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Improving Health Outcomes through Performance Monitoring of Supply Chain Management in Public Health Programs

Improving Health Outcomes through Performance Monitoring of Supply Chain Management in Public Health Programs. Dana Aronovich Linda Allain Adriano Sommerlatte Marie Tien Kelly Hamblin. APHA Conference Denver, CO November 2010. Learning Objectives.

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Improving Health Outcomes through Performance Monitoring of Supply Chain Management in Public Health Programs

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  1. Improving Health Outcomes through Performance Monitoring of Supply Chain Management in Public Health Programs Dana Aronovich Linda Allain Adriano Sommerlatte Marie Tien Kelly Hamblin APHA Conference Denver, CO November 2010

  2. Learning Objectives • Identify a number of metrics for monitoring supply chain management performance for public sector health programs. • Describe how these metrics can be used to improve health product availability to support public health programs and to improve health outcomes.

  3. Supply Chain Performance—Key to Health Outcomes • Positive health outcomes depend on the reliable availability of critical medicines and other medical supplies • Availability of these commodities depends on an effective and efficient supply chain from the port of entry to the most remote service delivery point • Improving supply chain performance requires information about current performance • Performance must be measured to uncover inefficiencies and to take action to correct them “Without a standard, there is no logical basis for making a decision or taking action.” Joseph Juran

  4. Why do we monitor and evaluate? • Improving program management and system performance • Monitor program/system performance • Provide feedback • Evidence-based decision making and work planning for improved performance • Mobilize Resources (financial, human, etc.) • Accountability • Results reporting • Determination of impact

  5. SCM Performance Measures Matrix by Function Performance Measures

  6. Chapters are divided by supply chain/logistics function. Layout of the Guide Within each chapter there are four types of indicators: 1) Quality 2) Response Time 3) Cost/ Financial 4) Productivity Distribution/Transport QUALITY A.On-Time Arrivals Each indicator has a title. The number of indicators per supply chain function per type varies. A more detailed description of the indicator follows in the table.

  7. Selecting “SMART” Indicators • Specific: objective clearly speaks to the single problem that it is intended to address. • Measurable: includes benchmarks, or points of reference, to compare results to later on. • Appropriate: the objective is related to and clearly supports the goal. • Realistic: the capacity and resources are available and can be used to reach the objective. • Time-bound: objectives are planned over time such that they can be met and are measured within a specific timeframe. “Not everything that counts can be counted, and not everything that can be counted counts.”

  8. Examples of performance measures by supply chain function and type of indicator

  9. Product Selection/Forecasting/Procurement QUALITY • Forecast accuracy: % difference between forecast/actual use • % of procured products registered in country RESPONSE TIME • Lead time for purchase orders/contract award COST/FINANCIAL • % of average international reference price paid PRODUCTIVITY • % of purchase orders/contracts issued as emergency orders

  10. Supplier/Sourcing (from purchaser’s perspective) QUALITY • Order compliance: % of orders meeting set criteria RESPONSE TIME • On-time delivery by requested delivery date COST/FINANCIAL • Total supply cost PRODUCTIVITY • Supplier fill rate: % of orders filled completely

  11. Warehousing/Storage QUALITY • Inventory accuracy rate (no discrepancies) RESPONSE TIME • Put-away time from arrival at WH shelf COST/FINANCIAL • Value of product damaged in warehouse PRODUCTIVITY • Storage space utilization: space used/space available

  12. Inventory Management/LMIS/Customer Response QUALITY • Stockout rate RESPONSE TIME • Order lead time: order placed order received COST/FINANCIAL • Value of unusable stock due to expiration/damage PRODUCTIVITY • Facility reporting rates

  13. Distribution/Transport QUALITY • On-time arrivals: % shipments arriving as scheduled RESPONSE TIME • Average delivery time from dispatch to destination COST/FINANCIAL • Average transportation cost per km/m3/kg of product PRODUCTIVITY • Container capacity utilization per vehicle

  14. Application of the Performance Measures • Monitor system performance • During supervision/management reviews • Provide routine feedback • Information must move up and down the supply chain • Improve program management • Evidence-based decision making and work planning for improved performance • Improve system performance at all levels of the supply chain • Report results and determine impact • INCREASE PRODUCT AVAILABILITY FOR IMPROVED HEALTH OUTCOMES

  15. What gets measured, gets done.(Peter Drucker) No product? No program!

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