| dc.description.abstract | As organisations streamline their production and internal processes, the next opportunity for
improvement is through better coordination and networking with their suppliers and
customers through the supply chain. Much of the cost and value creation occur in the supply
and distribution chain. The purpose of value chain is to attain full and seamless interaction
among stakeholders to create a win-win situation. Identification and analysis of cost of
activities and the roles played in a business processes from production to sales has great
potential in unlocking value.
This study focuses on the supply and distribution of Pharmaceutical products in Kenya. The
research work was to investigate the pharmaceutical producers' and end users' perceptions on
the role and value contributed by distributors in the provision of medical supplies in Kenya
using the Value chain concept.
Players.in the medical supply chain in Kenya are spread over the whole country. The
population consisted of two groups; the producer and end users each relatively homogeneous.
With a constrained budget and time limitations, a representative sample from each stratum of
the population was used. To ensure adequate representation different, stratified probability
sampling method was used in selecting the sampling units from each of the sampling frame.
The sample size took account of the dispersion of the population, the desired level of
accuracy and interval range. A structured questionnaire was used to collect primary data.
Secondary data was obtained from the company's management information system and
printed records. Analysis of the data was done by commercial SPSS software and Microsoft
Excel spreadsheet.
One of the key findings from the study was that 76% of the producers channelled out up to
one half of their businesses through the distributors while 24% relied on distributors to sell
more than half of the products manufactured or imported. It also emerged that half of the
users sourced more than one half of their stocks from distributors. This finding indicates
heavy reliance on the distributor to put through products in the supply chain.
The study also found out that both producers and users were most satisfied, mean 3.80 and
3.45 respectively on a scale of 1-5, with the distributors' ability to promptly deliver products
upon order placements. The producers were least satisfied (mean 2.17) with the amount of
discounts and commissions demanded by the distributors.
It was also found out users were least satisfied (mean 2.93) with distributors' lack of value
adding services such as product information/support and marketing. Further, ownership of
products remained in the producers until they were sold. Thus any losses resulting from
expired or unsold products were fully incurred by producers.
The study recommended that their operations especially with producers be guided by
professionally done contracts to rule out exploitation or intimidation. It was also
recommended that the government gives more incentives to local manufacturers as boost to
local production of pharmaceutical products. | en |
