Strengthening ARV Commodity Security in Uganda

The Challenge

Central-level warehouses must often manage high volumes of public sector commodities–both purchased by the government and donated. In Uganda, the FBO Joint Medical Store (JMS) is tasked with managing 20 percent of all essential drugs, storing these for NGO-supported Ministry of Health (MOH) facilities and holding antiretrovirals (ARVs) for several PEPFAR recipients. As JMS grew, so did the need for more storage. JMS temporarily rented additional warehouse space and later raised a second building on its property in Kampala. The challenge was to manage stocks most effectively in each building and use the available space most efficiently. JMS management also needed to improve its information system. For several weeks in mid-2007, operations were halted due to MIS failure. JMS asked SCMS to assist in resolving these storage space and MIS issues.

Program Implementation

SCMS recommended that JMS use one of its stores for bulk storage and the other primarily for picking and packing of orders. At the bulk warehouse, receiving and dispatch areas were separated to improve security and movement between the two warehouses. A racking system was installed and forklift added, maximizing storage space in the bulk warehouse. At the pick warehouse, fast-moving items were placed at the front of the picking area and slow-moving items at the back, based on an analysis known as “ABC” or “usage-value” analysis.

The MIS was replaced with a new MACS system, including the use of radio frequency (Rf) devices to speed up transactions. A perpetual inventory (PI) was implemented using MACS to prevent warehouse closing for annual inventories. MACS directs pickers to specific pallet positions, enforcing first-expire, first-out (FEFO), thus reducing the risk of expiry. Staff were trained in the new processes introduced by MACS, as well as procurement and contracting practices

By addressing its warehousing and MIS issues simultaneously, and continuously training and motivating staff in best practices, JMS has changed the face of its operations.

Results and Outcomes

Technical assistance from SCMS resulted in improved efficiency in JMS warehouse operations. Picking time was reduced by up to 30 percent. Rf terminals offer instant stock-on-hand for any product, with built-in alerts to minimize the likelihood of stockouts. Operations are no longer halted for stock-taking due to the new system’s PI feature. The next phase is to install a front-end program, which would give MOH staff the opportunity to review product stock status instantly. A similar installation at the National Medical Stores would give MOH instant access to stock status of all essential medication at the central level.

By addressing its warehousing and MIS issues simultaneously, and continuously training and motivating staff in best practices, JMS has changed the face of its operations. The result is a streamlined, sustainable warehouse management system, enabling a more secure, more reliable supply of treatment that meets the scale-up and delivers to those who need it most