Supply Chain Management

Supply Chain Management in MoHFW

 Supply Chain Management

The Supply Chain consists of the following

BUDGETING PLANNING PROCUREMENT WAREHOUSING DISTRIBUTION CONSUMPTION

Compilation Monitoring Issuing Release MIS & Reporting Monitoring Issue ; Stock
Submission & Supplies & Orders delivery at reconcillation &
Approvals advising & Ensuring despatched MIS
Procurement for Supplies in location
issuance of co-ordination with
Release Orders Suppliers

Valuation Generating Signing Contracts Stock Despatch & Stock Magement

Procurement Management Transportation
Requirements

Ascertaining Compiling & Evaluating Offers Storage Picking ; Storage

the evaluating Repackaging &
Requirements the Pipeline Issue

Quantification Measuring Tendering Reciept Receiving of Reciept

Stock Levels Release Orders

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 Supply Chain Management

BUDGETING PLANNING PROCUREMENT WAREHOUSING DISTRIBUTION CONSUMPTION

Areas We Need to Strengthen

THESE SHALL IMPROVE EFFICIENCY & REDUCE COST

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 Supply Chain Management

Present Supply Chain Management System

CURRENT SUPPLY CHAIN FLOW

SUPPLIERS
AND/OR
GMSD

STATE AND/OR DIVISIONAL

WAREHOUSE

REGIONAL DRUG WAREHOUSE AND/OR

DIVISIONAL WAREHOUSE

DISTRICT DISTRICT DISTRICT

STORE STORE STORE With each
district
warehouse
multiple
FACILITY FACILITY FACILITY FACILITY FACILITY FACILITY FACILITY FACILITY
FACILIT facilities
Y
are
associated.

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 Supply Chain Management

Improving Efficiency in Supply Chain

 Creation of Planning Cell.
 Generation of Right Information.
 Capacity Building of Warehousing Facilities.
 Creation of New Warehousing Facilities.
 Introduction of LMIS in ProMIS.
 Monitoring & Measuring Consumption Data.
 MIS & Re-conciliation.

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 Supply Chain Management

Improving Efficiency in Supply Chain

>InOrder to Access Capacity & Improve overall Efficiency
in Supply Chain Management Sciences for Health is
developing the following Tools:

•Logistics Assessment Tool.

•Inventory Management Assessment Tool.
•Procurement Services Assessment Tool.

( EPW Team shall be using these tools for all the States )

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 Supply Chain Management

Current Procurement System & Issues

 Supply Order value (2009-10) as on December 01, 2009
 UIP: 196 crores
 NVBDCP (Malaria): 41 crores
 RNTCP (TB): 44 crores
 SSM (Family Welfare): 174 crores
 RCH (Kit A&B): 206 crores

Total: 661 crores

Source Procurement Management Information System (ProMIS)
 Direct Procurement by EPW- SSM (family welfare, contraceptives),
UIP (vaccines), PD (equipments for hospitals, NVBDCP) [requirements
from Programme divisions]

 Procurement through PSA for NVBDCP, RNTCP, RCH, NACO

 MSO procurement of CGHS supplies are excluded from ProMIS

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 Supply Chain Management

Challenges faced in Supply Chain

 Inaccurate quantification: More of Push System instead of Pull
System
 Lack of standardization of procedures, documents for forecasting
and stock reconciliation
 No linking of data between stock status at states and supply
schedule
 No MIS reports based on various Performance indicators such as
supplier performance, quality assurance, acceptance certification
available
Thus, no credible data available for inventory management or for
analysis and informed decision making

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 Supply Chain Management

Quick View – State and MoHFW Model

State Procurement 1) Centralized Procurement:
MoHFW procurement
States issue supply orders for
districts
2) Decentralized: Rate Contracts
State Supply fixed by state. Districts Procure Govt. Of India Supply Centralized
them Procurement: GoI
issue supply orders
for states

Suppliers
Suppliers
Supplier
Supplier Receipts Receipts
State/Divisional Drug Warehouse
Districts W/H

Regional Drug WH/Div. WH

Indents & Issues
Warehouse
Transfers
District District District
Facility Stores Stores Stores

Facility
PHC/CHC Indents
& Issues
SC
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 Supply Chain Management

Initiatives taken by Ministry

Empowered Procurement Wing (EPW)
Genesis
 Governance & Accountability Action Plan (GAAP) formulated as per development
Credit Agreement (DCA) between GoI & World Bank (WB) mandates strengthening
of procurement implementation & contract monitoring

Objectives
 EPW established in October, 2005 to consolidate
– streamline and strengthen procurement activities
– professionalize procurement of health sector goods
 Develop and promote policies for improving procurement of health sector goods,
drugs and services including planning, bid evaluation, contracting, payment, supply
schedules, inspection dispute resolution, computerization etc.
 Help build capacity in States and PSAs and monitor their performance.
 Maintain procurement monitoring and complaints data base including data on
quality, WHO GMP certification of firms etc.

