CLICK TO ADD TITLE [DATE][SPEAKERS NAMES] The 5th Global Health Supply Chain Summit November , 2012 Kigali, Rwanda Private Sector Supply Chain Performance Measurement & Benchmarking Lara Haigh

Agenda Supply Chain Performance Measurement & Benchmarking in the Private Sector –Use of Performance Measurement & Benchmarking –Supply Chain Costs as % –Benchmarking Report At RTT –RTT Drivers & Metric examples –Implementation of measurement system –Benefits & Ongoing Challenges Case Study –Contact Center Service Levels –Inventory Accuracy –Impact on Sales Conclusion

Supply chain Performance Measurement & Benchmarking in PVT Sector Performance measurement is the process whereby an assessment of an act or performance is measured by some means, whether this is by a measurement of time, value or quantity. Constantly reviewing to identify where improvements can be made or deficiencies eliminated Benchmarking often accompanies performance measurement and can involve 3 types –Internal –External –Competitive

Use of Supply Chain Performance Measurement & Benchmarking Performance to standard measures such as on-time delivery, fill rate, lead times Supply chain costs and cost saving initiatives Enhance working relationship between vendor and customers Performance metrics enables executives to perform gap analyses and identify areas needing improvement: –Delivery performance metrics –Cycle time metrics –Inventory to cash management metrics –Supply chain costs metrics

Supply Chain Costs as % of Sales for Pharma and OTC Distributors

Benchmarking Report

RTT drivers for implementing measurement system Client changing expectations Customer surveys RTT Best of Breed credo Economic pressures

RTT metric examples

Implementation of measurement system IMS data Principle requirements Customer Satisfaction

Benefits of Performance Measurement & Benchmarking for RTT Performance Measurement & Benchmarking has accelerated change and improvements, whether in processes or service implementation Implementation of benchmarked standards has reduced costs by improving overall efficiencies Led to new Client partnerships Cost versus Service trade off comparisons within market – confirming correct strategy in place Refinement of internal RTT procedures

Ongoing challenges for RTT Apple to Apple comparison mistakes International standards – compared to country standards Finding benchmarking partners willing to participate in benchmarking studies Private sector focus – reduce costs, increase profits, enhance customer satisfaction

Case Study - Contact Center Service Levels Low Abandoned Calls (Often added to Service Level: Abandoned Calls can be defined as the percentage of callers who elect to hang up, or abandon, waiting in the queue and before an agent answers the call) Few Calls not answered within 10 Sec Maintaining a firm handle on our Contact Center metrics is not only crucial to the success of our company, but it’s also critical to ensuring that the clients and customers we serve receive the service they need as quickly as possible.

Case Study - Inventory Accuracy Bar code scanning, or RF scanning, has has become an integral part of our warehouse. The Benefits: Inventory Accuracy Despatch Accuracy Reduction in Deviations Negative Impact: Cost Speed

Client Case Study – Impact on Sales Access to larger delivery footprint Client can focus on core business Customer satisfaction due to better service delivery Client own has no measurement metrics other than sales, changed when entered a service focus metric environment

Conclusion Measurements related to business management Route cause diagnoses Specific and sensitive Analysis vs. Action