SUPPLY CHAIN MANAGEMENTFOR

MEDICAL LABORATORY SCIENTISTS

PRESENTED BY
DRIHIM AUGUSTINE CHINEDU MIAPHL
MED.LAB.SCI.DEPT.NAU,
NNEWI CAMPUS.
OBJECTIVES OF THE LECTURE
 At the end of this lecture, participants will understand
 Logistics
 Why Logistics Matters
 Logistics Cycle
 The six rights of logistics
 Key Factors that Relate to Logistics
 QUANTIFICATION AND PROCUREMENT
 Steps in Quantification
 Inventory Management
 Quality Assurance
 Logistics Management Information Systems
 Supply Chain management
 Benefits of Laboratory Supply Chain Management
 WHAT IS LOGISTICS?
o Supply chain management encompasses the
planning and management of all activities
involved in sourcing and procurement….and
all logistics management activities.

o It includes coordination and collaboration with

channel partners e.g suppliers,
intermediaries,third party service providers,
and customers (CSCMP,2011) .
 LOGISTICS CONTINUES
o The practical arrangements that are needed in
order to make a plan that involves a lot of
people and equipment successful (Longman
Dictionary).
o In other words logistics activities is the
operational component of supply chain
management.
o Logistics tends to focus on specific tasks within
a particular program of the health system.
 Why Logistics Matters
o Increasing program o Laboratory programs
impact. cannot succeed unless
the supply chain
delivers a reliable,
o enhancing quality of continuous supply of
care. laboratory
commodities to its
med.lab. Scientists.
o Improving cost o No product ! No
effectiveness and program.
efficiency.
Key Factors that Relate to Logistics
o Warehouse (storage)
o Transportation
o Service Delivery Point.
o Communication
o Customers
o Time
 Logistics System
The six rights of logistics
o The RIGHT goods

o In the RIGHT quantities

o In the RIGHT condition

delivered
o To the RIGHT place

o At the RIGHT time

o For the RIGHT cost

What is the right cost of a donated
good?
Logistics Cycle
 FOCUS: SERVING CUSTOMERS

 Improve the logistics system to improve

customer service.
 Ensure commodity availability by securing
adequate funding for laboratory commodities.
 POLICY AND REGULATORY ENVIRONMENT

 Work with national-level personnel to develop

and encourage policymakers to approve testing
guidelines and protocols and to clarify what
personnel, by level, are qualified to provide each
test.

 Work with national-level personnel and

policymakers to ensure that guidelines and
policies for infection, prevention and universal
safety precautions are put in place (including
guidelines and policies for waste disposal).
 FINANCING FOR LABORATORY COMMODITIES AND LOGISTICS SYSTEMS

 Establish a Laboratory Commodity Committee

to coordinate government and donor inputs
and also develop a commodity security
strategy for laboratory services.

 Work with policymakers to establish a specific

budget for laboratory commodities and the
logistics system in which they are managed.
 PRODUCT SELECTION
 Use standard testing protocols to develop a
commodity list for each level in the laboratory
supply system.

 Select products that are appropriate based on

the testing protocols, cost, training of personnel,
and infrastructure for storage and transportation
(context and environment of testing services).

 Be prepared for changes in test technology.

 QUANTIFICATION AND
PROCUREMENT
 What is quantification?
 If Selection answers the question "Which reagents are
needed?", and
 Forecasting answers the question "How much do we
need to meet our laboratory needs and serve our
customers?” then
 Quantification will answer the question “How much
can we procure?” and
 Procurement Planning will answer the question
“When will we receive products, and in what
quantities?”
 Steps in Quantification

 Forecast  Estimate  Estimate  Adjust

Consump  Requirem  Cost Quantity
tion ents  Calculate the to
 Estimate the  Adjust cost per product  Procure
quantity required forecasted and the total cost Compare
of each product estimate of the available funding
consumption to
to meet customer requirements. to the cost
account for
needs for the Use results for estimate and
forecast period
product program planning
wastage, lead adjust the
based on service and resource quantity to
capacity and times, buffer mobilization. procure if
other stock, stock on needed. Use
programmatic hand and results for short-
factors. quantity on term procurement
Quantificati
order. planning.

on
 QUANTIFICATION AND PROCUREMENT : points to
remember

 Use and compare multiple types of forecasting methodologies using logistics,

demographic, and service statistics data to forecast requirements for
laboratory commodities.

 If using test numbers to prepare the forecast, be sure to include in the

quantification commodities required for quality assurance and control, loss
and wastage, and training.

