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CLICK TO ADD TITLE. The 5th Global Health Supply Chain Summit November 14 -16, 2012 Kigali, Rwanda. Outsourcing Warehousing and Distribution – Planning, Oversight and Capabilities Phillip Kamutenga. [SPEAKERS NAMES]. [DATE]. Background.

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  1. CLICK TO ADD TITLE The 5th Global Health Supply Chain Summit November 14 -16, 2012Kigali, Rwanda Outsourcing Warehousing and Distribution – Planning, Oversight and Capabilities Phillip Kamutenga [SPEAKERS NAMES] [DATE]

  2. Background • From 2009 CMS received, stored and distributed USG commodities • By mid 2010, it was clear that the 3 priorities of visibility, accountability and performance were not being fully met by CMS • USAID | MALAWI requested a change of approach to handling USG commodities • A parallel supply chain (PSC) was established late 2010 • The receipt, storage and distribution of USG commodities was outsourced to a 3PL - Cargo Management Logistics (CML) • By September 2011, another 3PL was sub-contacted - RTT

  3. PSC CYCLE Receive/Store Plan Issue/Deliver Reconcile The Parallel Supply Chain Products received Distribution plan given to PSC for implementation NMCP develops distribution plan with PSC assistance Product testing DHO enters data into SCMgr Health Facility Stored in PSC Inventory SDP Reports Issue Pick & Pack Data Server • ~640 service delivery points serviced • Malaria (USAID/GFATM), Family Planning (USAID) • Essential Medicine Kit / Primary Health Care Package POD’s to DHOs, HTSS, NMCP, JSI Delivery Received at SDP; sign & stamp POD

  4. Focus • Planning • Smart and adequate planning required for superior results • Oversight • Outsourcing does not eliminate responsibility for results to clients • Capabilities • investment in certain minimum capabilities to execute (3PL) and oversee the execution (contractor) mandatory

  5. Planning Batching & POD Production Loading Plan, Picking & Loading Distribution List (trigger) PLANNING (Accountability) Distribution Schedule Repackaging Product Receipt & Physical Count

  6. Oversight Loading, Vehicle Inspection & Transshipment Field Spot Checks & Daily Distribution Updates OVERSIGHT (Visibility) Operations Meetings (x3 per week) POD reconciliation versus Distribution List Product Receipt & Physical Counts

  7. Capabilities Costing, Contracts • John Snow, Inc. • Staff • Fuel • Technical Assistance CAPABILITIES (Performance) SOPs, Training KPIs Routing & Scheduling

  8. Results

  9. Lessons & Conclusion • Planning • Without astute and adequate planning, execution of an outsourced solution will fail • Oversight • You outsource the execution, but not the responsibility for results • Capabilities • Invest in certain minimum capabilities in order to produce superior results • Applies to both contractor and sub-contractor

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