Last 10 years of progress and an improvement agenda for the future

Transcription

1 GLOBAL HEALTH SUPPLY CHAINS Last 10 years of progress and an improvement agenda for the future Nov 15, th Global Health Supply Chain Summit Accra, Ghana

2 REFLECTING BACK We have made significant progress and most importantly, we have learnt a lot

3 Increased realization among government and international agency leaders that supply chain matters A stronger global health supply chain community with more solidarity Commercial sector supply chain companies more engaged in public health supply chains Increased interest and expanded distribution footprint from pharmaceutical companies in population/public health supply chains in developing countries Increased attention to global health supply chain issues by local & international academia Started nurturing supply chain innovation for public health and developing country needs SUCCESSES We should celebrate the areas where we have succeeded and maintain/expand the momentum

4 WE ARE DOING MUCH BETTER IN TERMS OF COLLABORATING There is always room for improvement

5 WE HAVE MADE CONSIDERABLE PROGRESS IN MULTIPLE TECHNICAL AREAS New tools, new solution approaches & new partners in each of these areas Source: Yadav 2016 for GFF

6 AREAS WHERE ARE STRUGGLING In some more, and in some lesser

7 Cost to Serve Asset Utilization Environmental Impact Replenishment Optimization Resilience Sourcing Optimization SC as strategic lever Sophisticated analytics End-to-End Visibility SC Planning Collaboration across the Chain Agility in decision making Sensing End Demand Signal Supply Chain Talent and Competency Aligned Performance Metrics Leadership commitment ARE OUR FOUNDATIONAL BLOCKS ROBUST? We can only build up from the right foundation

8 IN MOST PLACES WE ARE STILL MISSING THE MOST CRUCIAL SUPPLY CHAIN INPUT The end demand signal

9 1-3 year Once or twice a year Quarterly Monthly Quantification Procurement Budgeting SC Financial Planning Procurement Primary Distribution Last Leg Distribution VERY LOW FLOW VELOCITY AND LONG PLANNING CYCLES? We do extremely poorly as compared to best in class commercial benchmarks

10 Forecast Inaccuracy Time horizon to forecast for THE CURSE OF THE FORECASTING TRUMPET? Slow SC velocity creates need for longer term forecasts which are by design less accurate

11 Aligning the people, processes and technology that drive pull-based replenishment models Information Sharing and Better Contracting with Manufacturers Sophisticated Distribution Planning based on Demand Signal Daily delivery Store level scans SWITCH GEARS: COMMERCIAL RETAIL INDUSTRY What enabled the organized retail industry to significantly reduce out-of-stocks in the last 2 decades?

12 In-service training Pre-service training Other learning models SC Know-how SC Concepts & Skills SC Way of Thinking Intrinsic and Extrinsic Motivation Environment & Eco-system Habit Judgement Culture ARE WE CREATING STRONGER SC TALENT & CAPACITY? Value of SC learning & SC know-how depends on underlying factors that need to be addressed first

13 BUT WE ARE MOVING IN THE RIGHT DIRECTION Frequency of words in the talks at GHSCS-10, Accra, Nov 2017

14 BUT WE ARE MOVING IN THE RIGHT DIRECTION Frequency of keywords in SC country plans for FP2020 Source: Deborah Dull, BMGF

15 AFRICA RESOURCE CENTERS (ARC) FOR SUPPLY CHAIN EXCELLENCE 2016 Bill & Melinda Gates Foundation 15

16 AFRICA RESOURCE CENTERS (ARC) CURRENT STATUS West Africa ARC Centre Senegal based, to cover several countries in West Africa Active as of November 2016 for 2 years; transition to local firm thereafter Nigeria ARC Lagos based with representation in Abuja Active as of September 2016 for 5 years South Africa ARC & Support Centre Cape Town & Johannesburg based Support to NDoH-RSA Support Center to provide support and services to ARC hubs across regions Formal launch in Q3-2017

17 VISIBILITY & ANALYTICS NETWORK Visibility & Analytics Network (VAN) enables capturing and incorporating demand signal into SC planning processes at all levels in the supply chain Accenture Development Partnerships (ADP) (2015). Visibility & Analytics Networks (VAN) Project, Bill & Melinda Gates Foundation - Blueprint Reference Model

18 LOOKING TO THE FUTURE Are we aligned on where we need to work together the most?

19 OMNI-CHANNEL COMES TO PUBLIC HEALTH Supply chain models that cut across conventional publicprivate channel boundaries. Government become strategic purchasers of SC services Source: Magner & Yadav, 2017, Designing the Global Health SC of the Future

20 A DATA REVOLUTION IN THE HEALTH SUPPLY CHAIN Global health supply chains shifts to a data-abundant world Source: Magner & Yadav, 2017, Designing the Global Health SC of the Future

21 NEW TECHNOLOGY & INGENUITY BECOME MORE MAINSTREAM Source: Magner & Yadav, 2017, Designing the Global Health SC of the Future Global health supply chains shifts to a data-abundant world

22 RAPID URBANIZATION Supply Chain models to serve urban and rural markets? Source: Magner & Yadav, 2017, Designing the Global Health SC of the Future

23 OURS IS NOT WORK; OURS IS THE PRIVILEGE OF A LIFETIME Lets keep at it!!!