 Quantify and procure for all items that will be needed to complete a testing
protocol. Ensure that shipping schedules are coordinated to make all items
available, as needed

 As with any logistics system, make sure procurement procedures and

arrangements are flexible for more effectiveness in ensuring commodity
availability.
 Inventory Management
 If using a max-min inventory control system, consider the standard or forced
ordering versions.

 Ensure that the length of the pipeline accommodates the shelf life of the
products.

 Consider assigning different maximum and minimum stock levels for slow-
moving and fast-moving commodities.

  Full-supply and non-full-supply commodities can be managed concurrently, if

there is a transparent process for ordering and resupply.

 Link ordering or resupply to reporting.

 Supply together commodities that need to be used concurrently to complete a

testing protocol.
 Storage
Develop guidelines for appropriate storage for each level of the system,
taking into account any variations that will exist in the types of products at
each level of the laboratory network. The network usually includes a central
or national-level lab, intermediate-level labs, and peripheral labs.

 Maintain a cold chain for laboratory commodities that require it.

 Maintain commodities under the appropriate storage conditions during distribution.

 Store flammables separately, and ensure that a fire-extinguishing mechanism is

available. Store corrosives at normal room temperature, at ground level, and in
original manufacturer’s containers.

 Keeplaboratory commodities in the original packaging to protect light-sensitive

commodities.
 Quality Assurance
 Include procedures for managing commodities in the
quality assurance program.

 Establish procedures for routine visual inspection of

laboratory commodities.

 Define and enforce procedures and policies for

internal and external retesting for quality control.

 Establish procedures for handling of suspect,

damaged, or expired commodities.
 Staffing and Training
 Provide training in logistics management
procedures to laboratory staff members, and
establish a mechanism for communicating
information on new commodities.

 Develop a schedule of routine supervision to

support laboratory staff personnel.
 Logistics Management Information
Systems (LMIS)
o Information about laboratory product consumption and inventory levels
must be gathered to ensure that a manager knows how much of a product
to procure.

o Logisticians added the word logistics to management information

system(MIS) to create logistics Management information system(LMIS).
Logisticians want it clear that the collection of data for managing a
logistics system is a separate activity from the collection of data for the
other information systems, including health management information
systems(HMISs).
o An LMIS collects data about commodities; this information is often used
for activities , such as filling routine supply orders for health facilities.

o An HMIS collects information on the total number of patients seen or

diagnosed; data from an HMIS is not used as often as LMIS data i.e.,
annually and it is used for different purpose s i.e., for evaluating program
impact. Logisticians emphasize the use of logistics data for making
decisions about activities within the logistics cycle.
 Logistics Management Information
System (LMIS) -1
 Use an Activity Register to track the actual consumption of
only a small number of tracer commodities.

 Routinely report stock levels, issues, losses and adjustments,

and stock outs. If using a pull system, link reporting with
resupply.

 Use the unit of issue at the facility level as the unit for stock
keeping and reporting.

 At the facility level, use issues from stock as consumption data

(stock issued from the stores to the bench). Use and maintain
stock-keeping records.
 Lo g is tics M ana g ement Info rma tio n Sy s tem (LMI S) -2 : Ba s ic es sentia l da ta

STOCK ON HAND: Quantities of usable stock available at any

level or at all levels of the system at a point in time.
RATE OF CONSUMPTION: The average quantity of
commodities dispensed to users during a particular time
period
LOSSES/ADJUSTMENTS: The quantity of commodities
removed from the distribution system for any reason other
than consumption by clients (losses, expiry, damage).
Adjustments may include receipt or issue of supplies to/from
one facility to another at the same level (transfer) or a
correction for an error in counting. Losses/adjustments may
therefore be a negative or positive number.
 Benefits of Laboratory Supply Chain
Management
 An effective and efficient Laboratory Supply
Chain Management & Logistics contributes to a
sustainable medical laboratory services by;

 Ensuring continuous availability of Laboratory

Commodities (commodities security)

 Promoting common approaches on policy,

laboratory procedures and information systems
where clients are better served.
 Benefits of laboratory SCM -2
 Promoting the exchange of technical expertise between
institutions involved in laboratory diagnosis and monitoring
of disease conditions in the region.
 Promoting the exchange of information among members of the
network.
 Supporting joint advocacy and resources mobilization for
laboratory services.
 Support utilization of the existing laboratory infrastructure
within the country.
 Conclusion

 Health programs cannot succeed unless the supply chain

delivers continuous supply health commodities to its customers

No
Product,
No
program
 Well-functioning supply chains benefit public health programs
in important ways by:
increasing program impact

enhancing quality of care

 improving cost effectiveness and efficiency.

 QUESTIONS and Discussion