The Drug Management Cycle – Distribution Butch Staley

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  • Slide 1
  • The Drug Management Cycle Distribution Butch Staley
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  • Working Definitions Supply chain The network of retailers, distributors, transporters, storage facilities, and suppliers that participate in the sale, delivery, and production of a product. Logistics The overall management of the way resources are moved to the areas where they are required. Distribution The delivery or giving out of an item or items to the intended recipients.
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  • Elements of the Distribution System Receipt and Inspection Storage Order and Issue Transport Inventory Control Port Clearance
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  • Characteristics of Effective Distribution Constant supply Maintained quality Minimal loss/pilferage Accurate and timely inventory and transaction information Proper storage Efficient transport/delivery Adequate geographic coverage
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  • Supply System Models There are many models, ranging from fully public to fully private, each with relative advantages and disadvantages, depending on context. Central Medical Stores model: South Africa, Tanzania Autonomous supply agency: Uganda, Benin Direct delivery: Caribbean Primary distributor (prime vendor): USA Fully private: Canada, Australia Mixed models: Europe, Caribbean
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  • LEVELS FULLY PRIVATEFULLY PUBLIC International National Regional Regional Medical Store District Community District Medical Store Hospitals Health Centers Health Posts Users Key Product flow in traditional CMS System Private Pharmacies International Suppliers Local Wholesalers Distributors Local Manufacturers Central Medical Store Pharmaceutical Distribution Models
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  • Central Medical Store Model LEVELSPRIVATE SECTOR PUBLIC SECTOR International National Regional Regional Medical Store District Community District Medical Store Hospitals Health Centers Health Posts Users Key Product flow in traditional CMS System Distributors Shops, Pharmacies Local Wholesalers International Suppliers Local Manufacturers Central Medical Store
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  • Direct Delivery Model LEVELSPRIVATE SECTOR PUBLIC SECTOR International National Regional Regional Medical Store District Community District Medical Store Hospitals Health Centers Health Posts Users Key Product flow in traditional CMS System Shops, Pharmacies Central Medical Store International Suppliers Local Manufacturers Local Wholesalers Distributors
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  • Primary Distributor Model LEVELSPRIVATE SECTOR PUBLIC SECTOR International National Regional Regional Medical Store District Community District Medical Store Hospitals Health Centers Health Posts Users Key Product flow in traditional CMS System Shops, Pharmacies Central Medical Store International Suppliers Local Manufacturers Local Wholesalers Distributors Primary Distributor
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  • LEVELS PRIVATE SECTORPUBLIC SECTOR International National Regional Regional Medical Store District Community District Medical Store Hospitals Health Centers Health Posts Users Key Product flow in traditional CMS System Private Pharmacies Local Wholesalers Distributors Local Manufacturers Central Medical Store Fully Private Model International Suppliers
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  • Health System Supply Chain Theory
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  • The Complex Reality: Health Supply Chains in Kenya
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  • Key Decisions Key decisions include: Push versus pull Centralized versus decentralized Roles and responsibilities: public, private, NGO Mix of in-house and contract services Levels of distribution and stock requirements
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  • Assessment/Option Analyses Understand context functionality and current capacity of public, private, and NGO systems and institutions Consider variable costs with each option Consider capacity to manage and operate proposed system Define methods for monitoring and measuring performance
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  • Summary Designing a system for storing and distributing pharmaceuticals is complex and important In some countries, private (or parastatal) distribution companies may provide cost- effective alternatives for storage and distribution of pharmaceuticals