Interactive Look at Nigeria’s Supply Chain

Nigeria Supply Chain Strategy Development Workshop

Johnnie Amenyah

16 April, 2008

Presentation Overview

• Explain the purpose of the supply chain• Define key supply chain components• Describe recent history of supply chain interventions

in Nigeria• Summarize key supply chain assessment findings

and recommendations

Purpose of the Supply Chain

Effective supply chains ensure—• the right goods• in the right quantities• in the right condition• are delivered to the right place• at the right time• for the right cost

No Product? No Program!

The Logistics Cycle

Distribute7. Transport and

Distribution

Support9. Logistics Management

Information System

10. Organizational Support

11. Financing and Donor / Stakeholder Coordination

Store5. Inventory

Control

6. Warehousing and Storage

Procure3. Quantification

4. Procurement

Select2. Product Selection

Use8. Product Use

Distribute7. Transport and

Distribution

Support9. Logistics Management

Information System

10. Organizational Support

11. Financing and Donor / Stakeholder Coordination

Store5. Inventory

Control

6. Warehousing and Storage

Procure3. Quantification

4. Procurement

Select2. Product Selection

Use8. Product Use

Enabling Environment1. Enabling Environment

Enabling Environment1. Enabling Environment

Supply Chain Strengthening

• Reproductive health program (since 2002)– Contraceptives and condoms

• HIV/AIDS program (since 2005)– ARV drugs, RTKs, OI drugs, lab reagents & supplies

• Training for logistics managers from– Reproductive health program– HIV/AIDS program– Tuberculosis program– Malaria program– Central Medical Stores

Recent Supply Chain Assessments

• Feasibility of Integrating Supply Chains (2005)

• ARV Distribution System (2007)

• Central Medical Stores for HIV/AIDS Commodities (2007)

• OI Drugs and Laboratory Supply Logistics System (2007)

• HIV/AIDS Commodities LMIS (2007)

• NMOD HIV/AIDS Program Logistics System (2007)

• NMOD Medical Warehouse Needs

• Contraceptive Logistics Management System (2007)

• Central and Regional Contraceptive Warehouses (2007)

• Reproductive Health Commodity Security (2008)

Common Findings –General

• Multiple program-specific vertical supply chains requiring coordination or shared resources.

• Multitude of added processes and players• Need for clear performance measures and routine

monitoring and supervision

Common Findings—Quantification & Procurement

Need for:• Coordinated national quantification within programs• Quantification capacity building• Quality data for accurate quantification• Improved procurement planning• Shortened procurement lead-times• Improved coordination among suppliers/donors

Common Findings –Storage & Inventory Control

• Suboptimal warehouse practices, requiring– Better inventory management– Improved record keeping– Improved infrastructure– Clear management authority– Stronger, routine monitoring and supervision

• Regional/state warehousing infrastructure and management need significant attention

• Communication between stores and program offices can be strengthened and made routine

• Establish and/or ensure compliance with inventory control procedures

Common Findings—LMIS

• Improved reporting rates and accuracy would increase effective program management

• Paper-based systems are inefficient and burdensome for providers

• Automation at national program level will improve access to data for decision-making

Common Findings—Distribution

Need for:• Routine access to transport vehicles for

collection/delivery• Improved management and oversight of funds for

distribution• Stronger oversight and clear performance standards

for distribution agents • Routine distribution planning and/or coordination

among/between programs

Common Recommendations

• Assess the feasibility of integrating some logistics components (i.e. storage, distribution)

• Establish or strengthen central coordination mechanisms for quantification and procurement/donor inputs

• Improve warehouse infrastructure and management, and automate warehouse inventory control systems

• Investigate distribution options and mechanisms

Questions & Comments?

Thank you!