LogisticsSupply Management by fcc15007

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									Logistics/Supply Management


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                              18-1
          NO PRODUCT,
          NO PROGRAM

Logistics/Supply Management   18-2
                    The Purpose of Logistics:
                                      the Six Rights
   To maximize client access to high-quality
     contraceptives, a logistics system must get
   u   the RIGHT good
   u   in the RIGHT quantity
   u   in the RIGHT condition
   u   to the RIGHT place
   u   at the RIGHT time
   u   for the RIGHT cost



Logistics/Supply Management                        18-3
                              Logistics “Pays Off”
                                                     in Kenya
   Contraceptives as a
 Percentage of Total Costs
                                  u   Kenya spent $4.5 million
                                      on contraceptives in 1993
                                  u   Logistics (19%) protects
                                      investment in products
                                  u   Logistics protects the
                                      remaining 81% investment

                               Source: National Council of Population
                               and Development/Kenya, 1995.
Logistics/Supply Management                                        18-4
          Logistics contributes to IMPACT
                                 in Kenya




Logistics/Supply Management           18-5
           Organizing Logistics Activities
                              The Logistics Cycle




Logistics/Supply Management                    18-6
                                 Maximizing Access
                              through Product Selection

   u   Select contraceptive methods and products
       based on customer demand (unlike drugs).
   u   Offer widest variety of choices, but consider the
       management of the number of items.




Logistics/Supply Management                                18-7
                              Maximizing Access
                                  through Forecasting
                              u   Forecasting is a central-
                                  level exercise
                              u   Forecasts can be
                                  prepared using a variety
                                  of sources:
                                  u   Population data
                                  u   Service statistics
                                  u   Logistics data


Logistics/Supply Management                                   18-8
                                        Forecasting
                                  Using Logistics Data
   u   Logistics data are
       customer-focused
       because the data are
       based on the quantities
       actually dispensed to
       users
   u   Where these data are
       not available, use the
       quantities shipped
       (issued) from the lowest
       level for which data are
       available.

Logistics/Supply Management                              18-9
                                           Forecasting
                        Using Multiple Data Sources
    Logistics                 Population      Service
      Data                      Data          Statistics




                               Final
                              Forecast


Logistics/Supply Management                                18-10
                                          Activity 1
         HOW CLOSE ARE YOU TO SECURITY?

   Contraceptive Security is defined as a program’s:
   u Ability to accurately estimate requirements
   u Ability to control financial resources
   u Technical capacity to procure products
   u Ability to distribute products to the customer for
     the medium to long-term



Logistics/Supply Management                               18-11
                              Maximizing Quality
              through Good Storage Practices
                                  u   Ensure that we can
                                      maximize the quality
                                      of the product by
                                      maximizing the quality
                                      of the storage
                                  u   Store enough product
                                      for our needs, being
                                      careful of expiration
                                      and available space

Logistics/Supply Management                               18-12
                                 Maximizing Quality
                              through Inventory Control




Inventory control systems tell staff when to routinely order and
      how much to order. The goal is to avoid stockouts.
Logistics/Supply Management                                 18-13
                                                Max-Min
                                           How It Works
                              u   Assumes that products
                                  are in full supply (unlike
                                  many drug programs)
                              u   Has a maximum level, a
                                  minimum level, an
                                  emergency order point
                              u   Includes safety stock to
                                  u   Prepare for changes in
                                      demand (seasonality)
                                  u   Prepare for the unknown

Logistics/Supply Management                                     18-14
                              Maximizing Quality
                 through Supervision of Supplies
            HOW LONG WILL OUR SUPPLY OF
                  THIS ITEM LAST?

                      Stock on Hand
                             ÷
            Average Monthly Consumption (AMC)
                            =
                 Months of Stock on Hand

Logistics/Supply Management                     18-15
                              Logistics Information
                                3 Essential Data Items
   u   Stock on Hand
   u   Losses/Adjustments
   u   Rate of Consumption (AMC)




Logistics/Supply Management                         18-16
                  Collecting Essential Data
                           3 Record Types




     u   To record consumption
     u   To record movement of supplies
     u   To record stored stock of supplies

Logistics/Supply Management                   18-17
                     Collecting Essential Data
                                through Reports
   u   Reports all essential
       data items to the next
       level
   u   This example also
       includes a request for
       supplies
   u   For this example, one
       format works for all
       levels

Logistics/Supply Management                  18-18
                                             Activity 2
         YOUR STRENGTHS AND WEAKNESSES

   u   How can your program improve its logistics
       system to be more client-centered? Which of the
       Six Rights is most challenging to fulfill?
   u   Of the activities in the Logistics Cycle, in which
       are you strongest? Weakest? Why? What can
       you do to improve?



