Assessing Logistics System Supply Chain Management 1

What is the purpose of conducting logistics assessment Assess the entire system’s strengths and weaknesses Present the results of your assessment to managers and policymakers Present your recommendations for eliminating weaknesses Propose an implementation Plan based on the recommendations 2

Reason for conducting logistics assessment SC assessments are carried out for a number of reasons: Determining whether the commodity needs of a new program can be met reliably Identifying logistics problems related to product category Tracking logistics performance over the course of a program Improving supply chain performance and, ultimately customer service 3

Steps in planning for an Assessment (1) Determine what you want to learn from the assessment Identify indicators Design your assessment and develop the methodology to collect the data Confirm resources for assessment Design and adapt an assessment tool with indicators Train data collectors on the use of the tools Determine size of your team Determine the length of time for the assessment Pilot test your tool and method Schedule site visits 4

Steps in preparing for and Assessment (1) Conduct site visits or interview key informants Analyze data and calculate indicators Draft a report of your findings Present your findings and recommendations Finalize report and disseminate Prepare an implementation plan 5

Examples of Indicators of logistics system performance (1) Average duration of stockouts Frequency of stockouts Percent of stock expired or damaged Percent of facilities holding stock within max- min levels 6

Examples of Indicators of logistics system performance (2) Percent of facilities reporting Percent of reports received on time Frequency of emergency orders Percent of physical inventory counts that match records 7

Examples of Indicators of logistics system performance (3) Length of lead time vs. expected lead time Percent of storage facilities in compliance with storage guidelines Accuracy of forecast Existence of an adequate multi-year procurement plan Stakeholder commitment to procurement plan 8

Examples of tool to assess logistics Systems and lab services 1. Logistics System Assessment tool (LSAT) 2. Logistics Indicator Assessment Tool (LIAT) 3. Assessment Tool for Lab Services (ATLAS) 4. ISO accreditation assessment tool ( e.g. ISO 15189) 5. SLIPTA check list for WHO/AFRO SLMTA SLIPT – stepwise laboratory improvement process towards accreditation SLMTA – strengthening laboratory management towards accreditation 9

Exploring the Tools – Group Exercise (LSAT, LIAT & ATLAS) 1. What is the purpose of each tool? 2. At what levels of a logistics/laboratory system does each tool apply? 3. What kind of data does each tool collect? 4. What are the necessary steps to implement each of these tools? 5. What are the benefits of using these tools? 10

LSAT Can…. Provide comprehensive view of all aspect of logistics Be used as diagnostic tool to identify logistics and commodity security issues and opportunities Raise collective awareness and ownership of system performance and goals for improvement Be used by country personnel as a monitoring tool Provide input for work planning 11

Analysis of collected information using LSAT Develop a consolidated summary (strengths and weaknesses) Compare finding of the current and prior year LSAT (if done previously) note significant changes Identify key conditions or circumstances that will influence the choice of objectives and interventions Identify your objectives and reevaluate objectives from last year Select interventions based on priority, feasibility and availability of resources vs requirements 12

Using LIAT LIAT can be used to calculate the following core indicators: Accuracy of logistics data for inventory management Percentage of facilities that receive the quantity of products ordered Percentage of facilities that maintain acceptable storage conditions Percentage of facilities whose stock levels ensure near-term product availability (stock status) Percentage of facilities that experienced a stockout at any given time or at the time of visit 13

Analysis of data collected using LIAT Data analysis can be challenging due to limited time for calculations and organizing the results Data analysis collected with a LIAT generally follow the associated LIAT indictors, M&E indicators for Assessing logistics Systems performance Data analysis should begin immediately following entry and cleaning Data analysis may take time depending on the software available for analysis and when the results are needed Statistical software packages –SPSS, SAS and STATA –designed to allow analysis to deal with large amounts of data in a short time 14

Using ATLAS ATLAS can be used to determine: Tiered levels of laboratory network in the country Types of laboratory services provide at each tiered level of the network Instrument performance and downtime as well as maintenance performance Availability of reagents at any level of the network for continuous services National policy on standardization and harmonization of test offerings 15

Benefits of ATLAS ATLAS provides strategic level information on: Compliance to clinical standard operating procedures Human resource capacity at each level of laboratory network Data to inform the development of National Laboratory Strategic Plan (NLSP) at the country level Development of harmonized instrument list and standardized test profiling 16

Analyzing Data Quality “Garbage –in = Garbage Out” concept For the both qualitative and quantitative data – always important to look at it with a critical eye Collected data should be evaluated at all times no matter what source Quality Data = accurate evaluation of what is actually occurring in the system 17

What is your role as a laboratory logistics manager (1) Planning for the assessment Identify the type of assessment needed (supply chain or lab services) Identify tools to be used for the assessment Train data collectors on the tool Clean up data before analysis Analyze data Interpret the data 18

What is your role as a laboratory logistics manager (2) Identify strengths and weaknesses of the logistics system Prepare a report of the findings Disseminate the finding to stakeholders with recommendation Develop an implementation plan/strategy 19

Characteristics of an implementation plan/Strategy (1) Consistent with the program’s policies and procedures Focuses on objectives and interventions with greatest needs, greatest likelihood of success, and available resources 20

Characteristics of an implementation plan/Strategy (2) Focuses on priority areas and feasibility Includes Key assumptions underlying each intervention Includes indicators for measuring progress towards completing the interventions 21

Any questions? Thank you!! 22