Investigating the effect of pharmaceutical logistics service performance on customer satisfaction: a two-step approach with structural equation modeling

BACKGROUND: These days, pharmaceutical customers are the utmost stakeholders in the healthcare supply chain, and ensuring their satisfaction with the logistics services has become worthwhile. This study aimed to investigate the effect of perceived logistics service performance on customer satisfaction in the public health facilities served under the Ethiopian Pharmaceutical Supply Agency of the western cluster. METHODS: An analytical cross-sectional study was conducted between January and February 2020. We selected 269 respondents using a multistage sampling technique. A pretested semi-structured questionnaire was used to collect the intended data. We employed SPSS version 26 and AMOS 22 software to analyze the quantitative data. The findings obtained from the open-ended questions were summarized in word document manually and used to discuss the quantitative data. We tested the hypotheses using structural equation modeling. RESULTS: Of the 269 questionnaires, 247 were duly completed and returned, making a 92% response rate. The findings indicated that the pre-transaction logistics service components (β = 0.31, p < .001), the transaction logistics service components (β = 0.54, p < .001), and the post-transaction logistics service components (β = 0.62, p < .001) influenced customer satisfaction positively and significantly explaining 77.1% of variations. The respondents indicated that the right person with appropriate qualifications, adequate knowledge, and experience should be employed to provide specific logistics services to please clients. CONCLUSION: It is worth pointing out that the higher logistics services performances are likely to enhance customer satisfaction. Therefore, logistics managers should strive to ensure customers get the desired products and services reliably to increase their satisfaction even better than the current performance. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1186/s40545-021-00351-6.