcher devote much in completion of
data collection exercise.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter provides the highlight of the literature reviews. It involves the definition
of concepts, theoretical literature review including theories guiding the study,
empirical literature review, and research gap. The conceptual framework is developed
basing on reviewed literature to indicate the relationship of the study variables as well
as the definition of variables.
2.2 Definitions of Key Terms
2.2.1 Supply Chain
The supply chain refers to the composition of various stakeholders involved directly
or indirectly from upstream and downstream with the view of achieving the overall
value generated (Lyson & Farrington, 2006). The value generated from an effective
cold medical supply chain is customer satisfaction and total supply chain profitability.
2.2.2 Effective supply Chain
An effective supply chain refers to a measure of detecting the degree to which
procurement and supply chain functions can achieve their goals at the lowest cost.
Procurement and supply contain two core performance aspects which comprise
effectiveness and efficiency (Molel, 2015).
2.2.3 Cold Medicine
According to Ringo, Mugoyela, Kaale, and Sempombe (2017), cold medicine is those
medicines that are by patients or people while it is in the cold conditions and is aimed
at coldly assessing the symptoms. Using cold medicines it may prevent or eliminate
symptoms from diseases. To ensure the quality of cold medicine in the supply chain,
there must be competent personnel, a high level of storage capabilities, a high level of
technology, and a proper selection of distribution strategies.
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2.2.4 Cold Medicine Supply Chain
Ringo et al. (2017) defined the cold medicine supply chain as the management of the
upstream and downstream flow of cold medicines with the view of achieving the
overall value generated through optimizing the total profitability of the cold medicine
supply chain and ensuring stakeholders satisfactions. All Key drivers of the cold
medicine supply chain such as information, transportation, facilities, inventory,
pricing, and sourcing need to be well managed.
2.3 Theoretical Literature Review
This part explains theoretical literature (theories) concerning factors influencing the
effective supply chain of cold medicines and thereafter develops a conceptual
framework of the study. According to Snyder (2019), theoretical literature is very
significant because it helped the researcher to obtain sufficient information on
theoretical bases concerning the specific objectives of the study and hence develop
theories as well as conceptualization of the study variables. This study was governed
by three theories which are very relevant to this study as explained below:-
2.3.1 Institution Theory
According to Kiromo (2015), the institution is composed of cultural-cognitive and
regulative elements that, together with associated activities and resources give
meaning to life. These pillars emphasize the use of rules, laws, and sections as an
enforcement mechanism, with experience as the basis for compliance on how things
should be done and valued (the preferred and desirable) and to share understanding
(common beliefs, symbols, shared understanding). These situations have an influence
on operation on an effective cold medicine supply chain. The theory promotes
cooperation among different actors to achieve performance in the organizations.
By applying this theory, the organization benefited by having effective use of modern
technology, having competent supply chain personnel on the cold medicine supply
chain, proper selection of distribution channel and ensures availability of storage
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capabilities in terms of storage equipment, temperature, and availability of alternative
power supply for effective storage of cold medicine.
Therefore, this study was guided by institution theory because; this theory is relevant
to the study as it influences the effectiveness of the cold medicine supply chain. Also,
this study is related to the requirement that cold medicine supply chain functions need
to be executed by professionals to ensure that there is a good reputation by customers
through minimizing cost, improved quality, and improved lead time.
2.3.2 Principal Agency Theory
Principal Agency theory is the theory developed by Jensen and Meckling (1976) to
explain the relationship existing between principle (Taxpayers) and agent (Managers
or Directors) in the public sector. Agency theory is concerning with the analysis of
the separation of ownership, control as well as managerial motivation during the
execution of procurement activities. The theory also describes the mismatch between
management, stakeholders, shareholders due to its important contribution and result
in taking too much risk in the organization. This theory has seen to have greeted the
influence of on effectiveness of the cold medicine supply chain. The theory also
describes the mismatch between management, shareholders due to its important
contribution and result in taking too many issues such as storage capabilities and
distribution issues in the organization. Agency theory normal increases support to
shareholders in hedging procurement and supply chain risks with the business.
Under agency theory, shareholders, executive management, managers and other
stakeholders like the general public who is the owner employ an agent who will
perform work on behalf an agent is supposed to act accordingly to achieve principal’s
objectives and sometimes principle delegate the function of running the business to
the organization management who is the shareholder’s agent (Mrope, 2017). Principal
agency theory relates to this study because to ensure effective cold medicine supply
chain management, all instructed agents should work diligently and ethically for the
assigned tasks. Managers, employees, and all public servants involved in one way or
other in the supply chain process should play as an agent performing all function
12
delegated by the Government and the general public. In addition to that, all
procurement stakeholders in public procurement should comply with the public
procurement Act and procurement regulations to minimize all risks in public
procurement such as corruption, delays, poor quality of the product, and unnecessary
variations (Shapiro, 2005).
Agency theory indicates how the actions and inaction have taken by agent
(Procurement stakeholders) influence the public procurement performance and hence
affects the Government performance (the Principal). Agency theory increases the
awareness and accountability of agents (supply chain stakeholders) which enforce
them to fulfill their duties, comply with existing supply chain laws, and a regulation
that minimizes medicine supply chain risks and enhances its effectiveness. On the
other side Agency theory informs the Government (Principal) to avail necessary
support such as training, financial support, emphasis the use of modern information
and communication technology which minimize the risk of manual records, reduce
transaction cost and reduce unnecessary delays, storage, expiration risks as a common
risk in the medicine supply chain.
2.3 Empirical Literature Review
Kagaruki, Kimaro, and Mboera (2013) conducted a study on the factors affecting the
utilization of evidence Based Health health information systems for an effective
supply chain of essential medicine in Tanzania. The study employed a cross-section
research design in collecting quantitative data. The study used both probability and
non-probability sampling specifically purposive and simple random sampling. The
results indicated that there was poor information system at MSD and ministry of
Health and social sustainability of the organization management, client needs and
supplies, non-compliance of delivery and ordering national procedures, insufficiency
financial resources, inadequate capacity in implementing logistical integrated
systems, availability of political decisions and absence of national stakeholders
during budgeting and forecast of medical requirements (Ringo, Mugoyela, Kaale, and
Sempombe (2017).
13
Ringo, Mugoyela, Kaale, and Sempombe (2017) studied on Cold Chain Medicines
Storage Temperature Conformity by the World Health Organization in Tanzania. The
study employed a descriptive research design. Their results indicated that half of the
health storage facilities were not statistically significant to the cold medicines storage
temperature. The study also noted that there were insufficient electricity services, a
lack of contingency plans, and the absence of gas which affects the effectiveness of
cold medicines negatively.
Dairo and Osizimete (2016) on his study on the factors affecting vaccine handling
and handling storage practices service providers in Ibadan, Oyo State, and Nigeria.
The research aimed to investigate the critical issues affecting vaccine handling and
storage practices. The utilized cross-section research design. The data were analyzed
used in SPSS version 16. The results found that about 33% of were aware of storage
guidelines and handling of vaccines, training regarding vaccine management was
given to about 65% and 43% and 66.1% of respondents had good knowledge of
vaccine handling, storage, and good vaccine management practices respectively.
Kanda and Iravo (2015) accessed factors affecting the supply chain efficiency of
medical supplies in Public Health centres in Kenya. The major objective of the study
was to assess the factors affecting the efficiency of the medical supply chain
specifically the study aimed at establishing the effects of ICT infrastructures,
procurement process, distribution, and staff competency of the medical supply chain.
The study used a population of 120 and a sample size of 60. The study used
descriptive research design and only primary data were used and collected through
questionnaires, observation, and interviews. The results showed that ICT
infrastructures, staff competency, distribution channels, and procurement processes
were significant effects on the efficiency of the medical supply chain.
Molel (2015) studied the supply chain management practices impact on the
organizational performance of food processors” in Dar es Salaam, Tanzania. The key
research aim was to investigate the supply chain management practices impact on the
14
organizational performance of food processing companies. The researchers used a
descriptive research design. The data was obtained through a questionnaire from a
sample of 53 food processing companies. Use quantitative methods to analyze data.
Chi-square test is used to perform research. The research found that most of the food
processors in Tanzania understand the concepts of implementing food and
agricultural management practices.
Bogale, Amhare, and Bogale (2019) investigated the factors medicine cold chain
management practices in public health institutions in the East Gojam zone of the
Amhara region. The study aimed at assessing the factors influencing vaccine cold
management practices on public health Institutions. The study used a cross-section
research design. Logical equation analysis and descriptive statistics were employed to
determine the factors relating to practices of the cold vaccine supply chain. The
results showed that 35 had sufficient knowledge about vaccine cold management,
29% respondents had correct vaccine storage temperature, 46% had a functional
refrigerator, 21% on their information said that there is a standby generator for
backup services, 28% have a special motorbike in case there is the failure of
generator power, 23% are knowledgeable about medical cold practices while 25%
had inappropriate vaccine cold practices and generally the study revealed a positive
significant effects on the performance of vaccine cold chain in Public Health
Institutions.
According to Ayman at el. (2014) the study investigated the effect of SCM practices
on SC efficiency and effectiveness with the moderating effect of competitive intensity
for a sample consisting of one hundred and four manufacturing companies in Jordan.
The study asserted that SCM practices implemented by manufacturing companies are
good indicators of supply chain efficiency and effectiveness. The results indicated
that the impacts of both customer integration and information sharing on SC
effectiveness became more significant under high levels of competitive intensity.
15
Achuora et al. (2012) conducted a study on factors affecting distribution performance
for pharmaceutical products in Kenya Public Sector. The study aimed at examining
the effect of information technology, financial capacity, transport outsourcing, and
third party relations. The study employed survey design as a research design.
Questionnaire and interview instruments were used to collect data from 145 samples
of respondents collected from public institutions in Kenya. The collected data was
then analyzed using descriptive and correlation analysis techniques for examining the
relationship between variables of interest. The study found that information
technology and financial capacity possess the greatest influence on the distribution
performance of pharmaceutical products in Kenya's public sector.
Njuguna, Mairura, and Ombui (2015) conducted a study in Nairobi County on the
Cold Chain Influence on the Safety of Vaccines at Pharmaceutical Distributors. The
research applied a descriptive survey design. The researcher used a sample size of 67.
Information were gathered using a self-administered questionnaire through the drop
and pick method. The results found that storage conditions and technical capabilities
have a positive significant relationship with the effectiveness of the cold medicine
supply chain.
A study conducted by Greis (2011) on managing the cold chain. The study recognized
that lack of required temperature, poor selection of distribution channels, and poor
selection of appropriate transportation systems resulted in an effective cold medicine
supply chain. The study also noted that there is a significant influence between
storage systems, transportation systems, and packaging of cold medical products on
the effectiveness of the cold supply chain.
Brzozowska and Brzeszczak (2020) on the paper concerning managing cold supply
chain indicated that refrigerated transport, monitored temperature range, transport,
storing, the package had a positive significant influence on the efficiency and
effectiveness of cold supply chain. To increase the performance of the cold medicine
supply chain, cold supply chain management should improve packaging systems,
16
select appropriate transportation systems, ensure effective utilization of modern
technologies, and proper determination of distribution strategies including its channel
of the cold chain.
