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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: - PowerPoint PPT Presentation
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INTRODUCTION TO LOGISTICS MANAGEMENT: COMMODITY FORECASTING AND SUPPLY CHAIN MANAGEMENT
A presentation to RHU field staffBy Albert Kalangwa (MCIPS, MBA,
Pharmacist)
June 3, 2014
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 Ideal Inventory Control Model and Reorder Frequency
Safety
StockSS=Min
Average
Inventory
Working Stock
LeadTime
LeadTime
OrderPlaced
MedicinesReceived
OrderPlaced
MedicinesReceived
Safety Stock
Time in Months
Sto
ck o
n H
an
d
Q 0
SS+Q 0Q 0
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
• A framework for collection and analysis of logistical data to produce information for communication and decision making.
7
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.
9
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
10
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
• Used by the final consumer
11
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
Stock CardData 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
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
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
Why do we experience stock outs?
Why do we experience wastages / expiries?