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Logistics Handbook.Pdf The Logistics Handbook A Practical Guide for the Supply Chain Management of Health Commodities 2011 This publication was produced for review by the U.S. Agency for International Development. It was prepared by the USAID | DELIVER PROJECT, Task Order 1. The Logistics Handbook A Practical Guide for the Supply Chain Management of Health Commodities The authors’ views expressed in this publication do not necessarily refect the views of the United States Agency for International Development or the United States Government. USAID | DELIVER PROJECT Te USAID | DELIVER PROJECT, Task Order 1, is funded by the U.S. Agency for International Development under contract no. GPO-I-01-06-00007-00, beginning September 29, 2006. Task Order 1 is implemented by John Snow, Inc., in collaboration with PATH; Crown Agents Consultancy, Inc.; Abt Associates; Fuel Logistics Group (Pty) Ltd.; UPS Supply Chain Solutions; Te Manof Group; and 3i Infotech. Te project improves essential health commodity supply chains by strengthening logistics management information systems, streamlining distribution systems, identifying fnancial resources for procurement and supply chain operation, and enhancing forecasting and procurement planning. Te project encourages policymakers and donors to support logistics as a critical factor in the overall success of their health care mandates. Recommended Citation USAID | DELIVER PROJECT,Task Order 1. 2011. Te Logistics Handbook: A Practical Guide for the Supply Chain Management of Health Commodities. Arlington, Va.: USAID | DELIVER PROJECT, Task Order 1. Second edition (First edition 1998) Abstract Te Logistics Handbook: A Practical Guide for the Supply Chain Management of Health Commodities ofers practical guidance in managing the supply chain, with an emphasis on health commodities. Tis handbook will be particularly useful for program managers who design, manage, and assess logistics systems for health programs. In addition, policymakers, system stakeholders, and anyone working in logistics will also fnd it helpful as a system overview and overall approach. Key terms and concepts are clearly defned and explained; the document includes detailed information about the design and implementation of logistics management information systems and inventory control systems. Overviews of quantifcation, procurement processes, as well as storage, transport, and product selection, are also included. Acknowledgments Te USAID | DELIVER PROJECT would like to express its appreciation to the many people who worked on and contributed to Te Logistics Handbook: A Practical Guide for the Supply Chain Management of Health Commodities. Te original handbook was based on the fagship logistics course taught by the USAID | DELIVER PROJECT staf (then the Family Planning Logistics Management project staf). In 1992, Barbara Felling and Walter Proper developed the course, and ofered it to logisticians outside the project for the frst time. Te project’s Performance Improvement team continued to develop the course, providing many iterations and additional material. In 1998, to increase the number of participants for the course, Barry Chovitz, a trainer and course developer since 1992, developed the handbook and led the efort to turn the extensive training curriculum into a textbook. Barbara Felling updated the handbook in 2004 to refect new project knowledge. In 2010, a team of USAID | DELIVER PROJECT technical advisors and staf solicited input from all technical teams to make the most signifcant revision and update to the complete handbook since it was frst published in 1998. Major contributers included Claudia Allers, Dana Aronovich, Jaya Chimnani, Todd Dickens, Paul Dowling, Barbara Felling, Carolyn Hart, Alexis Heaton, Rich Owens, Leslie Patykewich, Gregory Roche, Eric Takang, and Edward Wilson. Te lead review team included Lilia Gerberg, Kelly Hamblin, Erin Hasselberg, Naomi Printz, and Ashley Smith. Gus Osorio designed the graphics and the layout. Pat Shawkey was the editor. Te stand-alone handbook is based on a wide range of knowledge and information from staf throughout the project. Cover photo: During the rainy season an ox cart is the only reliable way to get health commodities across the fooded plains to rural health centers in Zambia’s western province. (USAID | DELIVER PROJECT 2010). USAID | DELIVER PROJECT John Snow, Inc. 1616 Fort Myer Drive, 11th Floor Arlington, VA 22209 USA Phone: 703-528-7474 Fax: 703-528-7480 Email: [email protected] Internet: deliver.jsi.com Contents Acronyms......................................................................................................... ...................................................... vii Preface ......................................................................................................... ........................................................... ix 1•.Introduction.to.Logistics....................................................................................................................................1 Objectives............................................................................................................................................................................................1 1.1 What Is Logistics? .......................................................................................................................................................................1 1.2 Why Logistics Matters...............................................................................................................................................................2 1.3 Logistics System ..........................................................................................................................................................................3 1.4 Logistics Cycle: Organizing Logistics System Activities .....................................................................................................5 1.5 Key Logistics Terms...................................................................................................................................................................9 1.6 More Logistics Terms............................................................................................................................................................. 11 Chapter Summary........................................................................................................................................................................... 16 2.•.Logistics.Management.Information.Systems................................................................................................ 17 Objectives......................................................................................................................................................................................... 17 2.1 Logistics Management Information Systems...................................................................................................................... 18 2.2 Essential Data for Decisionmaking....................................................................................................................................... 18 2.3 Three Types of Logistics Records ....................................................................................................................................... 19 2.4 Reporting Systems and Summary Reports......................................................................................................................... 33 2.5 Using an LMIS for Decisionmaking ...................................................................................................................................... 41 Chapter Summary........................................................................................................................................................................... 42 3.•.Assessing.Stock.Status..................................................................................................................................... 43 Objectives......................................................................................................................................................................................... 43 3.1 Assessing Stock Status............................................................................................................................................................ 43 3.2 How to Assess Stock Status.................................................................................................................................................. 44 3.3 When to Assess Stock Status ............................................................................................................................................... 46 3.4 Stock Status Assessment at Any Level in the System ..................................................................................................... 46 Chapter Summary........................................................................................................................................................................... 53 4.•.Maximum-Minimum.Inventory.Control.Systems......................................................................................... 55 Objectives......................................................................................................................................................................................... 55 4.1 Purpose of an Inventory Control System .........................................................................................................................
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