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Supply chain
Critical success factors in the management
supply chain management of
essential medicines in the public
health-care system in Malawi
Feston Kaupa and Micheline Juliana Naude Received 8 January 2020
Revised 25 May 2020
School of Management, IT and Governance, University of KwaZulu-Natal, 10 October 2020
Durban, South Africa Accepted 29 November 2020
Abstract
Purpose – The purpose of the paper is to report on a study that investigated the critical success factors (CSFs)
in the supply chain management of essential medicines in the public health-care delivery system in Malawi.
Design/methodology/approach – The exploratory and descriptive study followed a qualitative and
quantitative research approach. Data were collected by means of semistructured interviews and a
questionnaire administered to suppliers of essential medicines, regulators, donors and logistics companies in
Malawi. Data was analyzed using SPSS.
Findings – The findings revealed that the significant CSFs are knowledge of disease patterns and
prevalence, skills and experience of personnel, adequate financial resources, collaboration with supply chain
partners and an efficient procurement and distribution system.
Research limitations/implications – There were a number of limitations in this study. Although
every effort was made to carefully and purposefully select the participants for the in-depth interviews in the
first phase of the study and the respondents for the questionnaire in the second phase of the study, they were
not randomly selected. As such, the findings cannot be generalised to all stakeholders in the pharmaceutical
supply chain in Malawi. However, they can be used as a basis for further research on the topic.
Originality/value – No previous studies that deal with the identification of CSFs in the Malawi
pharmaceutical supply chain were found. Therefore, this research makes a twofold contribution to the body of
knowledge in the field. First, it identifies CSFs; second, it could assist stakeholders in the public health-care
service delivery system in Malawi with regard to how they can improve the supply of essential medicines.
Keywords Malawi, Performance management and benchmarking, Critical success factors,
Business improvement, Pharmaceutical supply chain, Public health-care delivery system
Paper type Research paper
Introduction
Important contemporary issues are critical success factors (CSFs) in public health-care
supply chains. The role of the public health-care sector in improving the availability of
medicines and medical supplies at all levels of the public health delivery system has never
been more important. The pharmaceutical supply chain is organised around four primary
activities, namely, selection, procurement, storage and distribution and use. Management
support systems include planning and administration, organisation, financing, information
technology and human resources (Embrey, 2012, p. 10).
Q1. What are the critical success factors in the supply chain management of essential
medicines and how significant are they to the public pharmaceutical supplies
system in Malawi?
To answer this research question, the following primary objectives guided the study:
to identify the CSFs in the supply chain management of essential medicines in the
public health-care system in Malawi; and
to determine the extent to which these factors affect the supply chain management
in the delivery of health-care services in Malawi.
The study contributes to the current body of knowledge by addressing the gap that exists in
the literature on CSFs, through an exploration of what the CSFs in the supply chain
management of essential medicines in the public health-care system in Malawi are and the
extent to which these factors affect the supply chain management in the delivery of health-
care services. It is envisaged that should the suggested recommendations be implemented, it
would assist stakeholders in the public health service delivery sector to improve the delivery
of essential medicines and supplies in developing countries. Ultimately, this would reduce
the incidence of illness and the occurrence of premature deaths. This study provides a Supply chain
platform for future academic research on CSFs in supply chain management as the results management
could aid researchers in developing the research instrument.
The article first reviews available literature on CSFs and provides an overview of the
pharmaceutical supply chain. This is followed by a description of the research design and
methodology, a report of the findings, including an overview of the Malawi health-care
system, recommendations and finally the conclusion.
Literature review
Critical success factors in supply chain management
CSFs are the building blocks of an organisation’s mission, being vital to organisational
success, strategy formulation and evaluation (Parmenter, 2015). In order for a business to
achieve successful and competitive performance, there will be some areas that are key to its
current operating activities (Boynton and Zmud, 1984, p. 17; Talib and Hamid, 2014, p. 23).
These areas must receive careful attention and be reviewed continuously (Talib et al., 2015,
p. 3).
The concept of identifying and using CSFs was introduced by Rockart in 1979 and was first
used in the field of information systems. Today, CSF analysis is commonly used across a
wide range of fields, most significantly within supply chain management. Supply chain
management is the management of activities involved in the sourcing of materials and services,
the transformation of materials into intermediate and final goods and the transporting of these
goods to end users (Holweg et al., 2015, p. 97; Lummus et al., 2013, p. 18). CSFs must therefore
be identified to assist business leaders to know their organisational strengths, weaknesses,
opportunities, threats, resources and capabilities (Talib et al., 2015, p. 3).
