NURS. 462: SUPPLY CHAIN MANAGEMENT .

TOPICS TO BE TREATED

1. Introduction to Supply chain management

2. Logistics Management Information Systems
3. Assessing Stock Status
4. Maximum - Minimum Inventory Control Systems(Inventory management)
5. Product Selection
6. Quantification of Health Commodities
7. Health Commodity Procurement (procurement)
8. Storage and Distribution
9. Monitoring and Evaluation of Supply Chains
10. Logistics System Design

Lecturer: Charlotte Abeyie.

Introduction to supply chain management

Supply chain management encompasses the planning and

management of all activities involved in sourcing,
procurement…and all logistics management activities. It also
includes coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third party
service providers and customers.
Supply chain definition
Supply chain management is the management of the flow of
goods and services which includes all processes that
transform raw materials into final products. It involves the
active streamlining of a business's supply-side activities to
maximize customer value and gain a competitive advantage
in the marketplace. It is an integrated group of processes to
“source”, “make” and “deliver” finished products or service.
 Supply chain stages

Information flow - this involves transmitting orders and

updating the status of delivery.
Product flow – it involves the movement of goods from a
supplier to a customer as well as any customer returns or service
need.
Financial flow (flow of funds or money) – consists of credit
terms, payment schedules, and consignment and title ownership
arrangement.
COMPONENTS OF A SUPPLY CHAIN

 Customer(patient): The Customers are arguably the most important

component of the supply chain. They are the only source of revenue
for the entire supply chain.
 Distributors: it refers to intermediaries within the supply chain and
these include wholesalers, retailers, and agents of all kinds. These
intermediaries serve as links between the manufacturers of products
and the consumers of the products. They ensure that information,
funds and the products flow within the supply chain.
COMPONENTS OF A SUPPLY CHAIN

Manufacturers: Manufacturers make the final product. They transform

raw materials or inputs into useful finished products for the ultimate
consumption of the customer. A good part of the cost incurred by the
supply chain emanates from the manufacturers in the form of production
cost, storage cost and transportation cost.
Suppliers: Suppliers provide component parts and other inputs and raw
materials to manufacturers. They play a very important role in the
supply chain because the reliability and efficiency of the supply chain
depends to a large extent on the goods or services these suppliers give.
THE OBJECTIVES OF A SUPPLY CHAIN

To create the most value for the customer/value for your money
To provide the customer the most convenience at the least cost
Functions of supply chain
 Purchasing - Purchasing is the first function of supply chain management
and pertains to buying raw materials and other resources that are
essential for the delivery of quality health care. It requires coordination
with suppliers in order for delivery to arrive without any potential delays
 Operations - Within supply chain, the operation team engages in demand
planning and forecasting. In order for the team to be able to properly
order materials, the organization has to anticipate potential market
demand and the number of units that will be needed to be produced
within a timely manner
Functions of supply chain.
 Logistics - Logistics pertains to requirement for coordination.
This will call for making local warehouse arrangements.
Logistics ensures that the products will reach the end-point
delivery without any hindrances.
 Resource Management - Production consumes raw materials,
technology, time, and labor. All processes need to be efficient
and effective, in which this phase will be taken care of by the
resource management function team. It decides the allocation of
resources in the accurate activity at the right time to optimize the
production at reduced costs
 Functions of supply chain & Decision
making levels
Information workflow: Information sharing and distribution is what keeps all
of the other functions of supply chain management on track. If the information
workflow and communication are poor, it could break apart the entire chain.

Decision making level in Supply chain

Strategic level: They set long term objectives and goals
Tactical level: These decisions are reviewed normally annually, eg
purchasing, production, inventory, transportation etc
Operational Level: Decisions here are day to day activities such as
scheduling, vehicle loading, laboratory analysis etc
Benefits of Supply Chain Management

• Lower inventories
• Higher productivity
• Shorter lead times
• Higher profits
• Greater customer loyalty