Managemnt of SP_Chapter 2.pptx: Sp Training
- 1. Chapter two Developing supply plan
- 2. Activity 2.1. Individual Reflection Instruction: Recall your previous practice What procedures have you used while developing a supply plan? Time allowed: 5 minute
- 3. Formula MOS MOS is calculated using the following formula To compute AMC, at least three to six months of continuous consumption quantity of a product is needed. Months of stock (MOS) = stock on hand or order (SOH or SOO)/Average monthly consumption (AMC)
- 5. Funding/budget gap analysis • If sufficient funding is available, the final quantity to procure for each product will be the same as the quantity to order • if funding is insufficient, the quantification team will need to determine whether additional resources can be mobilized • When it is impossible to mobilize additional resources to procure the full quantities of products required or the forecasted quantity will need to be reduced
- 6. Scheduling delivery of ordered pharmaceuticals all the quantities required might not necessary be delivered at a time for the reasons; • Insufficient storage capacity, • Seasonality of some diseases, • Available fund covers portion of the required quantity and • The stock on hand quantity is greater than the set maximum stock level. To accompany these, the arrival of products must be scheduled so that medicines are sustainably available.
- 7. Scheduling delivery of ordered pharmaceuticals Scheduling depends on • the in house tender process, • supplier/manufacturing lead time, • method of transport, • length of time for port clearance, • quality assurance procedures (pre- and post-shipment) and some other possible conditions. The supplier/manufacturing lead time can vary for each product and must be monitored as part of supplier performance. When lead times are underestimated, the likely results are shortages and more expensive emergency purchases.
- 8. Scheduling delivery of ordered pharmaceuticals Timely ordering is achieved through efficient pipeline monitoring, which includes • Monitoring stock balances, in terms of quantities and MOS (aggregate of stock at all levels or national stock level) • Comparing stock balances to maximum and minimum stock levels • Identifying potential pipeline problems (quantities needed, stock-outs, balances below minimum or above maximum) Flexible procurement contracts with suppliers are recommended, so that shipment quantities can be adjusted to respond to • uptake in services, • fluctuations in patient demand, • existing stock levels, and • rates of consumption of products.
- 9. 2.3. Using supply plan Well-developed supply plan have numerous benefits in facilitating the establishment of a resilient supply of products. The benefits are multi-dimensional when considering the involved stakeholders. Mangers • To identify the funding needs and gaps for procurement of the required products • Leverage the sources, amounts, and timing of funding commitments to maximize the use of available resources • Advocate for additional resources, when needed • To monitor and evaluate the process
- 10. Using supply plan Supply planners • To coordinate procurements and shipment delivery schedules to ensure a continuous supply of commodities • For easily identification specific matters if problems exists • To communicate with manufacturers and suppliers for timely delivery Donors • Will have clear picture of the funding amount • Recognize the existence of funding gap • To evaluate whether their funding disbursement meets the right target • Gives insight where to provide financial or/and technical support
- 11. Reviewing and updating the supply planning