Post on 22-Dec-2015
transcript
Outsourcing and Partnering for an improved Distribution Model
Rob Botha
Amref Health Africa International Conferecne
24th November 2014
The Challenge
The Solution• Direct Delivery
• Support Structures
• Outsourcing
• Partnerships
• Performance management
Results
Next steps
Conclusion
Agenda
33
10 central medical stores or depots
• Insufficient scale in warehousing and distribution
• Multiple tiers
• Lack of visibility and information
• Financial
• Administrative inefficiencies
The Challenge
Supplier Distributor Depot Sub-Depot Hospital Clinic
44
Supplier Distributor Hospital
The Solution
Direct Delivery model
Bypassing the depot model
• Leveraging existing private sector
• Infrastructure
• Capacity
• Resources
Supplier Distributor Depot Sub-Depot Hospital
55
Direct Delivery
Matching Responsibility with Capacity
2010 2011 2012 2013 2014 2015 2016 2017 2108 2019 20200
100
200
300
400
500
600
Volume
Capacity
25%
35%
7 X 27 = 70% Top suppliers Major hospitals Of volumes going through the
Depot (that can be streamlined)
77
Selection
Quantification/
Forecasting
ProcurementStorage
Distribution
Indirect outsourcing to suppliers
Leveraging private sector supply chain
• Shifted the risk to suppliers
• Focus on core competences
Outsourcing
Medicine Management Cycle, www.who.int
88
Partnerships
• SIAPS and SCMS partnered to customise existing RXSolution software
• SIAPS IT development and technical support
• SCMS process definition and user specifications
• Iterative approach as requirements evolved
• Providing visibility and information
• Partnerships and collaboration is critical to a co-ordinated approach to systems strengthening and results in a superior outcome
99
Performance Management
• Visibility into performance of all stakeholders
• Facilities
• Provincial departments of health
• Suppliers
• PMPU
• Finance
• Improved supplier performance and contract management
• Performance monitoring
• Improved supply
• Demand planning and forecasting
• Evidence based decision making
• Sales and Operations Planning (S&OP) meetings with suppliers
1010
Results
Successes
• Supplier on-time delivery – improved from 14% to 85%
• Orders cancelled due to supplier stock-outs – improved from 19% to >1%
• Order fulfilment – improved from 77% to 97%
Challenges
• Documentation from facilities
• Manual re-entry of data
• Connectivity and IT infrastructure
1111
Next Steps
• Increase coverage to new provinces
• Software developments to increase electronic interfaces
• Improved document management and flow
• Cross Docking for other levels of care
• Nominated Delivery Days (NDD)
Supplier Distributor Cross-Dock Clinic
1212
Conclusion
The success of the Direct Delivery model required:• Outsourcing
• Private Sector Engagement
• Partnerships
Results • Improved supply of medicine to facilities
• Improved performance management and contract management through visibility