Logistics/Supply Management                                 18-19
                              Logistics Has IMPACT
   u   No Product, No Program
   u   Fulfill the Six Rights for Logistics Success
   u   To Maximize Access
       u   Select/Forecast/Procure Based on Client Demand
   u   To Maximize Quality
       u   Follow proper storage
       u   Assess stock status
       u   Implement Inventory control
   u   Collect essential data

Logistics/Supply Management                                 18-20
                              Optional Slides




Logistics/Supply Management                 18-21
                              Logistics has IMPACT
                                         in Tanzania




Logistics/Supply Management                       18-22
                                     Forecasting
                              Using Population Data
                 Expected Number of Users
                            x
                        CYP Factor
                            =
                 Expected Quantity Needed




Logistics/Supply Management                     18-23
                                       Forecasting
                              Using Service Statistics
Challenges:
u Defining first/re-visits or new/continuing users
u Converting users to quantities using standard protocols




Logistics/Supply Management                           18-24
                                Forecasting
             Setting Realistic Expectations
 Dev.                  Program Effort
Index    Strong      Moderate   Weak            Very         For example, Indonesia, with
                                                Weak         a contraceptive prevalence
High                                                         rate (CPR) of 50% at the time
         Colombia      Jamaica     Costa Rica    Iraq
          (66%)         (67%)        (75%)      (14%)        of the study was, at least
            1.8           1.4          0.8       -0.1
                                                             partly through strong
Upper                                                        program efforts, able to
          China      Dom. Repub.    Algeria     Bolivia
Middle    (83%)        (56%)        (47%)       (30%)        increase CPR by 1.5 each
           1.3           1.2          2.0        1.0
                                                             year.
Lower
         Indonesia                   Egypt      Ghana
Middle     (50%)                     (46%)      (13%)     Key: (XX%)=CPR at the time of the study
             1.5                      1.7        0.4      X.X=CPR increase/year
 Low
           India     Bangladesh       Haiti     Malawi
          (43%)        (40%)         (10%)      (13%)
            1.3          2.1          -0.4        0.7



Logistics/Supply Management                                                                 18-25
                                Rules for Good
                              Storage Practices
   1) Clean and disinfect storeroom regularly.
   2) Store health commodities in a dry, well-lit, and
      well-ventilated storeroom—out of direct sunlight.
   3) Secure storeroom from water penetration.
   4) Assure fire safety equipment is available and
      accessible, and personnel are trained to use it.
   5) Store latex products away from electric motors and
      fluorescent lights.

Logistics/Supply Management                           18-26
                           Rules for Good
                Storage Practices continued
   6) Maintain cold storage, including a cold chain, for
      commodities that require it.
   7) Keep narcotics and other controlled substances in
      a locked place.
   8) Store flammable products separately with
      appropriate safety precautions.
   9) Stack contraceptive cartons at least 10 cm (4 in.)
      off the floor, 30 cm (1 ft) away from the walls and
      other stacks, and no more than 2.5 m (8 ft) high.

Logistics/Supply Management                             18-27
                             Rules for Good
                  Storage Practices continued
   10) Arrange cartons so that arrows point up, and so that
     identification labels, expiration dates, and manufacturing
     dates are visible.
   11) Store contraceptives in a manner accessible for FEFO,
     counting, and general management.
   12) Store health commodities away from insecticides,
     hazardous materials, old files, office supplies, and
     equipment.
   13) Separate damaged or expired health commodities
     without delay, and dispose of them in accordance with
     established procedures.

Logistics/Supply Management                                 18-28
                                              Max-Min
                                   for CBD Programs




               A 2-bin system is simple to use:
                 2 bins is max, 1 bin is min
                           max


Logistics/Supply Management                        18-29
                     Collecting Essential Data
                                 Consumption Record
   u   Record either an “x”
       or a number in each
       box for the quantity of
       each method
       dispensed

   u   Also collects some
       service statistics data
       for each client

Logistics/Supply Management                      18-30
                     Collecting Essential Data
                                 Transaction Record
   u   Records information
       about products
       moving from one
       location to another
   u   Records the complete
       transaction from the
       request to
       confirmation of receipt


Logistics/Supply Management                      18-31
                     Collecting Essential Data
                                Stock-keeping Record
   u   Records information
       about received,
       issued, lost/adjusted,
       and balance
   u   Includes dates and
       signatures for
       verification
   u   Should be kept with
       the items

Logistics/Supply Management                       18-32
                              Logistics Resources

   u   Website: www.deliver.jsi.com
       u   Documents
       u   Software
       u   Computer-based training introduction




Logistics/Supply Management                       18-33
                              Logistics Resources
                                            continued

           Text: Programs that Deliver: Logistics’
          Contribution to Better Health in Developing
                           Countries

    Available through the DELIVER Project of John
                Snow, Inc. (Arlington, VA)




Logistics/Supply Management                             18-34
                              Logistics Resources
                                          continued

     Text: The Logistics Handbook: A practical guide
      for supply chain managers in family planning and
                       health programs

    Available through the DELIVER Project of John
                Snow, Inc. (Arlington, VA)




Logistics/Supply Management                              18-35
                              Logistics Resources
                                         continued

          For technical assistance contact:
                     Project Director
                    DELIVER Project
                     John Snow, Inc.
                  1616 N. Ft. Myer Drive,
           11th Floor, Arlington, VA 22209 USA
                   Phone: 703-528-7474


Logistics/Supply Management                      18-36

								
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