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Henk PFSCM - SCMS Presentation Tunis V1

The document summarizes the work of the Partnership for Supply Chain Management (PFSCM) in establishing and operating the Supply Chain Management System (SCMS) project since 2005. Some key points: 1) SCMS was established in 2005 under PEPFAR to address supply chain barriers and improve access to HIV/AIDS treatment. 2) PFSCM brings together non-profit and commercial organizations with multi-sector expertise to manage SCMS. 3) SCMS has delivered over $1.5 billion in commodities to 57 countries, reduced ARV prices by 68%, and helped put over 8 million people on treatment.

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Miles Mudzviti
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31 views16 pages

Henk PFSCM - SCMS Presentation Tunis V1

The document summarizes the work of the Partnership for Supply Chain Management (PFSCM) in establishing and operating the Supply Chain Management System (SCMS) project since 2005. Some key points: 1) SCMS was established in 2005 under PEPFAR to address supply chain barriers and improve access to HIV/AIDS treatment. 2) PFSCM brings together non-profit and commercial organizations with multi-sector expertise to manage SCMS. 3) SCMS has delivered over $1.5 billion in commodities to 57 countries, reduced ARV prices by 68%, and helped put over 8 million people on treatment.

Uploaded by

Miles Mudzviti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The Partnership for Supply Chain

Management
Inspiring supply chain innovation for public health
August 2013
PFSCM was established in 2005 to bid on the
SCMS contract, but our work is expanding

PFSCM

USAID Global Fund UNITAID


SCMS PPM CPP
2005 2009 2012-2013

2
PFSCM’s public-private partnership brings the
multi-sectoral expertise of non-profit and
commercial organizations

3
PEPFAR awarded the Supply Chain Management
System (SCMS) project to PFSCM in 2005

President’s Establish and operate a safe, secure, reliable, and


sustainable Supply Chain Management System (SCMS)
mandate: and develop self-sustaining supply chain skills and
capability within the countries

Health impact: 8 million on treatment by 2015 have the drugs they


need (not all supplied by SCMS)

Value 1. Ensure patient access to commodities


proposition: 2. Reduce product and supply chain costs
3. Ensure product quality
4. Elevate value of supply chain to health

4
Why was SCMS needed?

Supply Chain Barriers Impact on Treatment Programs


• Poor coordination among • Stockouts, overstocks, high
governments, funders, aid product expiry, inappropriate
providers treatments
• Little long-range planning • High costs, long lead times,
and forecasting poor quality
• Limited procurement • Unreliable delivery,
capacity rationing, treatment
• Lengthy procurement cycles interruptions
• Lack of timely order • Confusion, redundancies,
placement gaps
• Inadequate warehousing and
distribution

5
Innovative design and a willingness to
do things differently enabled our work
• The USG’s forward-thinking design established a structure for
SCMS that is:
• Scalable
• Flexible
• Robust
• Cost effective

• Key USG innovations:


• USAID working capital fund
• USFDA approval of generic drugs
• Country-led programs

6
Going to scale

• 15,600+ commodity
shipments worth $1.51
billion to 57 countries
• Only $177K loss (0.1%)
• 1,644 products (128 ARVs)
in e-catalog with >4,700
separate products
procured over life of
project

Using regional distribution centers (RDCs)


• Smaller, regular shipments to protect
local systems
• Rapid response to emergency and routine requests

*Data are for life of project as through October 2012, except as noted
Saving money saves lives

• Saved $1.38B over


Accelerated Access Initiative
prices
• USFDA approved generics
68% ~90 percent of purchases
Reduction
• Saved $119 M in freight costs
using sea and road, and
RDCs instead of air
• In South Africa, helped
reduce ARV prices by 50
percent, saving USG $93M
and the GoSA $630M
• Pooled procurement helped decrease prices
68% reduction in average generic ARV prices
30% reduction in male circumcision kit prices
8
• SCMS prices at or below all others
Connecting the global and national levels

• Building
capacity in
22 countries
• Virtually no
stockouts of
ARVs or HIV
rapid test
kits at
central level
in PEPFAR
countries

• US small Strengthening local economies


business • Contracts with 650 local firms and vendors
participation: * As of March 31, 2013
9

$51.6M*
SCMS uses public- and private-sector best
practices to institutionalize sustainable, cost-
effective national supply chains
• Drives down prices for large and small
programs through global pooled
procurement
• Strengthens national supply chains, does
not create parallel systems
• Improves infrastructure, including warehousing and
distribution
• Builds systems (e.g., LMIS, forecasting/quantification,
automated or manual WMS, ERP)
• Optimizes laboratory systems
(harmonization, maintenance and rational
procurement)
• Enhances quality assurance capacity (e.g.,
new technologies, waste management)

10
Building sustainable capacity in national supply
chains

11
Urgent response

• Responsive, flexible systems make us the emergency provider of


choice for other donors
• Delivered $8 M in unplanned orders from October 2012 to March
2013.
• Helped prevent stockouts in 20 countries in the last year.

Haiti

Côte d’Ivoire SCMS office/Côte d’Ivoire


Challenges on our way to 2015

• Supporting countries to get to 15 million


on treatment
• Supporting USG goal to get to 4.7 million
VMMC
• Working with suppliers to make sure there
is enough API and medicines supply
• Increasing capacity of African suppliers to
provide quality-assured commodities
• Reducing costs of in-country supply
chains to maximize treatment numbers
• Coordinating with global partners to
optimize the use of available resources

13
Can local production help

PFSCM/SCMS uses local production sources to increase access


to quality Essential Medicines
- Use SRA or WHO PQ’d sources for EM
- Apply country specific solutions, PV model in Tanzania,
FO managed procurement in Ethiopia
- Base the sourcing on a defined (short) list of products
- Collaborate with local partners, both government and
private
PFSCM/SCMS has experience in buying from local producers
- Pre qualification of vendors, including GMP and GDP
audits
- Experience with pharmaceutical products for use in
Tanzania, Ethiopia, S Sudan, Cote Ivoire, Rwanda etc
- Food products for use in various PEPFAR countries
14
Drug Procurement and Distribution Challenges

Key procurement aspects are


- procurement planning
- funding availability
- meeting regulatory requirements, including NRA
registration
- decrease the supply intervals (RDC’s or LDC’s)

Distribution challenges
- public distribution models, using regional/district stores
- distribution up to the last mile

Opportunities
- increased buying power creates demand up country
- use of “ADDO” accredited shop concept as EM outlets 15
Thank you!

Questions?

2012
Finalist

16

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