Contract Management Performance Of Ethiopian Pharmaceuticals Supply Agency

Background: The government of Ethiopia spends more than 4.9 billion birr per annum for thernprocurement of pharmaceuticals. However, little is known how well performance is managed.rnObjective: To assess contract management performance at Ethiopian Pharmaceutical SupplyrnAgencyrnMethods: Descriptive study design using quantitative and qualitative data collection techniquesrnwas employed. 159 declared purchase orders (from July 1, 2017 to June 30, 2018)were takenrnusing simple random sampling method after listing chronologically by time of purchase ordersrnissuing. Six informants were selected with purposive sampling for interview. Quantitative datarnwere analyzed and summarized in descriptive statistics using Microsoft excel for percentagernanalysis and Statistical package for Social Science version 20.0 for suppliers’ lead time analysis.rnQualitative data were analyzed by classifying factors affecting contract managementrnperformances. Results were presented in tables, figures and narratives.rnResults: Asian (64.64%)and African (24%)manufacturers were found to be the top suppliers ofrnagency. Domestic manufacturers’ market share was 24% of which Addis PharmaceuticalsrnFactory (68%)was the top supplier of agency. Average foreign and domestic suppliers took 98rnand 186 days to deliver products. Suppliers’ fill rates were 97.6%. Perceived causes of thernagency strong performances were the implementation of public procurement agency guideline,rnrestructuring of contract management internal process, the start of monitoring and evaluation,rncommitments of employees, collaboration with relevant stakeholders. The main factors perceivedrnto weak performance were delay in contract management activities, weak use of technology, andrnweak monitoring and evaluation practices.rnConclusion and Recommendation: Indian and Chinese manufacturers were top foreignrnsuppliers. Almost all suppliers delivered ordered medicines with the required amount. However,rnit took longer lead time than agreed. Workflow reform, using of public procurement agencyrnguideline, protracted operations, competency gaps, shortage of hard currencies and weak systemrnautomation and integration were factors affecting contract performances.rnWorking with selected suppliers carefully, automating and integrating contract activities,rnimplementing performance improvement tools like Plan-Do-Check-Act cycles, and capacitatingrnthe staffs should be done to improve contract management performance of the agency.

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