Strengthening the supply chain - Family Planning Logistics

Population Reports, Wntr, 2002

When their logistics systems improve, family planning programs can make contraceptives more available, help ensure steady supply, and deliver better care to meet clients' needs. As government and donor funding for contraceptives falls short of rising demand, an efficient supply chain stretches resources further.

Demand for contraception is growing. In developing countries an estimated 212 million more women will be using contraception in 2015 than in 2000. Increased demand requires not only more contraceptives, and thus more funds to obtain them, but also a stronger supply chain to deliver them. As demand grows, so will the volume of contraceptives that the supply system must handle. Costs will rise not only for procurement but also for distribution, staff training, and other key aspects of logistics. Pressures will mount for family planning logistics operations to become more efficient.

The objective of logistics management is simple: to deliver the right product, in the right quantity, in the right condition, to the right place, at the right time, for the right cost. In practice, however managing family planning logistics is often complex. Contraceptive supply chains consist of many organizations, people, and procedures that, together, must accurately forecast demand and then efficiently order and deliver the right amount of contraceptives from one level to the next until they reach family planning clients.

Increasingly, family planning programs are making clients the focus of the supply chain--not just the final link. In the commercial sector focusing on customer service has become the hallmark of good logistics management. In family planning programs customer service translates to a client-centered approach. As programs do more to adopt client-centered approaches, more logistics managers see clients' needs as directing the supply chain, and fewer think of logistics management as just concerned with routine procurement, storage, and shipment.

Essentials of Good Logistics

How can programs strengthen delivery of supplies to clients? Consistent supply depends on both adequate funding and good logistics activities, including accurate estimates of supply needs, efficient procurement practices, and reliable, timely deliveries. The following steps are crucial:

Improve management and staff performance. People determine how well the supply chain functions. Providing leadership, training, supervision, clear expectations, and decent working conditions for supply chain staff can improve their performance and help them focus on meeting clients' needs.

Improve information systems. A strong logistics management information system (LMIS) collects and reports accurate data when and where needed. With better information, managers can estimate supply needs, account for products in the supply chain, reduce supply imbalances, and cut waste and losses.

Improve forecasting and procurement. Family planning programs depend on accurate forecasts of contraceptive use and estimates of quantities and types to be purchased. Better forecasts help to ensure that programs order enough supplies but not too many. Since forecasts and actual contraceptive use will inevitably differ, managers also can monitor key logistics data and prepare to deal with the differences.

Improve distribution. Distribution activities--including storage and transport--work best when they focus on moving supplies efficiently to clients, not just on moving them from place to place and keeping them on shelves. Storage should be secure, clean, and organized to reduce the costs of holding inventory. The transport system should ensure regular, complete coverage of all facilities in the supply chain.

Toward Contraceptive Security

Improving logistics can help ensure access to contraception. Only with consistent supply can everyone who wants to use family planning be able to choose, obtain, and use good-quality contraceptives--a concept known as contraceptive security. Few developing countries will be able to provide contraceptive security any time soon without continued support from donors. Countries that rely on donor funding will face a crisis if donor support continues to lag behind demand. Governments can help by strengthening logistics systems; they can provide more public funding for contraceptives, as part of their public health role; and they can encourage participation from the private sector.

A New Look at Logistics

For family planning programs, a consistent supply of contraceptives does not happen by itself. Consistent supply results from a well-managed logistics system and from adequate and reliable funding. Logistics management is not just a set of operations to move products from one place to another but rather a key element in helping clients meet their reproductive health needs.

In the commercial sector strong logistics management, by helping to meet customers' needs, earns customer loyalty, boosts corporate profits, and increases the firm's market share. Similarly, family planning programs that improve their logistics management systems satisfy more clients, become more efficient, and achieve program goals.