Commodity Distribution Optimization: Capacity Building and Supply Chain Assistance
In Nigeria, 97% of the population is at risk of infection with malaria. The Nigerian Government and National Malarial Control Programme (NMCP) have set a goal of reducing malaria morbidity and mortality by 50% by 2013. Strengthening the medical supply distribution systems is key toward reducing the malaria burden. To build support and capacity within the drug distribution systems it is necessary to understand the performance and costs of the current systems, and opportunities to enhance efficiency within this system.
A project team consisting of VillageReach, MIT-Zaragoza Programme, Transaid, and i+ Solutions assessed the supply chain and logistics for malaria commodities in all 37 states in order to optimize the performance of the transport and distribution systems for scaling up the malaria control program. With combined expertise in last mile logistics, transportation fleet management, and logistic systems modeling and optimization, the team provided a comprehensive assessment of Nigeria’s commodity distribution system and recommendations to increase efficiency in this system. The focus of this work was on ACTs and RDTs. The joint work covered an assessment of the delivery and transportation system, evaluation of the various distribution channels that may exist and their costs and efficiency, and recommendations on how to re-design the system for more optimal performance and provided limited technical assistance to implement the recommendations.
Framework on Distribution Outsourcing in Government-Run Distribution Systems
In 2010, VillageReach partnered with MIT-Zaragoza, Transaid, and DFID’s PATHS II project to develop a framework for considering and selecting outsourcing opportunities as a means of improving public sector pharmaceutical supply chain performance. The team developed a set of tools for modeling the potential cost and performance of outsourcing opportunities that can support the design and assessment of outsourcing policy proposals. The primary audience for this work is both developed and developing country policy makers and practitioners working in the pharmaceutical sector.
The approach was grounded by an application to the essential drug distribution with a drug revolving fund in the state of Kano, Nigeria. Applying the frameworks in Kano provided an opportunity to refine the conceptual frameworks based on a reality. The application also strongly supported the need for developing supply chain improvements through an iterative process consisting of specific analytical steps rather than an application of a formulaic mapping. The application of the model also served to validate the conceptual approach, and resulted in a series of recommendations for using and not using third party logistics (3PLs).
Read the Framework on Distribution Outsourcing in Government-Run Distribution Systems here.
