better data visibility and data use result in lower cost and improved performance in medicine supply...
TRANSCRIPT
BETTER DATA VISIBILITY & DATA USE
RESULT IN LOWER COST AND IMPROVED
PERFORMANCE IN MEDICINE SUPPLY
CHAINS
Bloomberg Data for Good Exchange
Presented by Cary Spisak
Public health programs are reliant on
well-performing supply chains
to deliver life-saving commodities
to patients in need
With limited funding, what management and
technology investments can be cost-effective
and have a transformative effect on the
performance of the supply chain for health
commodities?
THE KEY QUESTION
TANZANIA CONTEXT
With limited funding,
what management and
technology investments
can be cost-effective and
have a transformative effect
on the performance of the
supply chain for health
commodities?
Logistics
Management Unit
(LMU)
Electronic MIS for
commodity logistics
(eLMIS)
ExistIng System Intervention Objectives
• Fragmented supply system
• Uncoordinated management
• Largely paper-based MIS
• Data of poor quality and
availability
Leading to…
• Poor stock availability
• Low client service levels
• High costs
• Coordinate, monitor and
support to manage the supply
chain for the various health
programs
• Consolidate electronic and
paper-based systems
• Improve data visibility,
accuracy, quality, timeliness
MOHCDGEC: Is the existing system cost-effective? Where might the new system drive
cost savings and performance improvements?
METHODOLOGY
Data Collection Indicators
• Baseline Aug – Oct 2013
• Year 1 performance
Apr – May 2015
• Data from 3 major
existing systems:
• Essential medicines
• ARVs/ HIV
• Immunization/ EPI
• Supply chain performance
• Reporting
• Data use
• Management practices
• Supply chain outcomes
• Cost
• Operations by function
and tier
• Commodity throughput
• Data from nationally
representative sample
of facilities and districts
including Medical
Stores Dept
• Cost and performance
data from existing
surveys and databases
RESULTS: IMPROVED STOCK AVAILABIL IT Y
STOCK OUT RATE STOCK OUT DURATION
23%
27%
40%
32%
39%
19%
23% 25%
22%
10%
15%
20%
25%
30%
35%
40%
45%
EPI ARV Essentialmeds
FamilyPlanning
Malaria
BaselineRound 1
26%
23%
37%
16%
32%
12%
24%
13%
22%
10%
15%
20%
25%
30%
35%
40%
45%
EPI ARV Essentialmeds
FamilyPlanning
Malaria
BaselineRound 1
Pe
rce
nt
of
facilit
ies s
tock
ed
ou
t o
n
da
y o
f vi
sit
Pe
rce
nt
of
facilit
ies s
tock
ed
ou
t >
7 d
ays
Product Group Product Group
32%
23% Round 1
Baseline AVERAGE ACROSS
COMMODITIES
95% Confidence Interval
24%
15% Round 1
Baseline AVERAGE ACROSS
COMMODITIES
95% Confidence Interval
Annual Operating Cost
Value of Handled Commodities
Cost per Value of Commodities
Supply Chain Performance
Cost per Value of Commodities,
Adjusted for Performance
Baseline $59m
Baseline $208m
Baseline 28%
Baseline 68%
Baseline 42%
Round 1 $63m
Round 1 $251m
$63m
$251m
Round 1 25% 25%
Round 1 77%
Round 1 31%
77%
31%
RESULTS: IMPROVED PERFORMANCE
• System enhancements had positive impact on supply
• Higher costs but also gains in efficiency
However…
• Results may be fragile – are gains sustainable?
• Little movement for some indicators
• Establishing robust systems is critical step but must be
built into system as part of routine decision making and
culture of continuous improvement
INTERPRETATION
For more information about
JSI’s work in supply chain, data
visibility, and data use, contact the
JSI Center for Health Logistics
Follow @jsihealth