Transcript USAID | DELIVER PROJECT PowerPoint Presentation template

CLICK TO ADD
TITLE
The 5th Global Health Supply Chain Summit
Measuring Supply Chain Maturity
Diane Reynolds
[SPEAKERS NAMES]
November
14 -16, 2012[DATE]
Kigali, Rwanda
Establishing a supply chain maturity
assessment model for the public health
environment to drive investment decisions
Supply chain performance assessment - to understand
a high-level status of the supply chain, comparing
current-state operating environment and levels of
supply chain performance against best practices,
identify improvement opportunities,
anticipate business impact and
establish a program that drives
improved business performance.
Forecast
2
Procure
Warehouse
& Inventory
Transport
Dispense
Common problem statements expressed in
the public health supply chain.
• We need a new warehouse we don’t have
enough space
• We don’t get forecasts from the facilities to order
the right commodity
• The vendors never deliver the quantities we order
• We need an ERP to plan the delivery of
commodities
• There are major stock outs at facility level
because of the depot
• We need to be trained and tour other countries
to learn best practice
3
Tools and frameworks to assess the supply
chain maturity review both capability &
performance levels.
Capability: Measures the capability of
a supply chain, benchmarking against
best-practice standards
Maturity Level
Maturity Level Description
1- No/Minimal
Informal processes and little or no systems
2- Marginal
Basic not used consistently and mostly manual
systems
3- Qualified
Processes are defined and documented with
some technology
4- Advanced
Practices
Processes are well defined and internal
integrated technology
5- Best
Practices
Practice continuous improvements, fully
integrated technology
Capability Maturity Model
Diagnostic tool
4
Performance: Set of indicators that
comprehensively measure the
performance of a health supply chain
Key Performance
Indicator guide
Establishing capability & performance
attributes of supply chain maturity enables
planning & performance management
Performance:
• Establish current performance
•
•
•
•
5
Prioritize strengthening areas
Measurement of intervention
Monitor progress
Demonstrate results
Capability:
• Benchmark to best practice
Supply Chain Maturity Assessment:
South Africa Case Study: Applying the assessment to a
systems strengthening decision-making process
6
Step 1: Environmental Study
Environment study
Step 1
Health Sector
Overview
Supply Chain
Policies &
Regulations
National
Infrastructure
& Services
Etc……
National
Gauteng
Reg Depot
Hospital
Hospital
Clinic
Clinic
Functions
Forecast
Prod Select
Procure
Warehouse
& Inventory
Transport
Dispense
Step 2: CMM Diagnostic Tool
implementation
CMM Diagnostic tool
Step 2
Select functional
area to assess
Select sites to
be visited across
levels
Interview
functional leads
or HQ
Complete a Site
walkabout for
each relevant
functional area
• Initial assessment part of a larger regional Field Office study
• Included provincial, district and SDP assessments (no central)
• 8 sites assessed (Depot, region depot, tertiary Hospital, clinic levels)
SCORES
Reg/
Prov
Dist
SDP
N/A
N/A
NDoH
Functional Areas
Product Selection
Capability
Forecast
1
and Supply
2
N/A
3
Planning □ Items received are not checked □ Received product is confirmed □ Received items are entered
Receiving
□ Received inventory is not
against pack slip/invoice to be into simple software based stock
Procurement
N/A
N/Akeeping system (inc.
recorded
the product ordered
□ Received product is counted Access/Excel)
Warehousing and
and compared to quantities on
Inventory Management
packing slip/invoice
□ Items received are entered into
bin cards/paper based inventory
Transportation
8
N/A
Dispensing
N/A
N/A
Waste Management
N/A
N/A
N/A
N/A
4
□ Product is blindly received
(compare to invoice/packing list
after) into WMS and then
validated against packing
slip/invoice
5
□ Received items are entered
against Purchase Orders and
ASNs in a Warehouse
Management System (WMS)
Step 3: KPI assessment tool
implementation
Indicators
KPI framework
Step 3
Identify any
KPI’s available
Select KPI’s to
be “determined”
Collect data
Update score
sheet
9
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
Stock out rates
Excess stock
EDL compliance
% of products that meet QA
standards
Off-contract spend
% of emergency orders
Order Fill Rate
Expiry
Pricing Variance
Order Cycle Time
Stock turnover rate
On-time delivery
Distribution cost
Inventory discrepancy
Backorder
Follow the transaction, paper
trails & data
Step 4: Scoring the assessment tools
Score CMM & KPI
Step 4
Comprehensive
country score
for all assessed
capabilities
Key
performance
indicator
benchmark
Supply Chain
capability and
performance
10
Step 4: Reporting
Country level data
Score CMM & KPI
Step 4
Comprehensive
country score
for all assessed
capabilities
Key
performance
indicator
benchmark
Supply Chain
capability and
performance
Function by enabler level data
Facility capability level data
11
Step 5: Evidence-based decision-making
Evidence Based Decision
Step 5
Prioritize
strengthening
areas to focus
STTA & training
ROI costing
activity
Determine
recommendations
& options
Define roles &
responsibilities
Establish
baselines to
measure progress
5
1
Sequence
Interviews
4
2
3
12
Step 6: Intervention based on
recommendations
Intervention
Step 6
Continuous
trends and
tracking
through the
project
Key Improvement Areas
and Financial Impact
(targeted savings)
13
Step 7: Measuring the ROI
Key Improvement Areas and Financial
Impact (targeted savings)
Measuring the ROI
Step 7
Measurement of
intervention
Demonstrate
results
Back
orders
Immediate
saving
Long term
saving
14
Lessons learnt in the pilots (South Africa,
Botswana and Paraguay) and next steps
Lessons Learnt
Practical,
relevant & cost
effective
Next steps
• Templates were created as a reference for vertical consistency within
functional areas
• Conversion to a check box format to make maturity level descriptions
succinct
• Include the addition of a SDP specific questionnaire
• Provides a practical, cost-effective approach to supply chain
assessment for the public health supply chain
• Middle ground between an expensive, statistically significant
assessment based on site-visits and qualitative workshop-based self
assessment tools
• Comprehensive reporting enables informative client discussions to
prioritize and define improvement programs
•
•
Finalization of the KPI guidelines – selected core measures
Collaborate with UNC to review and define an “ROI” approach