Presentation on Logistics and Health Supply Chain Management PDF

LOGISTICS AND HEALTH SUPPLY CHAIN MANAGEMENT FACILITATOR: EDWARD BRIGHT AGYEKUM, (PhD) DIRECTOR, PRCUREMENT & SUPPLY CHAIN DIRECTORATE- MOH 5TH SEPTEMBER 2024  OUTLINE Logistics and...

LOGISTICS AND HEALTH SUPPLY CHAIN MANAGEMENT FACILITATOR: EDWARD BRIGHT AGYEKUM, (PhD) DIRECTOR, PRCUREMENT & SUPPLY CHAIN DIRECTORATE- MOH 5TH SEPTEMBER 2024  OUTLINE Logistics and Health Supply SCM in Ghana What is Supply Chain Procurement Chain Public Health Management Cycle Management Sector  What is Supply Chain Management (SCM)? Meanings and definitions  Supply Chain Management (SCM) is the PROCESS of handling the flow of goods and services from the raw manufacturing of the product through to the consumption by the consumer.  This process requires an organisation to have a network of suppliers (that serve as links in the chain) to move the product through each stage.  (Lambert, Stock and Ellram, 1998) defines SCM as; The ‘alignment of firms that bring products or services to a market’.  Definition  Chopra and Meindl (2007, p.3) believes that  “a supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request.  Within each organization, such as a healthcare, the supply chain includes all functions involved in receiving and filling a customer request.  These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service”.  Logistics and Health Supply Chain Management Logistics and Health Supply Chain Management are critical areas within the healthcare industry that ensure the:  availability, quality, and timely delivery of medical supplies, equipment, and pharmaceuticals to healthcare providers and patients.  Effective logistics and supply chain management in healthcare not only improves patient outcomes by ensuring the availability of necessary medical supplies but also enhances the overall efficiency and cost-effectiveness of healthcare delivery systems.  Components Of Logistics and Supply Chain Management 1.Logistics in Healthcare:  Transportation: Ensures the safe and efficient movement of medical products, including sensitive items like vaccines, blood, and organs, which often require specialized handling and temperature control.  Warehousing: Involves the storage of medical supplies and equipment in facilities that meet regulatory standards for cleanliness, temperature, and humidity control.  Inventory Management: Focuses on maintaining optimal stock levels to avoid shortages or overstock, which can lead to wastage or expired products.  Distribution Networks: Ensures that products reach their destination through an efficient network, minimizing lead times and costs.  Components Of Logistics and Health Supply Chain Management (2) 2. Health Supply Chain Management:  Procurement: Involves the sourcing and acquisition of medical products, ensuring that they meet quality standards and are cost-effective.  Supply Chain Coordination: Requires collaboration among manufacturers, suppliers, healthcare providers, and regulatory bodies to ensure the smooth flow of products from production to end-use.  Risk Management: Identifies and mitigates risks such as supply disruptions, regulatory changes, and natural disasters that can affect the availability of medical supplies. Key Considerations:  Regulatory Compliance: Adhering to health regulations and standards, which vary by country, is crucial for the safety and effectiveness of medical products.  Cold Chain Management: Particularly important for vaccines and biologics, this involves maintaining products at specific temperatures throughout the supply chain.  Sustainability: Increasingly, healthcare organizations are focusing on reducing the environmental impact of their supply chains through green logistics practices. The cycle view of Supply Chain  Why is supply chain important? Effective Supply Chaim Management ensures :  Boosted Customer Service by meeting customers expectations with the correct product assortment and quantity to be delivered.  Right Delivery Time – Customers/ Clients expect products to be delivered on time (i.e., patients medications must always be at the dispensary to meet their needs at all times to avoid health complications).  Reduce Operating Costs by decreases purchasing cost – Retailers depend on supply chains to quickly deliver expensive products to avoid holding costly inventories in stores any longer than necessary  Ghana Health Sector Supply Chain System  Since 2016, the MOH and its Agencies partnered with DPs (notably GF and USAID) to jointly initiate and deploy key interventions aimed at reforming SC in Ghana.  Enhancing distribution of health commodities across tiers ❖ Central to RMSs and Teaching Hospitals ❖ RMS to service delivery points (SDPs)  Improving SC data generation, analysis, reporting, visibility and use  Enhancing procurement efficiencies through Framework Contracting  Institutionalising SC governance structure for accountability and effective coordination  Developingand implementing a warehousing strategy for optimization of commodity management and distribution. Ghana Health Sector Supply Chain System (2)  Supply Chain Master Plan (2021 – 2025)  Identify and implement key strategic interventions and priority activities for a country-led robust SC that contributes to the achievement of UHC.  New, prioritised interventions centred around the transformational pillars of the SCMP — sustainability, transparency, innovation, coordination, collaboration and private sector participation.  Ghana Pharmaceutical Traceability Strategy  developed through multi-stakeholder consultative processes to leverage global standards to strengthen the health system through improving data quality and traceability of health commodities  Strategy will enable access to safe, effective, and quality medicines, which are key contributors to Ghana’s UHC goals.  