Logistics Management Information System
Talking Point
Asker: Chief, Logistics and Supply Division, Ministry of Health
(MOH)
Target Audience: Minister of Health (or other official that is
involved in budget allocation decisions)
The Ask: Increase funding to upgrade the logistics management
information system (LMIS) system, including installation of
computers in health facilities, development of customized software,
and networking of facilities to central warehouse.
Introduction of the issue and why it is important:Our LMIS
system is paper-based and proves to be labor intensive for
consolidating commodity information from lower level health
facilities. As a result, reporting on commodity requirements is
often delayed and has led to shortages and stockouts of critical
family planning (FP) supplies. As you are fully aware,
contraceptive stockouts will hinder our ability to achieve our
health and development targets. Hence, it is imperative that we
develop a practical, long-term solution for addressing the problem.
Although efforts are currently underway to improve the logistics
system, your support is needed to specifically address the issue of
timely reporting. Improvements in this area can help ensure that
commodity requests that are sent to the central level more
accurately reflect health facility needs and, consequently,
decrease the occurrence of stockouts and shortages.
Main points in logical sequence: No product, no program! FP
commodities are a critical component to achieving health as well as
non-health Millennium Development Goals (MDGs). The goal of our
supply chain is to ensure that products reach consumersmy division
is not fulfilling its mission if the needed products do not reach
health facilities in an efficient, timely manner.
Even if one aspect of the system is disrupted or not
well-functioning, the whole system can break down. Better
technology will help us anticipate these malfunctions, identify the
problem(s), and intervene in a more timely manner.
The LMIS provides us with data and information so that we can:
(1) make informed decisions about the amount of each product to
order or re-supply; (2) anticipate stockouts and avoid overstocking
and wastage of products; (3) forecast commodity requirements; and
(4) plan when to procure the products. The accuracy,
appropriateness, and timeliness of these data are crucial to
avoiding errors.
Our division has discussed the potential benefits of removing
the paper-based components and using software, computers, and an
internal network for mid- to high-level health facilities. We
determined that such a system will ultimately streamline the
process and increase communication within the various levels of the
supply chain. When these ideas were shared with district and
regional health and logistics managers, they all expressed
enthusiasm for the opportunity to have a better system that takes
advantage of available technology and would enable them to better
organize and streamline information in a timely fashion.
Even in resource-limited places, the efficiency of the supply
chain can be enhanced. For example, our neighboring countries have
updated their LMIS systems as such and have experienced increased
efficiency and fewer occurrences of stockouts since it has been up
and running. I know we have the capacity to do as well as our
neighbors.
Specific actions/requests of the ministerial official:Upgrade
the existing LMIS system by providing funding for the
purchase of 120 computers in all regional and district
facilities (we will start first with regions (10), and through a
phased approach, incorporate districts (110)); networking of
participating health facilities to the central warehouse; and
ongoing maintenance of the improved system.
Potential questions or counter arguments that Minister/other
official may raise:1) Where will I get the funds for this?
Currently, there are high costs (financial and human) to
addressing contraceptive shortages and stockouts. By investing
upfront to improve the current system, you will realize cost
savings through improved efficiency. We can pilot a few regions to
study the costs and benefits of a computerized system.
Each health program uses the same supply chain system to deliver
products. Allocate a small percentage of each health programs
budget for logistics improvements. These funds should also be used
for maintenance and upgrades.
2) If we were to grant this request, will other divisions ask us
to upgrade them with computers and other expensive technology?
Programs for most divisions within the MOH are supply-dependent.
Improvements in the logistics systems will have wide-ranging
benefits for most health programs.
3) How will we train everyone in these new procedures?
The logistics and supply division will be responsible for
designing and implementing a plan to do so. We only ask for some
funding assistance.
4) Where will we obtain the equipment and technical
assistance?
We can seek assistance on these important issues from many
groups.
