The Queensland Government Critical Supply Reserve Published by the State of Queensland (Queensland Health), September, 2020. This document is licensed under a Creative Commons Attribution 3.0 licence. To view a copy of this licence, visit creativecommons.org/licenses/by/3.0/au © State of Queensland (Queensland Health) 2020 You are free to copy, communicate and adapt the work, as long as you attribute the State of Queensland (Queensland Health). For more information contact: The COVID-19 Supply Chain Surety Division, Department of Health, GPO Box 48, Brisbane QLD 4001, email [email protected] An electronic version of this document is available at www.health.qld.gov.au/critical-supply-reserve

Disclaimer The content presented in this publication is distributed by the Queensland Government as an information source only. The State of Queensland makes no statements, representations or warranties about the accuracy, completeness or reliability of any information contained in this publication. The State of Queensland disclaims all responsibility and all liability (including without limitation for liability in negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way, and for any reason reliance was placed on such information. MESSAGE FROM MESSAGE FROM The Deputy Premier, Minister for Health The Chief Health Officer and Minister for Ambulance Services

THE HONOURABLE DR STEVEN MILES MP DR JEANNETTE YOUNG PSM

The global rise and spread of coronavirus (COVID-19) The COVID-19 pandemic has demonstrated the has impacted and tested all aspects of our lives, importance of being well-prepared to respond to including the way we plan and deliver healthcare. public health emergencies and protect the safety and wellbeing of our community. The pandemic has presented significant challenges and disruptions to healthcare and supply chains. In Queensland we have a world-class healthcare system providing the best possible care to our Healthcare systems around the world have community. This is made possible by our experienced critical shortages of medical supplies. workers having timely access to the clinical items and This experience has highlighted the need to better equipment they need. prepare for future public health emergencies and We responded quickly to supply shortages and natural disasters and protect our ability to respond. pressures on our supply chain caused by the Queensland has been fortunate to avoid the pandemic. devastating situations seen around the world. This put us in a good place and allowed us to double Our health system’s response was quick and thorough our stockpile for critical supplies. and has undoubtedly saved lives. However, we are Our supply and distribution systems are working not immune to global supply chain pressures and the effectively. We continue to secure personal protective overwhelming demand for critical medical supplies. equipment (PPE) and other critical supplies and We are putting measures in place that will save lives, distribute these essential goods to support our protect our frontline workers and ensure the safety frontline services. and wellbeing of Queenslanders. We are in a strong position to enhance the The establishment of a supply reserve will secure resilience of our supply chain and storage networks critical goods, equipment, medicines and other across the state. supplies vital to delivering essential services. This is about safeguarding critical supplies for Our doctors, nurses, emergency workers and other Queensland for the future. frontline staff deserve to have access to the necessary We need to have local supply and manufacturing supplies and equipment to keep them safe and options for essential products and a stockpile of support their work for the community. available goods and equipment that can be quickly This investment goes further than planning for moved around the state when needed. potential surges in COVID-19 cases. There is now an opportunity to improve the availability When Queensland is faced with another public and distribution of critical supplies and make our health emergency, our frontline staff will continue systems even more resilient. to have access to the critical supplies they need, By learning from this crisis, we are supporting our where and when they need them. preparedness for future events to protect the health and safety of all Queenslanders.

1 Queensland Government Critical Supply Reserve

SUPPLY CHAIN DISRUPTION

The COVID-19 pandemic caused disruptions to global supply chains for critical personal protective equipment (PPE) and other products in early 2020. The experience has shown that changes need to happen to critical stock supply arrangements, both within Australia and globally. It has highlighted the importance of robust supply options and storage arrangements that can adapt to deal with uncertainty, complexity and provide security to the state.

Our response so far

The Queensland Government responded quickly to global supply chain pressures to secure and safeguard PPE and other critical items for the state. SECURED 68% 2 Increase in average stocks issued out of distribution m2 17,500m centres, going from a weekly average of of additional storage capacity across the state for the supply reserve to m2 4.62M 7.76M

m2

Increased our supply reserve capacity by

PALLETS Majority of critical PPE items +14,850 x2Doubled ICU capacity 100+ days stock on hand Increased supply of PPE by Distributing 8.6M ~200% Items to Queensland hospitals every week. An increase of 3.2 million items per week

Partnered with the Commonwealth and More vendors and local Queensland Government agencies to provide businesses engaged to support to the aged care sector and essential supply critical items frontline services 2 THE WAY FORWARD

