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supply chain management case
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PUBLIC SECTOR HEALTHCARE SUPPLY CHAIN
Kenya Medical Supplies Agency (KEMSA)
Syndicate: i5Ardi AM (29112622)Deny Apriadi (29112625)Erry Witono (29112629)Handi Suhadi (29112628)Ibadi Zalfatirsa (29112634)
BackgroundKenya Medical Supplies Agency (KEMSA) was established as a state corporation in the year 2001, to contribute to the improved availability of medicines and supplies and to the reversal of the decline of the health status of KenyansKEMSA’s 4001 customers, located all across Kenya and include all tiers of healthcare from primary to tertiary for current network and customer locations
All the major cities and towns are connected by a road network and can be reached within one day’s drive (about 250km)
Background
The organization operates a centralized model, serving all its customers directly from its three Nairobi warehouses, two of which are leased.The organization also owns eight regional depots, ranging from 2000 – 8000 sq. ft and currently is mainly used for storing slow-moving items. The total warehouse space available is 292,810 sq ft and is reported to be operating at maximum capacityThe transport is outsourced to eight companies, serving each region and delivering directly to the service delivery points (SDPs)
Main Problem
100 products represented 80% of the total volume the system shipped has average aggregate fill rate of 21%.
Customers are located across Kenya but warehouse is centralized in Nairobi.
Main Problem
Approach to Tackle Problems
Develop decentralization model to improve distribution and reducing lead time delivery – gradually
Make the necessary financing available
Benefits of the Proposed Solution Given to Stakeholders
KEMSA shall be able to increase service level
To enable networking facilities, funding is required.
Networking Analysis
Networking Analysis
Networking Analysis
Networking Analysis
Networking Analysis
Order Fulfillment Analysis
Order Fulfillment Analysis
Order Fulfillment Analysis
TERIMA KASIH