Logistics

Question 1

Explain logistics management
Explain how the restaurant is like a logistics system

Answer 1

The Council of Supply Chain Management Professionals (CSCMP) defines logistics management as— “[The] part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirement… (deals with planning,implementation and control of the flow and storage of good and services from the point of origin to the point of consumption to meet customers needs )
Logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology.” (CSCMP 2011)

A restaurant is one example of a simple logistics system.
• The kitchen is a storage facility; the food is held there until it is delivered to the customer.
•Waiters provide the transportation; they carry the food from the kitchen to the customer.
•The tables are the service delivery points, where customers sit to order and eat the food

Question 2

Explain three reasons logistics matters

Answer 2

Why Logistics Matters
•Increasing programme impact
•Enhancing quality of care
•Improving cost effectiveness and efficiency.

Increasing programme impact
•If a logistics system provides a reliable supply of commodities, more people are likely to use health services.
•Customers feel more confident about the health program when they have a constant supply of commodities— it motivates them to seek and use services. Notice that, as the availability of a mix of contraceptive methods improves, the contraceptive prevalence rate (CPR) for the public sector increases.

Enhancing quality of care
•Well-supplied health programs can provide superior service, while poorly supplied programs cannot. Likewise, well-supplied health workers can use their training and expertise fully, directly improving the quality of care for clients. Customers are not the only ones who benefit from the consistent availability of commodities. An effective logistics system helps provide adequate, appropriate supplies to health providers, increasing their professional satisfaction, motivation, and morale.
•Motivated staff are more likely to deliver a higher quality of service.

Improving cost effectiveness and efficiency.
•An effective supply chain contributes to improved cost effectiveness in all parts of a program, and it cannstretch limited resources.
•Strengthening and maintaining the logistics system is an investment that pays off in three ways.
(1) It reduces losses due to overstock, waste, expiry, damage, pilferage, and inefficiency;
(2) it protects other major program investments; and (3) it maximizes the potential for cost recovery.

Question 3

State the six rights of logistics
What is the right cost of a donated item ?

Answer 3

The RIGHT goods in the
•RIGHT quantities in the
•RIGHT condition delivered… to the
•RIGHT place at the
•RIGHT time for the
•RIGHT cost.

What is the right cost of a donated good?
•In many health programmes, health commodities are donated by international implementing partners or charitable organizations; but, if an item is donated, does the sixth right, at the right cost, still apply? YES.
•Even if the product is donated, the programme may still be responsible for paying the other logistics systems costs—the cost of clearing, storing, and transporting the products, as well as collecting data and reporting on how the products are used.

Question 4

How do you organize logistics system activities
Explain what the LMIS does in logistics
What is the typical public sector In country supply pipeline

Answer 4

Product selection
Quantification and procurement
Inventory,management,storage and distribution
Serving customers
(The above is This was what was in the picture)

The below is what was in the slides
.major activities in the cycle
• heart of the logistics cycle
•quality monitoring of the activities
• logistics environment—policies and adaptability of the system.

LMIS does pipeline monitoring,organization and staffing,budgeting,supervision and evaluation throughout the organization of the logistics system activities

From the port,to the central warehouse to the regional warehouse to either the district hospital or the district warehouse
From the district hospital it goes straight to clients and from the district warehouse it goes to the health posts,health centers before it gets to clients
From health center it gets to community health workers before it gets to the clients

Question 5

State five major activities in the logistics cycle

Answer 5

serving customers
•product selection
•quantification
•procurement
•inventory management: storage and distribution

Question 6

What is the heart of the logistics cycle?
Explain organization and staffing,budget
What prevents and resolves supply problems?
What will routine monitoring and periodic evaluation of the pipeline and logistics system activities help demonstrate ?

Answer 6

Heart of the logistics cycle
•Logistics management information systems

•Organization and staffing: A logistics system can only work if well-trained, efficient staff monitor stock levels, place orders, and provide products to clients
•Budget: Allocation and management of finances directly affect all parts of the logistics cycle, including the quantities of products that can be procured, the amount of storage space that may be available, the number of vehicles that can be maintained, and the number of staff working in logistics.

