final-2011 hhl masterpresentation-day1 · llamasoft overview •employee owned software company...

Technology to Improve gy pLogistics Decisions

D ld Hi kDonald HicksLLamasoft, Inc.

LLamasoft: Improving Public

LLamasoft: Improving Public p g

Health Supply Chains through

p gHealth Supply

Chains through gNetwork Design

gNetwork Design

3/22/2011 Copyright LLamasoft 2011 - All rights reserved 126

LLamasoftOverviewLLamasoftOverview

• EmployeeownedsoftwarecompanyheadquarteredinAnnArbor,MichiganUSAq , g

• Industryleaderinsupplychaindesign,modelingandoptimization

P id f h l i i d• Provideroftechnology,trainingandservicestohelporganizationsdesignsupplychainsthatwill:

R d Reducecost Maximizeprofit Improveservice Managerisk

Improvesustainability

Acquire a lasting competitive Acquirealastingcompetitiveadvantage

WhatisLLamasoftabout?WhatisLLamasoftabout?

LLamasoftPublicHealthSolutionsLLamasoftPublicHealthSolutions

• Mission:positivelyimpacthumanhealthbyleveraging Network Design technology to makeleveragingNetworkDesigntechnologytomakebettersupplychaindecisions

• Delivery ModelsDeliveryModels–ShortTermAssessments–LongTermEngagements–TechnologyTransfer/CapacityBuilding–Other:advisoryservices,technologydevelopmentondemanddemand

• RecentProjects:Lesotho,Ethiopia,Kenya,Côted’Ivoire,Nigeria,ElSalvador,DominicanRepublic,gGuatemala,andPanama.

3/22/2011 Copyright LLamasoft 2011- All rights reserved 129

SupplyChainManagementandNetwork DesignSupplyChainManagementandNetwork DesignNetworkDesignNetworkDesign• SupplyChainManagement

– Supply Chain Planning + Supply Chain ExecutionSupplyChainPlanning+SupplyChainExecution–Focusonrunningandmanagingthecurrentnetwork

• Supply Chain Network Design• SupplyChainNetworkDesign–Modelingandanalysistodeterminehowtoconfiguretheentiresupplychain•Structure AND policy•StructureANDpolicy•Cross‐functional(procurement,warehousing,inv&transpo)•Endtoendscope

• SupplyChainNetworkDesignhelpssystemplannersandpolicymakerstransformtheirsupplychainsfromHistoricalAccidents to Intentionally Engineered SystemsAccidentstoIntentionallyEngineeredSystems


ProjectExamplesProjectExamples• QuantifyingtheeffectsofcentralizedversusdecentralizedsystemsandmultipleDCechelons.

• Redesigningtransportationnetworkstomaximizeservicelevels.A l th i t f l l l f hi t• Analyzetheimpactoflargevolume,lowfrequencyshipmentsofsupplies,improveprocurementschedules.

• Predictingfuturesupplychainneedsanddefiningperformanceg pp y g pmetricstoenablepolicymakerstostrengthenthepublichealthsystems.

• Collaborating with the Inter Agency Working Group to develop• CollaboratingwiththeInter‐AgencyWorkingGrouptodevelopaLogisticsModulefortheUnifiedHealthModel(UHM).

• MoreShortTermAssessments:takeanoveralllookatthecurrentstateofthesupplychain,whatdataisavailabletoconductananalysis.


CaseStudy:Côted’IvoireDistrictHub Assessment (SCMS)CaseStudy:Côted’IvoireDistrictHub Assessment (SCMS)HubAssessment(SCMS)HubAssessment(SCMS)• TheIssue

Whil th b f f iliti i d b th Ph i–WhilethenumberoffacilitiesservicedbythePharmaciedelaSantéPublique (PSP)hasincreasedsignificantlyinthelast60+years,theorganization’scapabilitytoserveitscustomershaschangedverylittle.

• The Objectives• TheObjectives–Willadecentralizednetworkincreaseservicelevels?–Inadecentralizednetwork,canDistrictPharmacies bea dece t a ed et o , ca st ct a ac es beusedasDistrictHubs?Ifyes,whichonesarethemostoptimal?In a decentralized network which District Hubs would–Inadecentralizednetwork,whichDistrictHubswouldservewhichcustomers?


