zaragoza, 26-05-2008 improving public health impact through tailored supply chains: a case study of...

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Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

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Page 1: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Zaragoza, 26-05-2008

Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana

Chiamin LaiMichael Laverty

Page 2: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Introduction Slide 1

Page 3: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Sound Supply Chain Strategy Better Use of Assets

& Increased Product

Availability

Better Use of Professional Health Workers

Better Health Care Delivery

Adequate resources & Willingness to implement

How Sound Strategy Drives Improves Health Care Delivery

Sound Supply Chain Strategy

Page 4: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Supply Chain Strategy: New Paradaim for Ministray of Health

Constraint

Constraints

Constraints

Constraints

Needs

Malaria supply chain

strategy

HIV Supply Chain

Strategy

Family Planning

Supply Chain Strategy

TB, Essential M

edicines Supply Chain Strategy

Lab Supplies Supply Chain Strategy

Support StrategiesSupport StrategiesEnvironmentsEnvironments

All Products

Efficient Supply Chain

Responsive Supply Chain

Responsive Plus Supply

Chain

Page 5: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Product Segmentation

• Efficient: Minimize logistics costs

Responsive Supply Chain Type

Responsive Plus Supply Chain Type

Efficient Supply Chain Type

Tailored Supply Chains

• Responsive: Provide a high level of product availability under uncertain demand

Three Supply Chain Types

• Responsive plus: Keep inventory to a minimum and assure product integrity

Page 6: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Segment Environments

Environment Type 1

• Health Center in Southern Regions

Environment Type 1

• Health Center in Southern Regions

Environment Type 2

•Health Center in Northern Regions

Environment Type 2

•Health Center in Northern Regions

Environment Type 3

•Hospital in Southern Regions

Environment Type 3

•Hospital in Southern Regions

Environment Type 4

• Hospital in Northern Regions

Environment Type 4

• Hospital in Northern Regions

Labour MarketLabour Market

Economy Economy

Private SectorPrivate Sector

InfrastructureInfrastructure

Social FactorsSocial Factors

PoliticsPolitics

Page 7: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Support Strategies Adoption:

• Facilities

• Inventory

Support Strategy Categories

• Information

• Transportation

• Sourcing

• Pricing

• Budget Management at Facilities

Page 8: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

+-

Baseline StrategyBaseline Strategy

• Inventory stocked at CMS and RMS. High ordering costs will lead to high cycle stock level.

• Since demand is unpredictable and there is a high cost of stocking out, carry significant safety stock.

• Look for highest risk products (i.e. when scaling up treatment) and monitor closely.

Adapted StrategyAdapted Strategy

• For facilities without cold chain capabilities stock CC products at district level.

• In remote areas keep safety stock at district rather than RMS (closer to facilities remote areas keep safety stock at district rather than RMS (closer to facilities).

Potential BenefitPotential Benefit

• Increase products assortment, thus improve the service level.

• For life saving products, the responsive time will be quicker.

Support Strategies: Responsive Supply Chain Type Adapted to Health Center in Northern Regions for Inventory Strategy

Page 9: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Summary

Research Questions Results

How should MoH approach additional

segmentation, based on product characteristic and country context/factors?

Segment Products

How should MoH approach setting support

strategies to support product and country-

context based segmentation?

Segment Environment

More coherent segmented supply chain

&Appropriate to product

needs and country context

More coherent segmented supply chain

&Appropriate to product

needs and country context

Clear Support Strategies that will drive

investment decisions&

Implementation plan with performance

measurement

Clear Support Strategies that will drive

investment decisions&

Implementation plan with performance

measurement

Adapt Support Strategies

The Vision

Page 10: Zaragoza, 26-05-2008 Improving Public Health Impact Through Tailored Supply Chains: A Case Study of Ghana Chiamin Lai Michael Laverty

Moving Forward

Tailored Supply Chains

Western Africa Southern Africa Middle East