Supervising the staff who work within the logistics system keeps it running smoothly and helps to anticipate needed changes.
• Routine, effective supervision, coupled with on-the-job training in logistics, helps to both prevent and resolve supply problems and human resource constraints. monitoring and evaluation.
•Routine monitoring and periodic evaluation of the pipeline and logistics system activities help demonstrate how well the system is performing, the areas that can be improved, as well as the system’s impact on service provision

Question 7

How does Government regulations and procedures affect the elements of the logistics system?
What is a characteristic of all successful logistics systems?
Explain why and give an example

Answer 7

Policy and adaptability I
•Government regulations and procedures affect all elements of the logistics system. (eg Procurement Act & Public Financial Management Act)
• When items are distributed; where and how items are stored; and the quantities customers receive (often called dispensing protocols).
•Fiscal and budget policies are often some of the most influential policies affecting a logistics system, whether related to securing funding for product procurement; or to pay for critical infrastructure, such as storerooms and transportation.
Policy and adaptability II
•Adaptability is a characteristic of all successful logistics systems.
•Logistics systems must be designed to be flexible and adapt to constantly changing circumstances, such as changes in demand for a product, or changes in funding policies for logistics activities.
•In one sense, adaptability speaks to the logistics system’s ability to successfully obtain the resources that are necessary to address changes in demand. For example, as demand increases, the logistics system needs to be flexible enough to respond to the increase in the quantities of products

Question 8

What does a logistics management information system do?
How do you decide what data is essential for Decision making?
State six questions logistics managers may ask

Answer 8

A logistics management information system collects, organizes, and reports data that enables people to make logistics system decisions.

•If data are to be collected for decision making, you need to know what data to collect and how frequently to collect it.
•To decide what data to collect, look at the decisions you will need to make.
•Think about the questions logistics managers might ask.
•What information would they need to answer those questions and make informed decisions

The questions might include the following:

•How long will current supplies last?
•When do we need to order more supplies?
•Where are our supplies in the pipeline?
•Do we need to move supplies from higher to lower levels?
•Where is consumption the highest?
•Do those facilities need more resources?

The questions might include the following:
•Are we losing products from the system that require us to take action?
•Are supplies flowing smoothly through the pipeline?
•Do we need to adjust our pipeline to account for bottlenecks in the distribution system?
•Are any products about to expire?
•Should we take them out of the pipeline? Can we redistribute them; can they be used before they expire?

Question 9

What three data are essential for logistics?
Define them and give an example each

Answer 9

Data item:
Stock on hand
Consumption
Losses and adjustments

Stock om hand: The quantities of usable stock available.
(Items that are unusable are not considered part of stock on hand; they are considered losses to the system.)
Example-The health center has 300 bottles of
paracetamol in the store on the last day of the month. At a national level, 780,000 bottles of paracetamol are on hand, based on stockon- hand data from the health centers, districts, and national warehouse.

Consumption-The quantity of stock dispensed to users or used during a particular time period
Example-In the last month, the health center used 120 Determine HIV tests. In the last month, the health center dispensed 1,045 condoms to clients.

Losses and adjustments:
Losses are the quantity of stock removed from the pipeline for any reason other than consumption by clients or use at the service delivery point (due to expiration, theft, damage, etc.).
Adjustments are the quantities of stock issued to or received from other facilities at the same level of the pipeline. Also, adjustments may be administrative corrections made to stockkeeping records—for example, when you count stock and find a different amount from the quantity listed on the bin cards. for this reason, adjustments may involve either positive or negative
In the past month, the district hospital had—
30 male condoms expire (loss)
4 IUDs stolen (loss)
Loaned another health facility 12 packages of oral rehydration salts (negative adjustment).
Received 20 treated malaria nets from another health facility (positive adjustment).

Question 10

State the three types of logistics records

Answer 10

Three Types of Logistics Records
From a logistics point of view, only three things can happen to supplies in a pipeline—they can be stored, moved (in transit), or consumed (used
•Stock keeping records: Holds information about products in storage.
•Transaction records: Holds information about products being moved.
•Consumption records: Holds information about products being consumed or used.

Question 11

Why should we have stock keeping records?

Answer 11

Stock keeping records

What is the most important reason for having stock keeping records?
•They are used to record information about products in storage.
What essential data items do stock keeping records contain?
•They must contain the quantity of stock on hand; the quantity of losses; and the quantity of adjustments, by individual product.

