Supply Chain Management in Leadership.pptx

Supply Chain Management
Presenter
C.Nkaka

OVERVIEW OF SUPPLY CHAIN MANAGEMENT
• Prior to the 1980s, business firms were using
terms such as, “logistics”, and “operations
management” instead of supply Chain
Management.
• The term was coined by a British logistician
and consultant by the name of, Keith Oliver in
the 1980s.

• The term was first used in public in an
interview with Arnold Kransdorff of the
Financial Times on 4 June 1982
• The term Supply Chain Management
came into widespread use in the 1990s

Continuous evolution of the supply chain and of
the techniques to manage it effectively were
motivated by the following:
• Fierce competition in today’s global markets,
• Introduction of products with shorter life
cycles

• The heightened expectations of customers,
• New rules of competition and the downward
pressure on prices,
• Continuing advances in communications and
transportation technologies (e.g., mobile
communication, Internet, and overnight
delivery),

• Supply chain management builds upon the
concept of logistics and seeks to achieve
linkage and coordination between the
processes of other entities in the pipeline
( suppliers and customers).

According to the council of Supply Chain
Management Professionals ( CSCMP,2011)
• “Supply Chain Management encompasses the
planning and management of all activities
involved in sourcing, procurement ,and all
logistics management activities
Definition of Supply Chain Management

Definition of Logistics
The CSCMPP also define Logistics – “The part
of supply chain management that
plans ,implements, and controls the
efficient ,effective forward and reverse flow
and storage of goods ,services and related
information between the point of origin and
point of consumption in order to meet
customers requirements...

Definition of Logistics
• Logistics management is an integrating
function ,which coordinates and optimizes all
logistics activities, as well as integrates
logistics activities with other functions
including marketing , sales,
manufacturing ,finance, and information
technology”

Comparison of logistics and supply
chain management:
• Logistics typically refers to activities that occur
within the boundaries of a single organization
such as procurement, distribution, storage,
and inventory management.
• Supply Chain Management (SCM)
acknowledges all of traditional logistics and
also includes activities such as marketing, new
product development, finance, and customer
service.

Comparison of logistics and supply chain
management:
BASIS FOR COMPARISON LOGISTICS SUPPLY CHAIN
MANAGEMENT
Objective Customer satisfaction; to
ensure the six rights
right product
with the right quality
In the right quantity
at the right time in
the right place at the right
price to the ultimate
customer)
Competitive advantage
How Many Organisations
are involved
One Multiple
Evolution A long time ago Modern concept

Purpose of Logistics
The purpose of a logistics system is to ensure
the six rights:
• The right drugs and medical supplies
• in the right quantities
• in the right condition
• are delivered to the right place
• at the right time
• for the right price.

The logistics cycle
Policy/ legal
Frame work
adaptability
SERVING CUSTOMER
PRODUCT
SELECTION
FORECASTING AND
PROCUREMENT
INVENTORY
MANGEMENT
Logistics management
information system
Organization and
staffing, financing and
budgeting, supervision
evaluation

Major Activities of the Logistics Cycle
• Serving Customers:Everyone working in logistics
must remember that their job is to select,
procure, store, or distribute products to meet
customer needs
• Product selection: In a health logistics system, a
national formulary and therapeutics committee,
pharmaceutical board, board of physicians, or
other government-appointed group select
products to meet the needs of patients.

• Quantification :After products are selected,
managers must determine the quantity
needed for each product, for a specific time
period—this is called quantification.
Quantification depends on accurate
forecasting
Procurement: Procurement plans are based on
requirements estimates that are determined
mathematically for each product.

• Inventory management: A program’s
inventory control strategy specifies how much
stock to store and where to store it. Enough
stock should be available to meet customer
needs until a new order is received; but not so
much that stocks expire or are wasted or that
you exceed storage capacity.

• Quality monitoring:Quality monitoring
appears between each activity of the logistics
cycle and ensures that the quality of all the
activities in the cycle are monitored.
Management Information Systems:
Information drives the logistics cycle; without
it, the logistics system cannot run smoothly.
Managers gather information about each
activity in the system and then analyze that
information to make decisions.