2.4 Research Gap
From theoretical and empirical literature reviewed, it has been recognized that there
are various studies on this area of the study. However (Greis, 2011); Njuguna,
Mairura and Ombui, 2015) and Njuguna, Mairura, and Ombui (2015) concentrated
generally on factors affecting the health sector supply chain and factors affecting the
efficiency of the medical supply chain. The reviewed study from local and global
failed to determine the specific factors such as level of technology, distribution of
cold medical supplies and competency of supply chain staff, and availability of
storage capabilities. Also, Achuora et al. (2012) on its study focused only on factors
influencing the efficiency of the vaccine supply chain and did not concentrate on cold
medical supply chain. Furthermore the specific factors affecting cold medical supply
chains were not assessed at Medical store department. This study is therefore
motivated to investigate the factors affecting the effective cold medical supply chain
in Tanzania using MSD as a case study. By using this case study it enabled the
researcher to obtain detailed information which then bridges the existing gap in the
study concerning the effectiveness of the cold medicine supply chain.
2.5 Conceptual Framework of the Study
Based on the reviewed literature, the researcher developed a conceptual framework
with the view to show their relationship among variables. The literature deduced the
existing relationship between dependent and independent variables. The dependent
variable was an effective supply chain of cold medicines whereas independent
variables involved the level of technology, distribution of cold medicine, competency
of staff involved in cold medicines supply chain, and availability of storage
capacities. Consider the figure below indicating the conceptual framework.
17
Figure 2.1: Conceptual framework
Independent Variable
Source: Researcher (2020)
Level of Technology on cold medicine
Electronic recording of information
Use of computerized modern storage
systems.
The use of trucking systems on
distribution of cold medicines.
Online order processing systems
Use of integrated systems on cold
medicine
Distribution of cold medicine channel
Transport system
Distribution planning
Information system
Order processing
Inventory management systems
Staff Competency among stakeholders
Sufficient knowlegadge on cold
medicine
Experience
Periodical Training on medical
supplies
Professionalism
Level of eductaion
Availability of Storage facilities
Storage capacities
Collection Point
Special Storage for cold medicines
Correct medical storage temperature
Availability of functional
refrigirator
Effectiveness of Cold
Medicines Supply
Chain
Stakeholder’s
satisfactions
Quality of medicines
Timely delivery of
medicines
Supply chain cost
Quantity required
18
2.6 Operationalization of Variables
In this part, each independent variable of the study was linked with the dependent
variable and at each operationalization, the hypothesis was formulated.
2.6.1 Level of Technology and Effectiveness of Cold Medicines Supply Chain
performance
The technological level is an important aspect in the effective cold medicine supply
chain performance, the organization needs to use the modern technologies in
distribution, transportation, and storage of cold medicine. Storage, handling of cold
medicine requires an appropriate technological system that needs to be well adapted
with the view of increasing the performance of the cold medical supply chain.
Electronic recording of information, use of computerized modern storage systems, the
use of tracking systems on distribution of cold medicines, online order processing
systems, and the use of integrated systems on cold medicine normally lead to
effective cold medicine supply chain (Greis, 2011).
Dairo and Osizimete (2016) on his study on the factors affecting vaccine handling
and handling storage practices service providers in Ibadan, Oyo State, and Nigeria.
The research aimed to investigate the critical issues affecting vaccine handling and
storage practices. The results found that about 33% of were aware of the use of new
technological system on the distribution and storage of medicies, training regarding
vaccine management was given which imply that the use of high level of tech ology
in distribution and storage of the cold medicine supply chain increases the
effectibeness nd perf0rmance of the same.
Greis (2011) on managing the cold chain. The study recognized that lack of required
temperature, poor selection of distribution channels, and poor selection of appropriate
transportation systems resulted in an effective cold medicine supply chain. The study
also noted that there is a significant influence between storage systems, transportation
systems, and technological level on packaging of cold medical products on the
effectiveness of the cold supply chain. This indicated that the higher the technological
19
use in the cold medicine supply chain the higher the performance and effectiveness of
cold medicine supply chain in Tanzania.
H1: There is no significant influence of the technological level on the effectiveness of
the cold medicines supply chain.
2.6.2 Distribution of Cold Medicine chanel and Effectiveness of Cold Medicines
Supply Chain performance
Selecting an appropriate distribution strategy is of paramount importance as it
enhances the sustainability of the cold medicine supply chain. If an organization
target to increase the effectiveness of the cold medicine supply chain, it should take
into consideration distribution issues (Dairo and Osizimete, 2016). To supply chain
management to perform its tasks as required, it must ensure that it contracts with
suppliers so that they can do so. This can be achieved through assessing the
contractor’s strategic influences that affect the procurement function performance,
and rigorously analyzing them before awarding them contracts for the supply of
various goods or services to effectively supply The chain includes some driving
factors (Achuora et al., 2012). Each driver can directly affect the supply chain and
enable specific functions. Any company in the supply chain must make individual
and collective decisions about its actions in these driver areas (Saraja, 2013).
Tamimi, Sundarakani, and Vel (2010) recognized that to ensure effective cold
medicine supply chain, it is important to take into consideration logistics activities
including distribution channels, transportation systems, inventory management, and
distribution planning strategies. Instituting proper distribution channel increase the
effectiveness of cold medicine supply chain.
Saraja (2013) noted that despite the value of cold medicine, it is very necessary to
consider all factors that may influence its performance. The study noticed that most
Public organizations have been experiencing poor performance and some of them
20
have been successful. Although the literature has emphasized that supply chain
integration is essential for productivity, there is a lack of empirical evidence that tests
the impacts on the performance of the supply chain. The important distribution issues
or elements that the organization need to take into consideration includes but not
limited to the transport system, distribution channel, distribution planning, the use of
information system during distribution, order processing, and inventory management
systems.
H2: There is no significant influence of distribution on the effectiveness of the cold
medicines supply chain.
2.6.3 Staff competency and Effectiveness of Cold Medicines Supply Chain
performance
Staff competency to the cold medicine supply chain is necessary for improving the
effectiveness and efficiency of the cold medicine supply chain. The effective cold
medicine supply chain is more determined by the competency of stakeholders
involved in the cold medicine supply chain. The cold medical supply chain should
ensure that staff involved in the cold medicine supply chain is competent enough to
deliver quality medicine, timely delivery, and cost-effective.
Work allocation should consider having more administrators qualified in supply chain
issues to run health facilities. The medical qualifications doctors and nurses possess
do not necessarily imply supply chain competence. However, as long as human
resources allocation is the way it is now, all health workers involved in the supply
chain should be given corresponding medical supply chain-related training (Report on
resource optimization in delivering health care, 2010). Continuous specific training of
medical supply chain staff is vital particularly for those involved in quantification at
the Ministries and those who act as the interface between the national distributor and
the health facilities at the counties. The attributes that ensure staff competency in cold
medicine are sufficient knowledge on cold medicine, experience, periodical training
on medical supplies, professionalism, and level of education.
21
H3: There is no significant influence of staff competency among stakeholders on the
effectiveness of the cold medicines supply chain.
2.6.4 Availability of storage capabilities and Effectiveness of Cold Medicines
Supply Chain performance
One of the important activities in cold medicines supply chain is storage capabilities.
Among other key aspects that need to be considered are storage capabilities. Before
involving in the cold medicine supply chain the organization needs to ensure that
enough and sufficient storage is available. The efficient and capable storage
capability ensures an effective cold medicine supply chain. The effective storage
capabilities elements that lead to effective cold medicine supply chain are Storage
equipment, collection point special storage for cold medicines, correct medical
storage temperature, and availability of functional refrigerator (Koigin, 2012).
H4: There is no significant influence of the availability of storage capacities on the
effectiveness of the cold medicines supply chain.
2.6.5 Effectiveness of Cold Medicines Supply Chain performance
It is important to measure the effective supply chain of cold medicine in Tanzania to
understand the hindering factors. An effective supply chain is measured through
stakeholder’s satisfaction, quality of medicines. Timely delivery of medicines and
reduced supply chain cost and quantity required. According to Fredrick (2018),
supply chain performance is measured through the responsiveness of delivery, quality
improvement, and end-customer satisfaction. According to Fredson (2018) business
performance (Supply chain performance) is measured through improved customer
services, reduced quality defects, and early delivery of products. In this study, the
same performance indicators were used in measuring the effectiveness of the cold
medicine supply chain at the MSD.
22
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This part highlights the research methodology adopted in this study. This part
included research design, study area, population, sampling techniques, and sample
size, types of data, data collection methods, validity, and reliability data analysis plan.
3.2 Area of the study
This study was conducted at the Medical Store Department (MSD)-Headquarter.
MSD is the relevant area of the study because it is one among public organizations
that strive on providing excellent services to its customers while achieving value for
money and increasing its effectiveness, especially on the cold medicine supply chain.
Since the functions of ensuring an effective supply chain of cold medicine spend a
huge amount of financial resources and other resources there is a need to understand
the key factors affecting it to increase its efficiency and customer satisfaction. The
study has investigated factors affecting effective of the cold medicine supply chain in
Tanzania using MSD as a case study.
3.3 Unit of Analysis
The unit of analysis was employees at MSD involved in the supply chain of cold
medicine. The study concentrated on staff involved directly in procurement, storage,
and distribution of cold medicines and involved employees from procurement
management unit, store and distributions, Tender Board as well as the accounting and
finance department.
3.4 Research Design
A descriptive research design was used. The descriptive research design was
employed because it enabled graphical and numerical methods to be summarized or
described and it normally describes the phenomenon, summarizes them, and presents
in table, graphs, and numerical summaries that fall under descriptive statistics. Editors
et al. (2014) argued that using descriptive research helps the researcher to identify and
23
obtain information on characteristics of particular phenomenon such as people,
community, social events, structure as well as situation and groups in the area of the
study. This research design was used because it enabled the researcher to choose the
reliable data collection tool, to help researchers to create appropriate hypotheses
(Dorst, 2016).
3.5 Target Population
The total population of the study was 120 employees from PMU, accounting, and
finance department, store department, distribution department, and tender Board at
MSD. Mohajan (2018) defined population as the total number of elements where the
researcher expects to select a sample from it. Population distribution is indicated
under Table 3.1:-
Table 3.1: Population Distribution
Category / Department Population
Procurement Management Unit 46
Store Department 15
Tender Board 7
Accounting and Finance 32
Distribution Department 20
Total 120
Source: Field Data (2020)
3.4 Sampling technique and sample size
3.4.1 Sampling techniques
This study used both probability and non-probability sampling techniques. Under the
probability sampling procedure, simple random sampling was employed because it
avoided biases and each participants had an the same chance of being included in a
sample (Daniel, 2016). Under non-probability sampling, judgment sampling was
employed. The researcher purposefully selected experienced and staff to interview
them to ensure the validity of information also to some official’s questionnaire was
specifically distributed to them to obtain the sensitive data. This saved time cost and
enabled the researcher to obtain relevant information (Mohajan, 2018).
24
3.4.2 Sample Size
The sample size of 80 was adequate since it is aligned with Mgenda and Mgenda
(2003) who suggested that an adequate sample size should be above thirty percent
(30%) of the target population and therefore the study used 54% of the target
population as the sample size. Table 3.2 indicates sample distribution.
