LOGISTIC MANAGEMENT

Geeta Kumari Regional Consultant ROH&FW, Govt. of India, Patna

WhatisLogistics?
Logistics is the . . . process of planning, g p p g, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements i

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

IsitdifferentfromSCM?
Notreally! Supply Chain Management deals with the Supply management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, di ib li f distributors, and d customers So, Logistics and Supply Chain are equivalent terms
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 3

GoalsandObjectives
Tohavematerialsonhandwhenneeded Topaythelowestpossibleprice,consistentwith qualityandvaluerequirementofpurchasedmaterials Tominimizeinventoryinvestment Todevelopgoodbuyersupplierrelationship o deve op good buye supp e e at o s p Todevelopalternativeandreliablesourceofsupply Tooperateefficiently

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

Principles in Material Management PrinciplesinMaterialManagement

Rightitem/material Rightquantity Ri h i Rightprice Rightsource Rightmethods/systemsandprocedures Rightpeople/attitudeorientedtowards g p p / innovativeimprovements Rightquality,placeofdelivery Righttransport Ri htt t Righthandlingmethods Rightcontractorlegalaspects
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 5

Functions of logistics management Functionsoflogisticsmanagement

Materialforecasting,budgeting,planningand procurement Scheduling,purchasingandprocurement Receiving,inspection(qualityandquantity)and g, p (q y q y) forwarding Inventorycontrol,storagewarehousinganddistribution Materialhandling,movementcontrolandtraffic Dispatch,shippinganddisposal Coordinationalltheaboveactivities Keepingliaisonbetweenvariousdepartmentsandwiththe K i li i b i d d i h h supplier/market

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

Concepts in material management Conceptsinmaterialmanagement

LEADTIME Periodbetweenplacingorderand
receivingitems.

BUFFERORSAFETYSTOCK Quantityofstores
setapartasaninsuranceagainstthevariationsin demandandprocurementperiods. demandandprocurementperiods

REORDERLEVEL Thestocklevelatwhichfresh
ordershavetobeplaced.Averageconsumptionperday ordershavetobeplaced Averageconsumptionperday *leadtime+bufferstock
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

Economic order quantity Economicorderquantity

Economicorderquantity mosteconomic quantityofthematerialtobepurchased. EOQ=2A Oc EOQ=2A*Oc Pc*Ic A=annualdemandofitemsinunits a ua de a d o te s u ts Oc=orderingcost Pc=purchasecostofitemsperunit Ic=inventorycarryingcostinpercentage

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

Purchase
Toensureuninterruptedflowofmaterial Tobuyeconomicallyinacompetitivemarket Tokeepinventoryinvestmentlow Todevelopgoodbuyersupplierrelation pg y pp Todevelopalternativeandreliablesourceof supply Toactaslogisticsintelligenceinformation centrewithregardtospecification,processes, price,quality Mrs.GeetaKumari
RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 9

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

10

Preparation of PAP PreparationofPAP

Action Plan Meeting with SPOs at Dte. NVBDCP in Dec./ Jan. for logistics requirements.

State demand is compiled by each technical division based on technical justifications and balance stocks available with.

State demand and budget approved is taken into consideration while preparing Procurement Action Plan.

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

11

Government of India (GOI)

Ministry of Finance (MOF) Department of Economic ) Affairs ( (DEA)

Ministry of Health & Family Welfare (MOH) Director General of Health Services ( ) (DGHS)

Drug Controller General of India (DCGI)

National Vector Borne Disease Control Programme (NVBDCP)

Logistics

Addl. Director

JD DBS

JD EAC

Procurement Consultant Supporting Staff Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

Supporting Staff 12

Flow Chart of Supply Chain FlowChartofSupplyChain

Procurement Support Agency

State Programme Officer (SPO)

GMSDs

District Programme Officer

PHCs/CHCs (Block Level)

Mrs.GeetaKumari Sub-Centre RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

13

Procurement Planning
The most important aspects of overall procurement cycle It lists procurement method, size of contracts/slices and milestones during the procurement process Procurement Plan is an excellent tool for monitoring the progress and helps in taking corrective actions for delays Poor procurement planning increases the probability of delays during the implementation First procurement plan is prepared for initial 18 months of the project, while the subsequent plans are on annual basis
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 14

Procurement Procedure ProcurementProcedure

STEPS:

Assessmentofrequirement Decidingprocurementprocedureincluding D idi t d i l di technicalspecifications Preparationoftenderdocument Issueoftenderdocuments ReceivingandOpeningofthetender Evaluationofthetender Mrs.GeetaKumari

RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 15

Awardofcontract Notificationofdeliverytoconsignee PredispatchInspectionandtesting Receiptofconsignment Acceptance,storageanduse(orissue)ofthematerial. Resolutionofdisputes,ifany Feedbacktothepurchasingauthorityonperformance ofthesupplier

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

16

Procurement Plan for the year 2008-09 2008Sr. No. Activity Jan Feb. March April May June July Aug. Sept. Oct. Nov. Dec Responsibility NVBDCP

Preparation of list of 1 drugs/equipments as per assessed requirements Initiate Prepration of specifications 2 and Bid documents 3 4 Transmit specifications and Bid documents to MOH&FW

