Supply Chain Management in MoHFW

1. Supply Chain Management in MoHFW

2. The Supply Chain consists of the following 1

3. Areas We Need to Strengthen THESE SHALL IMPROVE EFFICIENCY & REDUCE COST 2

4. Present Supply Chain Management System With each district warehouse multiple facilities are associated. 3

5. Improving Efficiency in Supply Chain Creation of Planning Cell. Generation of Right Information. Capacity Building of Warehousing Facilities. Creation of New Warehousing Facilities. Introduction of LMIS in ProMIS. Monitoring & Measuring Consumption Data. MIS & Re-conciliation. 4

6. Improving Efficiency in Supply Chain • >In Order to Access Capacity & Improve overall Efficiency • in Supply Chain Management Sciences for Health is • developing the following Tools: • Logistics Assessment Tool. • Inventory Management Assessment Tool. • Procurement Services Assessment Tool. • ( EPW Team shall be using these tools for all the States ) 5

7. Current Procurement System & Issues Supply Order value (2009-10) as on December 01, 2009 UIP: 196 crores NVBDCP (Malaria): 41 crores RNTCP (TB): 44 crores SSM (Family Welfare): 174 crores RCH (Kit A&B): 206 crores Total: 661 crores Source Procurement Management Information System (ProMIS) Direct Procurement by EPW- SSM (family welfare, contraceptives), UIP (vaccines), PD (equipments for hospitals, NVBDCP) [requirements from Programme divisions] Procurement through PSA for NVBDCP, RNTCP, RCH, NACO MSO procurement of CGHS supplies are excluded from ProMIS 6

8. Challenges faced in Supply Chain Inaccurate quantification: More of Push System instead of Pull System Lack of standardization of procedures, documents for forecasting and stock reconciliation No linking of data between stock status at states and supply schedule No MIS reports based on various Performance indicators such as supplier performance, quality assurance, acceptance certification available Thus, no credible data available for inventory management or for analysis and informed decision making 7

9. Suppliers State/Divisional Drug Warehouse Regional Drug WH/Div. WH District Stores District Stores District Stores Quick View – State and MoHFW Model State Procurement MoHFW procurement 1) Centralized Procurement: States issue supply orders for districts 2) Decentralized: Rate Contracts fixed by state. Districts Procure them State Supply Govt. Of India Supply Centralized Procurement: GoI issue supply orders for states Suppliers Supplier Receipts Supplier Receipts Districts W/H Indents & Issues Warehouse Transfers Facility Facility Indents & Issues PHC/CHC SC 8

10. Initiatives taken by Ministry Empowered Procurement Wing (EPW) Genesis Governance & Accountability Action Plan (GAAP) formulated as per development Credit Agreement (DCA) between GoI & World Bank (WB) mandates strengthening of procurement implementation & contract monitoring Objectives EPW established in October, 2005 to consolidate streamline and strengthen procurement activities professionalize procurement of health sector goods Develop and promote policies for improving procurement of health sector goods, drugs and services including planning, bid evaluation, contracting, payment, supply schedules, inspection dispute resolution, computerization etc. Help build capacity in States and PSAs and monitor their performance. Maintain procurement monitoring and complaints data base including data on quality, WHO GMP certification of firms etc. 9

11. Procurement Management Information System (ProMIS) conceptualized in December 2006 • Development of ProMIS for centrally sponsored schemes • At Centre in RCH, RNTCP, NVBDCP, SSM, UIP & Procurement Division • Set up a Computerised Procurement Systemcomprising Forecasting, planning, Tendering, Supply Orders, Contract Expediting, Bills/Invoices • At State/Warehouse level • Pilot: Inventory Control System for Supplier Receipts, Interwarehouse transfers, Warehouse Receipts, shortages & damages, Facility Indents & issues • Non-pilot: Only limited to receipts & no issues. Entry of monthly stock status • Management Information System: Reports at all levels such as Demand Vs Ordered Quantities, Distribution Vs Received Quantities – Supplier-wise & state-wise, Supply Order Status, Fund Utilization, Stock Summaries, Stock Reports calculating Months of supply, Stock Expiry by Month, Stock Out position 10

12. Features of ProMIS Can be accessed from anywhere from internet Easy to use with user friendly interface Password given to users are protected and secure Users will access screen on need to know basis Expandable for schemes and CPA, replicable to states with little customization and technically versatile model System has been tested independent Quality Assurance authority, and has passed NIC security audit Operational Manual in English and Hindi 11

13. ProMIS: Where are we now • Piloted in all districts of Madhya Pradesh, Orissa, 3 districts of Maharashtra, all GMSDs and Ministry at centre for RCH, TB, Malaria, Family Welfare & UIP divisions • Specifications signed off- May 2008 • Prototype approval- December 17, 2008 • Trainings – Jan-March 2009 (nearly 200 users trained) • Onsite Support – April 2009 – till date • User Acceptance – 31 July 2009 • Final Sign Off- 16 September 2009 • Development of anti-corruption applications for inclusion into ProMIS • NIC Security Audit now in final stage. • User Manual is now well underway 12

14. Desirables for success of ProMIS Regular data entry at all levels- Well knit integrated package Warehouse modernization- e.g. build racks, store & administrative office should be in same premises for better coordination, manpower issues. Accountability for shortages /wastages should be fixed-Onus of correct & accurate feeding of the data lies with the warehouse/storekeeper. Concurrent entering of data in ProMIS as and when transaction occurs. Infrastructure (both state & centre) & manpower (capacity building, helpdesks, nodal officers) 13

15. Expansion of ProMIS in all States • Appointment of State Nodal officers for ProMIS implementation • Trainings • 3 days training by the central resource persons/trainers at the state capital. Maximum 3 batches of 20-30 persons in each batch • Larger states should train Master trainers first and retrain others in all district warehouses • 4 days handholding by EPW (MoHFW) • 2 days monitoring training by EPW (MoHFW) • Implementation • Identification of District Nodal officers • Putting in both hardware & manpower resources • Continuous trainings sessions after every six months through Master trainers • Encouraging usage of reports from ProMIS 14

16. ProMIS: A step towards E-Procurement 15

17. Improvement of Public Health Delivery System A letter from AS&MD (NRHM) dated Sep 30, 2009 Put in place efficient supply chain from Stale level down to the Public Health Centres Rationalisalion and modernization of warehouses/storage system at State, district and sub-district levels Desirable to have a single storage point at the district level to cater to needs of all programmes In order to have proper Supply Chain Management System in place throughout the country, states need to draw Action plan for establishing Procurement Management Information System (ProMIS) in their State PIPs (2009-10) 16

18. Inclusion of ProMIS in State PIPs 17