Supply Chain Management in MoHFW

1
Supply Chain Management in MoHFW
2
The Supply Chain consists of the following
1
3
Areas We Need to Strengthen
THESE SHALL IMPROVE EFFICIENCY REDUCE COST
2
4
Present Supply Chain Management System
With each district warehouse multiple facilities
are associated.
3
5
Improving Efficiency in Supply Chain

• Creation of Planning Cell.
• Generation of Right Information.
• Capacity Building of Warehousing Facilities.
• Creation of New Warehousing Facilities.
• Introduction of LMIS in ProMIS.
• Monitoring Measuring Consumption Data.
• MIS Re-conciliation.

4
6
Improving Efficiency in Supply Chain

• gtIn Order to Access Capacity Improve overall
  Efficiency
• in Supply Chain Management Sciences for Health
  is
• developing the following Tools
• Logistics Assessment Tool.
• Inventory Management Assessment Tool.
• Procurement Services Assessment Tool.
• ( EPW Team shall be using these tools for all the
  States )

5
7
Current Procurement System Issues

• Supply Order value (2009-10) as on December 01,
  2009
• UIP 196 crores
• NVBDCP (Malaria) 41 crores
• RNTCP (TB) 44 crores
• SSM (Family Welfare) 174 crores
• RCH (Kit AB) 206 crores
• Total 661 crores
• Source Procurement Management Information System
  (ProMIS)
• Direct Procurement by EPW- SSM (family welfare,
  contraceptives), UIP (vaccines), PD (equipments
  for hospitals, NVBDCP) requirements from
  Programme divisions
• Procurement through PSA for NVBDCP, RNTCP, RCH,
  NACO
• MSO procurement of CGHS supplies are excluded
  from ProMIS

6
8
Challenges faced in Supply Chain

• Inaccurate quantification More of Push System
  instead of Pull System
• Lack of standardization of procedures, documents
  for forecasting and stock reconciliation
• No linking of data between stock status at states
  and supply schedule
• No MIS reports based on various Performance
  indicators such as supplier performance, quality
  assurance, acceptance certification available
• Thus, no credible data available for inventory
  management or for analysis and informed decision
  making

7
9
Quick View State and MoHFW Model
State Procurement
MoHFW procurement
1) Centralized Procurement States issue supply
orders for districts 2) Decentralized Rate
Contracts fixed by state. Districts Procure them
State Supply
Govt. Of India Supply
Centralized Procurement GoI issue supply orders
for states
Suppliers
Supplier Receipts
Supplier Receipts
Districts W/H
Indents Issues
Warehouse Transfers
Facility
Facility Indents Issues
PHC/CHC
SC
8
10
Initiatives taken by Ministry Empowered
Procurement Wing (EPW)

• Genesis
• Governance Accountability Action Plan (GAAP)
  formulated as per development Credit Agreement
  (DCA) between GoI World Bank (WB) mandates
  strengthening of procurement implementation
  contract monitoring
• Objectives
• EPW established in October, 2005 to consolidate
• streamline and strengthen procurement activities
• professionalize procurement of health sector
  goods
• Develop and promote policies for improving
  procurement of health sector goods, drugs and
  services including planning, bid evaluation,
  contracting, payment, supply schedules,
  inspection dispute resolution, computerization
  etc.
• Help build capacity in States and PSAs and
  monitor their performance.
• Maintain procurement monitoring and complaints
  data base including data on quality, WHO GMP
  certification of firms etc.

9
11
Procurement Management Information System (ProMIS)

• conceptualized in December 2006
• Development of ProMIS for centrally sponsored
  schemes
• At Centre in RCH, RNTCP, NVBDCP, SSM, UIP
  Procurement Division
• Set up a Computerised Procurement
  Systemcomprising Forecasting, planning,
  Tendering, Supply Orders, Contract Expediting,
  Bills/Invoices
• At State/Warehouse level
• Pilot Inventory Control System for Supplier
  Receipts, Interwarehouse transfers, Warehouse
  Receipts, shortages damages, Facility Indents
  issues
• Non-pilot Only limited to receipts no issues.
  Entry of monthly stock status
• Management Information System Reports at all
  levels such as Demand Vs Ordered Quantities,
  Distribution Vs Received Quantities
  Supplier-wise state-wise, Supply Order Status,
  Fund Utilization, Stock Summaries, Stock Reports
  calculating Months of supply, Stock Expiry by
  Month, Stock Out position

10
12
Features of ProMIS

• Can be accessed from anywhere from internet
• Easy to use with user friendly interface
• Password given to users are protected and secure
• Users will access screen on need to know basis
• Expandable for schemes and CPA, replicable to
  states with little customization and technically
  versatile model
• System has been tested independent Quality
  Assurance authority, and has passed NIC security
  audit
• Operational Manual in English and Hindi

11
13
ProMIS Where are we now

• Piloted in all districts of Madhya Pradesh,
  Orissa, 3 districts of Maharashtra, all GMSDs and
  Ministry at centre for RCH, TB, Malaria, Family
  Welfare UIP divisions
• Specifications signed off- May 2008
• Prototype approval- December 17, 2008
• Trainings Jan-March 2009 (nearly 200 users
  trained)
• Onsite Support April 2009 till date
• User Acceptance 31 July 2009
• Final Sign Off- 16 September 2009
• Development of anti-corruption applications for
  inclusion into ProMIS
• NIC Security Audit now in final stage.
• User Manual is now well underway

12
14
Desirables for success of ProMIS

• Regular data entry at all levels- Well knit
  integrated package
• Warehouse modernization- e.g. build racks, store
  administrative office should be in same
  premises for better coordination, manpower
  issues.
• Accountability for shortages /wastages should be
  fixed-Onus of correct accurate feeding of the
  data lies with the warehouse/storekeeper.
• Concurrent entering of data in ProMIS as and when
  transaction occurs.
• Infrastructure (both state centre) manpower
  (capacity building, helpdesks, nodal officers)

13
15
Expansion of ProMIS in all States

• Appointment of State Nodal officers for ProMIS
  implementation
• Trainings
• 3 days training by the central resource
  persons/trainers at the state capital. Maximum 3
  batches of 20-30 persons in each batch
• Larger states should train Master trainers first
  and retrain others in all district warehouses
• 4 days handholding by EPW (MoHFW)
• 2 days monitoring training by EPW (MoHFW)
• Implementation
• Identification of District Nodal officers
• Putting in both hardware manpower resources
• Continuous trainings sessions after every six
  months through Master trainers
• Encouraging usage of reports from ProMIS

14
16
ProMIS A step towards E-Procurement
15
17
Improvement of Public Health Delivery System

• A letter from ASMD (NRHM) dated Sep 30, 2009
• Put in place efficient supply chain from Stale
  level down to the Public Health Centres
• Rationalisalion and modernization of
  warehouses/storage system at State, district and
  sub-district levels
• Desirable to have a single storage point at the
  district level to cater to needs of all
  programmes
• In order to have proper Supply Chain Management
  System in place throughout the country, states
  need to draw Action plan for establishing
  Procurement Management Information System
  (ProMIS) in their State PIPs (2009-10)

16
18
Inclusion of ProMIS in State PIPs
17