Challenges Facing Global Pharmaceuticals Supply Chain Management: The Case of Zaf Pharmaceuticals Private Limited Company, Addis Ababa, Ethiopia

Abstract

The aim of this study was to assess challenges faced on global supply chain management (GSCM) practice of Zaf Pharmaceuticals in Ethiopia. A cross-sectional study was conducted between May and June 2018. Both quantitative and qualitative data was collected using a self-administered questionnaire and a structured interview guide. More than half (57%) of the respondents have reported that Zaf Pharmaceuticals has no documented suppliers selection criteria. Foreign supplier product market authorization processes, foreign exchange permit directives, and waiting for Ethiopian shipping vessels were mentioned as the leading challenges facing the company. Majority of the respondents (94.7%) in the study setting have replied that the fluctuation of currency exchange rate affected the GSCM practice of the company intensively. Response from 36 (63.25%) of the participants showed that there was no cultural issue which created instability of relationship between suppliers and the company. About 45 (78.9%) of the respondents also agreed that they faced little logistics challenge during their company’s global sourcing. Overall, it can be deduced that global pharmaceuticals supply chain management in the present case is faced with a multifaceted challenge.

Keywords: Pharmaceuticals, Global Supply Chain Management, Challenges, Suppliers, Zaf

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