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CLICK TO ADD TITLE. The 5th Global Health Supply Chain Summit November 14 -16, 2012 Kigali, Rwanda. Transport Capacity Building of a Local Private 3PL – Cargo Management Logistics Phillip Kamutenga. [SPEAKERS NAMES]. [DATE]. Produced by: Phillip Kamutenga & Bob Steele(RTT ). Background.

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  1. CLICK TO ADD TITLE The 5th Global Health Supply Chain Summit November 14 -16, 2012Kigali, Rwanda Transport Capacity Building of a Local Private 3PL – Cargo Management Logistics Phillip Kamutenga [SPEAKERS NAMES] [DATE] Produced by: Phillip Kamutenga & Bob Steele(RTT)

  2. Background Last quarter of 2010, CML subcontracted by JSI to warehouse and distribute malaria and family planning products to all health facilities in Malawi These were USG-donated and GF-procured commodities RDTs were rolled out countrywide about September 2011, increasing volumes By September 2011, stored ACT and RDT volumes increased from about one to three/four months of stock Starting January 2012, essential medicines kits were added to the stocks under management, again increasing volumes

  3. Principles & Practices of Modern SCM • Alignment • Visibility • Agility • Outsourcing • Measurement • Capabilities Local 3PLs usually do not have appetite and/or knowledge to invest in capabilities necessary to adopt these principles and practices. Through painstaking collaboration, technical assistance and investment, a local 3PL can acquire and operationalize these capabilities and build a responsive and successful business with immense growth potential

  4. Focus • Transportation & Planning • Warehousing • Standard Operating Procedures • Communication & Coordination • Key Performance Indicators & Results • Conclusion

  5. Transportation & Planning No transport dept. 15 trucks 100cbm vehicle volume 80cbm delivered per month Incorrect vehicle size mix No vehicle maintenance plan Manual routing & scheduling Sep 2012 Sep 2011 Transport dept. established 30 trucks 610cbm vehicle volume 600 – 1000cbm delivered per month Vehicle mix optimized Rigorous maintenance plan Routing & Scheduling Software (US$50,000) US$60,000 invested per month, staff & leased vehicles

  6. Warehousing Warehouses basic sheds, no racking All commodities block stacked No Warehouse Management System Management capacity adequate for volumes managed Nov 2011 Sep 2011 Volumes increased x6 Management capacity compromised More errors in receipts reports Decision to move storage function from CML to RTT

  7. Standard Operating Procedures No SOPs, no reference Avoidable and expensive mistakes made Sep 2012 Sep 2011 SOPs developed All drivers & management trained in relevant SOPs Driver & distribution checklist Handling PODs Vehicle Security Obtaining Fuel Chain of Custody

  8. Communication & Coordination Ad hoc meetings with no fixed agenda No KPIs as a basis for reporting Limited interaction CML/JSI relationship confrontational at times Reporting protocols and chain of command not observed Sep 2012 Sep 2011 CML transport staff housed on same premise with RTT Weekly operations meetings with pre-set agenda CML/JSI/RTT have tri-weekly operations meeting A ‘communication protocol’ established Highly interactive and collaborative relationship between JSI/RTT/CML

  9. Key Performance Indicators & Results

  10. Conclusion • CML has moved from a warehousing company with some transportation function to become a professional transport organisation • Coping with much higher volumes of work • Utilising KPIs and SOPs • Providing better customer service at a fraction of the time and lower unit cost • For private local 3PLs, there is a need for major investment, technical assistance and hand-holding if product availability at all health delivery points is to be met consistently

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