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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

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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

i

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

ii

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.”

iii

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.

iv

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

v

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.

vi

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

vii

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

viii

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

ix

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

x

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

xi

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

xii

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

xiii

LIST OF FIGURES

Figure 2.1: Conceptual framework ........................................................................................... 17

1

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

2

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).

3

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).

4

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

5

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:-

6

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

7

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.

8

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.

9

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.

10

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

11

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.

56

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”.

57

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.

62

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.

64

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?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………

2. How the level of technology affects the effective supply chain of cold medicine

at your organization?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

3. What is the influence of the distribution channel on an effective supply chain of

cold medicine at your organization?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

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?

…………………………………………………………………………………

…………………………………………………………………………………

THE END

THANK YOU