CLICK TO ADD TITLE

[DATE][SPEAKERS NAMES]

The 5th Global Health Supply Chain Summit

November 14 -16, 2012Kigali, Rwanda

 

Supply Chain Design to Mitigate RiskRyan Purcell – MD, LLamasoft Africa + Indian Rim

Supply Chain Design

• A process that attempts to optimize the supply chain’s structure and policies in order to make the best uses of the resources available, as defined by a holistic, end to end view of all the relevant metrics of interest

– Process, not an outcome– End to end, cross functional, network structure AND policies– A supply chain’s design can make it easier, harder, or

impossible to plan, manage, and execute

2

Sources Sources de de

FinancementFinancement

Structure Structure d'appro-d'appro-

visionnementvisionnement

1er point 1er point de stockagede stockage

2ème point2ème pointde stockagede stockage

Structure Structure dispensatricedispensatrice

PROMESS (Population)PROMESS (Population)

Systèmes d'approvisionnement des produits pharmaceutiques en HAITI, Octobre Systèmes d'approvisionnement des produits pharmaceutiques en HAITI, Octobre 20112011

UUNNIICCEEFF

FFNNUUAAPP

MEGMEG Contra-Contra-ceptifsceptifs

AntipaludiquesAntipaludiquesREACTIFS REACTIFS M.T.NégM.T.Nég

TBTB IOIO VACCINSVACCINS

DispositifsDispositifsMédicauxMédicaux

ARVs ARVs PedPed

ARVsARVs

P. PrivéP. Privé

Bailleurs Bailleurs multilatérauxmultilatéraux

Bailleurs Bailleurs bilatérauxbilatéraux

ONGONG

CHCCHCCHDCHD

OOPPSS

CHUCHU

UUNNIITTAAIIDD

ETAT ETAT (Secteur Privé)(Secteur Privé)

UUSSAAIIDD

DDRRII

SSCCMMSS

ONG/AssociationONG/Association

PROMESS (OPS WDC)PROMESS (OPS WDC) PIHImportateursImportateursprivésprivés AMERICARESAMERICARESPNUDPNUD DRIDRIGSKGSK FNUAPFNUAPUNICEFUNICEF

PROMESSPROMESSUNICEFUNICEF

CDAICDAI

Cliniques privéesCliniques privées

AAMMEERRII

GGSSKK

EtatEtat

DispensairesDispensairesCSCS

FFMM

CCMMMMBB

PPIIHH

Grossistes Grossistes privésprivés

CMMBCMMBJSIJSISCMSSCMS

SCMSSCMS LMSLMS PSIPSI CMMBCMMB PIHPIH DRIDRI AMERICARESAMERICARES

Grossistes Grossistes privésprivés

OfficinesOfficines CS privésCS privésconfessionnelconfessionnel

PATIENTPATIENT

Supply Chain Design: Service Metrics

• On time delivery• In stock rate• Order fulfillment lead time• Percent of demand satisfied• Proximity: How close are we?• Others?

Supply Chain Design: Financial Metrics

• Income Statement– Revenue– Expense (EBITDA)– D&A– Taxes– Profit

• Balance Sheet– Assets– Liabilities– Debt and Equity– Capital

• Cash Flow– Payback period– Interest– Financial Sustainability

• Time Horizon!

Do we need to recover costs THIS year???

Do we need to recover costs THIS year???

Supply Chain Design: Logistics Metrics

• Number of Facilities• Factory/Warehouse space• Inventory• Assets and Equipment• Labor• Complexity

Supply Chain Design: Sustainability Metrics

• CO2 / Carbon footprint• Water usage• Solid waste• Hazardous waste• Social Externalities• Can this supply chain operate “as

designed” for the medium to long term?– Is that necessary?

Supply Chain Design Metrics

Sustainability• Country plans for expansion• Expected growth trends• Security

Supply Chain• Capacity Requirements • Complexity

Financials• Total costs of serving population• Fixed and Variable Operating Costs• Trade-offs between costs

Service• What % of population can be servedeffectively?

Refining the SCG solution

• Expansion and Growth– USG, Haiti, and other

countries investing heavily in the Cap-Haitien region

– Expecting population migration

• Security– Greenfield chooses

Gonaives, an area the client called “Bandit country”, as closest city in solution

Long-term sustainability

Refining the SCG solution

• Road Factors (Traffic & Flooding)– Seasonal Road

obstructions due to landslides and flooding

– Heavy traffic in and around PAP

• Natural Disaster– Port Au Prince goes

down affecting• Inbound supply from

overseas • Inland distribution

Seasonal Road Obstructions due to flooding and landslidesSource: WFP Log Cluster, Haiti

Accounting for Risk

Proposed Warehouse and Distribution Structure

•Additional Warehouses in Cap-Haitien and Les Cayes, to serve population in the north/north-west and south-west, respectively•Cap-Haitien to act as a secondary port for inbound supplies

Percentage of population within3 hours: 77%5 Hours: 94%