Table 3.2: Sample Size Distribution Source
Category / Department Target Population Sample Size % of sample size
Procurement Management
Unit
46 31 39
Store Department 15 10 13
Tender Board 7 5 6
Accounting and Finance 32 21 26
Distribution Department 20 13 16
Total 120 80 100%
Source: Field Data (2020)
3.5 Types of Data
Two types of data were used which included primary data and secondary data which
were collected from primary and secondary sources respectively. Muhammad and
Kabir (2018) stated that primary data are those which are collected for the first time
and happen to be original. The researcher used primary data which was collected at
MSD.The data obtained from the primary data was original because it was obtained
from the primary source(direct ) to the employees at MSD that bare not documented
ant where and being used by other studies.
Secondary data is the data that is already available, for example, collected and
analyzed by someone else. The data may either be published or unpublished data.
Published data are usually available in trade journals, various publications of foreign
governments or international bodies and their subsidiary organizations, books,
magazines and newspapers, reports, and publications of various associations
(Muhammad & Kabir, 2018). Therefore, the researcher used both published and
unpublished data (documentary) to obtain information required particularly on the
factors affecting the effective cold medicine supply chain in Tanzania.
25
3.6 Methods of Data Collection
The study used the following data collection methods to gather information.
3.6.1 Questionnaire
Questionnaires are the methods whereby each participant is asked to give response to
the similar questions in a pre-determined order (Bird, 2009).Thus, questionnaire was
the major means of gathering participants information. A self-administered
questionnaire took place to ask respondents to complete for themselves. The
researcher used the questionnaire due to the low cost for a large and wide population.
Technique of data collection in which each respondent asked to respond to the same
set of questions in a pre-determined order (Saunders, 2003).In this study
questionnaire was the major means of collecting data from respondents. Self-
administered questionnaire took place to ask respondents to complete for themselves
.The researcher used questionnaire due to low cost for large and widely population.
Also questionnaire provided respondent time to give well throughout their responses.
Questionnaires were distributed to employees from PMU, Store Department,
accounting and finance, tender board and Distribution department.
3.6.2 Interview
The research used the oral interview with a few selected staff to obtain relevant
information (Avedian, 2018). The researcher cleared all misunderstandings
immediately and obtained additional information that was not obtained through a
questionnaire. The researcher used the interview technique in data collection because
it increased the relationship between researcher and respondents and it enabled the
researcher to obtain fresh data and provided clarifications to respondents in case there
are miss understandings of the question (Muhammad & Kabir, 2018).
3.7 Data Reliability and Validity
3.7.1 Reliability
Reliability is the consistency of measurement or; the degree to which an instrument
measures the same way each time used under the same condition with the same
26
subjects. The data were collected and covered relevant information that was required
by the researcher. Reliability is the extent to which data collection methods yield
consistent results (Bolarinwa, 2016). In that note, the test was performed using
Cronbach’s Alpha test
.
According to George and Mallery (2003), Cronbach’s alpha refers to the most
general reliability factor, which estimates internal consistency by determining the
relationship between all items under test and all other items and the overall
consistency of internal data, when reliability is greater or equal to 0.9 it implies
Excellent, greater or equal to 0.8 imply Good, greater or equal to 0.7 imply
acceptable, greater or equal to .6 imply Questionably, grater or equal to 0.5 implies
Poor, and less than.5 implies unacceptable. The Cronbach’s alpha reliability
coefficient expressed as a coefficient between 0 and 1 was used. The closer
Cronbach’s alpha coefficient is to 1.0 the greater the internal consistency of the items
in the scale. According to the rules of thumb, the value of alpha of > 0.7 is acceptable.
The reliability test of this study is as shown in Table 3.3:
Table 3.3: Reliability test
Source: Field Data (2020)
3.7.2 Validity
In this study, validity was ensured through a pilot study by conducting pre-testing of
research instruments to few selected respondents to ensure that the research
instruments are measuring what is intended to measure (Taber, 2018). Validity is
concerned with whether the findings are real about what they appear to be about. This
Variable Cronbach's Alpha N of items Conclusion
Technological level .912 5 Acceptable
Distribution channel .830 5 Acceptable
Staff competency .872 5 Acceptable
Storage capacities .878 5 Acceptable
Effectiveness of Cold
Medicines
Supply Chain
.886 5 Acceptable
27
shows whether the means of measurements are accurate and whether they are
measuring what they were intended to measure (Drost, 2011).
3.8 Methods of Data Analysis
In this research, the researcher analyzed quantitative and qualitative information.
Qualitative data were analyzed narratively as they were gathered to support the
qualitative data while quantitative data were analyzed using factor analysis method,
inferential analysis, and descriptive analysis. Descriptive analysis included frequency
and percentage which helped the researcher to analyze all the questions asked by the
researcher and inferential analysis included correlation and multiple regression
analysis with the help of statistical package for social sciences (SPSS).
Factor analysis was conducted to check the factor ability and adequacy of the data.
Descriptive analysis was used because it enables the researcher to provide a clear
description of information especially on the characteristics and each question of the
specific objectives. On the other way, an inferential analysis was applied due to the
reason that it enabled researchers to present the relationship between predictor
variables (technology level, distribution channel, staff competency, and storage
capacity) and dependent variable (effective supply chain of cold medicine). The
regression equation is hereby presented below:-
Multiple regression models for the effective supply chain of cold medicine
(dependent variable) were regressed against technology level, distribution channel,
staff competence, and storage capacity (independent variables) to measure the
contribution of the independent variables to the dependent variable.
The following regression model was developed to help the researcher to test the
relationship and extent of contribution between the dependent variable and
independent variables.
Y = β0 + β1X1 + β2X2 + β3X3 +β4X4 + ε
Whereby;
28
Y=Effective supply chain of cold medicine,
β0= Constant,
β1= Regression coefficient of technology level
β2 =Regression coefficient distribution channel
β3= Regression coefficient of staff competence,
β4 = regression coefficient of storage capacity
ε= Error term,
X1= technology level,
X2 = distribution channel,
X3= staff competence
X4 = storage capacity
29
CHAPTER FOUR
PRESENTATION OF THE FINDINGS
4.1 Introduction
This chapter is very essential part whereby it involves presentation of data obtained
from the field that collected by using three data collection tool namely; documents
reviews, interview as well as questionnaire as expressed on the previous chapter. This
chapter is presented in four sections, the first section presents the demographic
analysis of the respondents, the second section presents the validity and reliability
test, the third part presents the factor analysis of the study whereas the last part
presents the inferential analysis.
4.2 Response rate
The study aimed to sample 80 respondents in the process of collecting. Out of the 80
respondents that were approached during the study, only 70 respondents responded to
the study. Therefore, this signifies a response rate of 87%, which is significant to
give reliable findings for this study. This rate agrees with Munda (2014) who
indicated that the rate of response which is above fifty percent (50%) is adequate for
analysis and reporting. Table 4.1 indicates the response rate of the respondents.
Table 4.1: Response rate
Response Frequency Percentage (%)
Responded 70 87
Not responded 10 13
Total 80 100
Source: Field Data, 2019
4.3 Preliminary analysis
The study used 70 respondents for analysis where 65 respondents who represented
employees were given questionnaires, while 5 respondents who represented the heads
of departments were interviewed. This part is where the general respondent’s
30
information obtained such as s, education level, the working experience of the
respondents.
4.3.1 Education level
To get a clear link between the education level and staff competence the researcher
examined the education level of the respondents who are the employees of MSD. The
finding showed that 40 (66.7%) of the respondents had an education level of bachelor
and above. This level was discovered to take a huge respondents’ ration which
indicated that at MSD many of the employees are educated at the level of bachelor
and above. Table 4.2 indicates the respondents’ education level.
Table 4.2: Education level
Category Frequency Percent
Bachelor and above 40 66.7
Diploma 16 26.7
Certificate 9 13.8
Total 65 100.0
Source; Research data (2020)
4.3.2 Experience of the respondents
From the finding Table, 4.3 showed that 5 (8.3%) respondents had an experience of
one year and less, 30 (46%) respondents had an experience of more than one year to
five years and 29 (48.3%) respondents had an experience of more than five years, this
indicated that at MSD.
Table 4.3: Experience
Category Frequency Percent
On e One year and less 5 8. 3
One year to five years 30 46
Ab Above five years 29 48.3
Totals Total 65 100
Source: Field Data (2020)
31
4.4 Data Analysis Based on the Study Objectives
The researcher performed factor analysis, regression analysis for testing, and
obtaining results. Firstly, factor analysis performed to reduce a large number of data
into a small number of interrelated before performing other analyses. Correlation and
Multiple Regression analysis applied purposively to test the hypotheses as was
presented early in chapter two of this study (Kothari, 2011).
The research study was driven by two variables one among them was the dependent
variable that’s; effective supply chain on cold medicine and the independent variables
that are; the level of technology, distribution of cold medicine, staff competency
together with storage capacity., as presented in the conceptual framework. The study
employed factor analysis technique firstly by assessing the factorability of the
variables using Bartlett’s of sphericity that should be significant (p<.05) and Kaiser-
Meyer-Olkin (KMO) which measure sampling adequacy, the KMO index ranges
from 0 to 1, with not less than 0.6 suggested as the minimum value for good factor
analysis, factor extraction made to determine the smallest number of factors that can
be used to best represent the interrelations among the set of variables.
4.3.1 Factor Analysis on Effective supply chain of cold medicine
An effective supply chain as the dependent factor was analyzed using factor analysis
statistical (Arrowsmith, Linarelli, & Wallace, 2000) method to determine whether
could be used to conclude this study. The results show that KMO has 0.703 value,
Chi-square = 283.016, Df = 10, and the Bartlett’s of Sphericity was significant at p-
value = .000 as presented in Table 4.4.
The KMO which is greater than 0.7 i.e. (0.703) > (0.6), indicates that the sample data
are suitable for factor analysis. Bartlett's test is another indication of the strength of
the relationship among variables. The null hypothesis should be rejected for a test to
be statistically significant. From the same Table 4.4, results reveal that there is
significance in the test of sphericity. That is, its p-value is less than 0.05 i.e. p<0.05.
Therefore, the significance level is lesser to reject the null hypothesis. This means
32
that correlations coefficients are not all zero. Therefore, these results show that both
assumptions required for factor analysis are satisfied.
Table 4.4: KMO and Bartlett's Test effective supply chain of cold medicine
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .703
Bartlett's Test of Sphericity
Approx. Chi-Square 283.016
Df 10
Sig. .000
Df-degree of freedom, Sig-significant
Source: Field Data (2020)
4.3.2 Factor Analysis on Independent Variable
The research study complied independent variable used to measure the presence of
dependent variables, those independent variables were; those variables were; level of
technology, distribution of cold medicine, staff competency together with storage
capacity. The study developed factor analysis on each independent variable to
determine if they can be used to conclude the study but also to determine if other
analysis modes can be applied to measure the relationship between an independent
variable and the dependent variable. Therefore the variables in this study were
analyzed and interpreted according to the results obtained from the factor analysis.
4.3.3 Factor Analysis on the level of technology
The independent variable of the Level of technology was tested using factor analysis
where measurements helped to determine whether the Level of technology could be
used to conclude this study. Therefore, the results for factor analysis undertaken for
the Level of technology were as follows; KMO and Bartlett’s test of sphericity was
significant at p-value .000, chi squire 1180.693and the degree of freedom were 28.