What about the third essential data item, consumption?

•Usually, products are not distributed (dispensed) directly from the storeroom to the customer; therefore, actual consumption data is not collected on a stock keeping record.
•Issues data recorded at the lowest-level stock keeping record can be a substitute for consumption data, if those data are not available (for example, from a facility store to the dispensary).

Question 12

Who completes the stock keeping records? And where are entries made to stock keeping records

Answer 12

Who completes the stock keeping record?

•It is completed by anyone who receives or issues stock from storage, and by anyone who takes a physical inventory of the stock, including the warehouse manager and other warehouse staff, and service delivery point (SDP) staff.
•Pharmacies store stock; the staff should also use stock keeping records.
•The pharmacist and other pharmacy staff are responsible for completing these stock keeping records.

When are entries made to stock keeping records?

•They are recorded on the stock keeping record whenever products are received or issued.
•Entries are also recorded when stock is counted during a physical inventory, or as soon as a loss is noticed.
•When the stock keeping record is full, a new record is started, using the ending balance from the previous record

Question 13

How are data on a stock keeping record organized?

Answer 13

How are the data on a stock keeping record organized?
•They are organized by date and transaction reference (the unique number of the corresponding transaction record for a receipt or issue, and/or the name of the facility from which products are received and issued).
•They record receipts, issues, losses and adjustments, and the balance on hand.
•They also record the results of physical inventories (when items are counted to verify the quantity in storage).

Question 14

What is a bin card?
Where are they usually displayed ?
What parameters does a bin card contain?
Know how one looks like?

Answer 14

What is a bin card?

•The card should note the stock on hand of paracetamol for that lot only, as well as any losses and adjustments for that lot.
•Bin cards are usually displayed at the bins (or shelf or pallet position) where the lot is found.

It is an individual stock keeping record that holds information about a single product by lot number or batch number (see figure ).
•Every item in that lot will have the same expiration date. For example, one bin card would hold information about a single lot of paracetamol at a storage facility.

Parameters:
Commodity lot/batch number
Product name and description
Unit
Expiry date
Date
Transaction reference
Received from /issued to
Quantity received
Losses
Adjustments
Quantity on hand
Initials

Question 15

What is an inventory card?
What should it note ?
What’s the difference between an inventory card and a bin card ?

Answer 15

What is an inventory control card?

•It is an individual stock keeping record that holds information about all the lots of a single product.
•You should keep one inventory control card for each product.

The inventory control card may be a summary of many bin cards for a particular product. For example, one inventory control card could hold information about all the paracetamol in a storage facility.
•It should note the total stock on hand of paracetamol in the warehouse, as well as the total losses and adjustments, without regard to lot number or where the product is located in the warehouse.

Inventory card has a product code while bin card doesn’t

Parameters for inventory card
Product code
Product name (no description)
Unit
Expiry date
Date
Transaction reference
Received from /issued to
Quantity received
Losses
Adjustments
Quantity on hand
Initials

Question 16

What is a stores ledger
State the parameters for a stores ledger

Answer 16

is a stock keeping record that contains the same information as the inventory control card described above.
•Unlike inventory control cards, a stores ledger is bound like a book; it is used instead of the individual card format

Facility code number
Facility name
Type of facility(gov,ngo,etc)
Name of council/region
Date ledger book opened
Date ledger book closed
Ledger number
Dispensing unit
Unit of issue
Minimum stock quantity

Question 17

What is an issue and receipt voucher ?
An IRV should be completed in how many copies?
Where are they used?
Know how they look like
What is the flow of an IRV(check slide)

Answer 17

An IRV lists the items and quantity issued to a facility.
•It also includes a separate column for the quantities received in case any items are lost or damaged en route.
•IRVs are used in a push system; the issuing facility determines the quantity to be sent and issues the supplies to the receiving facility.
•An IRV is should be completed in triplicate (three copies).

Step 1:Issuing facility
Step 2:Receiving facility
Step 3:

Question 18

What is an RIVR
Difference between RIVR and IVR
Why is RIVR important?

