click to add title
DESCRIPTION
CLICK TO ADD TITLE. The 5th Global Health Supply Chain Summit November 14 -16, 2012 Kigali, Rwanda. Measuring Supply Chain Maturity Diane Reynolds. [SPEAKERS NAMES]. [DATE]. Establishing a supply chain maturity assessment model for the public health environment to drive investment decisions. - PowerPoint PPT PresentationTRANSCRIPT
CLICK TO ADD TITLE
[DATE][SPEAKERS NAMES]
The 5th Global Health Supply Chain Summit
November 14 -16, 2012Kigali, Rwanda
Measuring Supply Chain MaturityDiane Reynolds
Establishing a supply chain maturity assessment model for the public health environment to drive investment decisions
Supply chain performance assessment - to understand a high-level status of the supply chain, comparing current-state operating environment and levels of supply chain performance against best practices,
identify improvement opportunities,
anticipate business impact and
establish a program that drives
improved business performance.
2
Common problem statements expressed in the public health supply chain.
• We need a new warehouse we don’t have enough space
• We don’t get forecasts from the facilities to order the right commodity
• The vendors never deliver the quantities we order
• We need an ERP to plan the delivery of commodities
• There are major stock outs at facility level because of the depot
• We need to be trained and tour other countries to learn best practice
3
Tools and frameworks to assess the supply chain maturity review both capability & performance levels.
4
Capability: Measures the capability of a supply chain, benchmarking against best-practice standards
Capability Maturity Model Diagnostic tool
Performance: Set of indicators that comprehensively measure the performance of a health supply chain
Key PerformanceIndicator guide
Maturity Level Maturity Level Description
1- No/Minimal Informal processes and little or no systems
2- Marginal Basic not used consistently and mostly manual systems
3- Qualified Processes are defined and documented with some technology
4- Advanced Practices
Processes are well defined and internal integrated technology
5- Best Practices
Practice continuous improvements, fully integrated technology
Establishing capability & performance attributes of supply chain maturity enables planning & performance management
5
Capability:•Benchmark to best practiceP
erfo
rman
ce:
• Est
abli
sh c
urre
nt p
erfo
rman
ce
• Prioritize strengthening areas• Measurement of intervention• Monitor progress• Demonstrate results
6
Supply Chain Maturity Assessment:South Africa Case Study: Applying the assessment to a systems strengthening decision-making process
Step 1: Environmental Study
Region
District
SDP
Functions
Step 2: CMM Diagnostic Tool implementation
8
SCORES Reg/ Prov
Dist SDP NDoH
Functional Areas
Product Selection N/A N/A
Forecast and Supply Planning
N/A
Procurement N/A N/A
Warehousing and Inventory Management
Transportation N/A N/A
Dispensing N/A N/A
Waste Management N/A N/A N/A
• Initial assessment part of a larger regional Field Office study• Included provincial, district and SDP assessments (no central)• 8 sites assessed (Depot, region depot, tertiary Hospital, clinic levels)
Capability 1 2 3 4 5
Receiving □ Items received are not checked □ Received inventory is not recorded
□ Received product is confirmed against pack slip/invoice to be the product ordered□ Received product is counted and compared to quantities on packing slip/invoice□ Items received are entered into bin cards/paper based inventory
□ Received items are entered into simple software based stock keeping system (inc. Access/Excel)
□ Product is blindly received (compare to invoice/packing list after) into WMS and then validated against packing slip/invoice
□ Received items are entered against Purchase Orders and ASNs in a Warehouse Management System (WMS)
Step 3: KPI assessment tool implementation
9
Indicators1) Stock out rates
2) Excess stock
3) EDL compliance
4) % of products that meet QA standards
5) Off-contract spend
6) % of emergency orders
7) Order Fill Rate
8) Expiry
9) Pricing Variance
10) Order Cycle Time
11) Stock turnover rate
12) On-time delivery
13) Distribution cost
14) Inventory discrepancy
15) Backorder Follow the transaction, paper trails & data
Step 4: Scoring the assessment tools
10
Step 4: Reporting
11
Facility capability level data
Country level data
Function by enabler level data
Step 5: Evidence-based decision-making
12
Sequence Interviews
Step 6: Intervention based on recommendations
13
Key Improvement Areas and Financial Impact (targeted savings)
Step 7: Measuring the ROI
14
Key Improvement Areas and Financial Impact (targeted savings)
Back orders
Immediate saving
Long term saving
Lessons learnt in the pilots (South Africa, Botswana and Paraguay) and next steps
• Finalization of the KPI guidelines – selected core measures• Collaborate with UNC to review and define an “ROI” approach
• Templates were created as a reference for vertical consistency within functional areas
• Conversion to a check box format to make maturity level descriptions succinct
• Include the addition of a SDP specific questionnaire
• Provides a practical, cost-effective approach to supply chain assessment for the public health supply chain
• Middle ground between an expensive, statistically significant assessment based on site-visits and qualitative workshop-based self assessment tools
• Comprehensive reporting enables informative client discussions to prioritize and define improvement programs
Lessons Learnt
Next steps
Practical, relevant & cost effective