Organization and Staffing:A logistics system can
only work when the staff are well-trained and
operate in a supportive environment. They
must have the right tools to do their jobs,
whether they place orders, coordinate
shipments, oversee deliveries, or keep a
warehouse functioning effectively to ensure
that the right product, in the right quantity, is
shipped to the client.

• Supervision:If the logistics system is carefully
watched, it will run smoothly and staff will
anticipate any needed changes. The effective
supervision of logistics activities minimizes
problems and/or resolves them quickly before
any one problem becomes a crisis.

• Budgeting : affects the product selection,
quantity of products procured, amount of
storage space available, transport, and
number of staff working in logistics. To have
the entire system operating effectively,
logistics activities must be included in
operational planning and receive sufficient
funds.

Use of standard operating procedure
manual
• The manual is intended to simplify and
standardise the work required for logistics
management in order to allow health workers
more time for client focused activities. The
manual guides health care workers in
completing the following tasks with the help
of Job aids.

Use of standard operating procedure
manual
• Maintaining adequate supplies of
commodities
• Reporting essential logistics data and ordering
of commodities from MSl
• Receiving and storing
• Recording and reporting issues
• Monitoring logistics activities throughout the
system

Supply chain pipeline
• The pipeline includes the entire chain of
storage facilities and transportation links that
move supplies from the manufacturer to the
consumer, including port facilities, central
warehouses, regional warehouses, district
and sub district stores, service delivery points,
and transportation vehicles.

• A supply chain consists of activities and
organisations that materials move through on
their journey from initial suppliers to the final
customer.

• The pipeline includes the entire chain of
storage facilities and transportation links that
move supplies from the manufacturer to the
consumer, including port facilities, central
warehouses, regional warehouses, district
and sub district stores, service delivery points,
and transportation vehicles

Logistics management information system
( LMIS)
• The basic purpose of an LMIS is to collect and
report information to other levels in the
system in order to make decisions regarding
the quantity and time to distribute drugs and
medical supplies.

Essential logistics data
• STOCK ON HAND: quantity of usable stock at a particular level of
the system at a particular point in time
• CONSUMPTION DATA: quantity of drugs dispensed to clients
during a particular period of time
• DATA ON LOSSES AND ADJUSTMENTS : quantity of drugs no
longer available for distribution, which have not been dispensed,
but are damaged or expired are called losses and additions and
subtractions to the available drug supply, which were not received
through the normal mechanism of receipt are called adjustments.
These are either transfers, drugs loaned to (-)/from (+) another
facility, or drugs “found” (+) as a result of a previous miscount

Records and Reports used in the management
of ARV ,EMLIP and HIV test kits logistics system
• Stock Control Card
• Stock Control book
• GRN
• Supply voucher
• Requisition form

Stock Keeping Records
Description Type of data collected
on the Transaction
record
•Stock Control Card
•Inventory Control Card
•Stores Ledger
•Stock On Hand
•Losses and
adjustments
•Quantity to Order
•Quantity On Order

Transaction Records
on the Transaction
record
•Requisition and issue
voucher
•Issue voucher
•Packing Slip
•Delivery note
Quantity of product
being
• Ordered
•Shipped,
• Received

Consumption Records
on the Transaction
record
•Dilly Usage Register
•Log book
•Tick sheet
•Test Register
Product used or
dispensed to the end
user at the service
delivery point

Forms used in managing drugs
Form name Purpose activity
Stock control card To account for drugs in the
storeroom
Issuing
Storing
Receiving
Reporting and ordering
Physical inventory
ART daily activity register To record and track the
number of ARV drugs
dispensed to patients
Dispensing
Drug log book Collect information on
amounts of drugs
dispensed
Dispensing
Report and requisition To provide logistics data to
MOH-LMU
To report on stock status
To order drugs

