Cost management practices in pharmaceutical companies. Case study: Guardian pharmacy

Abstract

The main aim of the study was to analyze cost management practices in Uganda and this was done by assessing how Guardian Pharmacy controlled cost, major constraints faced with regards to adopting cost control management practices, and determining recommendations regarding the improvement of control management practices. The study targeted a population of 100 respondents including distributors, operations managers, and finance managers in Guardian pharmacy from 5 branches using a sample size for this study is 80 respondents with a response rate of 89%. The data collected were analyzed by qualitative and quantitative data analysis methods. The qualitative data analysis was done using content analysis from the interview tool. Quantitative data analysis was done using descriptive statistics to compute mean and standard deviation using a statistical tool known as SPSS version 25. The researcher employed descriptive statistical methods specifically mean, standard deviation, percentage, and frequency distribution, and present it with tables and histograms in order to avail the finding of the study. The findings showed that finance people were knowledgeable and aware of cost control techniques, and used Cost Forecasting techniques. Also, the study found out that 5.2% of the respondents agreed that Fluctuation in the prices of Drugs is a major challenge of cost control and other challenges were Lack of reliability in cost management by Project Managers/Project pharmacists, Inadequate acquaintance with the utilization of available tools and technology, Absence of professional cost control training, Using outdated Approaches and Perceptions and Delayed / No payments for works done. The study further suggested that Training employees can reduce labor cost is helpful, because trained employees are helpful in reducing the labor cost of the company. The respondents also suggested other solutions to productivity like employees incentives, motivation, training, and job rotation enhances employee morale and increases productivity and responsibility accounting is helpful to regularly report variances of budget and the actual cost to measure management performance as a control device. Responsibility accounting helps managers to measure each center's performance. The study furthermore suggested a few recommendations; finance people should involve in pharmacy activities due to the area of their discipline as cost expertise which they have a better attitude towards using these techniques, the cost manager, should also exhibit foresight in predicting and arresting those constraints that are related with a pharmacy which may either impede the progress of work or extend the predetermined project period