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Warehouse Improvement Plan and Draft Operating Procedures
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Warehouse Improvement Plan and Draft Operating Procedures for the. Central Warehouses of the Directorate General of Health Services and. the Directorate General of Family Planning in Bangladesh. Roger Miller,Matt Peterson, Warehouse Improvement Plan and Draft Standard Operating Procedures for the Central Warehouses of the. Directorate General of Health Services and the Directorate General of Family Planning in Bangladesh. This report is made possible by the generous support of the American people through the US. Agency for International Development USAID under the terms of cooperative agreement. number AID OAA A 11 00021 The contents are the responsibility of Management Sciences for. Health and do not necessarily reflect the views of USAID or the United States Government. About SIAPS, The goal of the Systems for Improved Access to Pharmaceuticals and Services SIAPS Program. is to assure the availability of quality pharmaceutical products and effective pharmaceutical. services to achieve desired health outcomes Toward this end the SIAPS result areas include. improving governance building capacity for pharmaceutical management and services. addressing information needed for decision making in the pharmaceutical sector strengthening. financing strategies and mechanisms to improve access to medicines and increasing quality. pharmaceutical services,Recommended Citation, This report may be reproduced if credit is given to SIAPS Please use the following citation. Miller Roger and Peterson Matthew R 2014 Warehouse Improvement Plan and Draft. Standard Operating Procedures for the Central Warehouses of the Directorate General of. Health Services and the Directorate General of Family Planning in Bangladesh Submitted to. the US Agency for International Development by the Systems for Improved Access to. Pharmaceuticals and Services SIAPS Program Arlington VA Management Sciences for. Assessment Bangladesh Central Medical Stores Depot central warehouse family planning. health services logistics medical supplies medical supply chain warehouse strengthening. Systems for Improved Access to Pharmaceuticals and Services SIAPS. Center for Pharmaceutical Management,Management Sciences for Health. 4301 North Fairfax Drive Suite 400,Arlington VA 22203 USA.
Telephone 703 524 6575,Fax 703 524 7898,E mail siaps msh org. Web www siapsprogram org,Acronyms iv,Acknowledgments v. Executive Summary vi,Introduction 1,Background 1,Approach 2. Document Review 2,In Country Rapid Situation Analysis 3. Focus Areas 4,Findings 5, Organizational Structure of the CMSD and DGFP Central Warehouses 5.
Overall Findings CMSD 6,Distribution Structure 6,Infrastructure Capabilities 7. Inventory Management 9,Overall Findings DGFP Central Warehouse 9. Infrastructure Capabilities 11,Inventory Management 11. Conclusions and Recommendations for Next Steps 12,DGFP Central Warehouse 13. Limitations 14,Annex 1 Recommended Warehouse Improvement Plan 15.
Annex 2 Medical Product Naming and Location Identification Procedures 19. Annex 3 Proposed Draft Generic Warehouse SOPs for Adoption and Adaptation as Needed 22. cm centimeter,CMSD Central Medical Stores Depot,CWH central warehouse. DGFP Directorate General of Family Planning,DGHS Directorate General of Health Services. FEFO first expiry first out,GDP good distribution practice. GOB Government of Bangladesh,IT information technology. KPI key performance indicator,LMI Logistics Management Institute.
LMIS Logistics Management Information System,MHE material handling equipment. MOHFW Ministry of Health and Family Welfare,MSH Management Sciences for Health. NGO nongovernmental organization,RFID radio frequency identification. SDP service delivery point, SIAPS Systems for Improved Access to Pharmaceuticals and Services. SOP standard operating procedure,SPS Strengthening Pharmaceutical Systems.
TA technical assistance,TBD to be determined,USAID US Agency for International Development. WHO World Health Organization,WMS warehouse management system. ACKNOWLEDGMENTS, This report and the analysis it documents would not have been possible without the leadership. of Dr Zubayer Hussain Systems for Improved Access to Pharmaceuticals and Services. SIAPS Bangladesh Country Director His astute understanding of the challenges in the health. and family planning sector was invaluable The consultant team understood both his intent and. personal desire to see productive outcomes from this initial assessment undertaken on behalf of. the Directorate General of Family Planning DGFP and the Directorate General of Health. Services DGHS Special thanks are also extended to Mr Md Abdullah Logistics Staff Lead. SIAPS Bangladesh for his exceptional efforts to organize and facilitate all aspects of the office. and field visits needed to conduct the assessment, The consultant team would also like to thank Brigadier General Syed Iftekhar Seyin Director. Central Medical Stores Depot and his staff along with Mr Md Saiful Islam Director DGFP. Central Warehouse and his staff and Mr Md Kafil Uddin Joint Secretary Director for. Logistics and Supply DGFP for their hospitality cooperation and insights. We wish to express our sincere appreciation to the US Agency for International Development. USAID funded SIAPS Program implemented by Management Sciences for Health MSH. and to USAID for their leadership and technical support for the implementation of this technical. assistance that will assist the DGFP and DGHS to achieve their visions and their missions on. behalf of the people of Bangladesh, Wonder Goredema Mavere Tukai and Emmanuel Nfor provided technical guidance and.
