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1. CLICK TO ADD TITLE The 5th Global Health Supply Chain Summit November 14 -16, 2012Kigali, Rwanda “Continuous productivity improvement opportunities: Private goods supply chains to country level healthcare supply chains” Ananth Iyer Gemma Berenguer aiyer@purdue.edugemmabf@purdue.edu Krannert School of Management Purdue University [SPEAKERS NAMES] [DATE]

2. Agenda • Private goods supply chains • Public and nonprofit supply chains • Our study on the Global Healthcare space

3. Private goods supply chains Summarize a project with Consumer Packaged Goods companies supply chain benchmarking Explain how DEA (Data Envelopment Analysis) techniques were used Explain the results and associated learning

4. Problem Features • A supply chain benchmarking study typically involves many variables with a comparatively small number of participants. • The methodology has to consider all facets of the supply chain and should give insights about best practices, best performers and focus areas for inefficient companies. • The methodology should be able to identify relationships among various variables and should help us understand the tradeoffs involved.

5. Benchmarking:Identify best practice for each step and improve performance Some examples: - Internet based DEA for warehousing at Georgia Tech - Tourism organizations benchmarking at University of Illinois at Urbana Champaign - DEA study of banks - Healthcare organizations in the UK - Supply chain benchmarking (Martin Christopher)

6. Benchmarking studies

7. Inputs and Outputs • The Data collected was divided into outputs and inputs. • Efficiency = Weighted Output/Weighted Input • The inputs were further divided into internal inputs and external inputs. • Internal inputs were the variables which were under direct control of the companies. • External inputs required interactions with partners and were an indication of collaboration. • The split in inputs gave insights about how flexible the company is internally, and how well it collaborates externally.

8. Data description

9. Data reduction techniques • The dimensionality of the dataset was too high to conduct a statistically significant analysis. • Composite variables were created using Factor Analysis. • The variable set was reduced to: 4 output factors, 6 internal input factors and 7 external input factors, each representing at least 80% of the original variance. • The variable groupings were made on the basis of the correlations among variables and eventually led to intuitive factors.

10. Data reduction techniques (cont.)

11. Data reduction techniques (cont.)

12. Data reduction techniques (cont.)

13. DEA Analysis The Idea: For a given input and read off the associated output If not on the frontier, examine how To reach it

14. What do you learn from DEA ? Every organization is usually good at some things, can improve on other dimensions For each organization, find distance to the frontier and associated efficiency Identify specific ways to improve the inputs and outputs to increase efficiency Examine other organizations who exemplify best practice and share your best practice Cultivate the idea of “shared learning” to improve efficiency and thus productivity Quantify this process to provide guidance and milestones

15. Continuous productivity improvement for governmental and nonprofit organizations Our questions: • Is this concept implemented by governmental and nonprofit organizations? • If so, what measures of performance are employed? • Based on the specific context and performance results, what are the best operational practices to implement?

16. Differences between the 3 sectors Source: Managing for Value: Organizational Strategy in For-Profit, Nonprofit, and Governmental Organizations, Mark H. Moore, Nonprofit and Voluntary Sector Quarterly, 2000, 29:183. Click to add text

17. Public and nonprofit supply chains Donor agencies

18. Who are we?

19. Focus of our study • Donor agencies: PEPFAR and the Global Fund • Organizations in Sub-Saharan African countries • Medicines and health products for: HIV, TB and malaria • Country level governmental and nonprofit organizations • Funders are interested in our study: • OGAC, USAID, PEPFAR, …

20. Our Project • General information • Supply Chain structure • Measures most proud of and most challenging Questionnaire 1 • From questionnaire 1 • From other previous reports • From donors Compile all information • Further questions about the company and its operations • Numerical values of list of metrics Questionnaire 2 • Data Envelope Analysis (DEA) • Each organization is anonymous • Adjusting for different externalities Analysis • Results on where does your organization stand related to others that are similar • Recommended performance measures to use • Recommended operational practices to implement to achieve continuous improvement Recommendations

21. Your participation is fundamental! • General information • Supply Chain structure • Measures most proud of and most challenging Questionnaire 1 Compile all information • Further questions about the company and its operations • Numerical values of list of metrics Questionnaire 2 Compile all information • Results on where does your organization stand related to others that are similar • Recommended performance measures to use • Recommended operational practices to implement to achieve continuous improvement Recommendations

22. Your participation is fundamental! • Incentives for participating: • You will be able to influence with your proposed metrics • We will be reaching out to all organizations, so you shouldn’t miss it! • We will get back to you with private information on your performance relative to other organizations and we’ll give you recommendations on how to move forward

23. Today: Questionnaire 1

24. Today: Questionnaire 1

25. Today: Questionnaire 1 http://www.biz-development.com/SupplyChain/6.20.12.supply-chain-management-integrated-supply-chain-management.htm

26. Today: Questionnaire 1 Thank you for your participation!