Computerization of Logistics Information for

Improved Supply Chain Management

Presentation at JSI

5 November 2009

Topics

• Background to supply chain management

• Tools review

• Discussion of challenges and successes

The Supply Chain

Courtesy: JSI/DELIVER

Proc Agents

MOH, MoF

Global Need

Courtesy: JSI/DELIVER

Global NeedFamily Planning

(including some condoms for STI/

HIV)

STI Drugs

Essential Drugs

Vaccines and

Vitamin A

TB/Leprosy

HIV/AIDS Test kits (&HepB tests)

DFID (UK)

KfW UNICEF JICAGOK,

WB/IDASource of funds for

commodities

Commodity Type

(colour coded)

MOH Equip-ment

(including Lab

supplies

Point of first warehousing

KEMSA Central Warehouse

KEMSA Regional Depots

Schenker Warehouse

Organization responsible for delivery to district

levels

KEMSA, District Hospitals, District Stores (Essential drugs kits, TB/Leprosy drugs, malaria drugs, lab supplies, reagents, HIV/AIDS test kits)

Express Kenya

(Equipment)

Procurement Agent/Body Crown

AgentsGovernment

of Kenya

GOK

GTZ

DELIVER (FPLM) and Division of RH (MOH) (Contraceptives, condoms,

STI kits, HIV/AIDS test kits)

Euro-pean Union

KfW UNICEF

KEPI Cold Store

KEPI (Vaccines

and Vitamin A)

Malaria

SIDA (6 districts)

USAID

USAID

UNFPA

DANIDA (11 districts)

EUROPA

Condoms for STI/HIV/

AIDS prevention

Belgian Gov (BTC) (2 districts)

CIDA World Bank DARE (8 districts)

UNFPA

European Union (20 Districts)

District level decisions of

quantity, type and procurement of

health commodities

De-centralization projects

US Gov

CDC

WHO (3 Districts)

NPHLS store

MEDSPrivate Drug

sources

Dutch

Dutch Gov

Agent

Government

NGO/Private

Bilateral Donor

Multilateral Donor

World Bank loan

Organization Key

Japanese Private

Company

JICA (5 districts)

WHO

GAVI

ADB (5 districts)

Courtesy: JSI/DELIVER

Supply Chain SoftwareFunctional Overview

Nat

iona

lR

egio

nal

Ser

v ic e

D

eliv

ery

I nt e

rnat

iona

l

Manufacturer International DistributorDelivers to

National Warehouse

Sub-national warehouse

Service Delivery Point

Orders fromOrders from

Delivers to

Delivers to

Health Program Manager

Reports to

Delivers to

Procurement Service Requests

Deliveries

Orders from

Delivers to

Logistics Management Unit

Reportsto

Reports to

Reports to

ORION

Global Procurement Information

SystemReports forecasts

and orders

Reproductive Health Interchange

PipeLine,

ProQ

Supply Chain Manager

Last Mile Technologies

,

Mobile Tech

Topics

• Background to supply chain management

• Tools review

• Discussion of challenges and successes

Website: http://rhi.rhsupplies.org

RHI Inputs and Outputs

RHIUSAID My Commodities

IRH Excel

Crown Agents (DfID)RAP

IPPF SunBusiness

UNFPA ATLAS

Other, future…

(Govts., PSI)

Summary of Shipments

Value Summary

Quantity Summary

Geographic Summary

Shipment History

Shipment Details

MSI

Excel

Govt. of Nepal

Excel

Govt. of Uganda

Excel

DKT/Ethiopia

Excel

Users and Uses• TA Providers: preparation for country-specific TA

for forecasting, procurement, financing context• MoH RH Program Mgrs: planning & budgeting• Commodity Managers: monitoring of shipments• Donors: coordination• Contraceptive Security Committees: share

information, strategize, mobilize resources• Advocates & Researchers: advocacy, support for

campaigns and research questions

DistributionCenters

Information Goods

Vendors /Manufacturers

ORION

ORION™ Version 10.3.0 – 3i Infotech

Supply Management

http://deliver.jsi.com/dhome/mycommoditieshttp://deliver.jsi.com/dhome/mycommodities

View Shipments>>View Shipments>> Shipment Summary Reports>>Shipment Summary Reports>>

Account Information>>Account Information>>

Inventory>>Inventory>>

Shipping Information>>Shipping Information>> Product Catalogue>>Product Catalogue>>

Support>>Support>>

PipeLine Monitoring and PipeLine Monitoring and Procurement PlanningProcurement Planning

InputsInputs OutputsOutputs

PipeLine - Users and countriesPipeLine - Users and countries

Program managers and consultants in:

Bangladesh, Burkina Faso, Dominican Republic, El Salvador, Ghana, Honduras, Liberia, Malawi, Mozambique, Nepal, Nicaragua, Paraguay, Rwanda, Tanzania, Uganda, Zambia, Zimbabwe

ProQQuantification Software

for HIV Tests

Current Uses of testing:Current Uses of testing:

