Page 197 - GHES-3-1

Global Health Economics and
Sustainability
Outsourcing last-mile delivery

This situation can lead to alternative models that may delay warehousing and distribution, procurement and contract
delivery times and stockouts (Karimi, 2020). management, and transportation, and 15 managers
Given the financial constraints governments face were interviewed. Table 1 shows the distribution of the
in developing countries, it is essential to use resources population sample.
judiciously when deploying 3PL providers for the last-mile The NSDHCMA in Minna, Niger State, Nigeria, manages
delivery of essential medicines (Kazaz et al., 2016; Karimi, the procurement, storage, and distribution of essential
2020). Government agencies that operate drug-revolving medicines and hospital consumables throughout the state.
fund schemes are expected to adopt private sector best The agency ensures that health commodities, including life-
practices to ensure quality service delivery and patient care saving medications and medical supplies, reach health-care
(Ogbonna & Nwako, 2016). facilities efficiently and reliably. It is a critical component of
the state’s health-care system and works to improve access to
This study aims to fill a gap in the literature concerning
government-operated DMAs outsourcing last-mile quality health-care services through effective supply chain
management. The agency aims to enhance service delivery
delivery of health products to 3PL providers and its outcomes across both rural and urban health facilities in
impact on operational cost reduction, timely delivery, and Niger State by overseeing last-mile delivery operations and
customer satisfaction.
collaborating with 3PL providers. This strategic role makes
2. Data and methods it an ideal site for studying how logistics outsourcing affects
health-care service performance, particularly regarding
This study distributed a structured questionnaire and cost reduction, timely delivery, and end-user satisfaction
conducted direct interviews, adopting a qualitative case study (Marshet et al., 2018).
research methodology to collect primary data. In-depth
interviews were conducted with managers and supervisors 2.5. Measuring instrument
in the NSDHCMA Minna in Niger State, Nigeria. A discussion guide was developed for conducting KIIs,
2.1. Research design which was used to solicit in-depth information from the
selected target audience.
This research seeks an in-depth understanding of how
government-managed DMAs implement 3PL outsourcing 2.6. Data collection methodology
(a known concept in distribution services). Hence, the case An initial pilot test was conducted to develop interview
study approach is needed, which is a proven tool for logistics questions (Appendix), which were tested with some
research (Easterby-Smith et al., 2012; Etokudoh et al., 2017). participants to ascertain their understanding of the
questions. Approval was sought from the management of
2.2. Unit of analysis
the NSDHCMA. An interview guide was also developed
The unit of analysis is the individuals in the government and sent to the identified participants before the
DMAs responsible for warehousing and distributing interview, and a commitment to maintain the participants’
essential medicines to the public. confidentiality was also provided. The questionnaire was
then administered to selected individuals.
2.3. Sampling design
Recorded discussions were reviewed using constant
This study used a non-probability purposive sampling comparison methods, and commonalities in responses
technique, which is most effective when data are collected were drawn to gain an in-depth understanding.
from predetermined individuals. Individuals from the
targeted organization provided information in response to Table 1. Distribution of the population and sample
this study’s objectives. Participants included personnel in
management positions (executive director and directors in Functional areas Number of employees %
charge of warehousing and distribution), procurement and Procurement 10 17.0
contract management managers, and key operations staff Accounts/finance 8 14.0
directly involved in logistics or last-mile delivery operations. Warehouse/store 10 17.0
The sampling process involved identifying the informants
and developing a schedule to meet and interview them. Management 5 9.0
Human resource management 10 17.0
2.4. Target population and study site Distribution and transportation 15 26.0
The survey was distributed to 58 participants from various Total 58 100.0
departments of DMAs, including top management, Source: Field survey 2022.

Volume 3 Issue 1 (2025) 189 https://doi.org/10.36922/ghes.4714