[e-drug] Logisitcs systems in the less developed world

E-DRUG: Logisitcs systems in the less developed world
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[Here is a long important message - an interesting angle to the problem. It does not address the problem of the organisation of the CMS itself (under the MoH) as a root cause, but recommends an inspectorate (how to make that non-corrupt?). Nor does it address the issue of appropriate quantification (ideally based on records of rational use) for procurement for maintenance of reliable supplies. Comments are encouraged. Moderator]

Boniface Fundafunda has raised the comment that the pharmacist is part of a
healthcare team. In many cases the pharmacist is launched into the supply
chain with minimal training in medical logistics and is then castigated when
the system works less than perfectly. This is in no way a snipe at the
competence of pharmacists but a suggestion as to how pharmaceutical service
delivery could be enhanced. As a team consisting of a Pharmacist and a
Medical logistician who have extensive experience in the Central and
Southern African environment we would like to submit our comments on the
need for a functional audit organisation outside of the health profession
but linked to pharmaceutical delivery.

"The establishment of sustainable medicines distribution systems in emerging
nations is a problem that has faced numerous governments and even more donor
funding entities.

Billions of Dollars, Pounds, Euros and other currencies have been poured
into the seemingly bottomless abyss. Regardless of the form of donation, be
it cash or kind, there is still a shortfall between the need and the deed.

The health systems in Africa in particular are littered with a history of
well-meaning consultancies and projects to upgrade warehouses, distribution
processes, stock accounting systems, and personnel skills.

Counteracting both donor efforts and the dedicated efforts of honest
hardworking local health professionals are the legions of less dedicated
people who are:

* Susceptible to bribery, corruption, intimidation,
* Involved in the drugs 'mafia',
* Disinclined to follow policy,
* Lazy,
* Have little incentive to perform a days work for a days pay,
* Susceptible to subtle or less subtle political pressure,
* Promoted beyond their capabilities as a result of nepotism or
political favouritism,

Exacerbating the already fragile local environments are donor organisations
scrambling for favour and publicity. Amongst the plethora of consultants
there are so called logisticians having:

* an academic perspective of the problem,
* a perception fixed into a grass roots paper based process that they
may or may not try to computerise, or
* a first world computerised/mechanised perspective of the problem.

One has to investigate the attitudes and capabilities of the health
personnel involved in drugs (medicines) distribution/storage. There are
dedicated health professionals genuinely trying to improve the lot of their
fellow man, but there are others to whom it is merely a job. The inherent
nature of health workers is to provide a service and let others worry about
the resources required. This plays into the hands of the less dedicated who
tend to exploit the situation to divert medical stores for their own gain.
The comment has oft been heard that "I am not a policeman" or "It is not my
job to investigate the discrepancy". It is true that the nature of a
caregiver is not normally accompanied by an aggressive or militaristic
attitude. In many countries the health care personnel are also not always
the best paid civil servants.

How then to combat:

* Bribery, corruption,
* Intimidation,
* A lack of attention to policy and processes to inhibit shrinkage,
* Laziness and lack of incentive to perform a days work for a days pay,
* Sheer weariness with an inability to fight existing defects in the system,
* The pressure of political pressure,
* The attraction of appointments based on of nepotism or political favouritism instead of ability and dedication.

At this stage one has to ask how theft and misappropriation of medical
stores can thrive in environments where medical treatment is either free or
supplied at minimal cost. One of the reasons could be that the more state
stock is diverted, the slower and more erratic the free treatment is. This
in turn feeds the need for a grey market supply chain.

The current focus is not wrong when it comes to:

* Training,
* Writing procedure manuals,
* Arranging quality contracts at favourable prices,
* Providing warehouses and other infrastructure to store and
distribute medical stores.

but,
There is however a total lack of attention to the cement that will hold the
whole process together.

Presupposing the existence of valid and complete policies and regulations,
there is a need for a body or organisation that is independent of the
operational process and has no ability to gain from its subversion, which
can monitor adherence to processes and measure output against expectations.

