msd medical stores department MEDICAL STORES DEPARTMENT : Performance Overview: Presented to DPG Cosmas Mwaifwani Ag Director General 12, April, 2014

msd medical stores department MSD 1994

msd medical stores department 1.0Introduction  Medical Stores Department (MSD) was enacted by Act of Parliament No.13 of  It is an autonomous entity under Ministry of Health & Social Welfare. With independent Board of Trustees MSD uses commercial principles for financial sustainability.  MSD has three main functions namely: a)Procurement b)Storage and c)Distribution of pharmaceuticals, medical supplies and laboratory reagents for public health.

msd medical stores department … Introduction Mission statement To make available, at all times, medicines and medical supplies of acceptable quality at affordable prices to all Tanzanians Vision Centre of excellence for health commodities supply chain in Africa Motto “Dedicated to save your life - Stock out no more” Values Respect, Integrity, Passion, Courtesy and Innovation

msd medical stores department ISO 9001:2008 Certification

msd medical stores department 2. MSD Organization Board of TrusteesDirector General DIRECTOR- Information & Communication Technology Director- Finance & Planning Director – Human Resources & Admin Director- Procurement Procurement Manager- Normal Procurement Manager- Support Services Procurement Manager- Lab Supplies Clearing Manager Director- Logistics Director- Customer Services & sales

msd medical stores department 3.0 Distribution Network

msd medical stores department 4.0Accomplishments- DD (Direct Delivery) DD to all health facilities in the country since July 1, 2013 Quarterly delivery to Primary health facilities Bi-monthly delivery to hospitals Delivery of ARVs not dependent on ILS circle Assessment of effectiveness of DD under way and report expected to be presented by mid- April by the consultant 50% of transportation for last Mile Logistics to be outsourced on phased approach Started a new distribution centre at Muleba to serve Geita and Kagera regions

msd medical stores department …Accomplishment

msd medical stores department …Accomplishments Medium Term Strategic Plan (MTSP) II Covers FY Redefined the mission and mission of MSD Developed 10 ten Objectives and 31 key initiatives to be undertaken Includes private sector participation Amends MSD Act no 13 of 1993 to accommodate changes

msd medical stores department …Accomplishments Warehouse Expansion The WiB turnkey solution has been delivered to Dodoma, Mbeya and Keko with 11,640 m 2 during phase I Phase II to cover Tanga and Tabora Value for money realized by MSD as reduced rented space by 12,000 m 2 MSDRentedTotal Total Space 1994 ( m 2 ) 7,453 Total Space 2014 ( m 2 ) 34,40615,00046,850 Optimal ( m 2 ) 60,000 Gap ( m 2 ) 13,150

msd medical stores department Front View of New WiB at DSM

msd medical stores department Front View -Dodoma WiB

msd medical stores department WiB View at Sunset- Mbeya

msd medical stores department Goods at Bin Location- Dodoma WIB

msd medical stores department …Accomplishments USAID Review completed June 2013 Organizational Restructuring September 2013 Improved procurement processes through framework contracts Increased Efficiency through change of incoterm from CPT(Cost Paid to Destination Port) to DDP (Delivery Duty Paid) Acquired ISO 2008: 9001 certification in respect of TQM systems in October 2013 Implemented Epicor 9 system as real time ERP Engagement of Private sector as backup of MSD supplies

msd medical stores department On going Projects  Construction of Tanga and Tabora WiB under GF support Distribution Route Optimization through USAID support for acquiring Llamasoft's Supply Chain Guru Software licenses and training Bar Coding Equipment for storage locations to support stock data management at operational plants through USAID Medium Term Strategic Plan review/ improvement 17

msd medical stores department 5.0Major Challenges 1.Stock out of essential medicines 2.Government Debt amounting to Tsh 76 B (USD 47 M) as on December 2013 caused by handling of vertical programme items 3.Increased needs for health commodities that does not match with budget allocations 4.Lack of local capacity to manufacture medicines and related medical supplies 5.Payment for logistics costs of donated commodities 6.Multiple procurement systems for health commodities 7.Weak quantification of health commodities

msd medical stores department 6.0Message to DPG Government Debt Development partners to re-capitalize MSD by injecting USD 47 Million being value of Government debt same way as it happened in 1994 when it was created Development partners to set aside funds for storage and distribution Multiple Procurement Systems Use of MSD procurement unit as one stop shop for health commodities

msd medical stores department New Head Office Under Construction- MSD Financed

msd medical stores department Thanks for Listening Special Thanks for their valuable assistance and support to MSD We are dedicated to save Tanzanians Life hence help us to turn the current challenges into profitable opportunities