The sampling adequacy was 0.878, which was supportive and appropriate for further
multivariate. Furthermore, other extraction methods or techniques such as varimax
with Kaiser Normalization employed in the research study are as shown in Table 4.5.
33
The KMO which is greater than 0.7 i.e. (0.878) > (0.6), indicates that the sample data
are suitable for factor analysis. Bartlett's test is another indication of the strength of
the relationship among variables. The null hypothesis should be rejected for a test to
be statistically significant. From the same Table 4.5, results reveal that there is
significance in the test of sphericity. That is, its p-value is less than 0.05 i.e. p<0.05.
Therefore, the significance level is lesser to reject the null hypothesis. This means
that correlations coefficients are not all zero. Therefore, these results show that both
assumptions required for factor analysis are satisfied.
Table 4.5: KMO and Bartlett's Test on the level of technology
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .878
Bartlett's Test of Sphericity
Approx. Chi-Square 1180.693
Df 28
Sig. .000
Source: Field Data (2020)
4.3.4 Factor Analysis on Distribution of cold medicine
Another independent variable, which was tested using factor analysis, was the
distribution of cold medicine whose findings helped to determine the scale and
enabled the study to conclude hence attainment of the research objectives. Factor
analysis was established to draw measurements used in the study and the results were
as follows; KMO and Bartlett’s test of sphericity was significant at a p-value of .000,
Chi-square of 1032.523 and the degree of freedom was 28. The sampling adequacy
was 0.780, which was appropriate for further multivariate.
The KMO which is greater than 0.7 i.e. (0.780) > (0.6), indicates that the sample data
are suitable for factor analysis. Bartlett's test is another indication of the strength of
the relationship among variables. The null hypothesis should be rejected for a test to
be statistically significant. From the same Table 4.6, results reveal that there is
significance in the test of sphericity. That is, its p-value is less than 0.05 i.e. p<0.05.
34
Therefore, the significance level is lesser to reject the null hypothesis. This means
that correlations coefficients are not all zero. Therefore, these results show that both
assumptions required for factor analysis are satisfied.
Table 4.6: KMO and Bartlett's Test Distribution of cold medicine
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .780
Bartlett's Test of Sphericity
Approx. Chi-Square 1032.523
Df 28
Sig. .000
Source: Field Data (2020)
4.3.5 Factor Analysis on Procurement Staff Competency
The independent variable tested using factor analysis was Staff Competency where
the researcher was interested in ascertaining whether the staff competency could be
used to conclude the study. The results are as presented in Table 4.7. Therefore,
Factor analysis was employed to prepare data for further analysis method and the
results were as follows, KMO and Bartlett’s test of sphericity was significant at a p-
value of .000, chi squire 994.997and the degree of freedom was 28. The sampling
adequacy was 0.688, which was appropriate for further multivariate.
The KMO which is greater than 0.7 i.e. (0.788) > (0.6), indicates that the sample data
are suitable for factor analysis. Bartlett's test is another indication of the strength of
the relationship among variables. The null hypothesis should be rejected for a test to
be statistically significant. From the same Table 4.7, results reveal that there is
significance in the test of sphericity. That is, its p-value is less than 0.05 i.e. p<0.05.
Therefore, the significance level is lesser to reject the null hypothesis. This means
that correlations coefficients are not all zero. Therefore, these results show that both
assumptions required for factor analysis are satisfied.
35
Table 4.7: KMO and Bartlett's Test on staffs competency
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .688
Bartlett's Test of Sphericity
Approx. Chi-Square 994.997
Df 28
Sig. .000
Source: Field Data (2020)
4.3.7 Factor Analysis of Storage Facilities
Also, the study tested the Independent variable storage facilities using factor analysis
in determining whether storage facilities could conclude the study, the results
obtained revealed that; KMO and Bartlett’s test of sphericity was significant at a p-
value of .000, chi squire 742.657 and the degree of freedom was 28. The sampling
adequacy was 0.761, which was appropriate for further multivariate.
The KMO which is greater than 0.7 i.e. (0.761) > (0.6), indicates that the sample data
are suitable for factor analysis. Bartlett's test is another indication of the strength of
the relationship among variables. The null hypothesis should be rejected for a test to
be statistically significant. From the same Table 4.9, results reveal that there is
significance in the test of sphericity. That is, its p-value is less than 0.05 i.e. p<0.05.
Therefore, the significance level is lesser to reject the null hypothesis. This means
that correlations coefficients are not all zero. Therefore, these results show that both
assumptions required for factor analysis are satisfied.
Table 4.8: KMO and Bartlett's Test on storage facilities
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .761
Bartlett's Test of Sphericity
Approx. Chi-Square 742.657
Df 28
Sig. .000
Source: Field Data (2020)
36
4.4 Simple Regression Analysis
The researcher developed a hypothesis, which was to be tested to come up with a
conclusion. The researcher tested the relationship between the variables using
inferential analysis. The correlation and multiple regression analysis employed to
measure the existing relationship between the dependent and the independent
variables.
4.4.1 Correlation of the Study Variables
The researcher runs the correlation matrix to check whether there was an association
between variables. The correlation coefficient shows the magnitude and direction
between the variables of the study. The correlation coefficients vary over a range of
+1 through 0 to -1. Taylor (1990) clarified that regardless of the direction, the closer
the correlation coefficient is to ± 1, the stronger the current correlation is, indicating
that the linear relationship between the two variables is better; The positive
correlation coefficient specifies that the rise of the first variable will correspond to the
first increment of next variables while a negative correlation indicates an inverse
relationship whereas one variable increase, the second variable decrease, and that
relationship is statistically significant only if the p-value is less than 0.05. Table 4.8
indicates the correlation between the study variables.
The finding of the correlation analysis in Table 4.9 indicated that there is a positive
correlation between the level of technology and effective supply chain of cold
medicine (r=0.950, p-value=0.000) this means that whenever there is an increase in
the level of technology also the effective supply chain of cold medicine. Also, the
findings showed that there is a positive correlation between warehouse design
whereby r=0.932, p-value = 0.000 which means that the distribution of cold medicine
influences the effective supply chain of cold medicine positively. Furthermore, the
study revealed that there was a positive relationship between staff competency and
effective supply chain of cold medicine whereby r=0.932, p-value = 0.000 implying
that an increase in staff competency improves the rate of the effective supply chain of
cold medicine at MSD.
37
Table 4.9: Correlations
Level of
technology
Distribution of
cold Medicine
Staffs
competency
Storage
facilities
The effective
supply chain of
cold medicine
Level of
technology
Pearson
Correlation 1
Sig. (2-tailed)
N 65
Distribution
of cold
Medicine
Pearson
Correlation .956** 1
Sig. (2-tailed) .000
N 65 65
Staffs
competency
Pearson
Correlation .949** .977** 1
Sig. (2-tailed) .000 .000
N 65 65 65
Storage
facilities
Pearson
Correlation .962** .961** .976** 1
Sig. (2-tailed) .000 .000 .000
N 65 65 65 65
The
effective
supply
chain of
cold
medicine
Pearson
Correlation .950** .932** .932** .962** 1
Sig. (2-tailed) .000 .000 .000 .000
N 65 65 65 65 65
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Field Data (2020)
4.4.2 Regression Model Analysis
The regression analysis was carried out to define how the independent variables
influenced the dependent variable. The analysis applied the statistical package for
social science (SPSS V.20). Regression analysis is used to analyze the relationship
between a single dependent variable and several predictor variables (Kothari, 2014).
The regression coefficient summary was used to measure the nature of the
relationship between the dependent and independent variables.
38
Table 4.10: Model summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .968a .936 .932 .19305
a. Predictors: (Constant), level of technology, distribution of cold medicine, staff competency
together with a storage capacity
Findings in Table 4.10 indicate the overall Pearson correlation coefficient (R) of
0.968 for all independent variables (level of technology, distribution of cold
medicine, staff competency together with storage capacity). This extent of R shows
that there is a strong relationship or correlation between independent and the
dependent variables. Moreover, findings in Table 4.10 show the R-square
(determination coefficient) where the level of technology, distribution of cold medicine,
staff competency together with a storage capacity explain about (0.936) 93.6% of the
proportional change (variation) of the effective supply chain of cold medicine. The
rest of the variation 0.064 (6.4%) is explained by other factors not studied in this
research. The proportion of R-squared shows that the model is good in explaining the
changes in the dependent variable caused by the changes in independent variables.
Table 4.11: ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1
Regression 32.894 4 8.223 220.656 .000b
Residual 2.236 60 .037
Total 35.130 64
a. Dependent Variable: effective supply chain of cold medicine
b. Predictors: (Constant), level of technology, distribution of cold medicine, staff competency together
with a storage capacity
Table 4.11 above indicates the significance level of the model whereby it indicates that
the p-value=0.000 which means that the model is significant as the p-value is less
than 0.05(5%).
39
Table 4.12: Regression model
Independent
variable
B Beta t Sig. Interpretation
Technology level .258 .308 2.314 .024 Significance
Distribution of cold
medicine
.112 .129 .759 .040 Significance
Staff competence .295 .320 1.598 .015 Significance
Storage facilities .862 .854 4.818 .000 Significance
a. Dependent Variable: effective supply chain of cold medicine. A regression model is
significant at .000
Source: Field Data (2020)
From Y=β0+β1X1+β2X2+β3X3+β4X4+ ε
Then Y=- 0.308+ 0.129X1+ 0.320X2+ 0.854X3+ 0.193
From the Table 4.12 above independent variables were observed to explain 93.6% of
warehousing effective supply chain of cold medicine as presented by R square and
the regression model was statistically significant at 0.000 which is less than 0.05
From the Table 4.12 above indicate that holding other factors constant effective
supply chain of cold medicine at MSD would be 0.239 which indicate that effective
supply chain of cold medicine at MSD would deteriorate if no consideration will be
taken on improving several factors influencing it. From the analysis storage facilities
was observed to have highest significant contribution on the effective supply chain of
cold medicine at MSD, as it showed that a unit increase in storage facilities will result
to 85.4% of the effective supply chain of cold medicine at MSD and it was statistical
significance at 0.000, staffs competency was observed to be the second factor
contribute to the effective supply chain of cold medicine at MSD in which a unit
increase in staffs competency resulted to 32.0% increase in the effective supply chain
of cold medicine at MSD and was statistical significance at 0.015 and level of
Technology was the third factor in influencing effective supply chain of cold
medicine at MSD by 30.8% and it was statistical significance at 0.024, lastly,
distribution of cold medicine observed to influence effective supply chain of cold
medicine at MSD by 21.9% and statistically significance by 0.040.
40
From the finding researcher was able to test the generated hypothesis from the study
from which the following was observed;
H1: There is no significant influence of the technological level on the effectiveness of
the cold medicines supply chain.
From the finding, the correlation between the level of Technology and effective
supply chain of cold medicine was 0.950 which was statistically significant at 0.000
and the regression model showed that level of Technology had a contribution of
30.8% to the effective supply chain of cold medicine and was statistically significant
at 0.024. This helped the researcher to conclude that the generated null hypothesis is
rejected as it has a positive correlation and contributes significantly to the effective
supply chain of cold medicine at MSD in that case null hypothesis was rejected.