NVBDCP NVBDCP NVBDCP NVBDCP HLL / UNOPS HLL / UNOPS HLL / UNOPS HLL / UNOPS HLL / UNOPS HLL / UNOPS HLL / UNOPS HLL / UNOPS HLL / UNOPS NVBDCP NVBDCP

MOH clearance of specifications and Bid documents Convey Approval to Procurement 5 Agency

6 I Issue Invitation of Bids I it ti f Bid 7 Open Bids 8 9 Bids evaluation Integrated Purchase Committee Meeting / approbal by MOH

10 Award Contract 11 Inspection and shipment 12 Initial delivery at site 13 Interim delivery at site 14 Final delivery at site 15 Arrangement for Advance Payment

Mrs.GeetaKumari 17

Adjust Advance payments for final RegionalConsultant,ROH&FW,Govt.ofIndia, 16 adjustment Patna

SupplyChain
The main objectives of logistics and/or supply chain management are planning acquisition planning, acquisition, storage, movement and control of materials/products(drugs/commodities in this case), so as to optimize personnel, physical facilities & capacity

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

18

P fS l Ch i PurposeofSupplyChain
ToensureSixrights

therightproducts h h d intheRightquantities intheconditions/quality i h di i / li deliveredtotherightplace attherighttimeand tth i htti d fortherightcost

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

19

WhathappenedtoproductsinSupplyChain
Four things that happen to products in supply chain

Stores Moved Used Expired E i d

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

20

Purpose
To ensure a reliable and uninterrupted supply of good quality materials at service delivery points or to the end users i h d The programme managers/officials who are dealing with logistics and supply chain management should know:
When to order or issue How much to order or issue Maintain appropriate stock levels of all materials (drugs/commodities) to avoid stock outs and overstocking which can lead to product loss due to expiry. expiry
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 21

Actionrequiredatconsigneeend
Assessstorerequirements Arrangeadequatestorespace Properstockregisters P t k i t Supplychainmanagement Postdispatchinspection Qualityassurance Ensurethesupplyofdrugsinshelflife Monthlystockreporting y p g
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 22

Issues
q Noassessmentofadvancestorerequirements Noadequatestorespace Littleknowledgeofstoragepractices Noproperstockregisters InterruptedSupplychain Nomonitoringdrugsforitsusewithinshelflife DelayinMonthlystockreporting
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 23

LogisticsFlowfromStatetodistrict/PHC
Requirementbased Timely Propertransportarrangement P Wellinformed Adequatestorespace Budget(funds) Manpower Stocksentriesandverification S k i d ifi i Regularreporting Feedback Monitoringandsupervision Mrs.GeetaKumari
RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 24

SupplychainManagement
Assessmonthlyrequirements Ensuremonthlysupply Replishment after15daysatPHC/sub centrelevelto after15daysatPHC/subcentrelevelto ensurenostocksout MonitorweeklystockpositionatPHC/subcentrelevel MonitormonthlystockpositionatState/Districtlevel Regularreportsandreturns Timelyfeedback Ti l f db k

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

25

Issues
Thestocksofdrugsdonotoftenmatchwith theconsumptionofdrugs Difficulttoassessthestockswhichareinpipe line PHCwisestocksshouldbemonitoredat districtlevelwithproperfeedback Districtwisestocksshouldbemonitoredat Statelevel
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 26

ThingstoRemember
Areadequatestocksofdrugs&commodities A d k fd & di i presentinthedistrict/PHC(physical verification)? Isproperstoragefacilityavailablefor Insecticides/bednets/drugs/RDKitsetc? A lld Arealldrugsandcommoditieswithintheir d diti ithi th i periodofexpiry? Istheprincipleoffirstexpiryfirstout(FEFO) p p p y ( ) beingfollowed? Isthestockregisterbeingmaintained? Timelyreportingandfeedbackexists?
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna 27

Guidelines for Proper Storage of Drugs

Clean and disinfect the store room regularly Monitor the storage conditions Keep the stores away from rodents, insects and termites Safely handle the health commodities while loading and unloading from the transport vehicle g p Keep store supplies in a dry, welllit and well ventilated store room with temp. control Provide th rack storage system f easy movement P id the k t t for t of materials and personnel handling the store
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

28

C d Contd..
Stack cartons in steel racks/slotted angles and at least 10 cm(4 inch) off the floor, 30 cm (1ft) away from the floor walls and other stacks and no more than 2.5 m (8ft) high Use First Expiry First out (FEFO) principle Store medical supplies separately, away from insecticides, insecticides chemicals Arrange cartons with identification labels, expiry dates, and manufacturing dates are visible Secure store room from water penetration especially during rainy season
Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

29

C td Contd..
Ensure that fire safety equipment (fire extinguisher) is available and accessible Ensure fire proof electrical fittings and appliances for any fire due to short circuit and keep the stocks away from the p y electrical sockets Separate damaged and expired stocks from the usable stock and move to secure area and dispose of these products without delay as per the established procedure Monitor stock levels, stock quantities and safety stocks and update stock l d / d t t k ledger/records and maintain th fil d d i t i the files safe f custody

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

30

Thanks
For your lovely attention. Have a nice day

Mrs.GeetaKumari RegionalConsultant,ROH&FW,Govt.ofIndia, Patna

31