CSFs in supply chain management represent a wide variety of strategies devoted to
improving the operational efficiency and competitiveness of organisations. These factors
should be considered as actions that need to be carefully controlled to achieve goals and
objectives (Irfan and Kee, 2013, p. 62). From numerous CSFs mentioned in supply chain
management literature reviews (Table 1), the “vital few” can be identified. Talib et al. (2015,
p. 9) grouped similar CSFs together in one domain. This process was followed in this article.
In Table 1, the CSFs presented as headings represent the domain factors, whereas the
related CSFs are listed below these. For example, all factors related to participative
management style, such as corporate culture and organisational commitment, are grouped
together under the domain “Top management commitment.”
CSFs can be either enablers or barriers to the attainment of excellence in supply chain
management (Parmenter, 2015). In other words, when CSFs are not controlled and
continually reviewed to achieve goals and objectives, this can create vulnerability in the
supply chain and may present as a risk. Jacobs and Chase (2018, p. 33) remark that supply
chain networks are vulnerable to disruptions and that a failure at any point in the supply
chain may cause the entire network to fail.
Method of research
This is an exploratory and descriptive study, and qualitative and quantitative method
techniques were adopted. The purpose of the empirical research was to: identify the CSFs in
the supply chain management of essential medicines in the public health-care system in
Malawi; and determine the extent to which these factors affect the supply chain
management in the delivery of health-care services in Malawi. A semi-structured interview
guide and a structured questionnaire were designed to achieve this.
The interview guide consisted of open-ended questions that were intended to elicit the
views and opinions of participants about the CSFs for pharmaceutical supply chain
management. The questionnaire consisted of two parts. The first part provided general
information on the profile of the respondents. The second part comprised a number of closed
and open-ended questions generated from the literature review and the results of the
qualitative data analysis. The closed questions comprised five sections relating to
the pharmaceutical supply chain in Malawi. Items were measured on a seven-point Likert
scale, varying from 1 (to a lesser extent) to 7 (to a greater extent). A statistician checked the
questionnaire to ensure that the formulation of the questions was clear and easily
understood by the respondents. Then, the questionnaire was pilot tested with a sub-sample
of the target population to assess whether it would be able to achieve the intended objectives
(Saunders et al., 2016, p. 473).
Sampling
A target population can be defined as “the entire group of individuals or objects to which
researchers are interested in generalising the conclusions” (Sekaran and Bougie, 2016, p. 56).
The target population of this study were 134 organisations from the public and private
sectors in Malawi. These comprised: 120 suppliers of essential medicines from the Central
Medical Stores Trust database of suppliers, the national medicines regulatory authority, the
national procurement regulatory authority; 12 members of the health donor group; and two
pharmaceutical logistics companies that distribute medicines to public health facilities.
A nonprobability judgement sampling technique was used to identify 12 participants
and 31 respondents based on their expertise, knowledge and experience in pharmaceutical
supply chain. Hence, experts that were not readily available or unable to articulate
pharmaceutical supply chain matters were excluded from the sample. Five possible
respondents were excluded as they had participated in the pilot study. The results of the
pilot study are not included in this study.
Data collection
Face-to-face interviews were conducted with the 12 participants, using the semi-structured
interview guide. The interviews were conducted by one of the authors and were recorded
using a digital voice recorder. The recorded interviews were transcribed verbatim and
checked against the recordings for accuracy. Data were analysed using thematic analysis.
Using this data, a questionnaire was designed that included the CSFs identified from the
literature and the semi-structured interviews. Table 2 presents the profile of the participants.
The questionnaire used a 7-point Likert scale ranging from 1 = to a lesser extent, to 7 =
to a greater extent. If the various CSFs that were listed in the questionnaire were not
applicable, the respondents had the option of ticking a “Not a CSF” box. The questionnaire
was administered via email to 31 senior and middle-level managers as an on-line
questionnaire. Respondents were informed by telephone of the purpose and objectives of Supply chain
the study to obtain their participation and co-operation. A covering letter with the management
questionnaire was sent in an email immediately after the respondent had agreed to take part
in the research. To improve the response rate, respondents who had not returned the
questionnaire by the predetermined date were reminded telephonically and fresh
questionnaires were sent. No incentives were offered to encourage participation. All 31
respondents completed and returned the questionnaire; therefore, the study achieved a
100% response rate.