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 Supply Chain Management

Procurement Management Information System

(ProMIS)
conceptualized in December 2006
 Development of ProMIS for centrally sponsored schemes
 At Centre in RCH, RNTCP, NVBDCP, SSM, UIP & Procurement Division
– Set up a Computerised Procurement System
comprising Forecasting, planning, Tendering, Supply Orders, Contract Expediting,
Bills/Invoices
 At State/Warehouse level
– Pilot: Inventory Control System for Supplier Receipts, Interwarehouse transfers,
Warehouse Receipts, shortages & damages, Facility Indents & issues
– Non-pilot: Only limited to receipts & no issues. Entry of monthly stock status
 Management Information System: Reports at all levels such as Demand Vs
Ordered Quantities, Distribution Vs Received Quantities – Supplier-wise &
state-wise, Supply Order Status, Fund Utilization, Stock Summaries, Stock
Reports calculating Months of supply, Stock Expiry by Month, Stock Out
position
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Features of ProMIS
 Can be accessed from anywhere from internet
 Easy to use with user friendly interface
 Password given to users are protected and secure
 Users will access screen on need to know basis
 Expandable for schemes and CPA, replicable to states
with little customization and technically versatile model
 System has been tested independent Quality Assurance
authority, and has passed NIC security audit
 Operational Manual in English and Hindi

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ProMIS: Where are we now

 Piloted in all districts of Madhya Pradesh, Orissa, 3 districts of
Maharashtra, all GMSDs and Ministry at centre for RCH, TB,
Malaria, Family Welfare & UIP divisions
– Specifications signed off- May 2008
– Prototype approval- December 17, 2008
– Trainings – Jan-March 2009 (nearly 200 users trained)
– Onsite Support – April 2009 – till date
– User Acceptance – 31 July 2009
– Final Sign Off- 16 September 2009
 Development of anti-corruption applications for inclusion into
ProMIS
 NIC Security Audit now in final stage.
 User Manual is now well underway

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Desirables for success of ProMIS

 Regular data entry at all levels- Well knit integrated package

 Warehouse modernization- e.g. build racks, store & administrative

office should be in same premises for better coordination, manpower
issues.

 Accountability for shortages /wastages should be fixed-Onus of correct

& accurate feeding of the data lies with the warehouse/storekeeper.

 Concurrent entering of data in ProMIS as and when transaction occurs.

 Infrastructure (both state & centre) & manpower (capacity building,

helpdesks, nodal officers)

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 Supply Chain Management

Expansion of ProMIS in all States

 Appointment of State Nodal officers for ProMIS implementation
 Trainings
– 3 days training by the central resource persons/trainers at the state capital.
Maximum 3 batches of 20-30 persons in each batch
– Larger states should train Master trainers first and retrain others in all district
warehouses
– 4 days handholding by EPW (MoHFW)
– 2 days monitoring training by EPW (MoHFW)
 Implementation
– Identification of District Nodal officers
– Putting in both hardware & manpower resources
– Continuous trainings sessions after every six months through Master trainers
– Encouraging usage of reports from ProMIS

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ProMIS: A step towards E-Procurement

NEW
CPA WAREHOUSES

BUSINESS PROCESS BUSINESS PROCESS ePROCUREMENT

CHANGES CHANGES ENHANCEMENTS

PROCUREMENT &
PROCUREMENT SUPPLY CHAIN ELECTRONIC
SUPPLY CHAIN
REAL TIME REAL TIME REAL TIME
POST TRANSACTION
PROCESSING PROCESSING PROCESSING
RECORDING

WE ARE HERE WE WANT TO

GET HERE

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 Supply Chain Management

Improvement of Public Health Delivery System

A letter from AS&MD (NRHM) dated Sep 30, 2009

 Put in place efficient supply chain from Stale level down to the Public Health
Centres

 Rationalisalion and modernization of warehouses/storage system at State, district

and sub-district levels

 Desirable to have a single storage point at the district level to cater to needs of
all programmes

 In order to have proper Supply Chain Management System in place throughout the
country, states need to draw Action plan for establishing Procurement
Management Information System (ProMIS) in their State PIPs (2009-10)

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 Supply Chain Management
Inclusion of ProMIS in State PIPs
Monitoring & Evaluation
Procurement of HW/SW and
other equipments
Operationalising ProMIS till the
district level
MIS Reports/Publications or research/Statistical data
etc based on ProMIS
Workshops/ Training on ProMIS Warehouse
Information System
Workshops/ Training on ProMIS Management
Information Systems
Others
Hardware/Software Procurement
Internet Connectivity
Annual Maintenance
Printing & Computer Stationary
Others
Training of Staff
Rearrange/reorganize warehouses to facilitate dispatch
& receipts strictly as per FEFO for data entry in
ProMIS
Modernization of warehouses/Building new
warehouses
Printing of revised formats of Expiry & Stock
Registers
Others 17