Abstract

Until recently, women in Senegal who went to their local public health clinics seeking a means to prevent pregnancy had about a 3 or 4 in 5 chance of leaving empty-handed.1 Implants, pills, injectables, and other contraceptives, while promoted as part of Senegal’s commitment to improving maternal health and access to family planning, were routinely out of stock. The problem, all too common in developing nations, was improper supply chain management, specifically inventory management and delivery. To address this, the government of Senegal embarked on a major overhaul of its supply chain for 9 different contraceptives (with 2 more added later). Within 6 months, stock-outs ceased almost entirely.1,2 Key in the success of Senegal’s reform was the government’s strong commitment to, and effective implementation of, hiring private third-party logistics providers (3PLs) to manage orders and handle deliveries from district warehouses to local health facilities, with clear benefits for service levels and costs. One analysis compared cost and service through the use of private operators versus those of government employees performing the same activity in a different region of the country. The analysis found that outsourcing decreased the proportion of facilities experiencing stock-outs from over 80% to less than 2%1 while reducing distribution costs by 36% annually.3 By outsourcing supply chain logistics to private operators, Senegal decreased the proportion of facilities experiencing stock-outs from over 80% to less than 2%.

Highlights

  • U ntil recently, women in Senegal who went to their local public health clinics seeking a means to prevent pregnancy had about a 3 or 4 in 5 chance of leaving empty-handed.[1]

  • Chains will have to be even stronger, more efficient, and more effective in the future to enable governments to meet the needs of their citizens

  • The sheer volume of drugs and other products flowing into the public health pipeline increases year after year, as new treatment options become available and governing bodies establish more ambitious health targets

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Summary

INTRODUCTION

U ntil recently, women in Senegal who went to their local public health clinics seeking a means to prevent pregnancy had about a 3 or 4 in 5 chance of leaving empty-handed.[1]. Other components developed by the private sector were implemented, including an innovative inventory management system and new methods of data tracking to support mobile warehousing. These made stock replenishment more responsive to real consumption. Senegal’s Minister of Health and Social Action has endorsed the outsourced model as a way to help ensure access to essential medicines and health commodities for all citizens. This political support is both encouraging and necessary, as long-term success will depend on the government’s ability to institutionalize the approach

By outsourcing
Outsourcing stimulates the
THE WAY FORWARD
CONCLUSION
Findings
Peer Reviewed

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