In this research, the researcher tries to identify the challenges that occur in the logistics process when medicines and medical equipment are supplied to the public government hospitals of Addis Ababa city Administration. The outcomes of the research show the impact of these challenges on how highly affect the socio-economic structure of the society. The study was tried to show how each party and mechanisms create a delay on the supply of medicines and medical equipment to the public hospitals of the city. As we know, most of Addis Ababa public hospitals are referral and we can say these hospitals are not serving the citiesâ€™ residents only, but it serves directly or indirectly for the society who comes from all parts of the country. A large number of patients, who are troubled with their health, come to these hospitals daily, weekly, and Monthly to get health facilities because of poor health facility in their location and area. Addis Ababa public hospitals have benefit more than the health centre, they are also centre for research and education in the area. A lot of researcher struggling to get solutions to public health problems, For example, if we see TikurAnbessa hospital, the College of Health Sciences (CHS), which is part of Addis Ababa University (AAU), is a professional health sciences college, established in 2009/10 by the reorganization of previously separate institutions of health under one umbrella. So, identification and searching solutions for the logistics problems of this public hospital, therefore it, maximizes the capacity of the public hospitalsâ€™ research and development which are basic to solve the society health problems.rnIn this research, the researcher tries to identify the bottlenecks of the logistics system for the supply of medicines and medical equipment. To identify these problems the researcher targets 11 public hospitals to collect data by preparing 31 open and closed-ended questionnaires from hospitals logistics department or from the authorized party who follow up the flow of supplies into the hospitals. The researcher also focuses to collect data from key informants of concerned institutions and different partners, who engaged in the logistics system as a source of supplies like the transporter of marine and inland, quality control authority, supervisor of import and export items and other concerned parties. In this research deep interview was made to collect data from different government parties who can affect directly the delivery time of the shipment of the medication items. The data collected from the interview shows that totally 31 days will waste because of unnecessary bureaucracy that are emerged from shipping lines, customs office, bank process and quality control office,rnThe outcomes of the research show that, there are a lot of logistics problems that are frequently facing the public hospitals of Addis Ababa city Administration. Transportation problems are highly affecting the logistics system because of a shortage of proper transportation system, Poor handling system of purchased items, the bureaucracy of government offices, the payment system of public hospitals when they buy from Ethiopian pharmaceutical and supply Agency(EPSA),warehouse problems, poor packaging of local medicine manufacturers, high price when a purchase is made from private importers are amongthe major challenges of the public hospital's logistics system that this research findings shows