THE SUPPLY CHAIN MANAGER’S HANDBOOK

1 THE SUPPLY . CHAIN manager 'S. HANDBOOK . A PRACTICAL GUIDE TO THE MANAGEMENT. OF HEALTH COMMODITIES. 2019 JS. THE SUPPLY CHAIN . manager 'S HANDBOOK . A PRACTICAL GUIDE TO THE MANAGEMENT. OF HEALTH COMMODITIES. The authors' views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. ii THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES. ABOUT JSI. John Snow, Inc. (JSI) is a health care consulting firm committed to improving the health of individuals and communities worldwide. Our multidisciplinary staff works in partnership with host-country experts, organizations, and governments to make quality, accessible health care a reality for children, women, and men around the world. JSI's headquarters are in Boston, Massachusetts, with offices in Washington, ; Atlanta, Georgia; Burlington, Vermont;. Concord, New Hampshire; Denver, Colorado; Providence, Rhode Island; and San Francisco, California.

2 JSI also maintains offices in more than 40 countries throughout the developing world. RECOMMENDED CITATION. John Snow, Inc. 2017. The SUPPLY CHAIN manager 's HANDBOOK , A Practical Guide to the Management of Health Commodities. Arlington, Va.: John Snow, Inc. ABSTRACT. The SUPPLY CHAIN manager 's HANDBOOK : A Practical Guide to the Management of Health Commodities is the starting point for anyone interested in learning about and understanding the key principles and concepts of SUPPLY CHAIN management for health commodities. Concepts described in this HANDBOOK will help those responsible for improving, revising, designing, and operating all or part of a SUPPLY CHAIN . John Snow, Inc. (JSI) has written The SUPPLY CHAIN manager 's HANDBOOK based on more than 30 years of experience improving public health SUPPLY chains in more than 70 countries. Cover graphic: Photo courtesy of USAID | DELIVER Project JOHN SNOW, INC. 1616 Fort Myer Drive, 16th Floor Arlington, VA 22209 USA.

3 Phone: 703-528-7474. Fax: 703-528-7480. Email: Internet: THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES iii TABLE OF CONTENTS. 1. INTRODUCTION TO logistics . What a SUPPLY CHAIN manager Needs to 1. What Is SUPPLY CHAIN Management?.. 1. Why SUPPLY Chains The SUPPLY CHAIN and the Six 5. The Role of the SUPPLY CHAIN 6. logistics Cycle: Organized logistics 8. SUPPLY CHAIN SUPPLY CHAIN Evolution-The Path to Segmentation in the Public Health SUPPLY CHAIN 2. SUPPLY CHAIN STRATEGY AND DESIGN. What a SUPPLY CHAIN manager Needs to National SUPPLY CHAIN Strategy (or master plan)..18. System 3. INFORMATION SYSTEMS FOR DATA VISIBILITY AND USE. What a SUPPLY CHAIN manager Needs to What is a Logistic Management Information System?..26. Data Data 33. Data 34. Digital Data Data 41. 4. PRODUCT SELECTION. What a SUPPLY CHAIN manager Needs to 43. Purpose of Product 44. National Essential Medicines iv THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES.

4 Registration of Pharmaceutical 47. Standard Treatment 48. Funder Laboratory Supplies and Equipment 5. QUANTIFICATION OF HEALTH COMMODITIES. What a SUPPLY CHAIN manager Needs to 53. Introduction to Key Steps in Using the Quantification 72. Reviewing and Updating the 73. 6. HEALTH COMMODITY PROCUREMENT. What a SUPPLY CHAIN manager Needs to 75. The Complexity and Challenges of 76. Developing the Procurement 78. Steps in Procurement (Focus on Competitive Tendering).. 87. 7. INVENTORY STRATEGY. What a SUPPLY CHAIN manager Needs to Purposes of Holding Considerations for Defining an Inventory Defining and Implementing the Inventory Inventory Control System and Policies .. 101. Monitoring and Measuring Inventory 104. 8. WAREHOUSING AND DISTRIBUTION. What a SUPPLY CHAIN manager Needs to 109. 110. 119. 122. Performance Health and 9. PERFORMANCE MANAGEMENT. What a SUPPLY CHAIN manager Needs to THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES v What is Performance Management?