Minister for Health inaugurated governance structures (Steering Committee, TWG and Secretariat)  Ghana Health Sector Supply Chain System (3  Logistics and Distribution  Adopted the principle of Last Mile Distribution (LMD) or Scheduled Distribution  Rounds Completed for central level distribution to RMSs and THs recorded quarterly  8 Regional Medical Stores in respective regions continue to implement LMD through support from the GF and USAID  Bono and Western RMSs use own resources for LMD.  Using Aerial Logistics Approach (Unmanned Aerial Vehicles) ZIPLINE to augment distribution of critical health commodities to ‘ hard-to-reach’ communities  Ghana Health Sector Supply Chain System (4)  Warehousing  Currently,Ghana maintains 10 RMSs and the 5 THMS with a lean CMS under the PSCD of the Ministry.  Inmaintaining the current RMSs, the MOH and GHS in collaboration with the FDA tries to implement recommendations as captured in the 2016 FDA Assessment Report.  Ensuring RMSs get FDA accreditation for warehousing health commodities in accordance with WHO standards and protocols  Currently only Bono and Eastern RMSs have accreditation. Preliminary engagements concluded with management of Upper West, Ashanti and Western RMSs to pave way for assessments.  As part of maintaining the 10 RMSs, refurbishment of structures ongoing with support from the GF. USAID is supporting with installation, management and use of smart temperature monitoring systems (currently in 5 regions) Ghana Health Sector Supply Chain System (5)  Ghana Integrated Logistics Management Information System (GhiLMIS)  TCMS, RMSs, THs, Regional Hospitals, District Hospitals, other Hospitals and Health Centres are onboarded. (1,893 HFs on-boarded :  Enhanced SC data capture and processing-Real time availability and visibility on current and historical transactions from 3 months to within a day when the system is utilized  Order Turn Around-Reduction Order Turn Around Time for Central Level Distribution from One month to 2 weeks  Inventory Record Update-Capturing receipt information including stock updates from 1 week to within a day when the system is utilized  On-going interventions to address non-optimal use of all functionalities  Rollout to selected CHPS to begin soon  Discussion ongoing on Integration with LIMS Ghana Health Sector Supply Chain System (6)  Framework Contracting Arrangement (FWC) 3 Rounds successfully completed with Round 4 procurement process currently ongoing  Essence of FWC - availability, quality, cost-effective and timely Procurement Cycle Planning Evaluation Sourcing The Procurement Disposal Cycle Contracting (for Goods) Contract Management Distribution Storing Procurement Cycle (2) Procurement Planning Sourcing/Tendering (Stage Contracting (Stage 3) (STAGE 1) 2) Sourcing/Procurement Notification of Award Identification of Needs & Quantities (Quantification and Method: Award notification to Forecasting). International Competitive only Successful Aggregation of needs and Tendering (ICT) tenderer(s) quantities into procurement Notify other tenderers package. (ie Lots). National Competitive Tendering (NCT) of the results. Restricted Tendering Drafting and Signing of Proposed Procurement Method Contract for each activity. (RT) Timelines for Initiation and Contract document must completion of each Single/Sole Sourcing be prepared very well. procurement activity. Procurement Delivery Terms, Payment The procurement plan must be Request for Quotation Terms, Warranties, After approved by ETC and it must be (RFQ) sales services, Training uploaded on PPA Website Plan etc Procurement Cycle (3) Contract Storage & Warehousing Distribution & Management(Stage 4) (Stage 5) transportation (Stage 6) Distribution Plan to end Inventory Management and users in various Selection of a Contract Control locations. Manager or Team. Requisition (Who Approves it). Transport Type. Forward a copy of the stock planning (Minimum & Re- contract to all relevant Packaging and Handling order levels).. stakeholders DISPOSAL Stage 7 Stocking Taking. Before you take a decision to dispose, Systems and security.) ask and answer this questions? Installation and testing, Has the Equipment/product achieve commissioning Storage requirements its Life Span? What is the operational cost of the Quality Testing by FDA for Cold Chain equipment/product? Pharmaceuticals storage/Temperature. Is the equipment/product able to After sales service perform as expected? Shelf life. Constitute Board of Survey. Planned Maintenace Equipment Handling. Make recommendations for Disposal  Conclusion :Societal Roles of SCM  SCM Improves Human Healthcare – Humans depend on supply chains to deliver medicines and healthcare.  During a medical emergency, supply chain performance can be the difference between life and death.  For example, medical rescue helicopters can save lives by quickly transporting accident victims to hospitals for emergency medical treatment.  In addition, the medicines and equipment necessary for treatment will be available at the hospital as a result of excellent supply chain execution and in Ghana we now have Zipline. Ghana Health Sector Supply Chain System(8)  Challenges ❖ Inadequate Qualified Supply Chain Practitioners in the Sector ❖ Duplication and Overlapping of responsibilities and roles ❖ Financial and Logistical ❖ Management level of appreciation of the important role played by Supply Chain functions (coordination and cooperation) “Be kind and merciful. Let no one ever come to you without coming away better and happier.”- -Mother Theresa END OF PRESENTATION