Logistic Management 16-09-2011 (by Geeta Kumari)

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    OGISTIC ANAGEMENT

    Geeta Kumari

    ROH&FW, Govt. of India, Patna

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    WhatisLogistics?Lo istics is the . . . rocess of lannin

    implementing, and controlling the efficient,

    effective flow and storage of goods, services, andrelated information from point of origin to point of

    consumption for the purpose of conforming to

    customer requirements

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    IsitdifferentfromSCM?Not

    really!

    management of materials, information, and

    financial flows in a network consisting ofsupp ers, manu acturers, str utors, ancustomers

    So, Logistics and Supply Chain are equivalentterms

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    GoalsandObjectives

    Tohave

    materials

    on

    hand

    when

    needed

    Topaythelowestpossibleprice,consistentwith Tominimizeinventoryinvestment Todevelo oodbu ersu lierrelationshi Todevelopalternativeandreliablesourceofsupply Tooperateefficiently

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    Rightitem/material

    g tquant ty Rightprice

    Rightmethods/systemsandprocedures Ri ht eo le/attitudeorientedtowards

    innovativeimprovements Rightquality,placeofdelivery

    g ranspor Righthandlingmethods

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    Materialforecasting,budgeting,planningand

    procurement

    Scheduling,purchasingandprocurement

    Receivin ins ection ualit and uantit andforwarding

    Inventory

    control

    ,

    storage

    warehousing

    and

    distribution

    Dispatch,shippinganddisposal

    Coordinationalltheaboveactivities

    eep ng a son etweenvar ous epartmentsan w t t esupplier/market

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    LEADTIME Periodbetweenplacingorderandreceivingitems. BUFFERORSAFETYSTOCK Quantityofstores

    setapart

    as

    an

    insurance

    against

    the

    variations

    in

    .

    REORDERLEVEL Thestocklevelatwhichfresh.

    *leadtime+bufferstockMrs.GeetaKumariRegionalConsultant,ROH&FW,Govt.ofIndia,Patna 7

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    Economic

    order

    quantity most

    economic

    quantityofthematerialtobepurchased.

    *=

    Pc*Ic

    A=annualdemandofitemsinunits

    Oc=orderingcost

    Pc=purchasecostofitemsperunit

    Ic=inventorycarryingcostinpercentage

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    Toensureuninterruptedflowofmaterial Tobuyeconomicallyinacompetitivemarket

    Tokeepinventoryinvestmentlow

    Todevelo oodbu ersu lierrelation Todevelopalternativeandreliablesourceof

    supply

    Toactaslogisticsintelligenceinformationcentrewithregardtospecification,processes,

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    price,quality

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    Action Plan Meetin with SP s at Dte. NVBDCP in Dec. an. for

    logistics requirements.

    State demand is compiled by each technical division based on

    technical justifications and balance stocks available with.

    State demand and budget approved is taken into consideration

    while preparing Procurement Action Plan.

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    Government of India(GOI)

    Director General of Health ServicesDGHS

    Department of EconomicAffairs DEA

    Ministry of Finance(MOF)

    Ministry of Health & FamilyWelfare (MOH)

    National Vector Borne Disease ControlProgramme (NVBDCP)

    Drug Controller General of India(DCGI)

    Logistics

    .

    ProcurementConsultant

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    Supporting Staff

    Supporting Staff

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    Procurement Support AgencyState Programme Officer (SPO) GMSDs

    District Programme Officer

    PHCs/CHCs (Block Level)

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    Sub-Centre

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    The most important aspects of overall procurement cycle

    It lists procurement method, size of contracts/slices and

    milestones during the procurement process

    Procurement Plan is an excellent tool for monitoring the

    progress and helps in taking corrective actions for delays Poor procurement planning increases the probability of

    delays during the implementation

    First procurement plan is prepared for initial 18 months of

    the project, while the subsequent plans are on annual

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    basis

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    STEPS:

    Assessment

    of

    requirement

    ec ngprocuremen proce ure nc u ng

    technicalspecifications

    Preparationoftenderdocument

    ReceivingandOpeningofthetender

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    Evaluationofthetender

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    Awardofcontract

    PredispatchInspectionandtesting

    Receiptofconsignment

    Acceptance,storageanduse(orissue)ofthematerial.

    Resolutionofdisputes,ifany

    ofthesupplier

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    Procurement Plan for the year 2008Procurement Plan for the year 2008--0909

    Sr.No.