H2: There is no significant influence of distribution on the effectiveness of cold
medicines supply chain
The correlation between the distribution of cold medicine and effective supply chain
of cold medicine at MSD was 0.932 which is statistically significant at 0.000 and its
contribution to the effective supply chain of cold medicine at MSD was 21.9% as
shown in the table 4.8at a significant level of 0.40 which indicate that it is true that
distribution of cold medicine has a positive contribution with an effective supply
chain of cold medicine at MSD hence null hypothesis rejected.
H3: There is no significant influence of staff competency among stakeholders on the
effectiveness of the cold medicines supply chain.
The correlation between staffs competency and effective supply chain of cold
medicine was 0.932 with a p-value of 0.000 and the regression model showed that
staffs competency contributed up to 32% to the effective supply chain of cold
medicine at MSD at a p-value of 0.015 which was statistically significant and the
researcher concluded that staffs competency has a positive relationship with an
effective supply chain of cold medicine at MSD hence null hypothesis rejected.
41
H4: There is no significant influence of the availability of storage capacities on the
effectiveness of cold medicines supply chain
The correlation between storage facilities and effective supply chain of cold medicine
was 0.962 with a p-value of 0.000 and the regression model showed that storage
facilities contributed up to 85.4% to the effective supply chain of cold medicine at
MSD at a p-value of 0.000 which was statistically significant and the researcher
concluded that storage facilities have a positive relationship with an effective supply
chain of cold medicine at MSD hence null hypothesis was rejected.
4.5 Descriptive Analysis
Thereafter, the researcher employed descriptive statistics to analyze the response of
the respondents on each of the questions asked, in this method researcher used
frequency (F) and percentage (%) to analyze the study found. The analysis was done
for each specific objective of this study.
4.5.1 Level of Technology on Cold Medicine
This was the first specific research objective whereby researcher intended to examine
the influence of technology on cold medicine at MSD, by doing so researcher-
developed various sub-variables which used to formulate statements essential for
measuring respondent opinions and to determine the influence of technology towards
effective supply chain of cold medicine as expressed by the following sub-variables.
4.5.2 Electronic record information
Table 4.13 shows the respondent’s opinion on the statement concerning the electronic
record information towards the supply chain of cold medicine at the Medical store
department. The finding on this factor has revealed that 46(70%) of the respondents
had agreed that at Medical store department have electronic record information,
8(13%) of the respondents had stayed neutral on the fact that at MSD have electronic
record information on cold medicine and the rest 11(17%) of the respondents had
disagreed with the fact. The electronic records at the medical store support the
effective supply chain of cold medicine.
42
These findings are supported by one of the heads of departments from the accounting
and finance department who argued that;
“Information technology can reduce coordination costs, and in the supply
chain environment, it can dramatically increase transaction efficiency by
adding sharing information and communication functions, thereby improving
supply chain performance. Hence, information management and sharing are
very crucial for cooperation and organization between chain partners of
supply, so supply chain risks can be minimized”.
Table 4.13: Electronic record information
Response Frequency Percent Cumulative Percent
S Strongly disagree 2 3.0 3.0
Dis Disagree 9 14.0 17.0
Neutral 8 13.0 30.0
Agree 33 50.0 80.0
Strongly agree 13 20.0 100.0
Total 65 100.0
Source: Research (2020)
4.5.3 Computerized modern storage system
Given the foregoing, the study intended to ascertain the extent to which the
computerized modern storage system enhanced by the procuring entity especially
MSD that they enhance the storage of medicals technologically that influence an
effective supply chain. Research results revealed that The results indicate that about
21(32%) of the respondents agreed they use a computerized modern storage system in
their respective entity, 5(8%) respondents remained neutral and about 4(6%) of the
respondents disagreed with that their organization have computerized modern storage
system as shown in the Table 4.14.
One of the heads of departments from the store department argued that;
43
“The use of computerized modern storage systems increases the efficiency of
the distribution channel and storage whereby the manual efforts have been
reduced to a great extent”.
Table 4.14: Use of computerized modern storage systems
Response Frequency Percent Cumulative Percent
S Strongly disagree 2 3.0 3.0
Dis Disagree 4 6.0 9.0
Neutral 5 8.0 17.0
Agree 21 32.0 49.0
Strongly agree 33 51.0 100.0
To talTotal 65 100.0
Source: Research (2020)
4.5.4 Use of Tracking System
This is another sub variable on level of technology, the researcher was interested to
examine the tracking system which adopted at MSD and its influence towards
effective supply chain on cold medicine.
Findings in Table 4.15 indicate that 63(96%) participants believed that their respective
entities use a tracking system to track transport facilities which carrying medicines
while none of the respondents stayed neutral and lastly 2(3%) of the respondents
disagreed that organization use tracking system in the distribution of medicine. The
use of a tracking system gives the necessary information that can be used to make
follow up of the distribution process.
One of the heads of departments from the tender board claimed that;
“The gathered information collected is created to improve cold chain
implementation and timely provision of vaccines to victims. However, if this
information is inaccurate, misleading, or falling into the hands of malicious
groups, you may become a threat to these lives”.
44
Another of the heads of departments from the distribution department claimed that;
“Local information on access, infrastructure, and capacity must be constantly
updated. In the absence of such information, at least know the conditions under
which the planned route or planned schedule will lead to a cold chain break,
indicating the most important information needs and critical thresholds”.
Moreover, another of the heads of departments from the procurement management
unit claimed that;
“Information Systems (IS) play a significant role in data management and
integration in the supply chain. Sufficient flow of information is one of the most
vital features of the whole supply chain activities”.
Table 4.15: Use of tracking system
Response Frequency Percent Cumulative Percent
S Strongly disagree 1 1.5 1.5
Dis Disagree 1 1.5 3.0
Neutral 0 0.0 41.0
Agree 25 38.0 99.0
Strongly agree 38 58.0 100.0
Total 65 100.0
Source: Research (2020)
4.5.5 Online Order Processing System
From the table 4.16 below indicate the finding on the online order processing system
whereby 61(92.4%) respondents had agreed that supplier order processing is done
electronically, while 0% of the respondents had no idea about the subject and stayed
neutral and 4(6.1%) of the respondents had disagreed that organizations enhance
online order processing system.
One of the heads of departments from the tender board claimed that;
“Technology can positively influence task collaboration, data mining, and
storage, and thus improve workers' knowledge, skills, and business
45
relationships. By adopting advanced technology, companies are expected to
enjoy potential economic benefits by achieving information sharing and joining
staff electronically through information sharing systems”.
Table 4.16: Online order processing system
Response Frequency Percent Cumulative Percent
S Strongly disagree 0 0.0 6.1
Dis Disagree 4 6.1 21.5
Neutral 0 0.0 99.5
Agree 10 15.4 100.0
Strongly agree 51 77.0
Total 65 100.0
Source: Research (2020)
4.6 Distribution of Cold Medicine
The second objective of this study was to establish the effects of the distribution
channel towards an effective supply chain of cold medicine at MSD. In response to
this objective, the researcher had examined the Transport system, Distribution
planning, Information system, Order Processing, and Inventory management systems.
4.6.1 Transport System
According to the responses in Table 4.17, 60(93)% of the respondents believed that
the organization adequately used modernized transport facilities, 5(8)% of the
respondents were neutral which means they did not have any opinions on the
transport system and none of the respondents disagreed with the statement. Table 4.17
shows the results.
One of the heads of departments from the distribution department described that;
“The system of cold chain contains a storage series and transportation links,
all of which are planned to keep the vaccine within a satisfactory temperature
range until it reaches the user. In developing countries, especially tropical
46
climate countries, the cold chain is still a serious weakness in national
immunization programs”.
Table 4.17: Transport system
Response Frequency Percent Cumulative Percent
S Strongly disagree 0 0.0 8.0
Dis Disagree 0 0.0 72.0
Neutral 5 8.0 100.0
Agree 42 65.0
Strongly agree 18 28.0
Total Total 65 100.0
Source: Research (2020)
4.6.2 Distribution Planning
Respondents were asked to agree or disagree on whether the organization uses an
effective distribution plan that leads to an effective supply chain of cold medicine.
Findings show that 19(28%) of respondents had strongly agreed, 30(46%) of the
respondents had agreed to this statement, 7(11%) of the respondents had stayed
neutral on organization use effective distribution plan, 9(14%) of them had to
disagree on the question this is clearly shown in the Table 4.18.
The head of the department from the distribution department argued that;
“According to the health impact of the government and key industry
stakeholders, the importance of the cold chain is very clear. They rarely attempt
to control the impact of supply chain logistics, such as transportation,
warehousing, packaging, technical capabilities, and numerous other aspects
and the sensitive actions that aid to keep these medicines safe and of high
quality”.
47
Table 4.18: Distribution planning
Response Frequency Percent Cumulative Percent
S Strongly disagree 6 9.0 9.0
Dis Disagree 3 5.0 14.0
Neutral 7 11.0 25.0
Agree 30 46.0 72.0
Strongly agree 19 28.0 100.0
Total 65 100.0
Source: Research (2020)
4.6.3 Information System
The information system is a sub variable on a second research objective that aimed to
determine the influence of distribution towards effective supply chain Table 4.19
below, showed that 61(94%) of the respondents had agreed that their organization use
information system that reduces risk on the supply chain of cold medicine, 6(4% ) of
the respondents had stayed neutral while the rest of the respondents which is 2(3%)
respondents had disagreed that their organization use information system that reduces
risk on the supply chain of cold medicine. Information sharing through information
system improves the distribution channels in the supply chain activities.
One of the heads of department from the distribution department stated some of the
information system benefits that;
“These are the shared benefits of an information system that have been
emphasized; improve production planning, improve and increase customer
service, reduce inventory costs, improve distribution and use of logistical
resources and reduce delivery time through the supply chain”.
48
Table 4 19: Information system
Response Frequency Percent Cumulative percent
S Strong Disagree 0 0.0 0.0
Dis Disagree 2 3.0 3.0
Neutral 4 6.0 9.0
Agree 37 57.0 66.0
Strong Agree 24 37.0 100.0
Tota Total 65 100.0
Source: Research (2020)
4.6.4 Order Processing
Order processing is a sub variable on the distribution of cold medicine chain, the
researcher was interested to examine the order processing system which adopted at
MSD and if it is done accurately that result into effective supply chain on cold
medicine Findings in Table 4.20 below indicate that 50(76%) participants believed
that their respective entities have a good order processing that handles all orders from
different parts while 7(11%) of the respondents stayed neutral and 6(9%) of the
respondents disagreed, lastly 2(3%) strongly disagreed that procuring entity has a
good order processing that handles all orders from different parts.
Table 4.20: Order processing
Response Frequency Percent Cumulative Percent
S Strongly disagree 2 3.0 3.0
Dis Disagree 6 9.0 12.0
Neutral 7 11.0 23.0
Agree 36 55.0 78.0
Strongly agree 14 21.5 100.0
Total Total 65 100.0
Source: Research (2020)
49
4.6.5 Inventory Management System
Table 4.21showed that 53(81%) of the respondents had agreed that their organization
normally use integrated inventory management system which leads to the effective
supply chain of cold medicine, 7(11%) of the respondents had stayed neutral 3(5%) of
the respondents strongly disagreed while the rest of the respondents which is
2(3.1)8% had disagreed that their organization normally use integrated inventory
management system which leads to the effective supply chain of cold medicine.
