Causes and effects of delayed lead time in distribution of pharmaceutical products: a case study of Hawse Mcgeorge Laborex Limited
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Date
2008-12
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Publisher
Kampala International University; College of Economics and management
Abstract
This study focused on the causes of delayed lead time and their effects on productivity in organization. A case study of Hawse McGeorge was examined and the results taken to represent other organizations. The specific objective of his study was to scrutinize how delayed lead times cause and to what extends it affects productivity at Hawse Me George Iaborex limited and some strategies that will bring improvement to the problem in the organization. The study identified factors that contributed to delay lead times and made recommendations on ways of reducing such delays. Reviewed literature suggests that no exhaustive study on the causes of delayed lead times and their effects on productivity had been done especially in Kenya. A sample size of administrative departments was used from where 30 respondents were randomly selected to take part of this study. The collected data was analyzed using various statistical methods. Collected data was organized and codified for processing to generate the relevant information which came from the research. Based on the research findings Hawse Me George experience delayed times due to internal causes like unqualified staff, poor inventory management, lack of space, poor communication, lack of supply chain management and external causes like government policy, infrastructure, poor feedback, suppliers. This was found to have effects on the productivity of the organization. In the long run this led to added cost in supplying, poor customer satisfaction, drop in production, and low profits. Workable lead times should be set in accordance to his materials required. Training of procurement personnel was recommended so as to equip them with modern techniques that shorten lead times and improve productivity. The study concluded that efforts should be made to make sure that suppliers are aware of the schedule lead times of materials. Thus will make sure that materials are delivered in time to avoid unnecessary delays and production stoppage. Moderate stocks should be held to ensure that production does not stop in case of delays. Stock should just be enough to ensure non-stoppage in production and deliveries. Based on the findings it was evident that if lead time is well recognized it increases sale volume and high markets because customers are well satisfied with what is supplied. Thus the organization should adopt appropriate methods in getting their suppliers.
Description
The research report submitted to the School of Business and Management for the partial fulfillment of the requirement for the Award of Bachelor in supplies and procurement of Kampala International University
Keywords
Pharmaceutical products