Forms used in managing drugs
Form name Purpose activity
Supply voucher To request for drugs form
the health center to the
district
To request for drugs from
the ward to the hospital
pharmacy
Ordering
Receiving
Issuing
Dispatch note To account for receipts
from MSL
receiving
Report for returning
products
To track products returned
to MSL from health facility
level
storing
Dangerous drugs register To record and track the
number of dangerous
drugs dispensed to
patients
Dispensing

Recording transactions in the stock control
card
• Complete one SCC for each product
• Enter the code, the name and form of the
drug, unit, strength ,maximum level and the
minimum level
• Enter the date of the transaction
• Enter the reference number

card
• In the issued to or received from column enter
Balance brought forward if this is the first line
of a new stock control
Physical count if you have done a physical
count
MSL or Pharmacy in red if receiving
Loss or adjustment

card
• In the remarks column provide a brief
explanation for any loss or adjustment or add
any other comment.
• Keep the stock control card close to were
products are being stored and issued in the
pharmacy.

card
EXERCISE UPDATING A STOCK CONTROL CARD
FOR AMOXYCILLIN CAPSULES 250MG AT KASAMA
GENERAL HOSPITAL Unit 1000
• On 1/1/2012 conducted a physical count and
found 50 bottles.
• On 2/1/2012 issued to 5 bottles ward J
• On 3/1/2012 issued to3 bottles to ward B
• On 4/1/2012 issued 2 bottles to ward c
• 0n 5/1/2012 loaned 10 bottles to Kasama DHO

card
• On 6/1/2012 received 30 bottles from medical
stores limited
• On 7/1/2012 issued 5 bottles to ward G
• 0n 15/1/2012 issued 10 bottles to casualty
• On 20/1/2012 Kasama DHO returned 10 bottles
that was loaned
• On 30/1/2012 issued 10 bottles to ward A
• On 31/1/2012 conducted a physical count and
found 44 bottles

card
Exercise 2
You are opening a stock control card, at Kasama General Hospital .Use
the following information to update the stock control cards.
• Doxycycline tablets 100mg bottle of 100(MSL code 798)
• 1 January 2012 You open a new stock control card, bringing a balance
of 40 bottles
• 2 January 2012 You receive from Medical stores limited 50 bottles with
a reference number of 798
• 3 January 2012 You issue to outpatient 10 bottles on internal
requisition number 800
• 4 January 2012 You loan Kasama district 5 bottles on internal
requisition number 801

card
• 5 January 2012 You issue to ward G 5 bottles on internal requisition
number 818
• 6 January 2012 You issue to ward C 2 bottles on internal requisition
number 819
• 10 January 2012 You drop one bottle and the tablets are damaged
• 12 January 2012 You issue to ward J 10 bottles on internal requisition
820
• 16 January 2012 your receive from Kasama district 5 bottles on
internal requisition 450
• 20 January 2012 You issue to ward B 5 bottles on internal requisition
821
• 31 January 2012 You conduct a physical count and you find 58 bottles

card
• In the received column enter the quantity
received
• In the issued column enter the quantity
issued
• In the losses and adjustment column enter the
exact amount of the loss or adjustment
• In the balance column enter the calculated
balance

Ordering Drugs and Medical supplies from
the Pharmacy
• A supply voucher is used
• Health centres also use the supply voucher to
order supplies from the DHO

Supply Voucher
TO -------------------- ------------- From -------------
Requested By: ------------- Signature-------------------- Date----------------
Authorised By: --------- Signature-------------------- Date------------------
( A) ITEM
CODE
( B )
DESCRIPTI
ON,STREN
GTH
(C)
UNIT
( D)
BALANCE
AT HAND
(E)
QUANTITY
REQUESTE
D
(F)
QUANTITY
SUPPLIED
(G)
QUANTITY
RECEIVED
(I)
REMARKS
Approved By: ----Issued By: ----Delivered by-------- Received by:
Date----- Date----------------- Date---------------
Date---------