oversight from the SIAPS home office in Arlington Virginia USA They also reviewed and. provided input to and feedback on this report contributing to its finalization. EXECUTIVE SUMMARY, This report summarizes technical findings and recommendations to assist two important supply. chain management organizations that support the Government of Bangladesh s GOB Ministry. of Health and Family Welfare MOHFW The first organization the Ministry s Central. Medical Stores Depot CMSD is headquartered in Dhaka It serves as the central procurement. and distribution arm of the Directorate General of Health Services DGHS The second. organization the central warehouse CWH of the Directorate General of Family Planning. DGFP is also located in Dhaka It supports the DGFP s family planning and reproductive. health commodity storage and distribution requirements. During phase one of the project conducted in November and December 2013 a rapid evaluation. involving document review and site visits in and around Dhaka enabled the development of. recommendations a comprehensive action plan and draft procedures to improve the operational. performance and capacity of each organization, Although the CWH and CMSD share a similar mission the centralized procurement and. distribution of medical products they are very different in the technical execution of their. missions Consequently this report presents different findings and recommendations for each. organization, In phase two short term recommendations will be implemented the draft warehouse. management standard operating procedures will be further defined and elaborated additional. procedures and other documentation will be drafted if needed and a human resource. performance improvement capacity building approach and associated materials will be. developed While the focus of this project is on warehouse strengthening at the two Dhaka. locations the supply chain management practices and procedures it produces are equally. applicable to other DGHS and DGFP supply chain organizations throughout Bangladesh The. objective of this project is to create building block capabilities that once implemented within. the CMSD and CWH may be subsequently replicated across the country We also describe. foundational recommendations that should be implemented throughout the supply chains in. order for them to function as an integrated end to end system i e Dhaka to consumer. Like any other supply chain the DGHS and DGFP supply chains are complex dynamic systems. with many constituent parts The DGHS supply chain begins with suppliers and continues with. the movement of medicines and medical supplies through the CMSD structure into the District. Reserve Stores and Upazila stores levels until they reach clinics hospitals and other treatment. facilities throughout the country The DGFP supply chain likewise begins with family planning. commodity suppliers and continues to service delivery points SDP at over 30 000 locations. across Bangladesh, Our review of the CMSD s processes revealed an organization that lacked the basic. documentation needed to define and disseminate information about its own processes and. operations For this reason this report includes a set of draft operating procedures that when. finalized have the potential to significantly improve the organization s effectiveness and. Executive Summary, accountability to its stakeholders SIAPS will use these standard operating procedures SOP as.
the basis for a workforce training program during the next phase of the project Also included in. the report are recommendations about changes in business practices such as a systematic. method for product identification and a standard warehouse locator system that will provide a. more stable foundation for future operations Lastly a set of recommended investments in the. CMSD organization are offered An investment in human capacity equipment logistics. technology and infrastructure is needed to strengthen the CMSD s warehousing and distribution. capacity Given its current procurement and inventory management practices CMSD requires at. least twice as much storage space as it currently has Anything less than 14 864 square meters. 160 000 square feet will cause sub optimal stores management quality assurance and. surveillance and receiving storage and issue business practices The optimal space. determination was prepared partly through a visual inspection of current space utilization and. partly based on interviews with the CMSD leadership Designated storage locations are more. than 100 occupied in the CMSD facility and stored materials occupy every single aisle and. loading area Given the CMSD s current procurement and inventory management practices it. was determined that a facility double the size of the current facility is justified However this is a. rough order of magnitude estimate that should be more carefully studied before the DGHS. commits to acquiring more space In addition the key problem at the CMSD may not really be. shortage of space but rather inefficient utilization of the available space Much of what should. be done for the CMSD and the DGHS supply chain has already been implemented in the DGFP. supply chain It may therefore be possible to adapt and customize many of the business practices. and procedures used in the DGFP for use by the DGHS. The review of the CWH s processes revealed a considerably more functional organization. operating as a part of a much better integrated DGFP wide supply chain For example the. consultant team s requests for CMSD documentation revealed that most processes and. organizational responsibilities in the CMSD are undocumented On the other hand a very. thorough and well illustrated storage and distribution procedures manual in Bengali describing. the DGFP supply chain was available At the same time there remains substantial room for. improvement within the CWH However as measured by product availability at the SDP level. and product stock outs particularly for products deemed critical problems are much less. common in the DGFP supply chain As with the CMSD a targeted set of improvements to. physical infrastructure is recommended including better use of material handling equipment. MHE improvements to business practices such as the management of worker safety and. storage practices and targeted