Supply Chain Management System Project
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  • 1. Supply Chain Management System Project The Partnership for Supply Chain Management March 2006
  • 2. The President’s Emergency Plan for AIDS Relief (PEPFAR)
    • Targets
      • Prevent 7 million new HIV infections
      • Provide treatment for 2 million HIV-infected people
      • Provide care to 10 million people infected and affected by HIV/AIDS, including orphans and vulnerable children
    • Scope
      • 15 initial focus countries
      • 5 years
      • Up to $15 billion
  • 3. SCMS Project Purpose To establish and operate a safe, secure, reliable, and sustainable supply chain management system (SCMS) to procure pharmaceuticals and other products needed to provide care and treatment of persons with HIV/AIDS and related infections Around the world, but initially focused on: Botswana Vietnam Côte d’Ivoire Ethiopia Guyana Haiti Kenya Mozambique Namibia Nigeria Rwanda South Africa Tanzania Uganda Zambia
  • 4. Project Objective
    • To create, enhance, and promote an uninterrupted supply of high-quality, low-cost products that flow through accountable systems which can:
      • Rapidly scale up to support HIV/AIDS prevention, treatment, and care
      • Ensure quality of drugs, test kits, and other supplies
      • Build capacity for long-term sustainable procurement and distribution of drugs and commodities
      • Respect intellectual property law at international and national levels
  • 5. Procurement Perspective, Moscow
    • Procurement is not an isolated activity, part of PSM Cycle
    • Procurement should be embedded in local legislation, be transparent and accountable
    • For professional procurement one needs a proper support framework, covering vital functions (admin, budgeting, timely payments, development of procedures, available in the public domain.
    • Solutions should aim at capacity building, no duplication or programme or donor specific solutions.
    • Demand forecasting is bottom up, defined by in country programmes
  • 6. Categories of HIV/AIDS Commodities
    • ARVs (including FDA tentatively approved generics) for adults and children
    • Drugs for opportunistic infections
    • Drugs for STIs
    • Drugs for home care and palliative care
    • Drugs for tuberculosis
    • Rapid HIV test kits
    • Laboratory equipment and supplies
    • Medical supplies
    • Miscellaneous (e.g., vehicles)
  • 7. Project Components
    • In-country technical support
    • Competitive and transparent procurement capacity
    • Quality assurance program
    • Freight forwarding and warehousing services
    • Comprehensive logistics Management Information System
    • Comprehensive management system
  • 8. In-Country Technical Support
    • Assessments and technical assistance (where requested)
    • Procurement assistance
      • Drug selection
      • Forecasting/quantification
      • Drug registration
    • Customs clearance and delivery
    • Theft/diversion – corrective actions
    • Human capacity for supply chain management
    • Quality assurance plans
    • Sustainability plans
  • 9. Procurement
    • Volume purchasing leveraged to achieve best worldwide price
    • Drugs and commodities of assured quality
    • Compliance with all US Government (USG) laws and regulations
    • E-catalog
    • Manufacturing capacity constraints
    • Clients
      • Initially, USG PEPFAR participants
      • After year 2, others
  • 10. Procurement, Moscow
    • Competitive (what is this and how to measure?
    • Transparency (what does this mean)
    • For ARV’s limited number of quality supplier, (innovators/generics, role of local industry??
    • Qty API sources even more limited( parallel with TB)
    • Unknown capacity, eg shortages will occur in case short time horizon is used, or when no clear picture exists on where API/starting material is made.
    • Complicated market, Access prices, rerouting of products, commercial versus other packs, Voluntary licensing, unclear IP issues, unclear local registration status in case of replacement (see FDA replacement,or voluntary licensing)
    • Not only capacity is sufficient it is the quality is the Chain which should be ensured.
  • 11. Quality Assurance
    • Vendor, donor, and commodity qualification
    • Quality assurance document maintenance
    • Compliance testing
    • Suspect commodity testing
    • Storage, handling, and monitoring standards
  • 12. Freight Forwarding and Warehousing
    • Timely, accurate, and safe transport and warehousing
    • Delivery of drugs and commodities “door-to-door”, ensure the last mile
    • Appropriate cold/cool chain management
    • Regional warehousing for efficiency and cost
    • Shipment tracking from supplier to recipient
    • Physical security measures
  • 13. Logistics Management Information Systems
    • Global supply chain visibility
      • Requirements estimates
      • Product registration status
      • Funds
      • Production capacity
      • Procurement status
      • Shipment and receipt status
      • Regional distribution center inventory management
      • Returns
    • Product pedigree
    • National/local supply chain visibility (on request)
  • 14. Project Management System
    • Project Management Office (PMO)
      • Virginia, near JSI and MSH
      • ~ 70 central staff to start
    • Global supply chain monitoring
      • Requirements estimates
      • Production capacity for key products
      • Supply imbalances of key products
      • Exception reporting
    • Collaboration with USG, international donors, others
  • 15. Cross-cutting Strategies
    • One-stop shopping for HIV/AIDS programs
    • Pooled procurement using framework contracts
    • Begin and end in country
    • Strengthen — don’t replace — in-country supply systems
    • Regional warehousing and distribution
      • Protect country infrastructure
      • Increase responsiveness
    • Collaboration, globally and locally
  • 16. SCMS Implementation
    • Pick and choose: one size does not fit all
    • Additive to current supply chain management mechanisms
    • Based on demand and requests from the field
    • Public-private-NGO-FBO partnerships
  • 17. The Partnership for Supply Chain Management (PSCM)
    • Non-profit partnership established for SCMS
      • JSI Research & Training Institute, Inc. (JSI)
      • Management Sciences for Health (MSH)
    • SCMS project team: 17 institutions
      • Nonprofit organizations
      • Commercial private sector corporations
      • Academic institutions
      • Faith-based organizations
  • 18. SCMS Benefits Responsive Effective Cost-effective Continuous availability Forward procurement Regional distribution One-stop shopping Simpler ordering Lower prices Reduced inventory Assured quality Secure supply chains Capacity building Sustainability SCMS
  • 19. Questions? Thanks! For more information: Website: scms.pfscm.org Email: [email_address] Main phone: +1.703.341.4999 Main fax: +1.703.310.5270