JOB AID FOR RECORDING TRANSACTIONS IN
THE SUPPLY VOUCHER
• Enter only one transaction in each line
• Use a blue or black pen to enter the transactions
• From: enter the name of your ward, clinic or
department
• To: enter the name of the store , pharmacy or
department to which the supplies will be
obtained from
• Name of requisitionist: enter your name

THE SUPPLY VOUCHER
• Signature: sign
• Date: Enter the date of the transaction
• Item number: Enter the serial number for each drug
• Item description: Enter the name and the form of
the drug
• Strength: Enter the strength
• Unit: Write the individual unit for the drug
• Quantity in stock: Enter the stock on hand in your
storeroom

THE SUPPLY VOUCHER
• Quantity ordered: Enter the quantity you are
ordered
• Quantity received: Enter the quantity received if
receiving
• Quantity issued: leave this blank
• Signature: print your name and then your
signature after checking.
• Remarks: provide a brief explanation for any loss
or adjustment

EXERCISE USING A SUPPLY VOUCHER
MSL CODE PRODUCT
DESCRIPTI
ON
UNIT STOCK ON
HAND
AVARAGE
MONTHLY
CONSUMPT
ION
MS 0079 Fluid Giving
Set
25 3 10
MS 005 Examination
Gloves ,Larg
e
100 3 12
EM 0032 Amoxicillin
Capsules
250mg
1000 2 8
EM 00348 Paracetamol
Tablets
500mg
1000 4 15

Completing the Daily activity register for
ARVs
The following steps should be followed:
• Record the client number
• Record the type of ARV dispensed
• Record the quantity dispensed
• Calculate the total quantity dispensed at the
end of the day
• Calculate the quantity dispensed at the end of
the month

Exercise: Completing the Daily Activity Register for ARVs
You are the Pharmacy in charge at Kasama General Hospital. Complete
the ART daily activity register With the following information
• On august 1,2018 patient number 56 is making his monthly visit to the
ART clinic, You give him a combination of Zidovudine 300mg plus
lamivudine 150mg and single dose of Nevirapine 200mgtablets to take
for one month.
• On august 3, patient number 99 arrives and you give him a triple fixed
combination of Tenofovir 300mg/Lamivudine300mg/Efavirenz 600mg
Tablets to take for one month.
• On August 7, patient number 36 arrives to peak up Tenofovir
300mg/Lamivudine300mg/Efavirenz 600mg Tablets to take for one
month.

Completing the Daily Activity Register for
ARVs
• On august 10, patient number 44 is started on Tenofovir
300mg/Lamivudine300mg combination plus
Lopinavir/Ritonavir (Aluvia).
• On august 11 patient numbers 65 collects a combination
of Zidovudine 300mg plus lamivudine 150mg and single
dose of Nevirapine 200mgtablets to take for one month.
• On august 15 patient number 22,is given Abacavir 30
/Lamivudine 60mg and Efavirenz separately
• On 28 august a baby number 77 was given Zidovudine/
Lamivudine and Nevirapine for one month.

Completing the Daily Activity Register for
ARVs
• On august 29 patient number 39 was given
Tenofovir 300mg/Lamivudine300mg/Efavirenz
600mg Tablets to take for one month.
• On august 30, patient number 80 came and
collected on Tenofovir 300mg/Lamivudine300mg
combination plus Lopinavir/Ritonavir (Aluvia).
• On 30th
august patient number 100 was given PEP
medicine on Tenofovir 300mg/Lamivudine300mg
combination plus Atazanavir to take daily..

Job aid: Completing the Daily activity register
for HIV Test Kits
Cover page of the register write the following:
• Name of the facility
• Name of the testing site
• Name of the district
• Name of the province
• Book number
• Start date

Completing the Daily activity register for HIV
Test Kits
• The following steps should be followed:
• Record the client number and purpose of the test
• Record the type of test
• Record the quantity of test used
• Record the result ( R, NR or IND)
• Calculate the total quantity of the tests done at the
end of the day
• Summarise the total number of tests done at the
end of the month

Exercise: Completing the Daily activity
register for HIV Test Kits
• You are the in charge, complete the daily
activity reviser.
1. On June 5 of 2016,the beginning balances of
each test are; Determine 15 tests, SD bioline
8 tests.
2. You request and receive 100 determine tests
and 20 SD Bioline tests from the main store
room.

