1、Inventory Management: Distribution, ICS, LMIS,Nairobi, 21 February, 2006Yasmin Chandani HIV/AIDS Technical Coordinator,Select Elements of the Logistics System,Distribution Storage Transport Inventory Control Systems Logistics Management Information System,Objectives of Distribution (Storage & Transp
2、ort),Storage: Assures product and packaging quality and constant availability Transport: Assures that products arrive in good condition, in the right place and at the right timeThe less frequent your re-supply, the greater your storage requirements.,Distribution Considerations (Storage & Transport),
3、Availability of transportation (vehicles) Security during transport Security during storage Sufficient storage space/capacity (based on procurement plan and frequency of deliveries at all levels of the system) Short shelf life of products Appropriate storage conditions (cool chain),Distribution Cons
4、iderations (Storage & Transport),Which transportation system used? Pick-up system (facilities collect drugs) or delivery system (warehouses deliver) Is transportation outsourced? Do procedures exist to: Verify the products shipped and received: type and quantity, Conduct visual inspection for qualit
5、y assurance, including expiration dates, Complete and sign transaction records/vouchers, Store the products, and Update stockkeeping records,Objective of Inventory Control Systems,The objective of an inventory control system is to ensure the constant availability of products, by defining: When produ
6、cts should be ordered. What quantities of products should be ordered How to maintain adequate quantities to meet demand, while avoiding overstocks and stockouts,Inventory Control Systems,Maximum/minimum Inventory Control System are defined by months of stock Systems are designed so stock quantities
7、routinely fall between the minimum and maximum stock levels The minimum stock level includes safety/buffer stock Any inventory control system (max/min or other) must take into account safety/buffer stock,Inventory Control Considerations,Who decides what quantities to distribute? The lower level (pul
8、l) or the upper level (push)? Decision should be based on training and human resource implications Which type of max/min system to use? How long should the pipeline be? Longer pipeline reduces likelihood of stockouts (more security stock) but increases likelihood of wastage (short shelf lives, incre
9、ased expiries) How to include safety stock levels in a non-max/min system,Objective of Logistics Management Information System (LMIS),The objective of an LMIS is to provide the data and information needed for decision-making at all levels: Health Center Level: e.g, quantities to order, monitor stock
10、 availability National Level: e.g, quantities to procure, re-supply scheduleThe LMIS: Is a key component of any logistics system, Impacts ordering, forecasting, procurement Provides data to facilitate logistics decision-making,LMIS Considerations,What data to collect Only collect data in LMIS that i
11、s useful for decision-making in the area of commodity managementData collection tools Daily records to capture data Monthly/quarterly reports Consistent reports (format, content) Computerized system or not,LMIS Considerations,Regardless of product, always collect the three essential logistics data i
12、tems: Consumption Stock on hand Losses and adjustments For other products: ARV Drugs: number of patients by treatment regimen HIV Tests: number of tests by purpose of use,Common Challenges,Insufficient storage space Inappropriate storage conditions Insufficient transportation resources Different rep
13、orting systems in place at same facility (by donor, by program) No established logistics data collection and reporting systems from SDP to central level Drug supply is driving prescribing and dispensing Need for drug storage at home (pediatric formulations),Dynamic Environment,Rapid expansion of programs Growing experience program strategies and policies continuously evolving Highly politicized New technologies for drugs and tests Decentralized systems Integrated vs vertical service delivery Multiple donors/sources of funding,