Answer 18

What is a requisition, issue and receipt voucher?
•A requisition, issue and receipt voucher (RIRV) is similar to an IRV, except that the RIRV is used only in a pull system (if it is completed by facility staff)
•An RIRV lists the items and quantities requested by a facility. It also includes a column for the quantity actually issued.
•This is important in situations when it is impossible to supply the full amount requested.
•Like an IRV, the RIRV includes a column for the quantity received, which helps to account for any losses or damage enroute.

Question 19

How is the RIVR form completed
(Requesting facility,issuing facility,receiving facility)
Know the Requisition, Issue and Receipt Voucher Flow from the slide

Answer 19

Completing the RIRV Form

•Between two levels, RIRVs should be completed in quadruplicate (four copies) for requisition (pull) systems. See figure 2-8 for the diagram of the flow of an RIRV between facilities.
•The requesting facility completes the date and quantities requested for each item, signs the record, and sends the top three copies (1, 2, and 3) to the issuing facility; they keep the bottom copy (4) as a reminder that it has placed an order and is awaiting its arrival.
•The issuing facility fills the order, signs the form, and sends the top two copies (1 and 2) to the receiving facility, with the supplies; they keep the bottom copy (3) as a reminder.

Completing the RIRV
The receiving facility signs the form, verifies the quantity received, and returns the top copy (1). The receiving facility keeps the second copy (2) for its files and disposes of the reminder copy (4).
•The top copy (1) arrives at the issuing facility, which disposes of the reminder copy (3) and keeps the top copy for its files. Each of the facilities will have a completed copy of the RIRV for its permanent file. Because the transaction has only one RIRV number at both facilities, there should not be confusion when referring to the shipment.

Question 20

What other information can be included on a transaction record
Why should there be a space for comments
What does a daily usage log contain?

Answer 20

What information, other than the essential logistics data items, can you include on a transaction record?
•In addition to the item description and quantity of each item being moved, all transaction records should include dates, signatures, and a space for comments.
•The signatures indicate responsibility for and authorization of a transaction (by, for example, an accounting department or programme manager).

Limit the number of required signatures on a transaction record, if possible, to reduce the administrative burden and time spent collecting signatures.
•A space for comments should be available for recording any reason why the quantities shipped are different from the quantities received.

Date,client name or number,page total,running monthly total
Determine,Unigold,bionor (from slides)

Question 21

Under Sample Logistics Reporting System National Vaccine Program,how does summary report flow and how does feedback report flow

Answer 21

Summary report flows from the health center to the regional warehouse and health office to the central medcial stores

Summary report flows from the health center to the district health office and then to the national vaccine program

Feedback report flows from the central medical stores to the regional warehouse and the health office to the health center

Question 22

State the importance of procurement in the supply chain

Answer 22

Procurement is a critical part of the logistics cycle
• Procurement planning and the procurement process are important activities that ensure the correct products are available in-country and are ready for distribution when they are needed.
• Without procurement procedures and processes, you would not be able to meet the six rights.
•A procurement unit with staff also ensures that national procurement regulations and procedures are properly implemented.

Question 23

Name four key stakeholders in the procurement process and their functions

Answer 23

Key stakeholders in the procurement process

•The programme unit (i.e., the Family Health Division, National Malaria Control Program, etc.) usually determines what products need to be procured to support their programs.

•The National Drug Regulatory Agency (Food & Drug Authority) should be part of this process; this will ensure that the procured products are registered for use in the country.

Funding agencies are another important stakeholder in the procurement process (donor organizations, intergovernmental loans, or national treasury funds managed by the Ministry of Finance, each has procurement requirements as a condition of their support).

•Manufacturers are responsible for registering products in countries before procurement takes place

Question 24

What is a tender?
What is a bid
Who is a supplier
What is prequalification(WHO)
Supplier
Direct procurement
Indirect procurement

Answer 24

Key terms in health commodity procurement

•tender. The documentation and initiation of a process for soliciting bids; the specifications for the product/service desired and opening the contract to the bidding process.

