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Enhancing Health Supply Chain Efficiency: Lessons from Mozambique's Redesign Initiative

This presentation from the 5th Global Health Supply Chain Summit discusses a transformative five-year pilot project in Cabo Delgado, Mozambique, aimed at redesigning the health supply chain for better commodity delivery. Transitioning from a collection-based approach to a vendor-managed inventory system, the initiative addresses challenges through supportive supervision and real-time data analysis. The results demonstrate improved cost-effectiveness and efficiency, emphasizing the importance of hybrid approaches, stakeholder coordination, and last-mile logistics in achieving sustainable health outcomes.

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Enhancing Health Supply Chain Efficiency: Lessons from Mozambique's Redesign Initiative

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  1. CLICK TO ADD TITLE The 5th Global Health Supply Chain Summit November 14 -16, 2012Kigali, Rwanda NGO Social Responsibility Model for Commodity Delivery Leah Hasselback [SPEAKERS NAMES] [DATE]

  2. Lessons Learned from Expanding a Supply Chain Redesign in Mozambique

  3. Project History Mozambique • 5-year supply chain redesign pilot project implemented in Cabo Delgado province (Dedicated Logistics System) • Old: Collection-based, ad hoc approach • New: Vendor managed inventory with level jumping • Includes supportive supervision and information system • Conducted impact evaluation in Cabo Delgado, using neighboring Niassa province as a comparison Cabo Delgado Niassa

  4. Dedicated Logistics System Monthly Activities Provincial Store 1. Leave provincial level with: - medical supplies - energy - equipment, parts - information District Storage • 3. Return to provincial level office: • input data • analyze information • address problems • prepare for next trip Health Centers • 2. Site visit (in coordination with district level): • - record & stock inventory • - service equipment • - supportive supervision • - collect data

  5. Dedicated Logistics System ResultsThe Forest • 91% visited in last monthdespite: • 47% of families living over two hours away; • 85% of them having to walk to get there; and • most common reason for vaccination failure being “place of immunization too far.” The Dedicated Logistics System (Cabo Delgado) is more cost-effective and efficient.

  6. What do you do after a successful pilot? A new approach to achieve impact, sustainability, & scale: • Outsourcing activities  In house operations with technical assistance • External resources  Mix of internal and external resources for funding and transportation • NGO staff closely coordinating with government  All government staff closely coordinating with the NGO

  7. Challenges in the New ApproachThe Swamp Note: In Niassa, 35% of irregularities were caused by transport.

  8. Three Challenges in the In House Approach • Funding • Funds allocated and available but no cash in hand • Not enough time in 1 month to carry out activities and secure funding on time for the next month’s distributions • Interim solution: direct funding from VillageReach for some costs • Transportation • Vehicles not available because of lack of planning, management, maintenance • Insufficient quantity of vehicles available • Interim solution: provision of some vehicles for distribution • Human Resources • Distributions interrupted as staff are called back for other activities

  9. Rethinking Expansion Approaches We know that we can be more efficient with a redesigned supply chain, but… How do we combine the best of outsourcing and in house operations to achieve impact, sustainability, and scale?

  10. Hybrid Approaches

  11. Travel Tips • In designing supply chains, start at the last mile • Build systems to work with the available capacity • The last mile of distribution is the first mile of information • Focus on building shared interest • Allows for bringing in new partners, such as the private sector • Drives scale and sustainability • Only travel uncovers the unexpected challenges!

  12. Thank You www.villagereach.org Leah Hasselback Mozambique Country Director leah.hasselback@villagereach.org Tel: +258 827324196 Av. 25 de Setembro, 1123-11º. E Maputo, Mozambique Tel: +258 21326446 Fax: +258 21326448

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