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Edward Wilson John Snow, Inc. International AIDS Conference 2014

Getting Products to People: Commercial Sector Segmentation Analysis Helps Build Integrated Public Health Supply Chains. Edward Wilson John Snow, Inc. International AIDS Conference 2014.

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Edward Wilson John Snow, Inc. International AIDS Conference 2014

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  1. Getting Products to People: Commercial Sector Segmentation Analysis Helps Build Integrated Public Health Supply Chains Edward Wilson John Snow, Inc. International AIDS Conference 2014

  2. Strong supply chains have collateral benefits for a health system. They help build the foundation for a strong pharmaceutical management system, provide essential information for managing health programs and financing mechanisms, and help to achieve the level of accountability exemplified in the commercial sector. “Much of the world’s burden of disease could be prevented or cured. There are known, affordable technologies to achieve this. The problem is getting those drugs, vaccines and other forms of prevention, care or treatment to those who need them—on time, reliably, in sufficient quantity and at reasonable cost.” - World Health Organization (WHO)

  3. Well-operated supply chains are critical to achieving an AIDS free generation • Public health programs manage 1000’s of products to many types of facilities. • Storing, distributing, or dispensing all these products in the same way, does not ensure product availability Source: John Snow, Inc.

  4. Segmentation uses data to make rational decisions about how to manage and distribute multiple products in the supply chain – whether to manage different programs’ products in the same way/jointly or differently/separately

  5. Segmenting Lab Products in Zambia • Lab system designed in 2007, creating different segments: • Analysis conducted of various product characteristics • Distinct resupply procedures developed for fast and slow moving reagents • Different shipping methods applied for short shelf life products; Courier agency (UPS) contractedto distribute to sites within 72 hours of arrival to central warehouse • Prior to 2007, laboratory products for HIV programs were frequently stocked out leading to service interruptions Background Approach • Separate segment for short shelf life controls considered supply chain success story • Product availability increased from 30% to 95% Results

  6. Segmenting By Health Facility in Zimbabwe • Over last 10 years, designed and managed four distinct supply chains, distributing a wide range of products, including antiretrovirals, contraceptives, test kits Background Approach • To reduce costs and encourage greater involvement by health facilities in commodity re-supply, 2 segments designed: • Analysis conducted of various facility needs • Assisted pull system designed for primary health care facilities – facilities submit orders (with assistance), and are resupplied • Direct delivery truck designated for large hospitals • Pilot ongoing (2014-2015), still completing first round of ordering. (Results forthcoming) Results

  7. Conclusions and Next Steps • Products and customers have different characteristics • Supply chain segmentation can improve service levels and/or efficiency across products and customers • Segmentation can also facilitate merging disparate program supply chains into a common supply chain under one common control structure • Additional study is ongoing on the cost savings of segmentation and on documenting the segmentation process for public health supply chains • Supply chain segmentation can support HIV program efforts to address incidence hot spots

  8. Acknowledgements • The Government of Zambia • The Government of Zimbabwe • PEPFAR • USAID • The USAID | DELIVER PROJECT • The SCMS Project

  9. For more information, please contact us at:John Snow, Inc.1616 N. Fort Myer Drive, 16th FloorArlington, VA 22209 USATel: +1-703-528-7474Web: www.jsi.com

  10. Suite of materials for decision makers and practitioners Reference Materials (click on images to download or visit www.jsi.com)

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