Supply Chain Management
Supply Chain Management in MoHFW
A Presentation December 05, 2009 By EPW
Supply Chain Management
The Supply Chain consists of the following
BUDGETING PLANNING PROCUREMENT WAREHOUSING DISTRIBUTION CONSUMPTION Compilation Submission & Approvals Monitoring Supplies & advising Procurement for issuance of Release Orders Issuing Release Orders & Ensuring Supplies in co-ordination with Suppliers MIS & Reporting Monitoring delivery at despatched location Issue ; Stock reconcillation & MIS
Valuation
Generating Procurement Requirements
Signing Contracts
Stock Management
Despatch & Transportation
Stock Magement
Ascertaining the Requirements
Compiling & evaluating the Pipeline
Evaluating Offers
Storage
Picking ; Repackaging & Issue
Storage
Quantification
Measuring Stock Levels
Tendering
Reciept
Receiving of Release Orders
Reciept
Supply Chain Management
BUDGETING
PLANNING
PROCUREMENT
WAREHOUSING
DISTRIBUTION
CONSUMPTION
Areas We Need to Strengthen
THESE SHALL IMPROVE EFFICIENCY & REDUCE COST
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Supply Chain Management
Present Supply Chain Management System
CURRENT SUPPLY CHAIN FLOW SUPPLIERS AND/OR GMSD
STATE AND/OR DIVISIONAL WAREHOUSE
REGIONAL DRUG WAREHOUSE AND/OR DIVISIONAL WAREHOUSE
DISTRICT STORE
DISTRICT STORE
DISTRICT STORE
FACILITY
FACILITY
FACILITY
FACILITY
FACILITY
FACILITY
FACILITY
FACILITY
FACILIT Y
With each district warehouse multiple facilities are associated.
Supply Chain Management
Improving Efficiency in Supply Chain
Creation of Planning Cell.
Generation of Right Information. Capacity Building of Warehousing Facilities. Creation of New Warehousing Facilities. Introduction of LMIS in ProMIS.
Monitoring & Measuring Consumption Data.
MIS & Re-conciliation.
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Supply Chain Management
Improving Efficiency in Supply Chain
>In
Order to Access Capacity & Improve overall Efficiency in Supply Chain Management Sciences for Health is developing the following Tools:
Logistics Assessment Tool. Inventory Management Assessment Tool. Procurement Services Assessment Tool.
( EPW Team shall be using these tools for all the States )
Supply Chain Management
Current Procurement System & Issues
Supply Order value (2009-10) as on December 01, 2009
UIP: 196 crores NVBDCP (Malaria): 41 crores RNTCP (TB): 44 crores SSM (Family Welfare): 174 crores RCH (Kit A&B): 206 crores
Total: 661 crores
Direct Procurement by EPW- SSM (family welfare, contraceptives), UIP (vaccines), PD (equipments for hospitals, NVBDCP) [requirements
from Programme divisions]
Source Procurement Management Information System (ProMIS)
Procurement through PSA for NVBDCP, RNTCP, RCH, NACO MSO procurement of CGHS supplies are excluded from ProMIS
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Supply Chain Management
Challenges faced in Supply Chain
Inaccurate quantification: More of Push System instead of Pull System Lack of standardization of procedures, documents for forecasting and stock reconciliation
No linking of data between stock status at states and supply schedule
No MIS reports based on various Performance indicators such as supplier performance, quality assurance, acceptance certification available Thus, no credible data available for inventory management or for analysis and informed decision making
Supply Chain Management
Quick View State and MoHFW Model
State Procurement
State Supply
1) Centralized Procurement: States issue supply orders for districts 2) Decentralized: Rate Contracts fixed by state. Districts Procure them
MoHFW procurement
Govt. Of India Supply
Centralized Procurement: GoI issue supply orders for states
Suppliers
Supplier Receipts Districts W/H
Suppliers
State/Divisional Drug Warehouse
Supplier Receipts
Regional Drug WH/Div. WH
Indents & Issues
Facility District Stores District Stores District Stores
Warehouse Transfers
PHC/CHC SC
Facility Indents & Issues
Supply Chain Management
Initiatives taken by Ministry Empowered Procurement Wing (EPW)
Genesis Governance & Accountability Action Plan (GAAP) formulated as per development Credit Agreement (DCA) between GoI & World Bank (WB) mandates strengthening of procurement implementation & contract monitoring Objectives EPW established in October, 2005 to consolidate
streamline and strengthen procurement activities professionalize procurement of health sector goods
Develop and promote policies for improving procurement of health sector goods, drugs and services including planning, bid evaluation, contracting, payment, supply schedules, inspection dispute resolution, computerization etc. Help build capacity in States and PSAs and monitor their performance. Maintain procurement monitoring and complaints data base including data on quality, WHO GMP certification of firms etc. 9
Supply Chain Management
Procurement Management Information System (ProMIS)
conceptualized in December 2006
Development of ProMIS for centrally sponsored schemes At Centre in RCH, RNTCP, NVBDCP, SSM, UIP & Procurement Division
