DRUG SUPPLY

MANAGEMENT
Phar 3144
By

Bezawit Negash
bezawit.negash@aau.edu.et March, 2020

1
 Chapters
01 Introduction

Concept of Essential
02
Drugs and National Drug Assignment
Policy
Drug management cycle
Evaluation Presentation
03
Quizzes
Drug use
04
Test
Final exam

2
 Chapter 1: Introduction
What is drug??
A drug can be given three possible operational definitions:
1. a chemical substance that affects the processes of the body or mind;
2. any chemical compound used on or administered to humans or
animals as an aid in the diagnosis, treatment or prevention of disease,
or other abnormal condition, for the relief of pain or suffering, or to
control or improve any physiologic or pathologic state;
3. a substance used recreationally for its effects on the central nervous
system.
3
 Cont. . .
Supply

• Supply is the process of building inventory (through manufacturing and/or

procurement) to the targets established in inventory planning.

• The objective of supply management is to minimize the total acquisition

cost (TAC) while meeting the availability, response time, and quality
requirements stipulated in the customer service policy and the inventory
master plan.

4
 Cont . . .
What is management?
• Management is the act or art of being responsible or in charge and
conducting or supervising something with a degree of skill and
address.
• Management is a process of planning, decision making,
organizing, leading, motivation and controlling the human
resources, financial, physical, and information resources of an
organization to reach its goals in an efficient and effective manner.

5
Cont . . .
• Why we care about Medicines/Drugs??
• Medicines save lives and improve health
• Medicines promote trust and participation in health services
• Medicines are costly
• Medicines are different from other consumer products
• Substantive gaps are in supply and use of medicines

6
Why drug supply management (DSM)?
• Lack of access to medication
• Irrational drug use

DSM is needed as it is concerned with practical ways in

which high quality essential drugs are available,
affordable and used rationally.
7
Cont . . .

• The term “supply chain management” arose in the late 1980s

and came into widespread use in the 1990s. Prior to that time,
businesses used terms such as “logistics” and “operations
management” instead.

8
Cont . . .

• Supply chains refer to networks of companies that work

together and coordinate their actions to deliver a
product to market.

• Pharmaceutical supply chain is a special supply chain in

which drugs are produced, transported and consumed.
9
 Cont . . .
• According to (CSCMP) —
• “ Supply chain management encompasses the planning and
management of all activities involved in sourcing and procurement…
and all logistics management activities. Importantly, it also includes
coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third party service providers, and customers.
In essence, supply chain management integrates supply and demand
management within and across companies.”

10
Cont . . .

‘logistics is part of the supply chain process that plans,

implements, and controls the efficient, effective forward and
reverse flow and storage of goods, services, and related
information between the point of origin and the point of
consumption in order to meet customers’ requirements’.

11
 Reverse product flow

Supplier Producer Customer

Information flow Primary cash flow Primary product flow

 Cont . . .
• Organizations in the supply chain:
Ministries of health
Central medical stores(EPSA)
Donors; nongovernmental organizations (NGOs);
Regions and districts;
Health facilities;
Community health workers; and
Private sector partners,
such as third-party logistics providers, drug manufacturers, distributors, and
private service providers.

13
WHY SUPPLY CHAINS MATTER?

1 2 3
Increasing Enhancing Improving cost
program quality of care effectiveness and
efficiency
impact
 THE SUPPLY CHAIN AND THE SIX RIGHTS

The RIGHT goods .

delivered… To the RIGHT place

At the RIGHT time

In the RIGHT quantities

In the RIGHT condition For the RIGHT cost.

 Cont . . .

• The goal of a public health supply chain is much larger than simply making
sure a product gets where it needs to go.

• Ultimately, the goal of every public health supply chain is to improve health
outcomes. A properly functioning supply chain is a critical part of ensuring
commodity security—when every person is able to obtain and use quality
essential health supplies whenever he or she needs them.

16
 Ethiopia health care system

• With more than 100 million inhabitants, Ethiopia is the second most populous
country in Africa, after Nigeria.

• In recent years the life expectancy has been increasing, and is now 64 years at
birth.

• Ethiopia allocated US$ 1.6 billion to health care in 2015 Of total health
expenditure, 14.69% goes to finance primary health care (PHC).

17
 Cont . . .

• Primary Health Care defined as

• – Essential health care based on practical, scientifically sound and socially
acceptable methods and technology made universally accessible to individuals
and families in the community through their full participation and at a cost
that the community and the country can afford to maintain at every stage of
their development in the spirit of self-reliance and self-determination” (WHO-
UNICEF 1978).

18
 Cont . . .

• The Alma-Ata Declaration on Primary Health Care (1978), and its call for
Health for All by the year 2000, was welcomed by the Ethiopian Government.

• A plan to achieve universal access to PHC was prepared and embedded in the
Health Sector Development Programme III in 2005.

• This plan aimed to address shortcomings of service coverage within the health
system through accelerated expansion and strengthening of PHC services.

19
 Cont . . .

• In fact implementation of PHC policies was largely unsuccessful at first, for the
following reasons:
The policies and strategies for the specific elements of the PHC were not clearly defined at national
level.
 Regions and health facilities had limited awareness of those elements as defined at the central
level.
 There was lack of clarity on health policies in most regions as a result of poor and inadequate
dissemination of information on the policies.

20
Ethiopia’s
three-tier
healthcare
system
 Cont . . .

• Primary health care is rooted in a commitment to social justice and equity and in the
recognition of the fundamental right to the highest attainable standard of health, as
echoed in

• Article 25 of the Universal Declaration on Human Rights: “Everyone has the right to
a standard of living adequate for the health and wellbeing of himself and of his
family, including food, clothing, housing and medical care and necessary social
services
22
 Cont . . .
• The five principles usually associated with the PHC strategy are:
1. Universal accessibility and coverage
 Essential health services to all people
 Health services should be available to all, including rural or isolated populations
2. Community and individual involvement and self reliance
 Individuals and communities have the right and responsibility to be
active partners in making decisions about their health care and the health
of their communities.

23
 Cont . . .
3. Appropriate technology and cost effectiveness
 This includes methods of care, service delivery, procedures and equipment
that are socially acceptable and affordable.
4. Intersectoral action for health
• Education, housing, public water supplies and so on.
5. Health promotion
 Through the provision of affordable health services and community health
education.

24