Data analysis
The completed questionnaires were coded, and the responses captured in Excel by one of
the authors. Once this was done, a statistician exported the data into SPSS version 22.0. The
responses to the questionnaire on the CSFs were analysed using a binomial test to determine
whether a particular factor is deemed by a significant proportion of the respondents to be
a CSF. A binomial test is an exact test of the statistical significance of deviation from a
theoretically expected distribution of observations into two categories. It tests whether a
significant proportion of respondents select one of a possible two responses. It is set at the
5% level of significance. Thereafter, each identified CSF was tested to determine the extent
to which the average score of that factor is significantly different from a central score of 4,
using the Wilcoxon signed rank test. The Wilcoxon signed rank test is a non-parametric
test, used to test whether the average value is significantly different from a value of 4 (the
central score). In this study, a p-value of <0.0005 shows that the value is significantly
different from 4. The assumption is that the variable being tested is symmetrically
distributed about the median, which would also be the mean.
The descriptive statistics were used as an aid to explain the qualitative data. The
qualitative comments were transcribed in a report format, after which it was possible to
review, compare and combine the findings of each respondent. One of the authors checked
the transcripts for accuracy and correctness.
Findings
Profile of respondents
Table 3 presents the details of the gender, age and employment position of the respondents
that participated in this study (N = 31).
demand and the quantities to be purchased with the allocated funds. There are several
factors needed to build up a robust procurement system, including tendering processes, lead
times, availability of finances to pay suppliers, availability of well-trained and experienced
personnel and appropriate procurement management information system. In addition, there
is a need for an efficient and transparent procurement system that meets international
standards, set by stringent regulatory authorities.
“The collaboration and coordination of stakeholders involved in the procurement of
essential medicines” (M = 6.18) received the third highest rating. Strategic alliances create
long-term relationships, leading to the quick resolution of problems and a reduction in the
cost of doing business between supply chain partners (Bowersox et al., 2013, p. 353). Co-
ordination in pharmaceutical supply chains to improve national and global health remains
key (Privett and Gonsalvez, 2014, p. 228).
“People with adequate skills and experience in the procurement of essential medicines”
(M = 6.17) received the fourth highest rating. Crucial in supply chain management is to have
a robust procurement team that is equipped with specialists. These specialists will not only
offer evidence-based guidance to the top management but will also help to interpret the laws Supply chain
and implement the appropriate policy mechanisms (Goldberg, 2010, p. 333). management
The results show that “accuracy of specifications of medicines and estimates of demand
for essential medicines” received a score M = 5.86. The findings revealed that in the past,
there have been challenges in specifications, resulting in some bidders failing to understand
the Central Medical Stores Trust specifications for medicines and medical supplies.
“Capacity of suppliers and manufacturers to meet procurement requirements for
essential medicines” and “appropriate governance and accountability systems so that
checks and balances are in place to ensure that medicines are procured appropriately and
accounted for” received the same rating score (M = 5.76). It was found that theft and
pilferage of medicines along the entire pharmaceutical supply chain is one of the major
challenges in the supply of essential medicines to health facilities. It would appear that there
is a need for control mechanisms and accountability to halt this practice.
Observed
proportion who Mean score of
consider the the extent of Decision: extent
No. Critical success factors item a CSF (%) being a CSF p-value of CSF
Discussion
Summary of critical success factors and recommendations
It is clear from the findings that the CSFs that were rated by respondents to “a greater
extent” significantly affect the performance of the essential medicines supply chain and
service delivery in the public health-care system in Malawi. These findings are in line with Supply chain
the observations of Parmenter (2015) that, should actions related to CSFs not be controlled management
and continually reviewed to achieve goals and objectives, this can create vulnerability in the
supply chain.
The first objective of this study was to analyse CSFs in the supply chain management of
essential medicines in the public health-care service delivery system. The second objective
of this study was to determine the extent of these factors affecting the supply chain
management in the delivery of health-care services in Malawi. A summary of the significant
CSFs is outlined in Table 8.