3.Following appropriate quality control procedures,
you run a known positive sample using determine
and SD Bioline .Then you run a negative sample and
determine and SD Bioline.
4.A sample for patient number 44 arrives at the
laboratory in the morning with a request for clinical
diagnosis for HIV. The sample is screened for HIV
using determine rapid test.The test is positive,so it is
retested to confirm using SD Bioline.The second test
is also positive.

5.Shortly afterwards patient number 56 arrives at the
clinic. The sample sent to the Laboratory is screened
using determine which shows that the patient is
positive, A confirmatory test is done using SD Bioline
and the result is negative.
6.A patient arrives at the clinic and is assigned number
308.The sample is first tested using dtermines and
the result is invalid.The sample is retested using
determine again and the result is negative.

7.another patient ,number 22 comes to the clinic for
prenatal care. The EMTCT doctor sends her sample to
the main Laboratory for an HIV test. The sample is
tested using determine and her test results are
negative.
8.In the afternoon a new Laboratory Technician begins
working at the main Laboratory and is trained how to
conduct HIV testing by using a known positive sample
on determine and SD Bioline. This is repeated using a
known negative sample on determine and SD Bioline.

9.Patient number 139 has come to the clinic in
the afternoon and the doctor determines that
she should be tested for HIV. The sample is
sent to the Laboratory and tested using
Determine and the results were positive .the
sample is tested using SD Bioline and the
results are also positive.

10.It is now the close of the business. Complete
the Daily activity Register for the
day ,including the summary for HIV tests by
purpose. Your physical count for each product
is as follows: Determine 105 tests, SD Bioline
21 Tests

Completing the internal Monthly summary
( IMSR)
• Only health centres with multiple testing sites
will need to complete the internal monthly
summary.
• Health centres with one testing site will use the
daily activity register and the stock control card
to complete the Rand R for HIV tests
• Health centre in charge for health centers with
multiple testing sites will summarise the data
for the month

( IMSR)
Data to be summarised is as follows:
• Total quantity of each HIV test received at the
testing site during the month
• Total quantity of each HIV test used during the
month
• Losses and adjustments
• Total stock of each HIV test on hand at the
testing site as determined by a physical count

( IMSR)
• The total number of positive ,negative and
indeterminate test results
• Once the IMSR are completed, they are sent
to the person designated for managing HIV
tests at the health centre
• Data from all the testing sites will then be
aggregated and used to complete the R&R

Completing the Report and Requisition for
HIV Test Kits
• Write the reporting period, facility name,
province and district and the type of test.
• Write the beginning balance
• Write the total quantity received
• Write the total quantity used
• Write the losses and adjustments
• Explain any losses and adjustments

HIV Test Kits
• Write the physical count
• Calculate Average Monthly Consumption
• Calculate the Maximum Quantity
• Calculate the Order quantity
• Write any remarks or comments
• Summarise tests used by Purpose

HIV Test Kits
• Review the completed report
• Print your name /signature and date
• Have the order authorised and approved
• Submit the Rand R

ARVs
• A report and requisition is used (R&R).
• This form is used at the Health Centers and
Hospitals
• Health centers send the R&R to the District for
review by the fifth day following the reporting
period.
• DHO and Hospitals after reviewing the R&R
send it MSL according to schedule

ARVs
The following data is reported on the report
section of the R&R:
• Beginning Balance in the store room and
dispensary or testing site
• Total Quantity Received
• Total Quantity Used
• Losses and adjustments
• Ending Balance

ARVs
• The following data is reported on the
requisition section of the R&R:
• Average Monthly Consumption
• Maximum Quantity
• Order Quantity

