Logistics Flashcards
Explain logistics management
Explain how the restaurant is like a logistics system
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
Explain three reasons logistics matters
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.
State the six rights of logistics
What is the right cost of a donated item ?
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.
How do you organize logistics system activities
Explain what the LMIS does in logistics
What is the typical public sector In country supply pipeline
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
State five major activities in the logistics cycle
serving customers
•product selection
•quantification
•procurement
•inventory management: storage and distribution
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 ?
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
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
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
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
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?
What three data are essential for logistics?
Define them and give an example each
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).
State the three types of logistics records
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.
Why should we have stock keeping records?
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).
Who completes the stock keeping records? And where are entries made to stock keeping records
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
How are data on a stock keeping record organized?
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).
What is a bin card?
Where are they usually displayed ?
What parameters does a bin card contain?
Know how one looks like?
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
What is an inventory card?
What should it note ?
What’s the difference between an inventory card and a bin card ?
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
What is a stores ledger
State the parameters for a stores ledger
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
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)
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:
What is an RIVR
Difference between RIVR and IVR
Why is RIVR important?
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.
How is the RIVR form completed
(Requesting facility,issuing facility,receiving facility)
Know the Requisition, Issue and Receipt Voucher Flow from the slide
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.
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?
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)
Under Sample Logistics Reporting System National Vaccine Program,how does summary report flow and how does feedback report flow
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
State the importance of procurement in the supply chain
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.
Name four key stakeholders in the procurement process and their functions
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
What is a tender?
What is a bid
Who is a supplier
What is prequalification(WHO)
Supplier
Direct procurement
Indirect procurement
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.
