CLICK TO ADD
TITLE
The 5th Global Health Supply Chain Summit
Supply Chain Design to Mitigate Risk
Ryan Purcell – MD, LLamasoft Africa + Indian Rim
[SPEAKERS NAMES]
November
14 -16, 2012[DATE]
Kigali, Rwanda
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
Systèmes d'approvisionnement des produits pharmaceutiques en HAITI, Octobre 2011
MEG
M.T.Nég
ARVs
TB
ARVs
Ped
IO
REACTIFS
Contraceptifs
Antipaludiques
VACCINS
Dispositifs
Médicaux
Etat
P. Privé
Bailleurs
bilatéraux
Bailleurs
multilatéraux
ONG
Sources
de
Financement
Structure
d'approvisionnement
PROMESS (Population)
PROMESS (OPS WDC)
1er point
de stockage
Grossistes
privés
PROMESS
2ème point
de stockage
Structure
dispensatrice
Importateurs
privés
Grossistes
privés
Officines
CS privés
confessionnel
Cliniques privées
GSK
UNICEF
U
S
A
I
D
G
S
K
ETAT
(Secteur Privé)
PNUD
O
P
S
UNICEF
SCMS
FNUAP
LMS
PSI
U
N
I
C
E
F
F
N
U
A
P
SCMS
CMMB
U
N
I
T
A
I
D
F
M
JSI
PIH
CMMB
DRI
S
C
M
S
C
M
M
B
PIH
P
I
H
DRI
A
M
E
R
I
AMERICARES
AMERICARES
CDAI
CHU
CHD
CHC
PATIENT
CS
Dispensaires
D
R
I
ONG/Association
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???
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
Natural
Disasters
Service
Infrastructure
R Challenges Financials
I Supply
S Disruption
K Demand
Supply Chain
• What % of population can be served
effectively?
• Total costs of serving population
• Fixed and Variable Operating Costs
• Trade-offs between costs
• Capacity Requirements
• Complexity
Volatility
Political
Instability
Sustainability
• Country plans for expansion
• Expected growth trends
• Security
Refining the SCG solution
Long-term sustainability
• Expansion and
Growth
– USG, Haiti, and other
countries investing
heavily in the CapHaitien region
– Expecting population
migration
• Security
– Greenfield chooses
Gonaives, an area the
client called “Bandit
country”, as closest
city in solution
Refining the SCG solution
Accounting for Risk
• 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
Seasonal Road Obstructions due to flooding and landslides
Source: WFP Log Cluster, Haiti
• Inbound supply from
overseas
• Inland distribution
Proposed Warehouse and Distribution
Structure
Percentage of
population
within
3 hours:
77%
5 Hours:
94%
• 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