Page 200 - GHES-3-1

Global Health Economics and
Sustainability
Outsourcing last-mile delivery

3.2.1. Results of hypothesis testing 3PL providers often benefit from economies of scale as

1. A significant link exists between the use of 3PL they manage deliveries for multiple clients, spreading their
services for last-mile delivery of essential medicines fixed costs across a broader base.
and the reduction in the cost of delivery without 3PL Moreover, the study’s statistical analysis (χ² = 33.1,
in the Government Central Medical Stores in Minna, p < 0.05) supports the hypothesis that a significant link
Niger State (70.0%, χ = 33.1, n = 50, p < 0.05) exists between using 3PL services and cost reduction. This
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2. A significant link exists between the use of 3PL finding aligns with the existing literature, consistently
outsourcing for last-mile delivery of essential demonstrating that outsourcing logistics functions to 3PL
medicines and an increase in timely deliveries (same- providers can lead to substantial cost savings, especially in
day delivery) in Government Central Medical Stores, complex and resource-intensive sectors such as health care.
Minna Niger State (77.0%, χ = 24.2, n = 50, p < 0.05)
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3. A significant link exists between the use of 3PL 4.2. Improvement in timely deliveries
outsourcing for last-mile delivery of essential medicines The timely delivery of essential medicines is critical to the
and end-user satisfaction in the Government Central effectiveness of health-care systems, particularly where
Medical Stores in Minna, Niger State (77.0%, χ = 24.2, health-care facilities are spread across vast and often
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n = 50, p < 0.05). challenging terrains. The study’s results show that 77% of
respondents reported an improvement in the timeliness of
3.2.2. Summary of findings deliveries, with 3PL services enabling same-day delivery

Using 3PL outsourcing for last-mile delivery of essential across Niger State. This contrasts sharply with the 3-day
medicines is cost-efficient, high speed/same-day delivery delivery timeframe when 3PL services were not employed.
time, and end-user customer satisfaction generating in The enhanced delivery speed of 3PL providers can be
NSDHCMA, Minna, Niger State. attributed to their specialized infrastructure and expertise
in navigating logistical challenges; 3PL companies are
4. Discussion equipped with advanced tracking systems, real-time data
This study’s findings provide a detailed analysis of the analytics, and a deep understanding of local conditions,
effectiveness of outsourcing last-mile delivery of essential allowing them to anticipate and mitigate potential delays.
medicines to 3PL providers, particularly within the context In addition, contractual obligations to meet specific
of the NSDHCMA. This discussion examines the benefits of delivery standards further incentivize 3PL companies to
operational cost reduction, timely delivery improvements, maintain high levels of efficiency.
and enhanced customer satisfaction. It also explores The statistical evidence (χ² = 24.2, p < 0.05) underscores
the broader strategic considerations for integrating 3PL the significance of the relationship between 3PL usage and
services into healthcare logistics. improved delivery speed. This improvement is significant in
the health-care sector, where delays in delivering essential
4.1. Reduction in operational costs
medicines can severely affect patient outcomes. The ability
One of this study’s most significant outcomes is the evident of 3PL providers to ensure timely deliveries directly
reduction in operational costs associated with adopting supports health-care facilities’ operational effectiveness,
3PL services for last-mile delivery. The data indicates that reducing stockouts and ensuring that patients receive the
70% of respondents observed a 23% decrease in delivery necessary treatments without interruption.
costs when 3PL providers were utilized. This reduction
does not simply reflect lower logistical expenses; instead, 4.3. Enhancement of customer and end-user
it highlights the strategic advantage of outsourcing to satisfaction
specialized providers who can achieve efficiencies that Customer satisfaction is crucial in evaluating the success
in-house operations may struggle to attain. of logistics operations, particularly in health care,

The cost-saving benefits can be attributed to several where the timely and reliable delivery of medicines can
factors inherent in the 3PL model (Wan, Yuan, and significantly impact patient care. The study found that 77%
Lai, 2019). First, 3PL providers typically have advanced of respondents observed high satisfaction among health-
logistics networks and technologies for more efficient route care workers and patients when 3PL services were used for
planning, inventory management, and delivery execution. last-mile delivery.
These capabilities enable them to minimize wastage, This satisfaction is likely driven by the consistency
reduce fuel consumption, and optimize resource use, and reliability of 3PL services, which ensure that essential
collectively contributing to lower overall costs. In addition, medicines are delivered on time and in good condition.

Volume 3 Issue 1 (2025) 192 https://doi.org/10.36922/ghes.4714