What would be the requirements for this body? The first would be to drop
all previous connotations with historic internal or external audit
processes. Many of these were flawed and staffed by cronies of the very
people that they were supposed to monitor. Similarly "monitoring and
evaluation" teams have the same inherent flaws. Ideally this
'inspectorate' would be manned by a rotating cadre of personnel to prevent
the building of illicit relationships. Countries that have community
service for professionals leaving university could well use young
accountants to perform these "functional process audits".

Suggested guidelines for formation and staffing this inspectorate could
include:

* Reporting to a department external to the health department, (Ministry of Finance maybe)
* Intensive functional audit training before deployment,
* Links or facilitated access to police anti corruption or criminal investigation services,
* No family links to the personnel in health units being monitored,
* Financial incentives based on identified shrinkage reduction,
* Absolutely no way to influence the outcome of medical tenders/contracts.
* Geographic rotation of postings on an annual basis
* Regular polygraph testing
* Background checking

The type of activities to be performed by the inspectorate would include but
not be limited to:

* Verifying adherence to policies and regulations.
* Tracing samples of transactions of incoming and outgoing stock with analysis of whether there are complete paper trails.
* Verifying receipt of all stock at institutions that has been dispatched from depots.
* Verifying stock-take transactions and compliance with stock audit processes.
* Investigating losses of stock in transit.
* Investigating unresolved stock-take discrepancies, be they surpluses or deficiencies.
* Investigate negligence as well as premeditated deviation from policy.
* Analyse stockholding levels to determine if excess stockholdings exist.
* Investigate dead stock.
* Analyse problems in warehouses - poor security, poor stock management, power supply interruptions, running fridges off UPS etc

Investigations should not only identify deviant activity but should also
identify perpetrators, apportion blame, and recommend corrective action.

In order to understand the reasoning used, the following needs to be
explained. Computer stock accounting systems must be defined in one of the
two following categories.

a. Post posting

This is a recording system whereby the transaction, be it an issue or
receipt is recorded on the system, regardless of the running balance on the
ledger (bin card). This system allows the running balance to run into a
negative balance and depends entirely on the actual shelf quantity. This
system is favoured by organisations that prefer a less disciplined approach
for reasons of ineptitude or dishonesty.

b. Pre posting

This is a stock management accounting system whereby the ledger balance
predominates. Issue vouchers are based on the requisition quantity and the
quantity recorded on the ledger. Shrinkage from the shelf causes an
inability to fulfil the issue voucher and requires immediate investigation.
This system tends to be the better for combating illicit and negligent
processes

As a progression from the pre-posting system one needs to progress to an
integrated system whereby the issuing of stock from one entity creates an
electronic expectation of a receipt at the receiving entity.

The more integrated the system, the more difficult it is to hide shrinkage.
There will be tremendous efforts on the part of criminal and lazy parties to
discredit and or sabotage the system.

In the absence of integrated systems there is a strong administrative need
to implement "proof of delivery" documentation. Proof of delivery either by
integrated systems or administrative documentation is only as effective as
the persons executing the tasks.

Always remember that one cannot computerise chaos. People have too high
expectations, as computers are seen as the answer to all problems.

E-DRUG: Logisitcs systems in the less developed world (2)
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Dear colleagues,
I do accept that traditionally pharmacists have often been 'thrown into' the responsibility for logistics and supply chain management. Quite often the pharmacist is not provided the relevant training to manage and operate logistics and supply chain management. This is a professional area that has direct applicability to pharmacy, given that the pharmacists is the custodian for medicines in the health sector.

To a great extent the pharmacist and other health workers tend to manage as best as they can, with the support created by governments to strengthen this service area, moving beyond basic linkaging of drug consumption data at a health facility with ordering of medicines from a central medical stores.

The complexities that are now increasingly acknowledged require that logistics and supply chain management become recognised as an area of capacity building in the health sector, as well as creating the relevant governance structures to support this service.

In most developing countries, logistics and supply chain management is not an established service within the civil service (on the contrary, however, this situation does not often apply to these countries' defence forces which tend to be up to speed in this area). Yet we see that any one ministry of these governments operate a large fleet of vehicles, move a whole load of goods each year in the country. In some cases, if not in all, these countries will even have a 'Ministry for Works and Transport' which in fact has no professional basis for the 'transportation' service. Quite often, therefore, there is no specialised logistics and supply chain management office in their public sector. Hopefully this situation is changing.