Practical implications
It is suggested that the CSFs presented in Table 8 are important because, to achieve supply
chain success in the delivery of health-care services, these factors must receive careful
attention and be reviewed continuously. Stakeholders in the public health-care service
delivery system need to make decisions timeously so that they can determine which
Conclusion
The purpose of this article was to analyse the CSFs that affect the supply chain management
in the delivery of public health-care services in Malawi, and the extent to which these factors
occur. This was achieved through a mixed research method approach by means of semi-
structured interviews with 12 participants and a questionnaire administered to 31
respondents, who are suppliers of essential medicines, regulators, donors and logistics
companies in Malawi. The qualitative data was analysed using thematic analysis and the
quantitative data analysed using SPSS version 22.0.
The findings confirmed that the identified CSFs are significant. In addition, their absence
is a significant barrier to the attainment of excellence in the supply chain management of
essential medicines in the public health-care service delivery system in Malawi.
The study had a number of limitations. First, although every effort was made to carefully
and purposefully select the participants for the in-depth interviews and the respondents for
the questionnaire, they were not randomly selected. Thus, the findings cannot be
generalised to all stakeholders in the pharmaceutical supply chain in Malawi. However, they
can be used as a basis for further research on the topic. Second, the CSFs were identified
from the literature review and a preliminary study. The implication of this is that the list of
CSFs is not exhaustive.
Three areas for further research are suggested. First, as it was suggested in this study
that the capacity of the staff should continually be developed to address supply chain
JGOSS capacity gaps, further research could include an analysis of the specific supply chain
management capacity gaps in human resources in the public health sector in Malawi.
Second, while it is acknowledged that medicines are lost, the actual quantity lost remains
unknown. Hence, there is an opportunity to conduct research to determine the real cost of
drug pilferage in the Malawi health-care system, both socially and economically. Third,
stakeholder collaboration and coordination is paramount in the public pharmaceutical
supply chain. Poor or little collaboration between supply chain partners results in
uncoordinated implementation of the forecasted demand and leads to overstocking or stock-
outs at facility level. However, whether there is collaboration or not, forecasting will
continue. Thus, a study could be undertaken to assess stakeholders’ contribution to the
availability of essential medicines in Malawi public health-care sector.
The value and originality of the study and, therefore, its expected contribution to the body of
knowledge, lies in the identification of the CSFs that matter most in the pharmaceutical supply
chain in Malawi. The study can assist stakeholders in the public health-care service delivery
system in developing countries to improve the supply of essential medicines. For academics, this
study provides a platform for future research on supply chain management CSFs, and the results
could aid researchers in developing the research instrument.
To conclude, the research findings support the narrative that CSFs can create
vulnerability in the supply chain in that, should CSFs not be continually reviewed, these
may present as a risk.
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About the authors Supply chain
Dr Feston Kaupa has over 25 years of professional experience in Finance and Strategic Business management
Management in both the private and public sectors, seven of which have been in Supply Chain
Management of Health Commodities. He holds bachelor’s degree in Accountancy from the University
of Malawi – The Polytechnic, mastera’s degree in Strategic Management from the University of
Derby, UK and master’s degree in Procurement, Logistics and Supply Chain Management from the
University of Salford, UK. He is a Chartered Global Management Accountant (CGMA), a Fellow of the
Chartered Institute of Management Accountants (FCMA) and also a Fellow of the Association of
Chartered Certified Accountants (FCCA). Feston has just completed PhD in Supply Chain
Management with the University of KwaZulu-Natal, South Africa. Feston is also a member of the
Institute of Chartered Accountants in Malawi (ICAM), Malawi Institute of Procurement and Supply
(MIPS).
Professor Micheline Juliana Naude is an Academic in the School of MIG at the University of
KwaZulu-Natal. Her area of expertise is in Supply Chain Management (undergraduate, honours,
masters and PhD level) in the areas of purchasing, operations and logistics management. She is an
NRF rated researcher having published articles in journals and presented papers on purchasing and
supply chain management, locally and abroad. She serves on the editorial board of the Journal of
Contemporary Management and the Journal of Transport and Supply Chain Management. She has co-
authored two books in supply chain management and purchasing and supply management. She
serves on the peer review panel of the Academic of Science of South Africa (ASSAF) to evaluate
scholarly journals in the Economics and Business Management disciplinary group. She is also a
member and Chair of the Educational Programmes Committee for the African Institute of Supply
Chain Research (AISCR). Micheline Juliana Naude is the corresponding author and can be contacted
at: NaudeM@ukzn.ac.za
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