ICT and Supply Chain Management

Transcription

1 ICT and Supply Chain Management 1. Purposes of involving ICT in Supply Chain Management 2. Different models 3. Example Implementation of ERP in Tanzania 4. Example implementation of warehousing system MACS in Uganda, Cote d ivior, Haiti, Rwanda, Guyana 5. Exampel setting up PEPFAR distribution in Kenya 6. Example Mobile phone solutions malaria programs in Uganda and Vietnam 7. Pro and cons 8. Principles and opportunities

2 High level flow of supply chain Major issues in supply chain Freight Warehouse Freight SDP Patient Items with expire dates Made to order Lead times of up to 3 months No knowledge of demand Stock out Over stocking Lack of knowledge of central Stock level and central demand No knowledge about Stock level at SDP No knowledge about Demand at SDP Stock out Over stocking No knowledge About central stock No knowledge About treatement regimens No knowledge About treatement Transparency issue Let the village know What arrives and what it cost Fake drugs No transparency No knowlede of cost of drugs

3 High level flow of supply chain Technology and organization gives opportunities Internet applications cover Mobile companies offer communication infrastructure Freight Warehouse Freight SDP Patient ERP solutions ERP solutions Mobile phone cover 95 % Mobile phone Cover > 80 % Rolling forecasting Based on information From ERP solutions Knowledge of stock, demand And procurement is base for Inventory management. Internet connection Less than 5 % Payment for results is Highly motivating Payment for results is Highly motivating

4 Physical flow issues example Production Transporter Transport to Phillips Central warehouse Arrival in warehouse Order Raw Packing Arrival material Box 1 Mombasa / Box 1 Box 1 Airport Box 2 Box 2 Check by Quality company Flagged in system Check by Quality company Flagged in system Check by Central store Quality, flagged in system blocking of batches if not approved Put away on racks Information to be kept Item number, qty, supplier, ETA, price Flags on how far in the supply chain the phycial order is.

5 Physical flow Central warehouse to SDP Central warehouse TRANSPORT SDP Item 1 Item 2 Item 3 Pick and pack Box 1 Transport to SDP Box 1 Check and signature on POD Box 1 Item 1 Item 2 Item 3 Item 1 Item 2 Item 3 Box 2 Box 2 Box 2 Item 1 Item 2 Item 3 Maintains Items in which box ID of boxes handed over Keep copy of delivery note signed by driver. Reconsiles POD s POD Maintains ID of boxes received ID of boxes delivered POD s received POD goes back with driver Signs off on POD Incl each item POD Database Receive copy of delivery note from Phillips Receive copy of POD and copy of reconsiled data In database and generates reports

6 ICT and Supply Chain Management General situation 1. Big geographical countries 2. Good power and IT infrastructure in capital, poor infrastructure in the field 3. In Capital there will be industries with implemented ERP software packages and capable consultants. 4. General good mobile phone coverage everywhere 5. General good access to basic internet everywhere using 3 G 6. General access to fairly strong IT people in the main city 7. No access to IT competence in rural areas 8. Decision makers on medical supply chains do not have supply chain competence - both on donor and local level. They have public health back ground or are medical doctors.

7 Types of implementations for Supply Chain Management Implementing specific packages across many countries for specific purposes. Examples are Orion and MACS for running Central Medical Stores. Implementation of standard off the shelf ERP packages allready active in a country for industry purposes done by local consultants. Tailoring standard ERP packages to the specific business model and distribution of one country, Cote d Ivior. Home made solutions in spreadsheets and ACCESS made by resident consultants UN organizations such as UNICEF, UNDP and others has their own centrally managed closed systems which they as well operate in each country. Big ERP packages, heavy procedures. Small web based and phone based solutions, often free off the internet.

8 Example MSD Tanzania, Orion, Epicor DHL freight Central warehouse freight SDP FULL ERP System Project: 1 Failed Navision project 2 Successfull ORION ERP implementation 3 Nine years later new Epicor implementation

9 Example Kenya Pharma India DHL freight Phillips warehouse DHL freight SDP Qty incoming Qty available Qty delivered to SDP POD DHL Systems Vehicle tracking POD tracking Order QTY On stock at SDP Patients at SDP Phillips Solomon Qty Incoming Qty available Qty delivered to SDP POD SDP order Qty incoming Qty available Qty delivered to SDP POD Kenya Pharma database Qty Incoming Qty available Qty delivered to SDP POD Order QTY On stock at SDP Patients at SDP

10 Example Haiti, MACS freight Central warehouse freight SDP SCMS ERP System (ORION) Warehousing System MACS Spreadsheets Project: 1 Start out of scratch purely on spreadsheets 2 Implementation of warehousing system without analysis phase 3 Now work on longer term solution

11 Example Cote d Ivior, PSP freight Central warehouse freight SDP SCMS ERP System (ORION) Project: 1 Original made Remed 2 Original made Accounting 3 Implementation of gov accounting 4 - Implementation of Sage 5 Implementation of MACS Accounting system Sage ERP solution REMED Old procurement Warehousing System MACS RICI government accounting

12 Example SMS reporting Malaria programs, Uganda and Vietnam freight Central warehouse freight SDP SMS database Reporting stock level HMIS information Communicating treatement info Project: Two different systems exist. - A free system used in Uganda under the Malaria program - A commercial solution used in Vietnam

13 DHL example Network Distribution The most efficient proven method of servicing a multi client distribution environment that ensures that inventory is delivered at the right time at the right place at the right price Proven Network Solution.. Managed via EA Control Tower Vehicle utilization & routing managed by DHL SC. Costed on LTL-FTL basis Fully GPS track & trace enabled

14 KEY ISSUES NGO s and consultants introduce home made solutions, freeware, spreadsheets for even administration of major supply chains. Governments and donors do not recognize the cost of implementation. Budgets may cover implementation but not maintenance IT is not considered a running cost with ongoing implementation. Donors covering only cost of items and not admin and distribution Soft wares are implemented peace meal for specific item groups administrated by specific donors Every donor brings a new set of requirements for reporting Local stores do not take control and lets donors implement Lack of recognition of the need of support

15 CHOICES AND OPPORTUNITIES CHOICES Specific packages across countries? Choice between using cheap home made solutions and implementation of commercial supported systems Utilization of local ressources and packages with local success? How to handle dealing with heavy UN or Global Fund systems? OPPORTUNITIES Build applications on the web? Strengthen implementation and project management locally? Strengthen understanding of ICT within donor community Who is going to fund implementations