How to calculate the order quantity
Calculating the average monthly
consumption
Add the total quantity dispensed for the
current and the last two months
Divide by three
Round to the nearest dispensing unit

How to calculate the order quantity
Calculating the maximum quantity
• Multiply the average monthly consumption by
3
Calculating the order quantity
• Subtract the ending balance from the
maximum quantity

Completing the report for Drugs and Medical
supplies.
• A report and requisition Drugs and Medical
supplies is used (REMMS).
• This form is used at the Health Centers and
Hospitals
• Health centers send the REMMS to the District
for review by the fifth day following the
reporting period.
• DHO and Hospitals after reviewing the REMMS
send it MSL according to schedule

Placing an emergency order
• Tick the emergency order box at the top of the
report for essential drugs and medical supplies
• Use a red pen to write emergency order
across the top of each page
• Complete the REMMS for all the printed drugs
and medical supplies and send the form to the
DHO

Placing an emergency order
• DHO WILL Review and approve the emergency
order and send it the MSL commodity security
centre
• When the order is ready MSL will inform you
to go and collect the emergency order.

Receiving drugs and medical supplies from
Medical Stores Limited
• Locate the requisition or supply voucher
• Conduct a visual inspection
• Note discrepancies on the forms
• Sign the form
• Place and reorganize products according to
FEFO
• Enter and update the goods received
note(GRN) and the stock control cards

Storage of Drugs and Medical Supplies
The purpose of storage are as follows:
• Protect the quality of the product and its
packaging
• Make product available for use at the right
time

Storage conditions for Drugs and medical
Supplies
• Put temperature control devices in place (fan,
air conditioner)
• Ensure adequate ventilation (forced ventilation)
• Ensure adequate light to facilitate all work-
related activities
• Store products out of direct sunlight
• Store supplies not for immediate use in their
shipping cartons

Storage conditions Drugs and medical
Supplies
• Secure Storeroom from water (check the roof,
walls, floor and windows)
• Store all products on pallets at least 10cm off
the floor, 30 cm away from the walls and other
stacks, and not more than 2.5m high

Supplies
• Store chemicals & insecticides separately to
avoid contamination of drugs
• Display hazardous warning signs for chemicals
and other hazardous material

Supplies
• Limit access to authorised personnel
• Ensure windows, roof, walls and doors are well
secured
• Ensure that incoming & out going stock match
documentation
• Verify inventory records monthly through
physical counts

Supplies
• Clean the store regularly (have cleaning
schedule in place)
• Put pest control measures in place

Supplies
• Arrange products by expiration date (FEFO,
first-expiry, first out) or by FIFO (only for
products with no expiry date)
• Arrange supplies by
• –Alphabetical
• –Dosage form
• –Rate of stock movement
• –Therapeutic grouping

Supplies
• Storage area of adequate size & adequate
sorting and packaging space
• Adequate space for products requiring
refrigeration
• Store expired or damaged products in a
separate area & approved disposal procedures
in place

Inventory control System
• A system that informs the storekeeper how
much of a commodity to order, when to order
and how to maintain appropriate stock levels
• In Zambia the type of inventory control system
used is the Max-Min inventory control system

Three types of Max-Min Inventory Control
System
There are three types of Max-Min inventory
control systems
• Forced ordering
• Continuous review
• Standard Max-Min

Forced Ordering
• At the end of the review period, review all
stock levels and order enough stock to bring
stock levels up to the maximum ( ARVs)

Continuous Review
• Review the stock level of an item every time
an issue is made. If the stock level is at or
below the minimum level, order enough to
bring to the maximum

Standard Max-Min
• Review the stock level of all the items at the
end of the review period. For products that
are at or below the minimum level, order
enough to bring to the maximum. Products
above minimum are not ordered. ( essential
drugs)

How to maintain appropriate stocking levels
To maintain appropriate stocking levels, the
following need to be established:
1. Maximum and Minimum stock levels: ( level
above which and below which stock levels
should not be allowed to exceed or fall)
2. Emergency order point (level that triggers an
emergency order)

