Ask the Expert - Coronavirus and Supply Chain Challenges

In this video, we ask the experts on how the coronavirus is, and can affect supply chain. We will also discuss:

1. The impact of covid-19 for health procurement professionals 
2. Key challenges faced by procurement and supply chain professionals 
3. The situation post coronavirus
4. Your questions answered by our experts
   
   

Watch our video above and scroll down, to download and learn more about how the coronavirus is affecting the supply chain.

Ask the Expert - Coronavirus and Supply Chain Challenges Q&A

Q.1. What role can health supply chain professionals play in minimising the bull-whip effect?

A.1. Collaboration on both demand and supply sides of the health supply chain

• Health supply chain professionals need to collaborate and work very closely with the user departments, that is, the medical and clinical staff that is better at understanding first-hand, changes in treatment regimes, morbidity and consumption. This enables the team to forecast demand together and provide near accurate data. The rule of thumb is that forecasting (quantification) is never accurate but this collaboration from the demand side can help minimize the inaccuracies.
• Health supply chain professionals who are the link between their organizations and suppliers should work closely with the suppliers and provide the information and data about the user plans so that the suppliers can also build seasonality in the own forecasts.

A.2. Information sharing

• Constant information sharing and communication between the Health Supply Chain professionals creates visibility in the supply chains and thus reduce the uncertainties created by the Bull-whip Effect. This will also help reduce guesswork and rule of the thumb decisions by the parties.

A.3. Adopt demand driven supply chain management approach

• According to the Association of Supply Chain Management (ASCM), this is one of the most effective approaches in use. It results in less overall inventory caused by actual demand differing from forecast quantities and is more responsive.

A.4. Use of technology

• Where and if affordable, the health supply chain organizations can use available applications that provide visibility and insight.

Note: to improve forecasting for health commodities the Health Supply Chain Professionals can also use resources provided by the World Health Organization i.e. forecasting tools which are reviewed from time to time.

Q.2. Do all procurement agencies in different countries hold sales and operationsmeetings?

A. It may not be possible to know what happens in different countries but I will respond to this question in terms of the role of procurement as an internal advisor to the organisation customers. Procurement’s success depends on the inter-functional harmony and cross-functional team working.

So many of the types of decisions we need to make today to improve our supply chains, reduce costs, lower risk and drive working capital improvements need more closely integrated sourcing and supply chain decisions together. An effective Sales and Operations function depends on total cost visibility, minimal stock-outs and reduced supply chain risks. So, whether it is a procurement agency or department it needs to be at the table when and where accomplishment of strategic business and operational performance goals are being discussed. It does not matter the country.

Q.3. COVID-19 is the talk of the day and more focus is on it. We have other programs in public health supply chain like Malaria, HIV/AIDS/TB/ Leprosy, Reproductive Health, etc. Are all stakeholders well engaged in ensuring medicines and medical supplies are consistently available instead of focusing on COVID-19?

A. It is evident that the COVID-19 ripple effect is being felt across global health systems among other sectors. One of the most critical implications of the crisis is its effect on global public health programs. The supply chains of essential medicine and health programs mentioned in the question have been grossly and negatively affected since COVID-19 emergency supplies is now the focus and priority. However while the programs may be out of view, they are not out of mind. Now more than ever society needs to work together to keep fighting-and saving lives-both within the current pandemic and beyond the vital fights that are underway to end the said diseases.

It must also be remembered that patients suffering from some of these diseases are more vulnerable to the COVID-19 infection than those that are not. Having said that, the stakeholders in the programs include supply chain professionals, manufacturers, suppliers, governments and donors. Staff numbers have adversely been affected. With social distancing and work-from home decisions it means that there is inconsistent supply of the supplies since they are the same staff expected to work in those programs.

Manufacturers and suppliers of the medical supplies have equally been affected by the same decisions. The same staffs are getting infected and quarantined thus exacerbating an already bad situation. Even if some of the logisticians and truck drivers are on the roads the closure of most international borders means that there are delays in clearance considering that they have to be tested and provided with special travel documents.

The increased health screening protocols are hampering cargo and essential shipments. Governments are by nature bureaucratic and even where they provide waivers for most the processes the turnaround time is still not commensurate with the urgency of the supplies. Donors have been forced to realign their funding to the most critical demand created by the Corona Virus crisis.

It is also not lost on us that we still have more health challenges caused by humanitarian crises in war ravaged states such as the DRC, Libya, Somalia, etc. As we speak we have floods caused by heavy rains exposing many people to waterborne diseases.

So, it is in order to conclude that concentration and attention of stakeholders to other health programs has been impaired but should not be lost from the other health problems. The challenge is that the COVID -19 situations keeps evolving at a fast rate, thus overstretching the capacities of many countries and organisations.

Q.4. There has been more focus on delivering PPEs to support the COVID-19 adversity. However, health centres in remote areas seem to have been excluded. The aspect of stock outs, no service is evidenced. What advice can we give to governments?

A. I answered this question during the webinar. However, for the benefit of those who did not attend, what I said is that this scenario would vary from country to country depending on their Geography, terrain and how their supply chain networks are designed. While I would have liked to know where this exclusion is happening, most countries are unique due to the reasons I have mentioned. I gave examples of Rwanda and Ghana where drone technology is being applied to deliver COVID-19 related supplies and even test results to otherwise hard to access areas in their countries, thanks to the company called ZIPLINE.

It is not a cheap investment though and therefore governments which cannot and may not have such technologies may have to innovate cheaper, quicker, and safer ways of delivering the most wanted supplies to the last miles in the rural areas. One such way is to collaborate with local and international NGOs and Faith Based Organisations already on the ground to deliver the supplies. However, the organizations must be facilitated by the governments through waivers for travel in the midst of lockdowns and cessation of movements as long as they observe the laid down health protocols.

I also gave an example of my own country where our Kenya Medical Supplies Authority (KEMSA) have distribution networks even to the remotest of areas in our country and this has been made even easier because of our devolved system of government. The counties work very closely with the National Government through KEMSA's demand driven or "pull" system that utilizes a Logistics Management Information System (LMIS).

This model can be replicated in other countries. The use of and empowering local suppliers who understand and are closer to the rural areas could be an alternative. In Kenya we now how two factories are being supported by the government through quality certifications and authorizations and are producing the PPEs locally. They are based outside the main capital of Nairobi which means delivery to the rural areas is much easier.

Q.5. Bonjour chers tous, un grand merci aux panélistes pour la clarté dans la présentation de la thématique combien capitale en cette situation sanitaire difficile marquée par la pandémie dévastatrice COVID-19. Cependant, voudrais-je savoir si à l'avenir on peut pas penser à traduction simultannée en langue française pour nous autres francophones. Bonne séance à tous.

A. Merci à vous de votre participation active sur une thématique en effet capitale. Nous travaillons justement en ce moment sur la mise en place de sessions et wébinaires similaires pour la communauté francophone. Restez connectés, nous vous informerons prochainements des évènements à venir.

Q.6. Voudrais-je savoir si à l'issue de l'activité, nous pourrions disposer de certificat. Merci

A. Ce wébinaire est établit de manière purement informative dans le but de soutenir les membres de la communauté HPA (www.healthprocurementafrica.org) durant la crise sanitaire du COVID-19. N´étant pas une formation certifiée CIPS, nous ne pouvons remettre un certificat aux participants. Merci de votre compréhension!

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