Procurement, supply chain and inventory management
Effective procurement, supply chain, and inventory management, from central level to testing sites, is essential to ensure that quality assured products are available when and where needed, preventing interruptions in testing services and wastage of tests and other testing materials. A well-managed supply chain can quickly adapt to changes in demand, such as during an outbreak, ensuring a rapid response.
Central level
At the central level, supply chain management involves identification of country needs (forecasting, quantification), supplier selection, ordering, and inventory management (see also Pillar 1: Organization, governance, planning).
- Supplier selection and qualification: The central level establishes criteria for selecting tests to use and suppliers and ensures they meet national regulatory requirements.
- National forecasting, quantification, and distribution: The central level calculates/anticipates future needs based on historical usage patterns, seasonal trends, and emerging health threats, allowing for proactive procurement and planning. The central level develops procurement and distribution plans. It includes a logistics strategy that ensures rapid and reliable last-mile distribution of products to testing sites, respecting the manufacturer’s storage and transportation conditions.
Best practices for implementing procurement and supply chain systemsCapacity building for testing providers and other staff on procedures and use appropriate tools. Integration of supply chain management (SCM) tools with existing health information systems for streamlined data sharing and analysis. Stakeholder engagement in the planning, implementation, and monitoring. This applies to stakeholders from various levels of the health system. |
Testing site level
This section focuses on providing simple tools to implement important activities to ensure testing sites have the necessary commodities to implement un-interrupted testing activities.
At the testing site level, testing providers have specific tasks in tracking the consumption and alerting the site manager about the stock level. In some sites, a stock manager is responsible for stock management, inventory, and filling required forms like stock card and inventory template, and, in collaboration with other site colleagues, fill out the request form to send to the central level.
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- Site needs identification, and ordering process: (Define site needs, buffer and alert stocks and calculate quantity to order) To ensure constant availability of all needed items, the testing site must forecast and quantify its needs and place orders promptly.
- Inventory management: Implement an effective inventory management system in each testing site to monitor stock levels, expiration dates, and reordering times, and minimize the risk of stockouts or wastage due to expired products. Proper inventory management provides stakeholders with real-time data on stock levels, consumption rates, and supply chain performance, aiding in informed decision-making.
- Storage conditions: To maintain their quality, test kits and reagents must always be stored according to manufacturers’ instructions (temperature, humidity). Avoid placing items under direct sunlight or any other source of heat and items should not be directly on the floor to prevent water or pest damage. Each place where commodities are stored must be temperature-controlled twice a day, and the temperature recorded on a standardized temperature log. Any storage condition breach should be reported immediately to the site supervisor/QA officer to decide any follow-up actions (e.g, implement internal quality control event – see Process control, assessment and continuous quality improvement and EQC results form (DOCX, 20 kB)).
Countries should use standardized tools which are either paper-based, electronic, and web-based according to their context, resources, and constraints.
Strong collaboration is needed from the national to site level to facilitate information sharing regarding stock levels, usage patterns, and emerging needs, enhancing the responsiveness and adaptability of the supply chain.
Additional tools to support procurement and supply chain, and an inventory management system
WHO procurement & supply management toolbox
In 2007, the WHO AIDS Medicines and Diagnostics Service (AMDS) created a platform to improve access to procurement and supply management (PSM) tools.
This PMS toolbox gathers PSM tools developed by different partners and the user can select tools of interest using a keyword search engine. This toolbox is updated regularly.
JSI The supply chain manager’s handbook
A practical guide to the management of health commodities, which explains the key principles of supply chain management and proposes practical tools.
A specific module of the SLMTA e-learning training curriculum focuses on purchasing and inventory. It included training modules on:
Forecasting and calculating order amounts introduction 2024: Estimate the quantities of commodities required to meet needs based on historical data, population needs, and consumption patterns.
You received what you ordered?: Inspect quality and quantity of supplies
Inventory data collection and management systems
Help in tracking stock levels, expiry dates, distribution, and managing reordering processes to maintain optimal inventory levels.
Example: DHIS2
Although primarily a health information system, it can be configured to track inventory and logistics data for health commodities, including RDT tests.