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CLICK TO ADD TITLE The 5th Global Health Supply Chain Summit November 14 -16, 2012Kigali, Rwanda Measuring Supply Chain Maturity Diane Reynolds [SPEAKERS NAMES] [DATE]

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 improvedbusiness performance.

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

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 Performance: Set of indicators that comprehensively measure the performance of a health supply chain Capability Maturity Model Diagnostic tool Key Performance Indicator guide

Establishing capability & performance attributes of supply chain maturity enables planning & performance management • Prioritize strengthening areas • Measurement of intervention • Monitor progress • Demonstrate results • Performance: • Establish current performance • Capability: • Benchmark to best practice

Supply Chain Maturity Assessment: South Africa Case Study: Applying the assessment to a systems strengthening decision-making process

Step 1: Environmental Study Region District SDP Functions

Step 2: CMM Diagnostic Tool implementation • 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)

Step 3: KPI assessment tool implementation Indicators • 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

Step 4: Reporting Country level data Function by enabler level data Facility capability level data

Step 5: Evidence-based decision-making Sequence Interviews

Step 6: Intervention based on recommendations Key Improvement Areas and Financial Impact (targeted savings)

Step 7: Measuring the ROI Key Improvement Areas and Financial Impact (targeted savings) Back orders Immediate saving Long term saving

Lessons learnt in the pilots (South Africa, Botswana and Paraguay) and 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 Lessons Learnt • 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 Practical, relevant & cost effective Next steps Finalization of the KPI guidelines – selected core measures Collaborate with UNC to review and define an “ROI” approach

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