As a reaction to this situation, we have seen in the health sector the development of logistics and supply chain management, packaged together or under the 'commodity security' concept (accurate forecasting, assured funding, firm procurement or contracting arrangements). Numerous training programmes (taught and self- taught; online and in class) are now available, since the groundbreaking inception of this subject by programmes such as the Essential Drugs Programme and training resource creation by institutions such as Management Sciences for Health. Today more and more pharmacists are considering specialising in logistics and supply chain management to strengthen their role in this professional area. These developments have expanded given the urgency that is public health.

In Zambia we are in the process of programming an improved logistics programme whose details are available from MOH. To that, as a condition of the programming, the Ministry will also be researching into the use of electronic digital systems for data management and communication as an enhancement to the programme.

Where medical stores exist and are responsible for warehousing and distribution of the essential medicines and related products, it makes good sense to consider using this institution as the lead in national national logistics and supply chain management in the health sector, working hand in glove with the Health office and its hospitals and the relevant administrative offices across the sector.

As part of the improvements of public health sector logistics and supply chain management in Zambia, the focus and specialisation in logistics and supply chain management shall be fully centred at the Medical Stores Limited (MSL), whose primarily client is the Ministry of Health. MSL has been providing this service since its inception, but due to the lack of recognising this as a professional service, MSL was never, in my opinion, recognised as the lead that it can be in this service area, within the public health sector. Increasingly government has appreciated this service, and so are many of the cooperating partners who support the use of national systems.

There is much to do, specifically since Zambia' public health sector committed to and started implementing its Governance Action Plan, as part of its global Governance and Management Improvement Plan.

Regards,

Bonnie

Bonface Fundafunda PhD., MBA., B.Pharm
Manager, Drug Supply Budget Line
Ministry of Health,
P.O. Box 30205,
Ndeke House,
Lusaka,
Zambia
Tel: +260 211 25 41 83
Fax: +260 211 25 33 44
Mobile: + 260 979 25 29 00
Email: bcfunda@hotmail.com

E-DRUG: Logistics systems in the less developed world (3)
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Dear colleagues,

The issue of pharmacists' level of skill in logistics and supply management has been around for some time now.
Personally I do not subscribe to this school of thought fully as I believe the level of a pharmacist's
engagement in core logistics and supply management especially at the health
facility level is very basic.

Having worked in 4 sub-Saharan countries in the
area of pharmaceutical management, I can say with a high level of certainty
that things go wrong mainly due to lack of logical reasoning, honesty and
responsibility on the part of people at the operational level and lack of
focussed leadership by the respective MOH managers.

I believe creating and maintaining accounting systems at the health facility level has to do with attitude and commitment and less to do with simple arithmetic skills of counting stocks, recording them and reporting to the higher levels. That notwithstanding I recognise that
pharmacists working at the central level need additional skills to do forecasting,
quantification, warehouse management and procurement.

terms of actual practice have been utterly idiosyncratic.

For systems to work optimally I believe leadership from the MOH managers and commitment by pharmacy personnel at all levels is very critical. Using anecdotal evidence, some MOH managers
rely on the system to make only political decisions and do not uphold the
vision of achieving professionally driven and technically competent pharmaceutical
supply chain systems that might not be offering immediate political gains; this has to change. The
big question would be how to change this inherent and undesirable culture where people have the
knowhow and resources yet things do not work as expected???

Regards,

Job Muriuki
ACTS/Procurement Specialist,
SCMS
Botswana
JOB MURIUKI <drmuriuki@yahoo.com>

E-DRUG: Logistics systems in the less developed world (3)
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Dear colleagues,
I hereby wish to clearly affirm and clarify that the opinion
expressed in my response to this topic was purely personal. The comments do not
in any way reflect SCMS organisation or Botswana field office views on
the issues highlighted.

Regards,

Job Muriuki
Botswana
JOB MURIUKI <drmuriuki@yahoo.com>

E-DRUG: Logistics systems in the less developed world (5)
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Logistics and Procurement and Supply Management in essential medicines
programs are widely recognised as needing attention.

