msdmedical stores department

MEDICAL STORES DEPARTMENT:

2012- 14 Performance Overview: Presented to DPG

Cosmas MwaifwaniAg Director General

12, April, 2014

msdmedical stores department

MSD 1994

msdmedical stores department

1.0 Introduction Medical Stores Department (MSD) was enacted by

Act of Parliament No.13 of 1993.

It is an autonomous entity under Ministry of Health & Social Welfare. With independent Board of Trustees MSD uses commercial principles for financial sustainability.

MSD has three main functions namely: a) Procurementb) Storage and c) Distribution of pharmaceuticals, medical supplies

and laboratory reagents for public health.

msdmedical stores department

… Introduction

Mission statement• To make available, at all times, medicines and medical

supplies of acceptable quality at affordable prices to all Tanzanians

Vision• Centre of excellence for health commodities supply chain in

Africa

Motto• “Dedicated to save your life - Stock out no more”

Values• Respect, Integrity, Passion, Courtesy and Innovation

msdmedical stores department

ISO 9001:2008 Certification

msdmedical stores department

2. MSD Organization

Board of Trustees

Director General

DIRECTOR- Information &

Communication Technology

Director- Finance & Planning

Director – Human Resources & Admin

Director- Procurement

Procurement Manager-Normal

Procurement Manager-

Support Services

Procurement Manager-

Lab Supplies Clearing Manager

Director- Logistics Director- Customer Services & sales

msdmedical stores department

3.0 Distribution Network

msdmedical stores department

4.0 Accomplishments-DD (Direct Delivery)• DD to all health facilities in the country since July

1, 2013• Quarterly delivery to Primary health facilities• Bi-monthly delivery to hospitals• Delivery of ARVs not dependent on ILS circle• Assessment of effectiveness of DD under way and

report expected to be presented by mid- April by the consultant

• 50% of transportation for last Mile Logistics to be outsourced on phased approach

• Started a new distribution centre at Muleba to serve Geita and Kagera regions

msdmedical stores department

…Accomplishment

msdmedical stores department

…AccomplishmentsMedium Term Strategic Plan (MTSP) II• Covers FY 2014-2020

• Redefined the mission and mission of MSD

• Developed 10 ten Objectives and 31 key initiatives to be undertaken

• Includes private sector participation

• Amends MSD Act no 13 of 1993 to accommodate changes

msdmedical stores department

…Accomplishments

Warehouse Expansion• The WiB turnkey solution has been delivered to

Dodoma, Mbeya and Keko with 11,640 m2 during phase I

• Phase II to cover Tanga and Tabora• Value for money realized by MSD as reduced

rented space by 12,000 m2 MSD Rented Total

Total Space 1994 (m2 ) 7,453Total Space 2014 (m2 ) 34,406 15,000 46,850Optimal (m2 ) 60,000

Gap (m2 ) 13,150

msdmedical stores department

Front View of New WiB at DSM

msdmedical stores department

Front View -Dodoma WiB

msdmedical stores department

WiB View at Sunset- Mbeya

msdmedical stores department

Goods at Bin Location- Dodoma WIB

msdmedical stores department

…Accomplishments

• USAID Review completed June 2013• Organizational Restructuring September 2013• Improved procurement processes through

framework contracts• Increased Efficiency through change of incoterm

from CPT(Cost Paid to Destination Port) to DDP (Delivery Duty Paid)

• Acquired ISO 2008: 9001 certification in respect of TQM systems in October 2013

• Implemented Epicor 9 system as real time ERP• Engagement of Private sector as backup of MSD

supplies

msdmedical stores department

On going Projects

Construction of Tanga and Tabora WiB under GF support

• Distribution Route Optimization through USAID support for acquiring Llamasoft's Supply Chain Guru Software licenses and training

• Bar Coding Equipment for storage locations to support stock data management at operational plants through USAID

• Medium Term Strategic Plan review/ improvement

17

msdmedical stores department

5.0 Major Challenges1. Stock out of essential medicines

2. Government Debt amounting to Tsh 76 B (USD 47 M) as on December 2013 caused by handling of vertical programme items

3. Increased needs for health commodities that does not match with budget allocations

4. Lack of local capacity to manufacture medicines and related medical supplies

5. Payment for logistics costs of donated commodities

6. Multiple procurement systems for health commodities7. Weak quantification of health commodities

msdmedical stores department

6.0 Message to DPGGovernment Debt• Development partners to re-capitalize MSD by

injecting USD 47 Million being value of Government debt same way as it happened in 1994 when it was created

• Development partners to set aside funds for storage and distribution

Multiple Procurement Systems• Use of MSD procurement unit as one stop shop

for health commodities

msdmedical stores department

New Head Office Under Construction- MSD Financed

msdmedical stores department

Thanks for ListeningSpecial Thanks for their valuable assistance and support to MSDWe are dedicated to save Tanzanians Life hence help us to turn the current challenges into profitable opportunities