•bid. A written offer for a quantity of goods, works, or services, at a stated price; based on technical specifications and other terms and conditions. Bids are submitted to a purchaser by an interested seller in response to an Invitation for Bids.

prequalification (WHO). This is a process of predetermining that a specific product, from a specific manufacturer, meets stated requirements. WHO prequalified products use their own mechanism to provide assurance of quality, especially for countries unable to undertake the process.
•supplier. The party that transfers goods out of its control and to a named recipient.
•direct procurement. Purchaser contracts for goods directly with a manufacturer or its representatives.
•indirect procurement. Purchaser contracts for goods through an intermediary that has or will purchase directly from a manufacturer.

Question 25

Explain the stages of the procurement process (stating the elements and critical link)

Answer 25

Programme planning(stage 1):
Elements:defining reproductive Health Supply,Specifications
assessment of Procurement Options budget, funding, and Procurement requisition
Critical Link: Funded Procurement Requisition(this is between stage 1 and stage 2)

Procurement process(stage 2):
Elements:Procurement Planning,
developing bidding documents and Inviting Offers,Selecting Suppliers,Contracts
Critical Link: Signed Contract and Payment Guarantee(between stage 2 and 3)

Performance(third stage)
Elements:Contract Performance and Monitoring delivery of goods
Critical Conclusion: Delivery and Acceptance of High-Quality Products

Question 26

State five key challenges faced in procurement

Answer 26

Key Challenges faced in Procurement

•accurate quantification/forecast data

•Lengthy procurement process

•delays in funding allocation and release

•Product quality assurance

•Transparency throughout the procurement process

Question 27

What does storage ensure?
What is an important goal in storage of health products
State and define four key storage activities

Answer 27

Storage and Distribution

•Products are stored at every facility in the pipeline; almost everyone working in the supply chain is responsible for product storage.
•Storage ensures the physical integrity and safety of products and their packaging, throughout the various storage facilities, until they are dispensed to clients.
•An important goal in storage of health products is the correct staging of health products to ensure that orders can be filled and distributed.

Activities-
Material receiving and incoming inspection: This activity occurs during the unloading of vehicles

•Put away: This process includes moving products from the unloading dock, or receiving area

•Picking and packing. To fill shipping requests (or picking lists), products must be located at the right places for onward shipping

•Shipping: To guarantee good shipping accuracy, the list of products and their quantities must be checked

Question 28

What is shelf life
State four basic questions on shelf life

Answer 28

Shelf life is the length of time from manufacturing date to the final date a product can be safely used, or the length of time that product can be stored without affecting its usability, safety, Some basic questions and answers on shelf life are— purity, or potency.

Some basic questions and answers on shelf life

•how important is the expiration date?

•What is the shelf life in my country?

•Why does shelf life change?

•Where can I find the shelf life for essential medicines, contraceptives, and other health commodities?

Question 29

Define these key logistics terms
Client,patients,customers,service delivery points,good,lead time,pipeline,
Where can goods be calculated ?

Answer 29

Clients usually refers to someone who receives a treatment or service. For example, they could be a family planning client and receive contraceptives; or they could be a client and receive a service, such as a test for malaria or TB.

•Patients is a term often associated with clinic patients receiving treatment for an illness, such as those in an antiretroviral therapy (ART) programme.

Customers is a term typically used by the private sector; it helps reinforce the concept of customer service. In public health programs, all users, clients, and patients are considered to be customers in the same way a commercial business thinks of its customers: the service provider, health center, and laboratory are there to serve the customer.
•Service delivery points (SDPs) are usually hospitals and health centers, but may also include mobile units, community-based distributors, laboratories, and health posts.

Good – used interchangeably with stock, commodities, supplies, products, and other terms to refer to al the items that flow through a logistics system

•Lead time - the time between when new stock is ordered and when it is received and available for use. This varies, depending on the system, speed of deliveries, availability and reliability of transport, and sometimes weather condition at the time of order/request

•Pipeline – the entire chain of storage facilities and transportation links through which supplies move from manufacturer to consumer, including port facilities, the central warehouse, regional warehouse, district warehouse, all service delivery points, and transport vehicles

Lead Time: The time between when new stock is ordered and when it is received and available for use. When logistics managers evaluate how well a logistics system is meeting the six rights, they measure the lead time and try to reduce it.
•Goods should be available to customers at the right time—before the customer asks for the product.
•It can be calculated within the entire in-country system, from arrival in port to the end user, between specific levels of the system, or even the procurement lead time from when a product is ordered with the manufacturer until it arrives in the port.