Also, the head of the department from the distribution department argued that;
“However, despite the use of an integrated inventory management system in
our office, still in the hospital department, inventory levels are determined
based on the need to meet performance. The cost factor is one of the key
criteria used by pharmaceutical companies when determining inventory levels
in a given period”.
Table 4.21: Inventory management system
Response Frequency Percent Cumulative Percent
S Strongly disagree 3 5.0 5.0
Dis Disagree 2 3.1 8.1
Neutral 7 11.0 19.1
Agree 10 15.0 34.1
Strongly agree 43 66.0 100.0
Total 65 100.0
Source: Research (2020)
4.7. Staff Competency among Stakeholders
The third research objective aimed to examine the influence of staff competency
among stakeholders towards the achievement of an effective supply chain of cold
medicine at the Medical store department, in this research objective researcher-
developed some sub-variables used to measured respondents' opinions through
50
formulated statements. Those sub-variables include sufficient knowledge on cold
medicine, Experience, Periodical Training on medical supplies, Professionalism, and
Level of education.
4.7.1 Sufficient Knowledge on Cold Medicine
The researcher examined the level of knowledge among stakeholders in the
organization as the factor on staff competency among stakeholders which influences
the effective supply chain of cold medicine in the organization. From the finding it
was revealed that 46(71%) respondents had agreed that their organization staffs have
sufficient knowledge on cold medicine, 9(14%) of the respondents had stayed neutral
and 10(15%) respondents had disagreed that their organization staffs have sufficient
knowledge on cold medicine as shown on the Table 4.22.
“Organizational performance is strongly influenced by the characteristics of
knowledge change, new skills creation, knowledge sharing, knowledge storage,
and the use and reuse of knowledge. In order to achieve the required
performance, an organization must be created; policies, structure, and culture
of knowledge management response”.
To gain knowledge, the head of the department from procurement management unit
stated that;
“Training is used to improve employee capability of doing work and accepting
new skills. Continuous training programs about lean tools and practices are
required to foster an appropriate culture in the organization”.
Table 4.22: Sufficient knowledge of cold medicine
Response Frequency Percent Cumulative Percent
S Strongly disagree 4 6.0 6.0
Dis Disagree 6 9.2 15.2
Neutral 9 14 29.2
Agree 31 48 77.2
Strongly agree 15 23 100.0
Total 65 100.0
Source: Research (2020)
51
4.7.2 Experience
In this context of experience as shown in the Table 4.23 below the analysis has
indicated that 42(64%) respondents had agreed that in their organization staffs have
enough experience to conduct supply chain of cold medicine that results in into
effective supply chain of cold medicine whereby 14( 21%) respondents had stayed
neutral and 9(13%) respondents had disagreed that in their organization there is trust
among the project management team which yield positive impact to the project
performance.
These findings are supported by one of the heads of departments from the accounting
and finance department who stated that;
“The ability of workers to store and distribute materials necessary for their
work situation. This includes transportation of consumables to its facilities and
dispatch to other facilities. It also includes the capabilities needed to manage
the outsourcing of these activities, as well as partnerships related to these
activities”.
Table 4.23: Experience
Frequency Percent Cumulative Percent
S Strongly disagree 2 3.0 3.0
Dis Disagree 7 10.2 13.2
Neutral 14 21.5 34.7
Agree 32 49 83.7
Strongly agree 10 15.3 100.0
Total 65 100.0
Source: Research (2020)
4.7.3 Periodical Training on Medical Supplies
Table 4.24 below, the analysis indicated that 55(84%) respondents had agreed that in
their entity, there is regular training which provided by the organization that enhances
staff competence on the supply chain of cold medicine whereby 9 (10.5%)
respondents stay neutral and 4(6%) respondents had disagreed that there is regular
training which provided by the organization that enhances staff competence on the
52
supply chain of cold medicine. This was also supported by the head of the department
from the store department who claimed that;
“My organization regularly holds meetings, training sessions, and conferences
to exchange and transfer knowledge. The organization can understand and
improve personal knowledge, skills, and abilities in the workplace; recruitment,
training, and work enrichment to increase the performance of the
organization”.
Table 4.24: Periodical training on medical supplies
Response Frequency Percent Cumulative Percent
S Strongly disagree 2 3.0 3.0
Dis Disagree 2 3.0 6.0
Neutral 6 9.0 15.0
Agree 21 32 47.0
Strongly agree 34 52 100.0
Total 65 100.0
Source: Research (2020)
4.7.4 Professionalism
From the Table 4.25 below indicate the finding on the professionalism of staffs at
MSD who are responsible for enacting supply chain of cold medicine whereby 55
(84%) respondents had agreed that organizational staffs have sufficient experience to
conduct supply chain activities, while 9(14%) respondents had no idea about the
subject and stayed neutral and 1(1.5%) respondents had disagreed that organizational
staffs have sufficient experience to conduct supply chain activities.
This was also supported by the head of the department from the store department who
claimed that;
“We have sufficient professional staff who can assist the organization supply
chain of cold medicine ineffectiveness and efficient”.
Another head of the department from the store department stated that;
“Our organization has professional staff who can deliver products on time and
with low cost because of supply chain knowledge they have”.
53
Table 4.25: Professionalism
Response Frequency Percent Cumulative
Percent
S Strongly disagree 0 0.0 0.0
Dis Disagree 1 1.5 1.5
Neutral 9 14.0 15.5
Agree 21 32 47.5
Strongly agree 34 52 100.0
Total 65 100.0
Source: Research (2020)
4.7.5 Level of Education
From the table 4.26 below indicate the finding on the level of education among
organizational staffs who are responsible for executing supply chain of cold medicine
whereby (55) 85% respondents had agreed that organizational staffs have enough
level of education that required for executing supply chain activities of cold medicine,
while 8(12%) respondents had no idea about the subject and stayed neutral and 2(3%)
respondents had disagreed that enough level of education that required for executing
supply chain activities of cold medicine.
Table 4.26: Level of education
Response Frequency Percent Cumulative Percent
S Strongly disagree 0 0.0 0.0
Dis Disagree 2 3.0 3.0
Neutral 8 12.0 15.0
Agree 18 28 43.0
Strongly agree 37 57 100.0
Total 65 100.0
Source: Research (2020)
4.8 Availability of Storage Capacities
This was the last research specific objective whereby researcher interested to examine
the storage capacity of the organization and how it influences effective supply chain
of cold medicine at MSD, by doing so researcher established various sub-variables
which was essential for measuring respondents opinions and to draw a conclusion on
the study, the sub-variables included Storage equipment, Collection Point, Special
54
Storage for cold medicines. Correct medical storage temperature and Availability of
functional.
4.8.1 Storage Equipment
This is another sub variable on availability of storage capacities, the researcher was
interested to examine the storage capacities which adopted at MSD and its influence
towards effective supply chain on cold medicine. Findings in Table 4.27 indicates
that 63(96%) participants believed that their respective entities have enough storage
equipment that facilitates handling of medicine in an effective way which while none
of the respondents stayed neutral and lastly 2(3%) of the respondents disagreed that
organization has enough storage equipment.
One of the heads of department from the store department stated that;
“Storage conditions and facilities are not up to standard levels, and there is a
lack of specialized transportation systems to monitor the appropriate
temperature to ensure that the cold chain will not break during transportation.
The packaging materials used have problems maintaining the correct
temperature and conditions to ensure vaccine safety”.
Table 4.27: Storage equipment
Response Frequency Percent Cumulative Percent
S Strongly disagree 1 1.5 1.5
Dis Disagree 1 1.5 3.0
Neutral 0 0.0 41.0
Agree 25 38.0 99.0
Strongly agree 38 58.0 100.0
Total 65 100.0
Source: Research (2020)
4.8.2 Collection Point
Table 4.28 below, showed that 53(81%) of the respondents had agreed that their
organization has a good collection point where all new items are collected and for
those dispatched items are collected which lead to the effective supply chain of cold
medicine, 7(11%) participants had stayed neutral while the rest of the participants
55
which is 5(8%) had disagreed that their organization has a good collection point
where all new items are collected and for those dispatched items are collected which
lead to the effective supply chain of cold medicine.
One of the heads of department from the store department stated that;
“Our organization is technically able to handle cold chain effectively to ensure
its safety. Correct packaging and compliance issues related to transportation,
warehousing, packaging, and technical compliance are critical to the impact of
cold chain projects on the level of user safety”.
Table 4.28: Collection point
Response Frequency Percent Cumulative Percent
S Strongly disagree 3 5.0 5.0
Dis Disagree 2 3.1 8.1
Neutral 7 11.0 19.1
Agree 10 15.0 34.1
Strongly agree 43 66.0 100.0
Total 65 100.0
Source: Research (2020)
4.8.3 Special Storage for Cold Medicine
The researcher also examined the special storage for cold medicine at MSD that is
supportive of the effective supply chain of cold medicine. From the finding in Table
4.29, it was discovered that 54(83%) respondents had agreed that their organization
has enough sufficient and special storage of cold medicine that resembles with the
ingredients of the medicine while 8(12%) respondents had stayed neutral and 3(4.5%)
of the respondents had disagreed that their organization has enough sufficient and
special storage of cold medicine that resembles with the ingredients of the medicine.
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Table 4.29: Special storage for cold medicine
Response Frequency Percent Cumulative Percent
S Strongly disagree 2 3.0 3.0
Dis Disagree 1 1.5 4.5
Neutral 8 12.0 16.5
Agree 15 23.0 39.5
Strongly agree 39 60.0 100.0
Total 65 100.0
Source: Research (2020)
4.8.4 Correct Medical Storage Temperature
The researcher examined the correct medical storage temperature at MSD as the tool
in relation to the availability of storage capacities towards an effective supply chain
of cold medicine. From the finding in Table 4.30, it was revealed that 60(92%)
respondents had agreed that their organization has excellent medical storage
temperature and equipment which regulate the temperature according to the medical
temperature required, 2(3%) respondents had stayed neutral and 3(4.5%) respondents
had disagreed that their organization has excellent medical storage temperature and
equipment which regulate the temperature according to the medical temperature
required as shown clearly on the Table 4.30.
One of the heads of department from the store department stated that;
“During the transportation and storage of vaccines, the defects of cold chain
management are often noticed. Some of the factors that contribute to the weak
cold chain include delays in transportation, the quality of the refrigerator,
storage methods, long-term storage in the health sector, improper use of the
refrigerator, power outages, equipment interruptions, and the lack of trained
personnel who can manage the cold chain”.
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Table 4.30: Correct medical storage temperature
Response Frequency Percent Cumulative Percent
S Strongly disagree 2 3.0 3.0
Dis Disagree 1 1.5 4.5
Neutral 2 3.0 7.5
Agree 20 31.0 38.5
Strongly agree 40 61.5 100.0
Total 65 100.0
Source: Research (2020)
4.8.5 Availability of Functional
The availability of functional is a sub variable on the last research objective that
aimed to determine the availability of storage capacities towards effective supply
chain Table 4.31, showed that 61(94%) of the respondents had agreed that there is a
consideration on availability of functional and standby refrigerator to avoid power
failure, 6(4%) of the respondents had stayed neutral while the rest of the respondents
which is 2(3%) respondents had disagreed that there is a consideration on availability
of functional and standby refrigerator to avoid power failure.