•Blood SafetyBlood Safety

•VCTVCT

•PMTCTPMTCT

•Testing HIV-exposed babiesTesting HIV-exposed babies

•Clinical DiagnosisClinical Diagnosis

•Sentinel SurveillanceSentinel Surveillance

•OtherOther

ProQ: Advocacy Tool for Resource Mobilization and Funding ProQ: Advocacy Tool for Resource Mobilization and Funding AllocationsAllocations

– Logistics Advisors– Program Managers and Planners– Product Managers– Procurement Officers and Agents– Donors

– Ghana– Zambia– Zimbabwe

ProQ - Users and countriesProQ - Users and countries

Main Menu

Main features:Main features:

- Supply status and distribution of stocks at each SDP and storage facility - Supply status and distribution of stocks at each SDP and storage facility

- Quantities of products dispensed to user- Quantities of products dispensed to user

- Trends in commodity consumption for program evaluation and procurement planning - Trends in commodity consumption for program evaluation and procurement planning

- Service statistics, such as new and continuing users - Service statistics, such as new and continuing users

- Couple years of protection (CYP), calculated for family planning products dispensed - Couple years of protection (CYP), calculated for family planning products dispensed

- Percentage of facilities reporting, names and locationsPercentage of facilities reporting, names and locations

Inputs:Inputs:

• Quantities issued to facilities or dispensed to usersQuantities issued to facilities or dispensed to users

• Quantities receivedQuantities received

• Losses/adjustmentsLosses/adjustments

• Stock on handStock on hand

Main inputs & featuresMain inputs & features

Delivery Planning Screen

Delivery Planning Screen

Supply Chain Manager:Supply Chain Manager:Users and countriesUsers and countries

Program staff and MOH counterparts

• Malawi

• Zambia

• Nigeria

Technologies & trendsTechnologies & trends

• Mobile technology for capturing data

• Web based Logistics Information System

• Open source development

• Network analysis

Supply Chain Guru™Supply Chain Guru™LLamasoft, Inc.LLamasoft, Inc.

• Network Modeling through

- Network Optimization

- Inventory Optimization

- Enterprise Simulation

Supply Chain Network DesignSupply Chain Network Design

Baseline Network Optimized Network

Does using 3-month historical average smooth away

variability? • Table below compares projected demand based on 3 month historical averages to the

actual demand for 2007• Red highlights represent projected under-estimating by more than 20%• Yellow highlights represent projected demand over-estimating by more than 20%• Results: 50% of the time the projected was either over or under by more than 20%. Using

projections based on 3-months historical data does not necessarily remove variability. Complexity of system requires the use of advanced supply chain modeling software.

Projected Demand as Percentage of Actual Demand For Aggregated 2007 Quantities

MA

RZO

AB

RIL

MA

YO

JUN

IO

JULI

O

AG

OS

TO

SE

PTI

EM

BR

E

OC

TUB

RE

NO

VIE

MB

RE

DIC

IEM

BR

E

Jutiapa condones -13% 3% 5% -12% -23% -5% 5% -21% 13% 46%tdecobre -38% 0% 33% 183% 22% -63% 44% -64% 0% 700%inyectable -11% 5% -7% 7% 3% -10% 2% -8% 1% 64%orales -40% 51% 2% 13% -8% -22% 8% -13% 13% 104%

Totonicapan condones -17% -12% 7% 4% 35% -18% -26% -47% 171% 88%tdecobre -47% 11% 33% 22% -70% -41% 267% -22% 67% 67%inyectable -24% 12% -17% -10% 28% -23% 19% -13% 32% 19%orales -50% 27% -4% -5% 10% -19% -6% -8% 29% 32%

Solola condones 52% -3% 9% 18% 7% 50% -39% -20% 8% 10%tdecobre -70% 33% -33% 0% -10% -61% -37% -77% 157%inyectable -11% 31% 24% -9% -14% 22% -5% 27% 6% -23%orales -8% 44% 31% -10% -31% 97% -12% -17% 4% 4%

*Projected amounts calculated using average of previous 3 months

Effect of Variability on Solola Health Center Condom Stock Outs and Emergency Orders

• Scenario Outputs• Stock Out Periods

– no variability scenario – 0– 25% variability scenario – 1 – 50% variability scenario – 5

• Instances Crossing Above Max (overstocked)– No variability scenario – 0– 25% variability scenario – 5– 50% variability scenario – 2

• Instances Crossing Below Min (emergency order)– No variability scenario – 0– 25% variability scenario – 8– 50% variability scenario – 6

• (Settings: 106 condoms/month; 1/3 month min/max; 2 year period, reorder quantity based on previous 3 month demand)

No Variability in Monthly Demand for Condoms

0

100

200

300

400

500

Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09

Inv

en

tory

50% Variability in Monthly Demand for Condoms

0

100

200

300

400

500

Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09

Inv

en

tory

25% Variability in Monthly Demand for Condoms

0

100

200

300

400

500

Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09

Inv

en

tory

Topics

• Background to supply chain management

• Tools review

• Discussion of challenges and successes

Discussion Questions• How has your program used information

technology to improve supply operations in a global health setting?

• What continue to be the most important hurdles to applying information technology in our context?

• What information gaps continue to hamper our ability to assure a transparent and equitable distribution of medical resources?