Cold Supply Chain Management and Financial Performance of Pharmaceutical Companies in Nairobi, Kenya

Abstract

Based on the impact on health, the government and key stakeholders in the health sector recognize the importance of the cold supply chain. Very little effort is made to control the effects of cold supply chain logistics such as transport, storage, packing, technological capacity, and a variety of other sensitive activities that contribute to the safety and quality of such products. The objective of the study was to establish the relationship between cold supply chain management and financial performance of pharmaceutical companies in Nairobi, Kenya. The study adopted a descriptive cross-sectional survey. The target population was senior managers in pharmaceutical companies in Nairobi County, Kenya. The samples were purposively select one senior employee in the supply chain department and finance department; thus, the target population of the study was 74 senior employees working with 37 licensed pharmaceutical companies in Nairobi. This study used a questionnaire. Data collected from the field was checked for completion, cleaned and edited. The data was then processed using the SPSS version 23.0 computer software. The generated quantitative data was examined using descriptive and inferential statistics. Percentages, means, standard deviations, and frequencies were examples of descriptive statistics. The data is presented in form of tables. Inferential statistics included the correlational and regression analysis. Correlational analysis was conducted to determine the strength of the relationship between the independent and dependent variables. Regression analysis was used to establish the association between cold supply chain management and the financial performance of pharmaceutical companies in Nairobi. The study found a significant and positive link between cooling systems management and financial performance of pharmaceutical companies. A statistically significant association was found between cold storage management and financial performance. Cold transport management had a statistically significant association with financial performance of pharmaceutical companies. Cold processing and distribution management had a positive and significant relationship with financial performance of pharmaceutical companies. The study conclusion was that cold supply chain management is positively related to financial performance of pharmaceutical companies in Nairobi. The study proposes that pharmaceutical businesses employ cold supply chain management in all of their activities, beginning with the drug's creation, storage, and distribution and ending with the drug's administration to the customer. This is incorrect since medications are sensitive biological substances that, when frozen, lose effectiveness or are destroyed. Cold supply chain management should be part of the company strategies to ensure quality assurance and efficiency of the pharmaceutical products and hence improve their performance.