Table 4.31: Availability of functional
Response Frequency Percent Cumulative Percent
S Strongly disagree 0 0.0 0.0
Dis Disagree 2 3.0 3.0
Neutral 4 6.0 9.0
Agree 37 57.0 66.0
Strongly agree 24 37.0 100.0
Total 65 100.0
Source: Research (2020)
58
CHAPTER FIVE
DISCUSSION OF FINDINGS
5.1 Introduction
This chapter consists of discussions of the findings. The discussion of the finding was
done respectively with the specific objective of this study.
5.2 The influence of technological level on the effective supply chain of cold
medicine
The study finding has revealed that MCD has a well-established technology on cold
medicine. From the descriptive analysis, it was revealed that majority of the
respondents approximately to 88% of the respondents had stay positive that MCD has
effective electronic recording of information, use computerized modern system to
facilitate supply chain of cold medicine, there is the use of tracking system on
distribution of cold medicine, effective online order system use of the integrated
system on cold medicine. This has facilitated the effectiveness of the supply chain of
cold medicine. This study is in agreement with that of Kanda and Iravo (2015) as it
was revealed that the supply chain of cold medicine is effective when there is a good
ICT infrastructure.
These findings were also supported by the heads of the department whereby the
technology shows the contribution in the effective supply chain of cold medicine in
terms of information technology reduce coordination costs, and in the supply chain
environment, it can dramatically increase transaction efficiency by adding sharing
information and communication functions, thereby improving supply chain
performance. Hence, information management and sharing are very crucial for
cooperation and organization between chain partners of supply, so supply chain risks
can be minimized.
The finding further indicated that there is a positive relationship between the
technological level and the effective supply chain of cold medicine. This was further
supported from the regression analysis which showed a contribution of 30.8% from
the Beta value which was statistical significance at 0.024. These results indicated that
59
an increase in the level of technology at MSD will increase the effectiveness of the
supply chain of cold medicine.
The study was in agreement with that of Greis, (2011) and proposed that there is a
positive significance between technological level and effective supply chain
performance; this indicated that technological level is an important aspect in the
effective cold medicine supply channel; the organization needs to use the modern
technologies in distribution, transportation, and storage of the cold medicine. Storage,
handling of Cold medicine requires an appropriate technological system that needs to
be well adapted with the view of increasing the performance of the cold medical
supply chain. Electronic recording of information, use of computerized modern
storage systems, the use of tracking systems on distribution of cold medicines, online
order processing systems, and the use of integrated systems on cold medicine
normally lead to effective cold medicine supply chain (Greis, 2011).
5.3 The Influence of Distribution Channel on Effective Supply Chain of Cold
Medicine.
This study has revealed that the transport system within and outside the MSD
influences the effectiveness of the supply chain of cold medicine. The study further
reveals that a good transport system available enables the organization to deliver the
cold medicine on time to the required place. Also, it further indicated that if the
transport system will be improved further will enable an organization to meet its
supply chain effectively and can further enable them to minimize the cost. This study
aligns with that of Brzozowska and Brzeszczak (2020) revealed that refrigerated
transport, monitored temperature range, transport, storing, the package had a positive
significant influence on the efficiency and effectiveness of cold supply chain. Also
revealed that to increase the performance of the cold medicine supply chain, cold
supply chain management should improve packaging systems, select appropriate
transportation systems, and ensure effective utilization of modern technologies and
proper determination of distribution strategies including its channel of the cold chain.
60
The study also revealed the effectiveness of the distribution channel on supporting the
supply chain of cold medicine at MSD. The study showed that the availability of a
good distribution channel has facilitated the transportation process, distribution
planning, and information exchange among the stakeholders, order processing, and
inventory management system. This has enabled the organization to meet its supply
chain target of cold medicine, which is everywhere in the country and has been made
available at any time at a required quantity. The study finding is in agreement with
that of Tamimi, Sundarakani, and Vel (2010)as they recognized that to ensure
effective cold medicine supply chain, it is important to take into consideration logistic
activities including distribution channels, transportation systems, inventory
management, and distribution planning strategies. Instituting proper distribution
channel increase the effectiveness of cold medicine supply chain.
Heads of the departments during the study also revealed the same thing where the
shared benefits of an information system that have been emphasized; improve
production planning, improve and increase customer service, reduce inventory costs,
improve distribution and use of logistical resources and reduce delivery time through
the supply chain.
From the regression analysis, the finding of the study has revealed a positive
significant relationship between the distribution channel and the effectiveness of the
supply chain of cold medicine. This implied that as the channel of distribution is
improved will increase the effectiveness of the supply chain of cold medicine at
MCD. The model revealed that a unit improvement of distribution channels will
result in a 12.9% increase in the supply chain of cold medicine effectiveness.
5.4 The Influence of Staff Competency Among Stakeholders on Effective Supply
Chain of Cold Medicine
The study finding has shown a positive influence of staff competence on an effective
supply chain of cold medicine. This is supported after the descriptive analysis
showing about 90% of the respondents had stayed positive that the available staff has
sufficient knowledge on cold medicine, well experienced, periodical training on
61
medical supplies with equip them with more knowledge on cold medicine and enable
them to highly professional in the supply of this cold medicine. The study is in line
with that of Bogale, Amhare, and Bogale (2019). The results showed that 35
respondents had sufficient knowledge about vaccine cold management, 23% are
knowledgeable about vaccine cold practices while 25% had inappropriate vaccine
cold practices and generally the study revealed a positive significant effect on the
performance of vaccine cold chain in Public Health Institutions.
The study also indicated a positive significance between the staff competency and
effectiveness of the supply chain of cold medicine. The correlation analysis indicated
a positive correlation of .932 which was the strong correlation between the variables.
Also, the regression analysis has indicated a positive significant contribution which
was statistically 32% at a p-value of .015. This indicated that the increase of staff
competence will enable the organization to be very effective in its supply chain of
cold medicine as the staff will be more knowledgeable about the total supply chain
requirement of cold medicine.
The finding showed that staff competency in the cold medicine supply chain is
necessary for improving the effectiveness and efficiency of the cold medicine supply
chain. The effective cold medicine supply chain is more determined by the
competency of stakeholders involved in the cold medicine supply chain. The cold
medical supply chain should ensure that staff involved in the cold medicine supply
chain is competent enough to deliver quality medicine, timely delivery, and at cost-
effective similarly to the report on resource optimization in delivering health care.
Some heads of departments also supported these findings whereby training is
fundamentally useful to improve employee capability of doing work and accepting
new skills. Continuous training programs about lean tools and practices are required
to foster an appropriate culture in the organization. Thus, to achieve the required
performance, an organization must be created; policies, structure, and culture of
knowledge management response.
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5.5 The Influence of Storage Capacity on Effective Supply Chain of Cold
Medicine
The study findings from the descriptive analysis have revealed that the storage
capacity is very helpful in determining the effectiveness of supply chain performance,
particularly on cold medicine. The organization can meet the stakeholders' demand by
supplying them the right quality and quantity required at a right time in a reasonable
cost due to the availability of the storage equipment, a good collection point,
availability of special storage for cold medicine which enables maintain of quality of
the medicine and provide correct medical storage temperature which ensures the
durability of the medicine.
This result is in agreement with that of Koigin (2012) who revealed that efficient and
capable storage capability ensures effective cold medicine supply chain. The effective
storage capabilities elements that lead to effective cold medicine supply chain are
Storage equipment, collection point special storage for cold medicines, correct
medical storage temperature, and availability of functional refrigerator.
These findings are also insisted by the heads of departments during the interview
where the majority of them claimed that the storage capacity in MSD adds a
significant contribution to achieving an effective supply chain of cold medicine.
Furthermore, the study finding revealed that a positive significant influence on
storage capacities and effectiveness of the supply chain of cold medicine. Whenever
there will be an increase in the storage capacities at MSD also the effectiveness of the
supply chain in cold medicine will be improved.
The regression analysis indicated a beta value of .854 equal to 85.4% of the
respondents when expressed in percentage. This supported the finding of this study
on the influence of storage capacities on effective of the supply chain of cold
medicine. Also, the factor analysis revealed that the variable studied in this study
were statistically sufficient to be used in measuring the influence of the storage
capacities. The study aligns with that of Greis (2011) on managing the cold chain.
63
The study recognized that lack of required temperature, poor selection of distribution
channels resulted in an effective cold medicine supply chain. The study also noted
that there is significant influence between storage systems and the packaging of cold
medical products on the effectiveness of the cold supply chain.
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CHAPTER SIX
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
6.1 Introduction
This chapter presents a summary of the findings of the study, conclusion, and
recommendations. The purpose of the study was to explore the influence of effective
supply chain of cold medicine in Tanzania with its respective specific objectives
which were; to examine the influence of technological level on the effective supply
chain of cold medicine at MSD, to find out the influence of distribution channel on
the effective supply chain of cold medicine at MSD, to examine the influence of staff
competence among stakeholders on the effective supply chain of cold medicine at
MSD and to determine the influence of storage capacity on the effective supply chain
of cold medicine at MSD.
6.2 Summary of the findings
This study was sought to explore the influence of effective supply chain o cold
medicine in Tanzania. Specifically the research aimed; to examine the influence of
technological level on the effective supply chain of cold medicine at MSD, to find out
the influence of distribution channel on the effective supply chain of cold medicine at
MSD, to examine the influence of staff competence among stakeholders on the
effective supply chain of cold medicine at MSD and to determine the influence of
storage capacity on the effective supply chain of cold medicine at MSD.
The study employed a descriptive research design which enabled the researcher to
choose the reliable data collection tool which enabled the researcher to choose the
appropriate data analysis technique. In this study, the researcher used a questionnaire
to collect data from the selected respondents. To ensure that the objective of this
study is attained researcher used three different data analysis techniques which
included factor analysis, an inferential analysis which comprised of correlation and
multiple regressions, and the descriptive data analysis were used and included
frequency and percentage. These data analysis techniques used enabled the researcher
65
to sufficiently analyze the obtained data from the field. The analysis of data was per a
specific objective.
The study aimed to examine the influence of the technological level on the
effectiveness of the cold medicines supply chain at MSD. The finding revealed that
there is a positive significant relationship between the technological level and the
effective supply chain of cold medicine at 0.024. This was further supported from the
regression analysis which showed a contribution of 30.8% from the Beta value which
was statistical significance at 0.024.
The study aimed to find out the influence of distribution channels on the effectiveness
of the cold medicines supply chain at MSD. The finding revealed that there is a
positive significant relationship between the distribution channels and the effective
supply chain of cold medicine at 0.04. Also, findings revealed that the availability of
good distribution channel facilitated the transportation process, distribution planning,
information exchange among the stakeholders, order processing and inventory
management system, which enabled the organization to meet its supply chain target of
cold medicine, which are everywhere in the country and have been made available at
any time at a required quantity.
