Logistics Management In Health Flashcards
Define Logistics Management
Logistics management is the governance of supply chain management functions that helps organizations plan, manage and implement processes to move and store goods.
The Council of Supply Chain Management Professionals (CSCMP) defines logistics management as
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
why logistics is important for all health programmes
Why logistics matters
Why Logistics Matters
•Increasing programme impact
•Enhancing quality of care
•Improving cost effectiveness and efficiency.
Increasing programme impact
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
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 staffs 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.
Logistic system
Logistics System
•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.
The Six Rights of Logistics
The Six Rights of Logistics
•The RIGHT goods in the
•RIGHT quantities in the
•RIGHT condition delivered… to the
•RIGHT place at the
•RIGHT time for the
•RIGHT cost.
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
Logistics Cycle: Organizing Logistics System Activities
Logistics Cycle: Organizing Logistics System Activities
•major activities in the cycle
• heart of the logistics cycle
•quality monitoring of the activities
• logistics environment—policies and adaptability of the system.
Major activities in the logistics cycle
Major activities in the logistics cycle
•serving customers.
•product selection.
•quantification.
•procurement.
•inventory management: storage and distribution.
Heart of logistics cycle
Quality monitoring of activities
Quality monitoring of activities
•Between Product Selection and Quantification & Procurement.
•Between Quantification & Procurement and Inventory Management.
•Between Inventory Management and Serving Customers.
•Between Serving Customers and Product Selection.
Policy and adaptability
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.
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
Logistics Management Information System
A logistics management information system collects, organizes, and reports data that enables people to make logistics system decisions.
Essential data for descision making
The questions might include the following:
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?
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?
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.
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).
