Page 194 - GHES-3-1

Global Health Economics and
Sustainability
Outsourcing last-mile delivery

(Giri & Sarker, 2017; Adebambo, Omolola, and Victor, 2. What is the relationship between using 3PL services
2016). For instance, contracting 3PLs manage orders for last-mile delivery of essential medicines and
in Senegal and deliver essential medicines and health the timely delivery of essential medicines in the
products from government-managed district warehouses NSDHCMA?
to local health facilities (Daff et al., 2014). This arrangement 3. What is the relationship between using 3PL
has led to declining stockouts at service delivery points services for the last-mile delivery of essential
and reduced distribution costs (Agrawal et al., 2016). medicines and increased customer satisfaction in
Sub-Saharan Africa is characterized by vast topography the NSDHCMA?
and weak infrastructure, and reliable transport fleets are
essential for distributing vital medicines to rural health 1.2. Research objectives
institutions, including vaccines, antiretroviral drugs, and This study primarily aims to examine the outsourcing
other life-saving medications. Stockouts of these crucial of last-mile delivery of essential medicines through 3PL
medications, often resulting from ineffective or inefficient providers in the NSDHCMA in Niger State, Nigeria. The
distribution systems, have significant implications, specific objectives are
necessitating outsourcing transportation to capable 3PL 1. To determine the relationship between using 3PL
providers (Village Reach, 2016). outsourcing for the last-mile delivery of essential
This study explores outsourcing for last-mile medicines and reducing transportation costs in the
delivery by government-managed warehouses or drug NSDHCMA
management agencies (DMAs) in Nigeria. Last-mile 2. To establish the relationship between using 3PL
delivery of health commodities refers to the distribution services for last-mile delivery of essential medicines
process where essential health products, such as medicines and increased timely delivery of medicines within the
and medical supplies, are transported from central or government DMA in Niger State
regional warehouses to the service delivery points, such as 3. To measure the relationship between using 3PL
clinics or hospitals. Such agencies oversee drug revolving services for the last-mile delivery of essential
fund schemes, where the government, donor agencies, or medicines and increased customer satisfaction within
partners provide seed money to procure an initial stock the government DMA in Niger State.
of essential medicines. These medicines are dispensed at
prices sufficient to replenish the stock, ensuring continuous 1.3. Significance of the research
supply and availability (Ogbonna & Nwako, 2016). This This study contributes to the body of knowledge on using
research employs a case study approach, focusing on the 3PL providers in the last-mile distribution of essential
Niger State Drugs and Hospitals Consumables Management medicines in Nigeria. The findings also highlight the
Agency (NSDHCMA) in Niger State, Nigeria. The primary additional benefits of outsourcing last-mile delivery, such
data were collected through a cross-sectional study as reduced logistics costs.
design incorporating a qualitative research methodology.
Key informant interviews (KII) were conducted with 1.4. Contribution of the study to the literature
key personnel within the selected DMA and relevant
departments of the state Ministry of Health; a questionnaire This study significantly contributes to the growing
was also administered to relevant staff. body of healthcare supply chain management literature,
highlighting the efficiency and operational benefits
1.1. Problem statement of utilizing 3PL providers for the last-mile delivery of
To date, no studies have examined outsourcing the last- essential medicines in Nigeria. The research supports using
mile delivery of essential medicines by government-owned 3PL services to reduce operational costs, improve delivery
Central Medical Stores in Niger State, Nigeria. Moreover, timeliness, and enhance end-user satisfaction, critical
no research has investigated whether the use of 3PL metrics in health logistics.
services for last-mile delivery of essential medicines can The findings fill an important gap in the literature,
reduce transportation costs, increase timely delivery of demonstrating how 3PL outsourcing can optimize
essential drugs, and enhance customer satisfaction within the distribution of essential medicines, particularly in
government Central Medical Stores in Niger State. resource-constrained environments such as Niger State.
This study seeks to answer the following questions: This study also contributes to understanding how strategic
1. What is the relationship between using 3PL services outsourcing can streamline health-care logistics, reducing
for the last-mile delivery of essential medicines and stockouts and ensuring the availability of life-saving
reducing transportation costs in the NSDHCMA? medications in remote areas.

Volume 3 Issue 1 (2025) 186 https://doi.org/10.36922/ghes.4714