Supply Chain Collaboration and Coordination in KwasaKwasa

1
Supply Chain Collaboration and Coordination in
KwasaKwasa

• Richard C. Owens, Jr.
• Project Director, SCMS
• May 24, 2006

2
Whats Wrong in KwasaKwasa?

• Stockouts of ARVs
• Wrong products, delivered to the wrong place, at
  the wrong time
• Nine uncoordinated procurement mechanisms
• Six implementing partners operating five supply
  chains that differ by product
• Multiple incomplete coordinating mechanisms, not
  focused on supply chain issues
• All this while operating at 17.5 of need for
  ARVs (if targets are met)

3
Whats Right in KwasaKwasa?

• Services expanding in government, mission, and
  private sectors
• Many partners trying hard to do the right thing
• Coordination mechanisms do exist
• MOH has commodity commitments for next three years

4
The Logistics Cycle
5
Key Supply Chain Issues

• Serving customers
• Stockouts
• Incomplete regimens
• Product selection
• Products inappropriate for national treatment
  guidelines
• Multiple testing algorithms
• Quantification
• Multiple forecasts and multiple forecasting
  methods
• Short-term forecasts, with no longer-range
  national plan
• No good data

6
Key Supply Chain Issues (Continued)

• Procurement
• Multiple procurement mechanisms, schedules, and
  time frames
• Shifting targets for scale-up
• Inventory management and distribution
• Inadequate central storage facilities in public
  sector
• No public-sector distribution system
• Parallel distribution channels likely much
  better, but ??
• Logistics management information systems (LMIS)
• Different reporting forms, procedures, and data
  per implementing agency
• No comprehensive national reporting

7
Some Ways Forward National Level

• Rationalize country coordinating mechanisms
• Create common forum
• Include all supply chain stakeholders
• Obtain key supply chain data for coordination
• Create national supply chain management plan
• Scale-up targets
• National quantifications (short- and long-range)
• Market segmentation who does what
• Create LMIS
• Common data items
• Common reporting forms and processes
• Common automated system ??

8
Some Ways Forward Global Level

• Donor coordination
• Funding commitments and timetables
• Commodity commitments and timetables
• Technical resource commitments
• Improved international supply chain response
• Longer-term supplier relationships
• Procurement through SCMS as appropriate
• Use of SCMS regional distribution centers
• Improved supply chain visibility through SCMS and
  other global information systems

9
The Challenge of Scaling Up

• Scale of scale-up
• ART 10s/100s ? 50,000 ? 285,000
• OI ?? ? 900,000
• Testing ?? ? 2,000,000
• Public sector facilities
• Regional hospitals 16 ? 30
• District facilities 115 ? 500
• Service delivery points ???
• Mission facilities 20 ? ??
• Private sector 5 ? ??

10
Some Ways Forward Scale-up

• New distribution paradigms
• Untangle (create, for MOH) in-country
  distribution channels
• Frequent, small shipments (monthly, weekly,
  daily)
• Consider true public-private partnerships for
  distribution
• Streamline in-country supply chains
• Strengthen, perhaps consolidate, storage
  facilities
• Consider eliminating some intermediate levels
• Consider consolidating some distribution channels
• Even more partner coordination
• LMIS data sharing
• Regular coordination/collaboration mechanisms

11
Thank you!

• For more information
• Website scms.pfscm.org
• Email scmsinfo_at_pfscm.org
• Main phone [phone]
• Main fax [phone]