    Activity Jan Feb. March April May June July Aug. Sept. Oct. Nov. Dec Responsibility

    Preparation of list ofNVBDCP

    1 drugs/equipments as per assessed

    requirements

    2Initiate Prepration of specifications

    and Bid documents

    NVBDCP

    3Transmit specifications and Bid NVBDCP

    4

    MOH clearance of specifications

    and Bid documents

    NVBDCP

    5Convey Approval to ProcurementAgency

    NVBDCP

    6 Issue Invitation of Bids

    7 Open BidsHLL / UNOPS

    8

    Bids evaluation HLL / UNOPS

    9

    Meeting / approbal by MOH

    10 Award ContractHLL / UNOPS

    11 Inspection and shipmentHLL / UNOPS

    12 Initial delivery at site HLL / UNOPS

    13 Interim delivery at siteHLL / UNOPS

    14 Final delivery at siteHLL / UNOPS

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    15 Arrangement for Advance PaymentNVBDCP

    16 Adjust Advance payments for finaladjustment

    NVBDCP

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    SupplyChain The main objectives of logistics and/or supply

    , ,storage, movement and control of

    case), so as to optimize personnel, physicalfacilities & capacity

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    urposeo upp y a n

    To

    ensure

    Six

    rights

    therightproducts

    in

    the

    Right

    quantities nt econ t ons qua ty

    deliveredtotherightplace

    a er g mean fortherightcost

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    WhathappenedtoproductsinSupplyChain Four things that happen to products in supply

    Stores

    Used

    xp re

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    To ensure a reliable and uninterrupted supplyof good quality materials at service deliverypo nts or to t e en users

    dealing with logistics and supply chain

    management should know:

    When to order or issue How much to order or issue

    Maintain appropriate stock levels of all materials(drugs/commodities) to avoid stock outs andoverstocking which can lead to product loss due to

    Mrs.GeetaKumariRegionalConsultant,ROH&FW,Govt.ofIndia,Patna 21

    .

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    Actionrequiredatconsigneeend

    Arrangeadequatestorespace

    ropers oc reg s ers

    Supply

    chain

    management Postdispatchinspection

    Qualityassurance

    Ensurethesupplyofdrugsinshelflife Monthlystockreporting

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    Issues Noassessmentofadvance storere uirements

    Noadequatestorespace

    Littleknowledgeofstoragepractices

    InterruptedSupplychain

    Nomonitoringdrugsforitsusewithinshelflife

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    LogisticsFlowfromStatetodistrict/PHC

    Requirement

    based Timely

    ropertransportarrangement Wellinformed A at tor ac Budget(funds) Manpower

    toc sentr esan ver cat on Regularreporting

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    Monitoringandsupervision

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    SupplychainManagement Assessmonthlyrequirements

    Ensuremonthlysupply

    ensurenostocksout

    MonitorweeklystockpositionatPHC/subcentrelevel MonitormonthlystockpositionatState/Districtlevel

    Regularreportsandreturns

    me y

    ee ac

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    theconsumptionofdrugs

    Difficulttoassessthestockswhichareinpipeline

    PHCwisestocksshouldbemonitoredatdistrictlevelwithproperfeedback

    Districtwisestocksshouldbemonitoredat

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    ThingstoRemember rea equatestoc so rugs commo t es

    presentinthedistrict/PHC(physical v rifi ti n

    Isproperstoragefacilityavailablefor

    Insecticides/

    bednets/

    drugs/

    RD

    Kits

    etc

    ? rea rugsan commo esw n e r

    periodofexpiry? Isthe rinci leoffirstex ir firstout FEFO

    beingfollowed? Isthestockregisterbeingmaintained?

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    Guidelines for Proper Storage of Drugs

    Monitor the storage conditions Keep the stores away from rodents, insects and

    termites

    Safely handle the health commodities while loadingand unloadin from the trans ort vehicle

    Keep store supplies in a dry, welllit and wellventilated store room with temp. control

    rov e e rac s orage sys em or easy movemenof materials and personnel handling the store

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    Cont .. Stack cartons in steel racks/slotted angles and at least

    ,

    walls and other stacks and no more than 2.5 m (8ft)high

    Use First Expiry First out (FEFO) principle

    Store medical supplies separately, away from,

    Arrange cartons with identification labels, expirydates, and manufacturing dates are visible

    Secure store room from water penetration especiallyduring rainy season

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    ont ..

    Ensure that fire safety equipment (fire extinguisher) is

    Ensure fire proof electrical fittings and appliances for anyfire due to short circuit and kee the stocks awa from theelectrical sockets

    Separate damaged and expired stocks from the usable stockwithout delay as per the established procedure

    Monitor stock levels, stock quantities and safety stocks and

    up ate stoc e ger recor s an ma nta n t e es sa ecustody

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    ThanksFor your lovely attention.

    Have a nice dayave a nice day

    Mrs.GeetaKumariRegionalConsultant,ROH&FW,Govt.ofIndia,Patna 31