5 132. Creating Performance Management Key Performance 10. ORGANIZATIONAL CAPACITY AND WORKFORCE. What a SUPPLY CHAIN manager Needs to 140. Staffing the SUPPLY Building the Capacity of the SUPPLY CHAIN 146. Supporting Your Greatest Asset, the Workers on the 149. Providing Stewardship and Leading the SUPPLY CHAIN Monitoring Workforce 156. 11. FINANCING. What a SUPPLY CHAIN manager Needs to Tracking Commodity Financial 164. SUPPLY CHAIN 169. Economic 12. SUPPLY CHAIN RISK MANAGEMENT. What a SUPPLY CHAIN manager Needs to Risk Management Benefits of Risk 180. Risk Management as a Formal Process for Public Health SUPPLY CHAIN 181. ADDENDUM. SUPPLY CHAIN MANAGEMENT FOR HEALTHCARE. IN HUMANITARIAN RESPONSE SETTINGS. What a SUPPLY CHAIN manager Needs to 189. Distinctions between health care SUPPLY CHAIN management for humanitarian response and stable development 190. General practices for SUPPLY CHAIN management of health commodities within humanitarian response 194.

6 Overview of phases of humanitarian 195. Recommended vi THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES. FIGURES. Figure 1-1: Correlation Between Contraceptive Prevalence Rate and Product Figure 1-2: Correlation Between Malaria Mortality Rates and Product Figure 1-3: logistics 8. Figure 1-4: The Integrated Public Health SUPPLY 13. Figure 1-5: SUPPLY CHAIN Figure 2-1: logistics 17. Figure 2-2: Timeline of Master Planning Activities in a West African Country ..19. Figure 2-3: SUPPLY CHAIN System Design Figure 3-1: logistics Figure 3-2: The Role of data in SUPPLY Change Figure 3-3: Sample LMIS Information and SUPPLY Flow 27. Figure 3-4: Sample logistics Reporting System for National Vaccine 35. Figure 3-5: Data Entry Screen for Requisitions for HCMIS Figure 3-6: Vaccine Dashboard for vLMIS 37. Figure 3-7: Dashboard of Stock Status by Location and Product for eLMIS 38. Figure 3-8: Managing the Process of Developing a Digital Figure 4-1 logistics 43.

7 Figure 4-2: Applying Value Analysis in Product Figure 5-1: logistics 53. Figure 5-2: Steps in Figure 5-3: Sample Forecasting Tree for Zinc Tablets for Treatment of Diarrhea in Children Under 5 ..64. Figure 6-1: logistics 75. Figure 6-2: SUPPLY Positioning 83. Figure 6-3: Procurement 87. Figure 7-1: logistics Figure 7-2: Network THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES vii Figure 7-3: Safety Stock and Service Level 97. Figure 7-4: Segmenting 100. Figure 8-1: logistics 109. Figure 8-2: Warehouse 118. Figure 8-3: Basic Distribution Center 120. Figure 8-4: Basic Distribution Network 121. Figure 9-1: logistics Figure 9-2: Performance Management Cycle Figure 10-1: logistics Figure 10-2: Impact of Human Resources on SUPPLY CHAIN 140. Figure 10-3: Recruit the Right 146. Figure 10-4: Building the Capacity of your SUPPLY CHAIN Figure 10-5: Professionalization of SUPPLY 152. Figure 10-6: Regions Using QIT Approach Show Improvement in Key SUPPLY CHAIN 155.

