supply chain management

1. Introduction to
Logistics/supply chain
management
Feb 8 /2021
Hawasa

2. Outline
1. Introduction
2. Storage of Pharmaceuticals
3. Logistics Management Information System
(LMIS)
4. Inventory Control System (ICS)
5. Responsibility of FHT
6. List of Essential drugs & materials

3. Objectives
To understand the purpose of logistic system
Describe the importance of inventory control
To understand logistic management cycle
To know pharmaceuticals storage condition
To describe importance of LMIS
To know responsibility of FHT

4. 1. Introduction

5. Logistics system
What is Logistics system?
◦ Products (regardless of its complexity)
◦ Movement (products, information) from supplier to customer
◦ Utilization/ consumption
Why are we concerned?
◦ Requirement
◦ Existing practice
Who are involved in the processes?
◦ HC staffs
◦ UHE-Ps
◦ Others

6. Basic components of Logistics System
1. LMIS
 Recording (Stock on hand, Consumption, Loses/
adjustment)
Reporting (MRRF)
2. Inventory control system
Max and Min level
3. Storage of Pharmaceuticals
FEFO
Physical inventory
Visual inspection

7. Supply Chain Management
 The integration and organization of
information and logistic activities in a supply
chain for the purpose of delivering products
and services to customers/users

9. PURPOSE OF LOGISTICS SYSTEM
To Ensure the Six Rights
RIGHT PRODUCT
RIGHT QUANTITY
RIGHT PLACE
RIGHT TIME
RIGHT CONDITION
RIGHT COST.

10. Purpose cont’d…
 To Serve Customers
 To Ensure Commodity Security exists
for each client

12. PIPELINE:
 The pipeline is the entire chain of storage
facilities and transportation links through which
supplies move from the manufacturer to the
consumer including:
 the port facilities,
 central warehouse,
 regional warehouses,
 district warehouses,
 all service delivery points and transport
vehicles.

13. PORT
PFSA Central
PFSA Hub
Hospitals Health Centers
Health Posts
CLIENTS

14. LEAD TIME
 Lead time is the time interval between
when new stock is ordered and when it is
received and available for use.

15. PULL SYSTEM vs. PUSH SYSTEM
Quantities to
be issued are
determined by
personnel who
receive the
supplies.
Quantities to be
issued are
determined by
personnel who issue
the supplies.

16. 2. STORAGE OF PHARMACEUTICALS
 Storage: the management of storehouses and
stock cards, the operation of holding and
storage of pharmaceuticals and the safe and
protection of stock

17. Purpose of Storage
 Protect the quality of the product and
its packaging throughout the supply
chain.
 Make product available for
distribution/use.
 kept the products shelf-life

18. SHELF- LIFE
 Shelf life is the length of time a product may be
stored without affecting:
 the usability,
 safety,
 purity, or
 potency of the product,
assuming that the recommended storage
conditions have been met.

19. 3. LOGISTICS MANAGEMENT INFORMATION
SYSTEM (LMIS)
 The purpose of a logistics management
information system (LMIS) is to collect,
organize, and report data that will be
used to make decisions

20. ESSENTIAL DATA ITEMS
1. STOCK ON HAND:
• Quantities of usable stock available at any level or at all levels of the system at
a point in time.
2. RATE OF CONSUMPTION:
•The average quantity of commodities dispensed to users during a particular
time period.
3. LOSSES/ADJUSTMENTS:
•Losses are the quantity of health commodities removed from the distribution
system for any reason other than consumption by clients (e.g., losses, expiry,
damage). Adjustments may include receipt or issue of supplies to/from one
facility to another at the same level (e.g., a transfer) or a correction for an error
in counting. Losses/adjustments may therefore be a negative or positive
number.

21. Three Types of Records
1. STOCK-KEEPING RECORDS
Keep information about products in storage. e.g. Bin card, Stock
Card
2. TRANSACTION RECORDS
Keep information about products being moved.
e.g. RRF
3. CONSUMPTION RECORDS
Keep information about products being consumed

22. Date
Doc. No.
(Receiving or
Issuing)
Received
from or
Issued to
Quantity Batch
No.
Expiry
Date Remarks
Receive
d
Issued
Loss/
Adj
Balance

23. Internal Facility Report and Re supply Form
Name of Dispensing Unit: --------------------------
Reporting Period From: -----------To:-----------------
Maximum Level (ML): -----------------
COMPLETED BY
UNIT
COMPLETED BY STORE
Ser.
No.
Item
Beginning
Balance
Quantity
Received
Loss/
Adjust
ment
Ending
Balanc
e
Calcula
ted
Consu
mption
E =
A+B+-
C-D
Maximum
Quantity F =E
* 2
Quantity Needed to
Reach Max.
G = F – D
Quantity to
be
Supplied
A B C D E F G H
1 Condoms (piece)
2 Depo (vial)
Remarks :
Completed by (Name, Date
and Signature) :
Issued by (Name, Date and
Signature) :
Approved by (Name, Date
and Signature) :

24. Key terms related to Inventory
Control system
Maximum stock level (Max) = The level of stock above which
inventory levels should not rise under normal conditions.
Minimum stock level (Min) = The level of stock at which actions to
replenish inventory should occur under normal circumstances.
Order Interval (Review Period) = The routine interval of time
between assessments of stock levels to determine if an order should
be placed.

25. Rate of Consumption = The average quantity of stock
dispensed to users during a particular time period.
Emergency Order Point = The level of stock that
triggers an emergency order, regardless of the timing
within the review period. It is always lower than the
min.
Safety stock = The buffer or reserve stock kept on
hand to protect against stock outs caused by delayed
deliveries or markedly increased demand.

26. 5. Responsibility of FHT
 The team coordinator should be avail the tracer drugs
by requesting from the store by completing IFRR in
the given schedules(every 15 days )
 The team coordinator/FHT should be update BIN cards
for each items properly
 All team must be kept the products in appropriate
storage condition
 FHT records the consumed products in the registration
book

27. Thank You!!!