investments intended to improve operational performance such as. upgrades to warehouse interior lighting storage racks and warehouse floor surfacing to improve. workers ability to operate in the CWH facility, Both the DGHS and DGFP can begin implementing many of the recommended improvements. now For example both organizations could develop warehouse location identification systems. that will allow their workers to know precisely where all products are stored in their facilities. Annex 2 provides a suggested implementation method for such a locator system Once. foundational changes such as a product identification method in the DGHS and improved. storage capability in the CWH have been initiated other changes may be launched. Warehouse Improvement Plan and Draft Standard Operating Procedures for the Central Warehouses of the. Directorate General of Health Services and the Directorate General of Family Planning in Bangladesh. Both the CMSD and CWH face other longer term challenges The physical facilities within. which they operate are not ideal for the storage of medical products Neither facility has adequate. controlled temperature and refrigeration storage space Both facilities are overcrowded and. contain too much inventory for efficient operations. Ultimately both facilities should be replaced with new more modern structures capable of. functioning as 21st century distribution centers Neither facility can be sufficiently modernized to. enable this At the same time the consultant team recognizes that building projects of the scale. and scope envisioned is a long term process, Both the CMSD and CWH have the potential to provide improved supply chain management. services to the MOHFW by making relatively small changes in the near future. This report addresses improvements in warehouse business processes warehouse management. procedures organizational functional units work flow charts bin and bulk storage locators and. key performance monitoring indicators as well as providing a baseline performance assessment. of both facilities,INTRODUCTION,Background, Pharmaceutical systems rely on well functioning pharmaceutical supply chains to effectively. deliver medicines to the end user A key component of the pharmaceutical supply chain logistics. system is warehousing storage and distribution of commodities Poor warehousing and. distribution results in shortages stock outs and millions of dollars in lost pharmaceuticals and. other essential products due to expired products in warehouses and inefficient distribution to. clients Countries can reduce wastage expand availability and save money by improving the. storage and distribution of pharmaceuticals, The goal of the Systems for Improved Access to Pharmaceuticals and Services SIAPS. Program which is funded by the US Agency for International Development USAID and. implemented by Management Sciences for Health MSH is to assure the availability of quality. pharmaceutical products and effective pharmaceutical services to achieve desired health. outcomes SIAPS collaborates with five core partners including Logistics Management Institute. LMI and six specialized resource partners, In Bangladesh SIAPS is working with the Ministry of Health and Family Welfare MOHFW to.
strengthen the management of pharmaceuticals and other health commodities The broad areas of. technical assistance TA provided by SIAPS include supply chain management pharmaceutical. services and pharmaceutical regulatory systems with a focus on maternal newborn and child. health and tuberculosis related essential medicines and supplies. SIAPS is assisting the Directorate General of Health Services DGHS and the Directorate. General of Family Planning DGFP to improve the performance of their respective central. warehouses and the pharmaceutical management of family planning and other public health. commodities, To achieve this goal SIAPS collaborated with LMI to address gaps in the warehouse and. commodity distribution systems LMI has a strong track record in logistics management It has. supported various US Government activities including in the field of global health LMI has. collaborated with MSH s Center for Pharmaceutical Management under SIAPS and its. predecessor project Strengthening Pharmaceutical Systems SPS on several previous logistics. management system strengthening tasks in Bangladesh including a 2010 logistics management. system assessment for the entire MOHFW 1 2 3 The assessments identified critical barriers that. Miller R Gonsalkorale R and Addison D Comprehensive Assessment for the Government of Bangladesh. Directorate General of Health Services Central Medical Stores Depot Submitted to the US Agency for. International Development by the Strengthening Pharmaceutical Systems SPS Program Arlington VA. Management Sciences for Health 2010, Systems for Improved Access to Pharmaceuticals and Services Bangladesh Work Plan October 2011 September. 2012 Submitted to the US Agency for International Development by the Systems for Improved Access to. Pharmaceuticals and Service SIAPS Program Arlington VA Management Sciences for Health 2011. Warehouse Improvement Plan and Draft Standard Operating Procedures for the Central Warehouses of the. Directorate General of Health Services and the Directorate General of Family Planning in Bangladesh. adversely impact supply chain operations and recommended improvements to warehousing. operations storage and distribution management of essential public health commodities. The purpose of the TA was to improve the storage inventory management and distribution. systems of the DGHS Central Medical Stores Depot CMSD and the DGFP s central. warehouse CWH, Two LMI consultants traveled to Dhaka and worked with SIAPS Bangladesh and US office staff. to provide TA to the CMSD and the CWH The TA approach included five distinct activities in. accordance with the warehouse improvement statement of work. Conduct a review of relevant DGHS and DGFP documentation. Conduct an in country baseline performance assessment. Conduct data analysis with in country SIAPS staff in Dhaka. Provide warehouse improvement and strengthening recommendations to the DGHS. DGFP and SIAPS staff,Debrief USAID and MOHFW staff members. Document Review, The LMI consultants conducted a review of relevant DGHS and DGFP documentation in.
