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Introduction to logistics management: Commodity Forecasting and Supply Chain Management. A presentation to RHU field staff By Albert Kalangwa (MCIPS, MBA, Pharmacist) June 3, 2014. Objective. At the end of this session participants should be able to:

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introduction to logistics management commodity forecasting and supply chain management

Introduction to logistics management: Commodity Forecasting and Supply Chain Management

A presentation to RHU field staff

By Albert Kalangwa (MCIPS, MBA, Pharmacist)June 3, 2014

objective
Objective

At the end of this session participants should be able to:

  • Appreciate the business value of commodity forecasting & SCM
  • To reduce stock outs and wastages of Health supplies through application of appropriate logistics management practices
  • To collect and use stock data in making decisions especially in stock replenishment.
the logistics management cycle
The Logistics Management Cycle

Logistics Management Information System

the ideal inventory control model and reorder frequency

SS+

Working

Stock

Q

Q

Q

0

0

0

Average

Inventory

Stock on Hand

Safety

Stock

SS=Min

Lead

Time

Lead

Time

Safety Stock

Order

Placed

Medicines

Received

Order

Placed

Medicines

Received

Time in Months

The Ideal Inventory Control Model and Reorder Frequency
calculate requirements correctly
Calculate Requirements Correctly
  • Average monthly consumption
  • Stock on order
  • Procurement Interval
  • Safety stock
  • Minimum stock level
  • Maximum stock level
  • Quantity to order
  • Expiry date(s) of stock at hand
definition of lmis
Definition of LMIS
  • A framework for collection and analysis of logistical data to produce information for communication and decision making.
lmis data collection points
LMIS – data collection points

Receiving

Storing

Issuing

In-Patient

Out Patient

essential logistics data 1 2
Essential logistics data (1/2)

Available quantity:

  • The quantity of stock available and usable at all levels of the system at a given time

Consumption:

  • The average quantity of stock consumed/issued to users (clients) for a specified period.
essential logistics data 2 2
Essential logistics data (2/2)

Adjustments and losses (positives & negatives)

  • The quantity of stock put into or out of the distribution network for reasons other than routine receipt & consumption by clients
    • obsolete stock,
    • losses/missing stock
    • products received or transferred to another Centre
    • counting error correction
lmis data types of source documents 1 3
LMIS data - Types of source documents (1/3)
  • In logistics, there are only THREE things that can happen to products in distribution chain:

• Received and stored in the store

• Issued / taken out of the store

• Usedby the final consumer

lmis data types of source documents 2 3
LMIS data - Types of source documents (2/3)

Figure 1: Illustration of three types of documents

lmis data types of source documents 3 3
LMIS data - Types of source documents (3/3)

To have the possibility of monitoring products at any time in the distribution network, there is need for three main types of documents:

1) Stock management documents: It includes information regarding product in stock, eg Stock Card

2) Documents relating to stock movements: It includes the information concerning issued products eg. Requisition and issue Voucher.

3) Documents related to consumption: It includes information regarding products consumed/used, Eg. Daily dispensing log

documents related to stock management
Documents related to Stock management

Stock Card

Data on hand, adjustments and losses, the quantity received, the amount issued, transaction dates, providers, recipients, etc.

Proposed stock card for RHU clinics.doc

Do you maintain stock cards? Electronic or manual?

documents related to stock movement
Documents related to stock movement
  • Invoice & delivery notes
  • Requisition and Issue Vouchers: data on products name, the quantity requested, the quantity issued, the date of delivery, etc.
  • Which documents are you using?
documents related to stock consumption
Documents related to stock consumption

Daily register of activities / Dispensing Log : Data on the dates & quantity of products issued to the clients

Proposed Dispensing log for RHU clinics.doc

Which documents are you using?

root cause analysis stock outs and wastages expiries at rhu
Root Cause Analysis – Stock outs and wastages / expiries at RHU
  • Why do we experience stock outs?
  • Why do we experience wastages / expiries?
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