Question 30

Scare six key stakeholders In Logistics
Explain the healthcare triangle

Answer 30

Stakeholders
•Consumers
•Providers
–Hospitals
–Physicians and Clinics
–Long-term care facilities (e.g., nursing homes)
•Pharmaceuticals, Medical Device, Biotechnology firms
•Insurers
•Employers
•Government

Healthcare triangle:cost,access,quality
Get more info from internet

Question 31

Why is transportation necessary?
What is transport? What is transportation?
How is the problem of time factor solved?

Answer 31

Transportation is necessary to access goods, services and activities such as emergency services, health care, adequate food and clothing, education, employment, and social activities.

Transport in the supply chain
•Transport is part of the economic activity, which is associated with an increase in the degree of satisfaction of people and businesses by changing the geographical location of goods, services and people.
•Transport - means of satisfying needs through transportation of goods and passengers.
•Transportation - one of the key logistics functions

Transport in the supply chain II
•The time factor is that the product produced today may only be required after a certain period. Solve this problem by storing.
•The development of transport and transport technology allows entities to build further away from the production sites of consumption goods.
•Under market conditions, transport is always profitable.

Question 32

What three things are important in transportation
State five key issues in transportation

Answer 32

Availability of vehicles
•Maintenance of vehicles
•Ability to deliver on time

Key issues in Transportation
•Insurance cover
•Road worthiness
•Routine servicing noting all the renewal dates
•Professional drivers
•Fuel consumption – depending of capacity of usage

Question 33

What documents are needed jn transportation?(state five)
What parameters are seen in the introductory page in the transport log book ?
State six parameters in a sample vehicle log book

Answer 33

Generalized list of documents accompanying the goods:
1)Waybill.
2)Commercial invoice
3)Quality certificate if the goods are of industrial origin.
4)Quarantine certificate if the goods are of vegetable origin.
5)Certificate of origin.

Transport log book – introductory page
•Vehicle name/type
•Vehicle registration number
•Department
•Fuel card number
•Fuel type
•mileage

Vehicle log book:
Date
Time(Start,End)

Mileage(Start,end)

Journey details

Fuel in Litres

Driver(Name,sign)

Daily check complete

Question 34

What is a waybill?
The waybill serves as a basis for what four things?
State 8 data that waybill contains.

Answer 34

A document confirming the conclusion of the contract of carriage, which characterizes the cargo, its place of loading and unloading, the length of the route, and containing the mark of the consignor and consignee.

•As a basic document for shipping, waybill also serves as a basis:
–To write down of inventory from the shipper;
–For posting these inventory items at the consignee;
–To account for transport work and other services provided by the transport company for shippers and consignees;
– For settlements between the transport company and its clientele for services rendered.

Waybill contains the following data:
•Date and place of consignment;
•Name and address of the shipper;
•The name and address of the carrier;
• Date and place of acceptance
•The place designated for delivery (destination);
•Name and address of the consignee;
•The common designation of the nature of the goods and of his package, and in the case of transport of dangerous goods - they are usually taken by the designation;
• Gross weight of the goods or expressed in other units of measure the amount of cargo.
.The number of packages, the presence of special labeling numbering places
•Payments related to the carriage (carriage charges, supplementary charges, customs duties and fees) and other fees charged to the conclusion of the contract of carriage to the time of delivery to the consignee
•Information about the availability of instructions required to perform customs clearance procedures and other procedures.

Question 35

State five other additional information that Waybill may also contain

Answer 35

Waybill may also contain additional information:
•A statement that overloading during transportation is not permitted
• Payments that are required to implement the sender
•The amount payable upon delivery of the goods to be transported
•The declared value of the goods
•Sender’s instructions to the carrier regarding insurance of the goods
• Agreed by the parties of the contract period, during which the shipment
• A list of the documents handed to the carrier by the sender cargo. ,

Question 36

State some parameters in a sample waybill

Answer 36

Business waybill
Date
Packing list

SOLD To:
Name
Address
Country
Phone
Email
Client VAT
City,State ZIP

SHIP TO:
Name
Address
Country
Contact
City,State ZIP