Set up a Computerised Procurement System comprising Forecasting, planning, Tendering, Supply Orders, Contract Expediting, Bills/Invoices
At State/Warehouse level
Pilot: Inventory Control System for Supplier Receipts, Interwarehouse transfers, Warehouse Receipts, shortages & damages, Facility Indents & issues Non-pilot: Only limited to receipts & no issues. Entry of monthly stock status
Management Information System: Reports at all levels such as Demand Vs Ordered Quantities, Distribution Vs Received Quantities Supplier-wise & state-wise, Supply Order Status, Fund Utilization, Stock Summaries, Stock Reports calculating Months of supply, Stock Expiry by Month, Stock Out position 10
Supply Chain Management
Features of ProMIS
Can be accessed from anywhere from internet Easy to use with user friendly interface Password given to users are protected and secure Users will access screen on need to know basis Expandable for schemes and CPA, replicable to states with little customization and technically versatile model System has been tested independent Quality Assurance authority, and has passed NIC security audit Operational Manual in English and Hindi
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Supply Chain Management
ProMIS: Where are we now
Piloted in all districts of Madhya Pradesh, Orissa, 3 districts of Maharashtra, all GMSDs and Ministry at centre for RCH, TB, Malaria, Family Welfare & UIP divisions
Specifications signed off- May 2008 Prototype approval- December 17, 2008 Trainings Jan-March 2009 (nearly 200 users trained) Onsite Support April 2009 till date User Acceptance 31 July 2009 Final Sign Off- 16 September 2009
Development of anti-corruption applications for inclusion into ProMIS NIC Security Audit now in final stage. User Manual is now well underway
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Supply Chain Management
Desirables for success of ProMIS
Regular data entry at all levels- Well knit integrated package Warehouse modernization- e.g. build racks, store & administrative office should be in same premises for better coordination, manpower issues. Accountability for shortages /wastages should be fixed-Onus of correct & accurate feeding of the data lies with the warehouse/storekeeper. Concurrent entering of data in ProMIS as and when transaction occurs. Infrastructure (both state & centre) & manpower (capacity building, helpdesks, nodal officers)
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Supply Chain Management
Expansion of ProMIS in all States
Appointment of State Nodal officers for ProMIS implementation Trainings
3 days training by the central resource persons/trainers at the state capital. Maximum 3 batches of 20-30 persons in each batch
Larger states should train Master trainers first and retrain others in all district warehouses 4 days handholding by EPW (MoHFW)
2 days monitoring training by EPW (MoHFW)
Implementation
Identification of District Nodal officers Putting in both hardware & manpower resources Continuous trainings sessions after every six months through Master trainers
Encouraging usage of reports from ProMIS
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Supply Chain Management
ProMIS: A step towards E-Procurement
CPA BUSINESS PROCESS CHANGES
NEW WAREHOUSES
BUSINESS PROCESS CHANGES
ePROCUREMENT ENHANCEMENTS
PROCUREMENT & SUPPLY CHAIN POST TRANSACTION RECORDING
PROCUREMENT REAL TIME PROCESSING
SUPPLY CHAIN REAL TIME PROCESSING
ELECTRONIC REAL TIME PROCESSING
WE ARE HERE
WE WANT TO GET HERE
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Supply Chain Management
Improvement of Public Health Delivery System
A letter from AS&MD (NRHM) dated Sep 30, 2009
Put in place efficient supply chain from Stale level down to the Public Health Centres Rationalisalion and modernization of warehouses/storage system at State, district and sub-district levels Desirable to have a single storage point at the district level to cater to needs of all programmes In order to have proper Supply Chain Management System in place throughout the country, states need to draw Action plan for establishing Procurement Management Information System (ProMIS) in their State PIPs (2009-10)
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Supply Chain Management
Inclusion of ProMIS in State PIPs
Monitoring & Evaluation MIS Reports/Publications or research/Statistical data etc based on ProMIS Workshops/ Training on ProMIS Warehouse Information System Workshops/ Training on ProMIS Management Information Systems Others Hardware/Software Procurement Internet Connectivity Annual Maintenance Printing & Computer Stationary Others Training of Staff Rearrange/reorganize warehouses to facilitate dispatch & receipts strictly as per FEFO for data entry in ProMIS Modernization of warehouses/Building new warehouses Printing of revised formats of Expiry & Stock Registers Others
Procurement of HW/SW and other equipments
Operationalising ProMIS till the district level
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Supply Chain Management
Thank you
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