Queensland Government The Reserve will operate to: Critical Supply Reserve (the Reserve) Support Queensland Provide a more in its response robust and lower-risk The Queensland Government is to public health approach to establishing a statewide reserve of critical emergencies maintaining supplies with up to 12 months of stock. critical goods During periods of supply disruption the Ensure frontline Reserve will be accessible by frontline workers are Support the essential services. Goods, equipment, supported with requirements of medicines and other critical supplies necessary supplies Queensland Health required to support frontline staff and and equipment to and other essential essential services will always be available safely do their jobs frontline services. to the state. It will also ensure supply arrangements Enhance the are not disrupted during a public health resilience of supply emergency. This will mean services to chain and storage patients and the community are not networks impacted by supply availability. Identify supply When required, the Reserve will have volumes required the ability to expand and rapidly take to support the safe on additional stock, providing further delivery of essential protection from supply chain disruption. services The supplies will be strategically stored across the state, allowing frontline services Act as a ‘buffer’ to better access to stock when they need it. provide surety for any supply chain volatility Safeguarding critical supplies Queensland is moving to secure a stockpile of vital supplies and equipment to strengthen the state’s preparedness for responding to any public health emergency. The Reserve will hold critical supplies that are vital to delivering frontline services. This includes PPE, which plays an essential role in protecting frontline staff and the community. The Reserve will hold the following essential items: • PPE—products include masks, face shields, protective eyewear, aprons, gowns and gloves • Intensive care equipment—products include ventilators, breathing apparatus and defibrillators • Intensive care consumables • Specialised drugs and select pharmaceuticals • Sanitisers, cleaning products and disinfectants • Critical pathology supplies. These items are not only essential for responding to a pandemic, but are also necessary for other emergencies, such as natural disasters.

3 Queensland Government Critical Supply Reserve

Supply chain transformation

Transforming how the state stores, supplies and distributes critical stock is an essential part Enhancing our storage and distribution network of strengthening the resilience of A new supply chain approach will support the Queensland‘s supply chain and establishment of the Reserve. reducing the impacts of public health emergencies. Queensland will move to a fully integrated network of warehouses and logistics to ensure Expanding local supplier and stock is moved around manufacturing options for efficiently and used supplies will further safeguard the Cairns Establishing a within recommended availability of critical goods and new warehouse timeframes. equipment for frontline services. in Cairns

Diversifying our Townsville Expanding the procurement approach distribution centre footprint in Brisbane To support the Reserve, the and Townsville Queensland Government is: • Working with new suppliers to diversify the state’s supply network • Supporting local manufacturing Establishing a Rockhampton new warehouse in to develop essential products Rockhampton • Leveraging existing supplier relationships by introducing new and innovative procurement arrangements.

Brisbane

The statewide integrated network:

Strategically Provides additional disperses critical options for supply stock across if access to a the state distribution centre is lost (e.g. due to a natural disaster) Increases the number of locations stock can be delivered from Mitigates against supply chain disruption Enables faster delivery times Benefits Queensland’s freight Provides better network; with shorter access to a wider routes, improved range of items in fatigue management more locations and cost savings.

4 Inala bulk storage warehouse

Investing in Queensland Queensland businesses play a key role in supporting the state’s requirements as we recover from the impacts of COVID-19 and build our resilience for the future. Establishing the supply reserve and enhancing Queensland’s supply chain presents significant opportunities for the state, including:

Jobs for Queenslanders

Enabling local manufacturing

Inala bulk storage warehouse Supporting local industry and business

Providing certainty to local suppliers and their employees through diverse supply arrangements

Maximising regional skills and resources by expanding logistics and distribution networks

Delivering value for money through whole-of-government purchasing power

Supporting the Queensland economy. Rockhampton Hospital

5 Queensland Government Critical Supply Reserve

Roadmap

COVID-19 outbreak: 12 December 2019 – 25 January 2020 Early February 2020 First case of First COVID-19 case Global supply chain novel coronavirus in Australia disruption (COVID-19) detected 29 January 2020 First COVID-19 case in Queensland

Queensland’s January 2020 February 2020 14 April 2020 25 June 2020 response: State Health Three months of critical Statewide COVID-19 Critical stock Emergency stock secured—establishing Supplier Portal launched reserve announced Coordination an initial stock ‘reserve’ for Centre activated PPE and other critical items February onwards 24 April 2020 Additional sources of supply Queensland Health COVID-19 identified and secured to Supply Chain Surety Division bolster critical items formed to ensure supply of critical items

Queensland is now safeguarding critical supplies for the long-term to protect frontline services and the community.

August 2020 October 2020 October 2020 – January 2021 January ― July 2021 Mid-January – Completion of Market engagement March 2021 Second market event Stage two sourcing End of March 2021 Inala bulk storage commences Stage one sourcing for Queensland’s supply and delivery of New warehouses warehouse expansion and delivery of and manufacturing reserve supplies commissioned reserve supplies industry at Rockhampton and Cairns

April 2021 May ― November 2021 January – March 2022 April – June 2022 Queensland’s supply chain and distribution Third market event Stage three Expanded Townsville Expanded Brisbane network future-proofed to protect the health for Queensland’s supply sourcing and Distribution Centre Distribution Centre and safety of Queenslanders. and manufacturing delivery of commissioned commissioned industry reserve supplies

6 For more information visit www.health.qld.gov.au