To maintain appropriate stocking levels, the
following need to be established:
3. Review period:( the routine interval of time
between assessments of stock level to
determine if an order should be placed)
4. Lead time:(the time between when new stock
is ordered and when it is received and
available for use

• 5 . Safety stock (the buffer/reserve stock kept
to protect against stock-outs caused by
delayed deliveries or unexpected demand in
consumption)

• 5. Safety stock (the buffer/reserve stock kept
to protect against stock-outs caused by
delayed deliveries or unexpected demand in
consumption)

Stipulated max –min stock levels of the
EMLIP hybrid
Level Maximum
Months of
stock
Minimum
Months of
stock
Emergency
order
Point
Hospitals
( Level 1,2
& 3
3 2 2 weeks
Health
Centres
4 3 2 weeks
DHO 1 2 weeks 2 weeks

Assessing stock status
• Determine the total consumption for three
months
• Calculate the average monthly consumption
• Determine the current quantity of stock on
hand
• Calculate the months of stock on hand
• Take action if needed based on the months of
stock .

Exercise 1
• You 96 tins of Aspirin at the end of August,
June 29
July 30
August 28.5
how long will these tins last?

Exercise 2
• You 100 tins of Paracetamol at the end of
August,
June 30
July 31
August 32.5
how long will these tins last?

Deciding what action to take after stock
status has been determined
• No action required if months of stock is between
3 and 2 months
• If months of stock is greater than 3 months the
facility is overstocked return some stock to the
pharmacy
• If months of stock is 2 months and 2 weeks the
facility is under continue monitoring
• If months of stock is less than 2 weeks you are
below emergency order point.

Forecasting
• Forecasting is the prediction of future
demand.
• It is the basis of planning and decision making
• Forecasts are rarely accurate because they are
based on assumptions and may be affected by
external factors

Forecasting
• Judgement Methods
• Causal Methods
• Time series Methods

Forecasting
Forecasting techniques
• Judgement Methods (Qualitative approach):
Sales force estimates
Executive opinion
Delphi method,
Markets research

Forecasting
Forecasting techniques
• Causal Methods
 linear regression

Forecasting
• Time Series Methods ( Quantitative
approach)
Simple Moving Average
Weighted Moving Average
Exponential Smoothing
Exponential Smoothing with Trend
Trend ,cyclical, seasonal and random.

Quantification
• The process of estimating the total quantities
and the costs of the products required for a
specific health program, for o future period

Quantification
Why quantify
• To Prevent Shortages of drugs
• To avoid wastage
• To make best use of available financial
resources
• To facilitate central bulk purchases

Quantification
Quantification Methods
Consumption Method: based on record of
past consumption of individual items
Morbidity Method: based on the number of
expected attendance

Quantification
Information required for quantification :
• Total consumption in a period,
• Number of days the product was out of stock
• Number of days the product was available
• Adjusted average consumption

Quantification
• Process to determine quantity needed and
financial means required
• It involves estimating how much of a specific
item is needed and the financial means
required

Handling damaged and Expired Products
• Store damaged and expired products
separately from usable stock
• Write Damaged or Expired stock on the box or
shelf
• Record the quantity and the expiry date

Completing the MSL Returns Authorisation
Form
• Write the name of your facility
• Write your name, date and sign
• For each product being returned ,enter the
MSL code number, description, pack size,
quantity , expiry date and explanation for why
the product is being returned

Completing the Report for Returning
Products
• Write the name of your facility
• Write your name, date and sign
• For each product being returned ,enter the
MSL code number, description, pack size,
quantity , expiry date and explanation for why
the product is being returned

Monitoring and supervision
• Monitoring: is the checking on a regular basis
to ensure that assigned activities are being
carried out.
• It requires regular checking and recording of
activities taking place in a project or program

Monitoring and supervision
• Supervision: the process of ensuring that
personnel have the knowledge and skills
required to carry out their responsibilities
effectively, and to provide immediate on the
Job training ,as needed.

Supply Chain Management in Leadership.pptx

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