Ethiopia Pharmaceutical Supply Service (EPSS) has won the Grand Prize at the 2024 Global Health Supply Chain Summit held in Lagos, Nigeria. This prestigious award recognizes EPSS's successful implementation of Kaizen principles, which led to a remarkable transformation of its operations and a significant contribution to healthcare in Ethiopia. This accomplishment comes after years of dedicated work and strategic focus on delivering essential medicines effectively and affordably to millions of Ethiopians.

EPSS is a veteran institution with over 77 years of experience in providing pharmaceuticals, laboratory reagents, medical equipment, and supplies to the Ethiopian people. The Service serves an extensive network of healthcare facilities, including 420 hospitals, 4,100 health centers, and 18,500 health posts, managing a vast product list of 1,020 items, including 476 pharmaceuticals. To manage this complex operation, EPSS relies on a network of 11 centrally managed warehouses and 19 branch (hub) warehouses with a total capacity of 81,134 cubic meters.

Kaizen, a Japanese term meaning "continuous improvement," is a philosophy that emphasizes ongoing incremental improvements through collaborative efforts. It focuses on engaging all employees in identifying areas for improvement, fostering teamwork, and solving problems collectively. The primary goal of Kaizen is to enhance efficiency and quality by eliminating waste.

EPSS recognized the potential of Kaizen to address the challenges inherent in its complex supply chain and embarked on a comprehensive implementation journey. This journey started with a clear vision from the leadership, a well-defined strategy, and a commitment to organizational change. EPSS invested in training over 1,500 employees on Lean and Kaizen principles, as well as supply chain fundamentals, to cultivate a culture of accountability, teamwork, and continuous learning. Daily Kaizen boards and project governance systems were introduced to sustain the momentum of improvements and ensure their scalability across all hubs.

The work led to significant improvements across its operations. Inventory accuracy surged from 90pc to an impressive 99.8pc while distribution costs were significantly reduced from 0.9pc to 0.5pc. Proof of delivery, a measure of supply chain reliability, increased from 89pc to 99.9pc. These improvements translated into tangible benefits for healthcare facilities and patients across Ethiopia.

"We were eager to win," said Abdulkadir Gelgelo (MD), director of EPSS, reflecting on the journey. He believes that the award is "a testament to the hard work" of the EPSS team, led by Director of the Quality Control Management Directorate, Awol Jamal, who presented the Service’s winning case at the Summit.