CLICK TO ADD TITLE The 5th Global Health Supply Chain Summit November 14 -16, 2012 Kigali, Rwanda   CLICK TO ADD TITLE Angola - Opportunities Gained through Risk Management Chris Warren [SPEAKERS NAMES] [DATE]

The USAID | DELIVER PROJECT Increases the availability of essential health supplies, including malaria commodities around the world TO7 provides technical assistance to the President’s Malaria Initiative (PMI) in its an efforts to reduce the worldwide burden of malaria Our Motto – No Product, No Program

Aeroporto Quatro de Fevereiro, Luanda, Angola

First Deliveries: Unexpected Risk The Luanda Air Cargo Terminal Warehouse- When freight arrives here it is normally held for 3-4 days until it is cleared. This can be longer if shipments are divided over multiple flights because clearance won’t start until everything arrives And this is what happened with the first shipments of malaria commodities. Not only that but our Palletized loads were broken down by the airline in order to maximize the cubic space on the aircraft and individual cartons of our cargo ended up being mixed up with goods from other shipments. Then, upon arrival in Luanda, everything was transferred to the terminal warehouse. And This lead to the ultimate complication………..the complication being that In June, 2008 358 cartons of ACTs, valued at over $200 thousand could not be found at the warehouse. The shipments were insured so the risk was deflected somewhat. But that didn’t do much to address the fact that life-saving Malaria products were no longer going to be available where they were needed This experience lead to decision – to no longer use commercial airlines for ACT delivery

Subsequent Deliveries: Avoiding the Risk

Delivery Complete - Risk Avoided Risk Avoidance as a Moving Target

Extending the Chain of Custody Risk Deflection Extending the Chain of Custody

Security Transportation Warehousing New Responsibilities Security Transportation Warehousing And though the plan was to minimize central level storage and quickly push products to the provinces a warehouse still needed be used for a few weeks as the various shipments from different suppliers arrived To increase security oversight during these operations the project contracted a security firm. This firm verified the quantities unloaded from the aircraft, monitored unloading into the warehouse and guarded containers during truck loading With One freight forwarder vendor used air freight and provincial distribution there were limited breaks in the chain of custody The warehousing and distribution operation I’ve described so far required up to 25 days from the time the first commodities arrived in the transit warehouse until the last of 18 provinces had received their product. The project managed receipt and distribution this way twice. No furhter losses occurred and product reached consignees quickly. But at the project, we thought that improvements could still be made to continue to manage the risk but also to reduce costs, and time requirements

Risk Management Leads to Innovation suppliers pack orders by province air charter facility used to consolidate freight orders from suppliers delivered here within a few days of each other various commodities, already labeled by province by their supplier, are assembled into provincial consignments

Provincial delivery

Risk Management Benefits in Angola No subsequent thefts Overall cost reductions The amount of time between commodity arrival in country and delivery to consignees was decreased by eliminating the use of a transit warehouse in Luanda Chain of custody strengthened

Thank you. If you have any questions I would be happy to try to answer them now. Thank You