8 Figure 10-7: PBF Intervention Decision Figure 11-1: logistics Figure 11-2: Steps for Counting and Tracking Commodity 165. Figure 11-3: Country Example of Commodity 166. Figure 11-4: Comparison of Requirements, Commitments, and Figure 11-5: Typical Financing Process 168. Figure 11-6: Supporting Health Services with Effective SUPPLY 169. Figure 11-7: SUPPLY CHAIN Costing Figure 11-8: SUPPLY CHAIN Figure 11-9: Components of Economic Evaluation of SUPPLY Figure 12-1: logistics 177. Figure 12-2: SUPPLY CHAIN Risk Management 181. Figure 13-1: Phases of Humanitarian 195. viii THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES. TABLES. Table 2-1: Type of Data Collected (Illustrative)..22. Table 3-1: HMIS and LMIS Table 3-2: Essential logistics Data 32. Table 5-1: Preparation Table 5-2: Forecasting Table 5-3: Types and Sources of Data for Forecasting Product Table 5-4: Example Country Data Quality Analysis for ARV Drug Table 5-5: Conversion of Data into Product Table 5-6: SUPPLY Planning Table 5-7: SUPPLY Planning Data Table 11-1: Zambia: Cost Effectiveness of Alternative Essential Medicines SUPPLY Table 11-2: SUPPLY CHAIN Risk Management Table 12-1: Common Conceptions vs.

9 Best Practice in SUPPLY CHAIN Risk Management ..179. Table 12-2: Example of Scale Interpretations for Impact of Risk Table 12-3: Example of Scale Interpretations for Likelihood of Risk Table 12-4: Example Solutions for Risks to Commodity Availability at the Service Delivery 185. ANNEX. Annex 3-1: Sample Business Process Map for Order Processing 42. Annex 8-1: Storage Annex 8-2: Common Product Quality 129. Annex 8-4: Common Product Quality Annex 10-1: Supervision Checklist for Health Facility THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES ix ACRONYMS. 3PL Third party logistics provider 3TC Lamivudine (antiretroviral drug). ABC Abstinence, be faithful, use condoms ACT Artemisinin-based combination therapy AIDS Acquired immune deficiency syndrome AMRH African Medicines Regulatory Harmonization API Active pharmaceutical ingredient APICS American Production and Inventory Control Society APS Advance planning systems ART Antiretroviral therapy ARV Antiretroviral CBA Cost-benefit analysis CEA Cost-effectiveness analysis cGMP Current Good Manufacturing Practice CHW Community health worker CMS Central Medical Stores COGS Cost of goods sold COO Certificate of origin CPR Contraceptive prevalence rate CSCMP Council of SUPPLY CHAIN Management Professionals CYP Couple-years of protection D Desirable drugs (inventory strategy).

10 DALY Disability-adjusted life years DfID UK Department for International Development DHS Demographics and Health Survey DPT Diphtheria-tetanus-pertussis vaccine E Essential drugs (inventory strategy). ECHO European Commission's Civil Protection and Humanitarian Aid Operations EFV Efavirenz (antiretroviral drug). ELISA Enzyme-linked immunosorbent assay eLMIS Electronic LMIS. EML Essential medicines list EMR Electronic medical record x THE SUPPLY CHAIN manager 'S HANDBOOK A PRACTICAL GUIDE TO THE MANAGEMENT OF HEALTH COMMODITIES. EOQ Economic order quantity ERP Enterprise resource planning FBO Faith-Based Organizations FIFO First-in, first-out GCP Good clinical practice GDP Good distribution practice GFATM Global Fund to Fight AIDS, Tuberculosis and Malaria GIS Geographic information system GLP Good laboratory practice GMP Good manufacturing practice GPS Global Positioning System GSP Good storage practice HIS Health information system HIV Human immunodeficiency virus HMIS Health management information systems HR Human Resources HSS Health Sector Strategy HNO Humanitarian Needs Overview IAPHL Association of Public Health Logisticians IASC Inter-Agency Standing Committee ICC Inventory control cards ICT Information and communications technology Information Mobilized for Performance Analysis IMPACT.