Critical Success Factors for Out Sourced Distribution Services and the Performance of National Medical Stores, Uganda

Abstract

This study examined the Critical success factors for outsourced distribution and performance of National Medical Stores (NMS) in Uganda. The independent variable was critical success factors while the dependent variable was performance of NMS. The objectives that guided the study were: To determine the compliance of outsourced distributors on performance of NMS; to determine the internal infrastructure on performance of NMS; and to establish whether organizational culture of outsourced distributors is critical to the performance of NMS. The adopted a descriptive and analytical design, which involved the collection of data from NMS staff and outsourced distributors’ staff, using both qualitative and quantitative approaches. Data were collected using questionnaires and an interview guide. The key findings showed that compliance of outsourced distributors, the infrastructure of outsourced distributors, and the organizational culture of outsourced distributors positively and significantly contributed to the performance of NMS, with organizational culture registering the strongest correlation. The policy implication of this is that NMS should always do background checks on organization culture of outsourced distribution services. In addition, compliance is found to have a strong correlation with performance. This calls for monitoring of compliance to set guidelines for outsourced distributors during their contract period. To increase compliance, NMS should therefore frequently engage Information Communication Technology (ICT) Consultants with clearly defined terms of reference (TOR) notable among of which should be: to systematically examine the loopholes in their technological components; map out the implications and lessons for their communication activities and design. NMS management should frequently engage with management system consultants, staff and set clearly defined terms of reference (ToRs) on improvement of internal infrastructure.