Abstract

Efficient management of raw materials, drugs, active pharmaceutical ingredients (APIs), and other medical materials and devices could result in an improved operational performance of pharmaceutical companies. Thus this paper seeks to investigate the relationship between materials management and operational performance of listed pharmaceutical companies in Nigeria on one hand and on the hand to provide information on material management practices that improves operational performance of the firms. Primary data was generated through structured thematic questionnaire responded to by 120 management and executive staff members of four (4) firms purposively selected out of the ten (10) listed pharmaceutical and health companies. Data collected was analyzed using descriptive statistics - weighted mean, standard deviation, correlation analysis and multiple regression statistical tools. The study revealed that the explanatory variables (materials management and is proxies) exert significant positive effect on operational performance measured using waste reduction, cost reduction and customers service satisfaction of the sampled firms. Therefore, this study concluded that materials management has positive and significant effect on operational performance of pharmaceutical firms in Nigeria, specifically when measured in terms of waste reduction, cost reduction and customers’ service satisfaction. The study recommended that pharmaceutical companies need to ensure optimal control and efficient management of materials by establishing a specialized and independent materials and inventory management department that will solely be in charge of managing the materials and other pharmaceutical inventories.