3. Chapter 1: Introduction
What is drug??
A drug can be given three possible operational definitions:
1. a chemical substance that affects the processes of the body or mind;
2. any chemical compound used on or administered to humans or
animals as an aid in the diagnosis, treatment or prevention of disease,
or other abnormal condition, for the relief of pain or suffering, or to
control or improve any physiologic or pathologic state;
3. a substance used recreationally for its effects on the central nervous
system.
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4. Cont. . .
Supply
• Supply is the process of building inventory (through manufacturing and/or procurement) to the targets
established in inventory planning.
• The objective of supply management is to minimize the total acquisition cost (TAC) while
meeting the availability, response time, and quality requirements stipulated in the customer
service policy and the inventory master plan.
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5. Cont . . .
What is management?
• Management is the act or art of being responsible or in charge and
conducting or supervising something with a degree of skill and
address.
• Management is a process of planning, decision making,
organizing, leading, motivation and controlling the human
resources, financial, physical, and information resources of an
organization to reach its goals in an efficient and effective manner.
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6. Cont . . .
• Why we care about Medicines/Drugs??
• Medicines save lives and improve health
• Medicines promote trust and participation in health services
• Medicines are costly
• Medicines are different from other consumer products
• Substantive gaps are in supply and use of medicines
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7. Why drug supply management (DSM)?
• Lack of access to medication
• Irrational drug use
DSM is needed as it is concerned with practical ways in
which high quality essential drugs are available, affordable
and used rationally.
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8. Cont . . .
• The term “supply chain management” arose in the late 1980s and
came into widespread use in the 1990s. Prior to that time,
businesses used terms such as “logistics” and “operations
management” instead.
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9. Cont . . .
•Supply chains refer to networks of companies that work
together and coordinate their actions to deliver a product to
market.
•Pharmaceutical supply chain is a special supply chain in
which drugs are produced, transported and consumed.
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10. Cont . . .
• According to (CSCMP) —
• “ Supply chain management encompasses the planning and
management of all activities involved in sourcing and
procurement…and all logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third party service providers,
and customers. In essence, supply chain management integrates supply
and demand management within and across companies.”
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11. Cont . . .
‘logistics is part of the supply chain process that plans, implements,
and controls the efficient, effective forward and reverse flow and
storage of goods, services, and related information between the
point of origin and the point of consumption in order to meet
customers’ requirements’.
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13. Cont . . .
• Organizations in the supply chain:
Ministries of health
Central medical stores(EPSA)
Donors; nongovernmental organizations (NGOs);
Regions and districts;
Health facilities;
Community health workers; and
Private sector partners,
such as third-party logistics providers, drug manufacturers, distributors, and private
service providers.
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14. WHY SUPPLY CHAINS MATTER?
Increasing
program
impact
Enhancing
quality of care
Improving cost
effectiveness and
efficiency
15. THE SUPPLY CHAIN AND THE SIX RIGHTS
To the RIGHT place
For the RIGHT cost.
At the RIGHT time
In the RIGHT quantities
The RIGHT goods .
In the RIGHT condition
delivered…
16. Cont . . .
• The goal of a public health supply chain is much larger than simply making sure a product gets
where it needs to go.
• Ultimately, the goal of every public health supply chain is to improve health outcomes. A
properly functioning supply chain is a critical part of ensuring commodity security—when every
person is able to obtain and use quality essential health supplies whenever he or she needs them.
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17. Ethiopia health care system
• With more than 100 million inhabitants, Ethiopia is the second most populous country in
Africa, after Nigeria.
• In recent years the life expectancy has been increasing, and is now 64 years at birth.
• Ethiopia allocated US$ 1.6 billion to health care in 2015 Of total health expenditure, 14.69%
goes to finance primary health care (PHC).
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18. Cont . . .
• Primary Health Care defined as
• – Essential health care based on practical, scientifically sound and socially acceptable methods
and technology made universally accessible to individuals and families in the community
through their full participation and at a cost that the community and the country can afford to
maintain at every stage of their development in the spirit of self-reliance and self-
determination” (WHO-UNICEF 1978).
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19. Cont . . .
• The Alma-Ata Declaration on Primary Health Care (1978), and its call for Health for All by the
year 2000, was welcomed by the Ethiopian Government.
• A plan to achieve universal access to PHC was prepared and embedded in the Health Sector
Development Programme III in 2005.
• This plan aimed to address shortcomings of service coverage within the health system through
accelerated expansion and strengthening of PHC services.
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20. Cont . . .
• In fact implementation of PHC policies was largely unsuccessful at first, for the following
reasons:
The policies and strategies for the specific elements of the PHC were not clearly defined at national level.
Regions and health facilities had limited awareness of those elements as defined at the central level.
There was lack of clarity on health policies in most regions as a result of poor and inadequate dissemination
of information on the policies.
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22. Cont . . .
• Primary health care is rooted in a commitment to social justice and equity and in the
recognition of the fundamental right to the highest attainable standard of health, as echoed in
• Article 25 of the Universal Declaration on Human Rights: “Everyone has the right to a standard of
living adequate for the health and wellbeing of himself and of his family, including food, clothing, housing and
medical care and necessary social services
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23. Cont . . .
• The five principles usually associated with the PHC strategy are:
1. Universal accessibility and coverage
Essential health services to all people
Health services should be available to all, including rural or isolated populations
2. Community and individual involvement and self reliance
Individuals and communities have the right and responsibility to be active
partners in making decisions about their health care and the health of their
communities.
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24. Cont . . .
3. Appropriate technology and cost effectiveness
This includes methods of care, service delivery, procedures and equipment that
are socially acceptable and affordable.
4. Intersectoral action for health
• Education, housing, public water supplies and so on.
5. Health promotion
Through the provision of affordable health services and community health
education.
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For example, there is a well-known correlation
between health status and education or literacy.
Health status is higher when education
and literacy are widespread. People are more
capable of taking care of their problems. The
converse is also true. A healthy child is more
likely to attend school regularly and to improve
his or her performance.