The study aimed to examine the influence of staff competency among stakeholders on
the effectiveness of the cold medicines supply chain at MSD. The finding revealed
that there is a positive significant relationship between the staff competency among
stakeholders and the effective supply chain of cold medicine at 0.015. This reveals
that the respondents had a positive view on the fact that the available staff has
sufficient knowledge of cold medicine, well experienced, periodical training on
medical supplies with equip them with more knowledge on cold medicine, and enable
them to highly professional in the supply of this cold medicine.
The study aimed to determine the influence of storage capacity on the effectiveness of
the cold medicines supply chain at MSD. The finding revealed that there is a positive
66
significant relationship between the storage capacity and the effective supply chain of
cold medicine at 0.000. These results revealed that the storage capacity is very helpful
in determining the effectiveness of supply chain performance particularly on cold
medicine and also storage capacities have a positive influence on the effective supply
chain of cold medicine at MSD.
6.3 Conclusion
The objective of this study was to explore the influence on the effective supply chain
of cold medicine in Tanzania a case of MSD. The results have shown that technology
level, distribution channel, staff competency, and storage capacities influenced
procurement performance. This is to say if all these factors will be well addressed and
improved there would be an increase in effect on the supply chain of cold medicine at
MSD as it will lead to a reduction of total supply chain cost of the cold medicine. The
conclusions of this study were made based on the specific study objectives as
indicated below:-
6.3.1 Technological level and effective cold medicine supply chain performance
The technology was found to be a very crucial aspect when dealing with the supply
chain of cold medicine. In the context of the distribution channel, MSD is making an
effective supply chain due to a very good network of technology which has facilitated
the minimization of cost on the availability of cold medicine throughout Tanzania.
6.2.2 The influence of distribution channels on the effectiveness of the cold
medicines supply chain at MSD
Based on the study findings, the study concluded that there is a positive significant
relationship between the distribution channels and the effective supply chain of cold
medicine at 0.04. Also, findings revealed that the availability of good distribution
channel facilitated the transportation process, distribution planning, information
exchange among the stakeholders, order processing and inventory management
system, which enabled the organization to meet its supply chain target of cold
medicine, which are everywhere in the country and have been made available at any
time at a required quantity.
67
6.3.3 Staff competency among stakeholders and effective cold medicine supply
chain performance
Staff competency and training and professionalism among stakeholders revealed a
significant and effective in the supply chain of cold medicine. Staff should have the
necessary knowledge and skills as well as experience in performing all the supply
chain processes of cold medicine to increase the effectiveness of such processes. It
was also established that a positive correlation exists between staff competency and
the effectiveness of the supply chain of cold medicine.
6.2.4 The influence of storage capacity on the effectiveness of cold medicines
supply chain at MSD
The study aimed to determine the influence of storage capacity on the effectiveness of
the cold medicines supply chain at MSD. The finding revealed that there is a positive
significant relationship between the storage capacity and the effective supply chain of
cold medicine at 0.000. These results revealed that the storage capacity is very helpful
in determining the effectiveness of supply chain performance particularly on cold
medicine and also storage capacities have a positive influence on the effective supply
chain of cold medicine at MSD.From the finding storage, capacities were revealed to
be of much importance when dealing with the supply chain of cold medicine. MSD has
sophisticated storage equipment, correct storage conditions with special storage for
cold medicine which enabled the organization to minimize cost by maintaining the
quality of the medicine.
6.4 Recommendations of the study
In this part recommendation of the study was done in accordance with the study
findings. In that case, due to the positive influence revealed from the finding on the
studied variables, the recommendation of the finding is as follows;
68
6.4.1 To MSD
MSD should improve the effective supply chain of cold medicine; it is recommended
that MSD should improve its technology level through installing the updated
technology which can guarantee a high-quality recording of the information relating
to the supply chain of cold medicine. Also, the adoption of the trucking system
technology should be improved. Also the study recommended that MSD should
improve a well-established distribution system by ensuring that there is a well-
stipulated distribution plan which facilitates the distribution of information between
the departments. Moreover, in this scenario, the government is also recommended to
improve the road infrastructure all over the country as it will facilitate the supply
chain effectiveness of cold medicine at a low cost.
6.4.2 To the Government
The Government is recommended that it should strategically maintain the recruitment
of employees who are the best fit in the supply chain process. Also, from the findings,
training of staff is viewed as a good criterion in improving staff skills to be able to
adapt to the advancement of technology. In this case, then there should be an
established training program that enables them to adapt to the existing technology
advancement speed to insure constant high performance of the supply chain of cold
medicine and should put much effort into enhancing storage capacities to boost its
supply chain performance.
6.5 Suggestion for further studies
Since the supply chain of medicine is controlled by MSD in Tanzania. The future
study is suggested to be conducted on the specific categories which have been studied
in this study. The categories include technological level, distribution channel, staff
competence, and storage capacities. This provides a wide understanding of how each
variable can influence an effective supply chain of cold medicine. Also, this study has
only relied on cold medicine; in that case, another study can be done on other types of
medicine on their supply chain management to provide a wide understanding of the
supply chain of different types of medicine around the country.
69
Due to the changes in environmental factors, economic factors, and political factors
another study can be carried out on assessing the challenges that hinder the effective
supply chain of cold medicine in Tanzania. This provide and reveal an area of
correction to improve the total supply chain issues relating to cold medicine and
ensuring the availability of the product at a low supply chain cost.
70
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APPENDIX 1:
QUESTIONNAIRE
Dear Respondent,
My names are Pendo O. Myonga pursuing a master's degree in Procurement and
Supply chain Management at Mzumbe University. I am using this opportunity to
request you to participate in this study by completing the following Questionnaire.
Kindly be notified that the information provided will only be used for the academic
purpose with a high rate of confidentiality. With honor, I am hereby requesting your
support for this study by answering the following questions depending on your level
of understanding and experience in the study area.
Please do not hesitate to consult the researcher in case of any difficulty through the
number below;
The questionnaire for this study has Five (5) sections. Please provide your answer
based on the instructions given in each section.
SECTION I: DEMOGRAPHIC INFORMATION (V100)
Please provide the following general information about yourself by ticking the correct
answer as provided below:-
(V101) What is your gender?
(a) Male ( ) (b) Female ( )
(V102) What is your age group?
Researcher’s Address
Pendo O. Myonga
0712722873
Msc. PSCM
Mzumbe University
74
(a) 18-25 ( ) (b) 26-35 ( ) (c) 36- 45 (d) 46+ ( )
(V103) What is your highest education level?
(a) Master’s degree and above ( ) (b) Bachelor Degree ( ) Diploma Level ( )
(c ) Certificate level ( )
(V104) What is your job position occupying currently?
(a) Head of department ( ) (b) Manager ( ) (c) Senior Officer ( ) (d) Officer (
)
(V105) For how long have you been participating in the cold medical supply chain at
your organization?
(a) Less than a year ( ) (b) More than one year up to five years ( ) (c) More
than five years ( )
SECTION II: LEVEL OF TECHNOLOGY AND EFFECTIVE SUPPLY
CHAIN OF COLD MEDICINE (V200)
8. In this section please TICK on the appropriate scale with regard to the relationship
between Level of Technology and effective cold medical supply chain in Tanzania to
the give Likert scale below :-
1. Strong disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree
CODE Statement Response
(V201) Recods of cold medical supply chain are maintained
electronically which increase effective supply chain
ofcold medicine.
1 2 3 4 5
(V202) In my procuringentity, computerized storage system
are used in storing cold medical supplies.
1 2 3 4 5
(V203) In cold medical suplies, distribution activitivies is
subjected to trucking systems.
1 2 3 4 5
(V204) Order processing of cold medicals are ordered by
the use of online system.
1 2 3 4 5
(V205) The use of integrated systems on cold medical
supplies increase efficiency in the cold medicines
supply chain
1 2 3 4 5
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SECTION IV: DISTRIBUTION OF COLD MEDICAL CHAIN AND
EFFECTIVE SUPPLY CHAIN OF COLD MEDICINE (V300)
9. In this section please TICK on the appropriate scale with regard to the distribution
of cold medical chain and effective cold medical supply chain in Tanzania to the
give Likert scale below:-
1. Strong disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree
CODE Statement Response
(V301) Sellecting appropriate stransport sysetms for cold medical
supplies increase effectiveness of supply chain.
1 2 3 4 5
(V302) Instituting effective distribution plan for cold medical supply
chain lead to effective supply chain of medical supplies.
1 2 3 4 5
(V303) In our organization, application of information systemin
distribution of cold medical supply chain reduces risks hence
effective supply chain
1 2 3 4 5
(V304) In cold medical supply chain , order processing is done
accurately
1 2 3 4 5
(V305) Effective inventory management systems increase effectiveness
of cold medical supply chain.
1 2 3 4 5
SECTION V: STAFF COMPETENCY AMONG STAKEHOLDERS AND
EFFECTIVE SUPPLY CHAIN OF COLD MEDICINE (V400)
11. In this section please TICK on the appropriate scale with regard to the staff
competency among cold supply chain members and effective cold medical supply
chain in Tanzania to the give Likert scale below:
76
1. Strong disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree
CODE Statement Response
(V401) In my procuring entity, staff involved in cold medicine
supply chain haveenogh knowlege about cold medicine
1 2 3 4 5
(V402) In my procuring entity, supply chain staff on cold
medical supplies have enough Experience.
1 2 3 4 5
(V403) Periodical or continuos training on medical supplies to
cold medical supply chain staff is provided.
1 2 3 4 5
(V404) In my procureing entity, cold medicine supply chain use
their professionalism to ensure effectivemanagement of
the cold medicine supply chain
1 2 3 4 5
(V405) Staff involved in cold medical supplies have an
appropriate Level of eductaion which in turn lead to
effective cold medical supply chain.
1 2 3 4 5
SECTION VI: AVAILABILITY OF STORAGE CAPABILITIES AND
EFFECTIVE SUPPLY CHAIN OF COLD MEDICINE (V500)
10. In this section please TICK on the appropriate scale with regard to availability of
storage capacities and effective cold medical supply chain in Tanzania to the
give Likert scale below:-
77
1. Strong disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree
CODE Statement Response
(V501) In my entity, storage equipment is enough to store cold
medical supplies.
1 2 3 4 5
(V502) In order to ensure effective cold medical supply chain,
there is collection point for medical supplies.
1 2 3 4 5
(V503) Special Storage system for cold medical supplies in my
organization is ofhigh prority.
1 2 3 4 5
(V504) In my entity, correct cold medical storage temperature
is observed in order to increase quality hence increase
effectiveness of cold medical supply chain.
1 2 3 4 5
(V505) To ensure effective cold medical supply chain there is
consideration on availability of functional and
standbyrefrigirator to avoid power failure.
1 2 3 4 5
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APPENDIX II: INTERVIEW GUIDE
1. What the benefits of having an effective supply chain of cold medicine at your
organization?
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…………………………………………………………………………………
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…………
2. How the level of technology affects the effective supply chain of cold medicine
at your organization?
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…………………………………………………………………………………
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3. What is the influence of the distribution channel on an effective supply chain of
cold medicine at your organization?
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
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4. Explain how staff competency among stakeholders influences the supply chain of
cold medicine at your organization?
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
5. Describe the influence of storage facilities on the effective supply chain of cold
medicine at your organization?
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THE END
THANK YOU