Introduction to Health Supply Chain Management

Introduction to Health Supply Chain Management

• Supply chain management (SCM) is the centralized management of the flow of goods and services.
• SCM encompasses all processes that transform raw materials into final products.
• Effective SCM enables companies to reduce costs and deliver products faster.
• Logistics is a critical component within SCM, focusing on efficient and cost-effective delivery of goods to consumers.

Commodity Security

• Commodity security exists when all people can access and use quality essential supplies.
• Reproductive commodity security ensures everyone has access to quality contraceptives and reproductive health supplies.

Methodology (SPARHCS Framework)

• The SPARHCS framework is a strategic pathway for reproductive health commodity security.
• Key components of the framework include various sectors: government, private sector, donors, and NGOs.
• Capital, commitment, coordination, and capacity are crucial aspects of the process.

The 7 Cs of Commodity Security

• Context: The overall situation, including political, policy, economic, social, and health environments.
• Commitment: Level of policy support and leadership from all stakeholders (government, donors, private sector, NGOs).
• Capital: Financial resources needed, ranging beyond government funding to include multiple sources to meet all requirements.
• Coordination: Collaboration among different stakeholders involved in the process, as highlighted in the framework diagram.
• Capacity: Ensuring sufficient staff, technical skills, and supply chain management capacity and structure.
• Clients: Meeting the specific needs and preferences of clients, addressing access, community resources, and affordability/willingness to pay.
• Commercial Sector, NGOs, and Social Marketing: Mobilizing capital, coordination, and capacity within the broader context.

Essence of Logistics to Commodity Security (FFPD)

• Forecast: Accurate estimation of commodity requirements, anticipating demand.
• Finance: Securing adequate financial resources for procurement.
• Procure: Conduct efficient procurement of products.
• Deliver: Ensure the reliable delivery of commodities to designated locations.

The 7Rs of Logistics

• Right Product: Ensuring the correct products are available.
• Right Quantity: Ordering the appropriate amount of products.
• Right Condition: Keeping products in good condition and ensuring their quality.
• Right Place: Delivering products to the correct location.
• Right Time: Delivering products in a timely manner and on schedule.
• Right Customer: Meeting specific customer needs and fulfilling requirements.
• Right Price: Cost-effective acquisition and distribution.

Logistics Cycle Explained

• Serving Customers: Prioritizing the needs and preferences of customers.
• Product Selection: Choosing relevant products based on national needs, considering cost and program support factors.

Quantification and Procurement, Inventory Management

• Quantification and Procurement: Determining the right quantities and acquiring products from manufacturers or resellers.
• Inventory Management: Maintaining adequate storage capacity to manage products and ensure quality; with functional transportation systems that are reliable.

LMIS at the Heart of the Cycle

• Organization and Staffing: Well-trained staff who monitor stock levels, place orders, and provide products to clients; efficient staffing.
• Budget: Allocation, management, and securing financial resources for health commodities and logistics.
• Supervision: Anticipating need for change and addressing supply problems or human resource constraints.

Monitoring and Evaluation

• Monitoring and Evaluation: Regularly evaluating the pipeline and logistics systems for performance, identifying areas for improvement, and assessing impact on service provision.
• Quality Monitoring: Ensuring all actions within the cycle are functioning correctly, and addressing issues via corrective action.
• Policy Environment: Understanding how government regulations and procedures affect all elements of the logistics cycle.

Adaptability

• Adaptability: Design systems to accommodate changing circumstances, like fluctuations in demand or funding policies.

Why Does Logistics Matter?

• Reduced losses from overstocking, waste, expiry, damage, and pilferage.
• Protection of major program investments.
• Cost recovery optimization.

6 Terms in Logistics

• Pipeline: The entire chain of facilities and transportation links for product delivery from manufacturer to consumer.
• Lead Time: The time between initiating a process (like ordering) and its completion (like receiving products). Measured and worked to reduce time.

Lead Time Examples

• Real-world examples demonstrating the calculation of lead time in a supply chain and identification of improvement areas.

Terms in Logistics (Dispersed-to-User Data, Issues Data, Pull/Requisition System, Push/Allocation System)

• Dispensed-to-User Data: Information about the actual quantity of goods delivered to end users.
• Issues Data: Information on the quantity of goods transferred between system levels.
• Pull/Requisition System: Quantities determined by those receiving the product.
• Push/Allocation System: Quantities determined by those issuing the product.

Advantages and Disadvantages of Push/Allocation and Pull/Requisition Systems

• Push Systems: Fewer trained staff at lower levels but potentially higher workload at upper levels.
• Pull Systems: Less load on upper staff, but potentially requires greater training at lower levels.

Ghana Health Commodity Pipeline

• RMS (Referral Management System): System for delivering commodities and data collection.
• CBD (Community-Based Delivery): Community-level approach to distribute commodities.
• MS (Medical Stores): Stores and manages commodities.