November 2013 A visit to Bangladesh was conducted November 9 22 2013 which enhanced. the consultant team s knowledge The document review included. Desk research and the development of a draft warehouse strengthening plan for the. DGHS and DGFP to address the short and medium term recommendations of the. previous assessments, Discussion review and revision of the strengthening plan in consultation with. SIAPS US and SIAPS Bangladesh staff DGHS and DGFP staff and other relevant in. country stakeholders, Johnson M Addison D and Mbatha T Assessment of the Government of Bangladesh Directorate General of. Family Planning Warehousing and Logistics Systems Submitted to the US Agency for International Development. by the Strengthening Pharmaceutical Systems SPS Program Arlington VA Management Sciences for Health. Introduction,In Country Rapid Situation Analysis, Rapid reviews of the CMSD and CWH were conducted in and around Dhaka from November 9. 22 2013 The following tasks were completed, Met with key stakeholders in Dhaka to review and evaluate the current status and. capacity of the DGHS and DGHP warehouses in Dhaka, Reviewed relevant documents circulars manuals standard operating procedures SOP.
etc governing logistics management and distribution operations across the different. working units of the DGHS and DGFP s warehouses, Visited the DGHS and DGFP warehouses nearby health facilities and other entities to. understand the current logistics management and distribution systems and to document. progress in the implementation of recommendations from the previous assessments. Interviewed relevant DGHS and DGFP staff and officials and their warehouse staff as. well as staff from other related entities and stakeholders to gather necessary information. regarding the existing logistics management and distribution systems in conjunction with. SIAPS Bangladesh staff, Met with the relevant key officials to obtain consensus on the findings regarding current. practice procedures systems and recommended improvement options Reviewed and. finalized the draft warehouse strengthening strategy and plan in collaboration with key. DGHS and DGFP officials and SIAPS Bangladesh staff. Drafted a warehouse improvement plan with prioritized actions and supporting. rationales objectives The improvement plan includes recommended. interventions activities to fix identified gaps and related implementation details. Drafted descriptions of proposed warehouse system strengthening tools including. medical product naming and location identification procedures Annex 2 and prioritized. warehouse SOPs Annex 3, Assisted the DGHS CMSD and DGFP CWH to conduct rapid staff performance. evaluations at the warehouses, Analyzed and determined the space required for optimal product storage in both. warehouses, Collected key performance information for the DGFP including product availability at.
the service delivery point SDP level and product stock outs particularly for products. deemed critical Problems in these areas are much less common in the DGFP supply. Warehouse Improvement Plan and Draft Standard Operating Procedures for the Central Warehouses of the. Directorate General of Health Services and the Directorate General of Family Planning in Bangladesh. chain The collection and assessment of such key performance indicators were not. possible for the CMSD because of the lack of data,Focus Areas. The objective of the TA is to develop a phased warehouse improvement plan for the DGHS and. the DGFP based on the findings and recommendations of previous assessments Annex 1 is the. recommended warehouse improvement plan Annex 2 contains two other proposed. improvements medical product naming and location identification procedures that can be. implemented independently from the overall plan in Annex 1 Annex 3 contains a set of. proposed draft warehouse management procedures which are designed to be adapted as needed. and finalized for the DGHS or to be adapted as needed and used to improve existing. DGFP CWH processes and procedures, Organizational Structure of the CMSD and DGFP Central Warehouses. Figures 1 and 2 depict the internal organizational structures of the CMSD and DGFP central. warehouses The DGFP central warehouse structure does not include the 20 regional warehouses. that report to the warehouse director because they are technically separate organizations. Each organization appears to provide a basic yet functional approach to its organizational. mission Further analysis however would likely reveal gaps that may be addressed in the next. phase of the project,Director General,Health Services. Deputy Director,Deputy Director,Procurement and,Assistant Director. Assistant Director Assistant Director Assistant Director. Stores and,Administration Procurement Port Clearance.

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