NTA Level 5 • Semester 1 • PST05101

Health Supply Chain Management

Medicines and Medical Supplies Management • Source Session/Topic 2

Full source-text version: all educational wording from the extracted learning source is retained; only presenter/tutor metadata and web-layout noise are removed, while formatting is improved for readability.

Session 2: Health Supply Chain Management

Total Session Time: 120 minutes

Prerequisites

• None

Learning Tasks

By the end of this session students are expected to be able to:

• Define supply chain in relation to medicines and medical supplies

• List components of health supply chain management

• Explain components of health supply chain management

Resources Needed:

• Flip charts, marker pens, and masking tape

• Black/white board and chalk/whiteboard markers

SESSION OVERVIEW

SESSION CONTENTS

STEP 1: Presentation of Session Title and Learning Tasks (5 minutes)

READ or ASK students to read the learning Tasks and clarify

ASK students if they have any questions before continuing.

STEP 2: Definition of Supply Chain (10 minutes)

Supply Chain: The supply chain is the linked activities associated with

providing material from a raw material stage to an end user as a finished

good. Thus Supply chain activities involve the transformation of natural

resources, raw materials, and components into a finished product that is

delivered to the end customer. In sophisticated supply chain systems,

used products may re-enter the supply chain at any point where residual

value is recyclable.

• It is a linked sequence of connected activities that handle movement of

medicines and medical supplies from the source to the customer/consumer.

• This includes a number of activities that support the six rights. Supply

chain personnel have developed a systematic approach to describing the

activities of a supply chain or logistic system. This is known as the

Value chain

• It consists of all stages involved, directly or indirectly in fulfilling

a customer request.

• Supply chain management is the oversight of materials, information, and

finances as they move in a process from supplier to manufacturer to

wholesaler to retailer to consumer. Supply chain management involves

coordinating and integrating these flows both within and among companies.

• Therefore, SCM is an active link which ensures that all processes,

procedures and systems are put in place to effectively link up all

relevant stakeholders to work together and guarantee organizational

success.

• Is all about managing the reliable movement of medicines and medical

supplies from source(could be manufacturer or supplier) to users (here

referred to consumers or patients) at/with least expensive way

STEP 3: Components of Health Supply Chain Management (25 minutes)

|Activity: Buzzing (5 minutes) |

| |

|ASK students to pair up and buzz on the following question for 2 |

|minutes |

| |

|What are the components of health supply chain management? |

| |

|ALLOW few pairs to respond and let other pairs to add on points not |

|mentioned |

| |

|WRITE their response on the flip chart/board |

| |

|CLARIFY and SUMMARIZE by using the content below |

The following are the components of the health supply chain management;

• The major activities;

o Serving customers

o Product selection

o Forecasting and procurement

o Inventory management

o Logistics management information systems (LMISs)

o Quality monitoring among the activities

o The logistics environment;

▪ policies

▪ adaptability

Fig: 1.1 The Logistic Cycle

[pic]

STEP 4: Explanations on Components of Health Supply Chain Management (60

minutes)

|Activity: Small Group Discussion ( 15 minutes) |

| |

|DIVIDE students into small manageable groups |

| |

|ASK students to discuss on the following question |

| |

|What explanations can you give on the components of health supply chain|

|management? |

| |

|ALLOW students to discuss for 15 minutes |

| |

|ALLOW few groups to present and the rest to add points not mentioned |

| |

|CLARIFY and SUMMARIZE by using the contents below |

The following are explanations of the components of health supply chain

management:

• Serving Customers. Each person who works in supply chain or logistics

must remember that he or she selects, procures, stores, or distributes

products to meet customer needs. For example, a storekeeper does not

store drugs simply for the purpose of storing; he or she stores

products for use in preventing or curing illnesses. The supply chain

ensures customer service by fulfilling the six rights ie right

medicines and medical supplies, in the right quantity, in the right

condition, to the right place, at the right time and for the right cost

• Product Selection. In supply chain system, products must be selected.

This may be responsibility of a national formulary and therapeutics

committee, pharmaceutical board, board of physicians, or other

government-appointed group. Most countries have developed essential

drug lists patterned on the World Health Organization (WHO) Model List.

• Forecasting And Procurement. After products are selected, the quantity

required of each product must be determined and procured. The

forecasting process estimates the quantities of the various medicines

and medical supplies that will be needed for a specified time period

• Inventory Management: (Storage And Distribution) After an item has been

procured and received, it must be stored until the customer needs it.

Almost all businesses store quantity and quality of stock is

monitored,controlled to meet future customer needs. Determining how

much stock should be stored is an important decision

• Logistics Management Information Systems Information. This is the

motor that drives the supply chain or logistics cycle. Without

information, the logistics system would not be able to run smoothly. It

is important to gather information about each activity in the system

and analyze that information to coordinate future actions. For example,

information about inventory levels and consumption must be gathered to

ensure that supplies officer or manager knows how much more of a

product to procure

• Quality Monitoring. In the supply chain, notice how quality monitoring

appears between each activity of the logistics cycle. This refers not

only to the quality of the product, but also to the quality of the

work.

• Policies. Government regulations and procedures affect all elements of

the supply chain system. Many governments have established policies on

the selection of medical products, how items are procured, when items

are distributed, where and how items are stored, and the quantities

customers receive (often called dispensing protocols). Stakeholders

should keep up-to-date on current policies and carry them out as

specified

• Adaptability. This is the supply chain system’s ability to successfully

obtain the resources (either internal or external) that are necessary

to address changes in demand. For example, as demand increases, the

logistics system needs more money to pay for fuel for extra deliveries,

hire new warehouse workers, and train pharmaceutical and clinical

personnel. The program’s ability to meet these needs (its adaptability)

will have an impact on the supply chain system

STEP 5: Key Points (10 minutes)

• Supply Chain is a linked sequence of linked activities that handle

movement of medicines and medical supplies from the source to the

customers/consumers. This includes a number of activities that support

the six rights. Supply chain personnel have developed a systematic

approach to describing the activities of a supply chain or logistic

system

• The key components of supply chain includes; major activities in the

cycle( serving customers, product selection, forecasting and procurement

and inventory management), logistics management information systems

(LMISs) at the heart of logistics, quality monitoring among the

activities and the logistics environment that is policies and

adaptability.

STEP 6: Evaluation (5 minutes)

• What is supply chain in relation to medicines and medical supplies?

• What are the components of health supply chain management?

• What explanations can you give on the components of health supply chain

management?

References

MSH and WHO (2012) Managing Access to Medicines and Health Technology,

3rd Edition. Kumarian Press

World Health Organization (WHO), Regional Office for Africa

Brazzaville 2004, Management of Drugs at Health Centre Level Training

Manual.

United Republic of Tanzania Ministry of Health and Social Welfare,

Strategy for Development and Implementation of an Integrated Logistics

System for Essential Health Commodities: Government Printers, Dar es

Salaam

Ndeki, S. Management of health services, CEDHA, Arusha

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