CurrentNetworkCurrentNetwork


FutureStateNetworkFutureStateNetwork


IdentifyDistrictHubsIdentifyDistrictHubs

• GreenfieldAnalysistoidentifypotentialDistrictHubsHubs

1. Abidjan (PSP)2 Ab

Korogo2. Abengourou3. Bouake4. Daloa

g

BouakeMan5. Gagnoa6. Korogo7 Man

BouakeMan

YamoussoukroDaloa

7. Man8. San Pedro9. Yamoussoukro

AbengourouGagnoa


AbidjanSan Pedro

DistanceOptimizedScenarioResultsDistanceOptimizedScenarioResults• Hub1:Gagnoa,Hub2:Abengourou,Hub3:Yamoussoukro,Hub4:Korhogo,Hub5:Daloa.

Current 1 HUB 2 HUB

3 HUB 4 HUB 5 HUB

ThroughputbyFacilityThroughputbyFacility

• AddingmorethanthreeDistrictHubswouldnotfurther alleviate capacity issues at the PSP’s mainfurtheralleviatecapacityissuesatthePSP smainwarehouseinAbidjan

Adding a District Hub in Gagnoa would have the largesthave the largest impact, followed by Abengourou and then Yamoussoukrothen Yamoussoukro


TransportationRoadDistancesTransportationRoadDistances

• CitytocitydistancescalculatedinSupplyChainGuruGuru

Abidjan to Yamoussoukro

138

Yamoussoukro to M’Bahiakro

CustomerServiceDistanceHistogramCustomerServiceDistanceHistogram

Current State

1 HUB

2 HUB

3 HUB

4 HUB

139

5 HUB

ImplementationCostEstimatesImplementationCostEstimates

Baseline 1 Hub 2 Hubs 3 Hubs 4 Hubs 5 Hubs 6 Hubs 7 Hubs 8 Hubs

Transportation Cost (USD) vs. Total PSP Distance Driven (Km; CWH - DH)

Baseline 1Hub 2Hubs 3Hubs 4Hubs 5Hubs 6Hubs 7Hubs 8HubsTotalDistance

(Km) 189,910 158,838 147,357 139,342 134,193 130,314 129,320 129,320 129,320

TotalCost(USD) $786,195 $657,563 $610,032 $576,853 $555,536 $539,480 $535,363 $535,363 $535,363

Variable Warehousing Cost

Total Cost (USD)Total Cost (USD)1 Hub: ~$250K2 Hubs: ~$365K3 Hubs: $365K3 Hubs: ~$365K4 Hubs: ~$360K


ConclusionsConclusions

• Currentsupplyissuesmustbeaddressedbeforedecentralization is considered. Frequent stock‐outs at thedecentralizationisconsidered.Frequentstock outsatthecentrallevelwillresultincontinuouslylowservicelevels.

• IfPSPchoosestodecentralizeitsnetwork,theoptimallocationswouldincludeGagnoa,Abengourou,andYamoussoukro.

• The first optimal hub to open is Gagnoa Gagnoa has several• ThefirstoptimalhubtoopenisGagnoa.Gagnoa hasseverallargecentersofpopulationarounditandwouldhavethelargestimpactonPSP’soveralloperations.

• Duetothesensitivenatureofcoldchainproducts,itwasrecommendedthattheseproductsbeshippeddirectlyfromthecentralwarehouseinAbidjan;DPsshouldactascross‐jdocks.


FamousPublicHealthNetworkDesignMythsFamousPublicHealthNetworkDesignMyths

• Wecan’tgetenoughdata• Wecan’tchangeanything• Wealreadyknowwhatweneed:moreresources

• Networkmodelingistoocomplicated,we just want the “simple solution”wejustwantthe simplesolution

• Publichealthis“different”:youcan’ttreat people like numberstreatpeoplelikenumbers

• Weshouldmakeimportant,complicated,decisionsbasedongut‐feelandintuition!

ContactInformationContactInformation

• LLamasoft:201 S th M i St t 4th Fl201SouthMainStreet,4th FloorAnnArbor,Michigan48104

• Ontheweb:www.LLamasoft.com

• E‐mail:i f @LL [email protected]

• Or just give us a call!Orjustgiveusacall!+1(734)418‐3119

final-2011 hhl masterpresentation-day1 · llamasoft overview •employee owned software company...

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