I wish to make a few points based on my own experiences.

Efficient management of all parts of the procurement cycle is important
but I believe accurate quantification is the key to reliable maintenance
of stock.

Stock-outs are common. Staff, communities and the media complain.
Stock-outs are blamed on long lead times (eg 6 months), poor supplier
performance, not enough money from finance or slow release of funds,
even corruption .......
I believe the problem is basic housekeeping - like working out much milk
you need to keep in the fridge.

Sometimes an allocation system that has been in place for a long time
has been partly responsible for the stock-outs - and for over stocks and
expiry. A standard allocation system can breed bad record keeping. In
some cases, at the national or program level there have been allocations
for procurement set in stone for years and the procurement people are
often not pharmacy people - they just look at and order numbers.

Staff working in remote and less remote clinics include nurses, pharmacy
assistants and other health workers. Medicines management is unlikely to
have been part of their formal training.
It has been found that staff in some cases had not previously thought
there could be a link between what is used and how records are kept and
their stock maintenance.

A reliable supply of essential medicines is possible.
How do you achieve that?
The use of an essential medicines list based on standard treatment
guidelines is not only the most efficient way to use the money that is
available and to provide safe and reliable treatment, it can also ensure
that appropriate medicines will always be available.

Well kept patient records and stock records are the basis of reliable
supply both to the individual health facilities and to the main medical
store.
Adherence to the standard treatment guidelines and documentation of
patient's medication prescription provides important information on
which to base procurement of future supplies. Aggregation of the
information from health facilities can enable quanitification for a
whole program. (Of course buffers are needed for program expansion or
emergencies.)

To be able to predict what will be used in the future it is imperative
that medicines are used according to standardised guidelines.If
prescribers continue to prescribe outside the guidelines it is
impossible to predict future needs.Procurement of reliable supplies
depends closely on predictable use of supplies.

If records are built up as explained, a fairly good estimate of typical
needs will develop.

One way is to calculate how much of each medicine was issued over the
last few months. As we explained before we need to ensure that medicines
are used appropriately and that good records are kept in the facilities
where the medicines are used.A second way is to have a regular stock
level of quantities to order but that stock level must have been
calculated from records of appropriate use and it must be reviewed
regularly.

*//*

*Beverley Snell*

Principal Fellow
Centre for International Health
Macfarlane Burnet Institute for Medical Research & Public Health
GPO Box 2284, Melbourne 8001 Australia
http://www.burnet.internationalhealth.edu.au
Telephone 613 9282 2115 / 9282 2275
Fax 61 3 9282 2144 or 9282 2100
Time zone: 11 hours ahead of GMT.
email<bev@burnet.edu.au>
Site: Alfred Medical Research & Education Precinct (AMREP),
85 Commercial Road, Prahran 3004

E-DRUG: Logistics systems in the less developed world (6)
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Hi Beverley

I have to say I agree with you. My company is helping to address the issue
of stock-outs in health facilities using our technology platform known as
mango. We currently use mango to support the SMS for Life program in Kenya,
Ghana and are about to start in the DRC. The program gathers stock related
data from health facilities on a weekly basis using sms messages. The data
in those messages feeds straight in to reports, charts and maps that can be
accessed by any authorised user at anytime from anywhere that they can
access the internet. These enable the local ministry of health officials to
make real time decisions about stock redistribution and reordering, identify trends and potential bottle necks and make realistic plans for the future. Weekly reports are automatically sent by email to district health officers giving them that weeks figures for the facilities in the their district and they can access the system directly from those reports if they have internet access.

We use the same system to capture surveillance data relating to appropriate
treatment rates: when combined with the stock data it gives a very clear
picture of what is happening in the health facilities, helps to reduce
stock-outs and helps to identify issues related to appropriate use of the
stock.

I'd be happy to share details of our work with anyone interested in finding
out more: my contact details are as follows,

Andrew Wyborn
Managing Director
Greenmash Ltd

t. +44 773 089 8802
e. andrew.wyborn@greenmash.com