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  • Pages
01 About
02 Framework
03 Process Steps
04 ASSESS
05 ASSESS: Prioritise and analyse KPIs
06 ASSESS: Three approaches
07 ASSESS: Refresh approach
08 ASSESS: Light review approach
09 ASSESS: Deep dive approach
10 ASSESS: Tools
11 ASSESS: Supply chain mapping tools
12 ASSESS: Geo-mapping tools
13 ASSESS: Reporting and dissemination
14 EVALUATE
15 EVALUATE: Vendor evaluation and selection
16 EVALUATE: 4 steps for optimal outsourcing
17 EVALUATE: In-country supply chain assessment
18 EVALUATE: External benchmarking
19 EVALUATE: Investment case model
20 EVALUATE: High-level vendor assessment matrix
21 EVALUATE: Examples of vendor evaluation
22 CONTRACT
23 CONTRACT: Critical success factors for contracting
24 CONTRACT: Nine-step contracting approach
25 CONTRACT: Templates and examples
26 IMPLEMENT
27 IMPLEMENT - 3 Steps
28 IMPLEMENT - Managing the transition process
29 IMPLEMENT - Peformance management tools
30 IMPLEMENT - Governance procedures
31 IMPLEMENT - Examples of successful outsourcing arrangements
32 Enabler Tools
33 POLICY
34 POLICY: Introduction to procurement policy
35 POLICY: Examples of effective policy tools
36 ADVOCACY AND GOVERNANCE
37 ADVOCACY AND GOVERNANCE: Stakeholder expectations
38 ADVOCACY AND GOVERNANCE: Guidelines for advocacy processes
39 ADVOCACY AND GOVERNANCE: Examples of governance structure and communication platforms
40 ADVOCACY AND GOVERNANCE: Example of logistic working groups
41 ADVOCACY AND GOVERNANCE: Example of supplier forums
42 PEOPLE
43 PEOPLE: Introduction and capability matrix
44 PEOPLE: Considerations across Process Steps
45 PEOPLE: Skills considerations
46 PEOPLE: Working conditions
47 PEOPLE: Motivation considerations
48 PEOPLE: UK Case study
49 TECHNOLOGY
50 TECHNOLOGY: Introduction
51 TECHNOLOGY: VAN
52 TECHNOLOGY: eLMIS
53 TECHNOLOGY: OpenLMIS
54 TECHNOLOGY: Logistimo
55 TECHNOLOGY: Stock Visibility System (SVS)
56 TECHNOLOGY: Route optimisation
57 CASE STUDIES
58 CASE STUDY: Zambia
59 CASE STUDY: Kenya
60 CASE STUDY: Uganda
61 CASE STUDY: Mozambique
62 Pharmacy toolkit
63 Pharmacy toolkit intro
64 Pharmacy toolkit case studies
65 Pharmacy toolkit framework
66 Pharmacy Assess
67 Pharmacy Evaluate
68 Pharmacy Contract
69 Pharmacy Implement
70 Pharmacy Enabler tools
71 Laboratory services toolkit
72 Laboratory services toolkit introduction
73 Laboratory services toolkit review
74 Laboratory services toolkit framework
75 Laboratory services: Assess
76 Laboratory services: Evaluate
77 Laboratory services: Contract
78 Laboratory services: Implement
79 Laboratory services: Enabler tools
80 Tool Index
81 Acknowledgements
82 CONTACT

Process Steps

1. Assess > 2. Evaluate > 3. Contract > 4. Implement

Enabler Tools

Policy | Advocacy and governance | People | Technology

Case Studies

United Kingdom

National Health Service undertakes public to private outsourcing for procurement and logistics of health commodities

Background

The Department of health in the United Kingdom decided to outsource the procurement and logistics functions that were at that time being managed by the National Health Service (NHS). Their main goal was to reduce overall costs while guaranteeing end-to-end supply chain control and increasing sales. The NHS transferred resources by establishing a Master Services Agreement (MSA) with Exel, a private sector logistics provider. The MSA created a new private organisation called NHS SC, owned and operated by Exel. NHS supply chain would take over the procurement and logistics responsibilities that the NHS formerly managed.

Critical success factors:

  • Filling skills gaps: Procurement professionals from the private medical, retail sector were brought into the NHS to complement existing public sector expertise. New management roles were created and filled with staff that had both public and private sector expertise. They worked with both the NHS supply chain and NHS teams.
  • Creating a governance structure with equal representation from all parties: The contract agreement included the establishment of a Joint Working Committee for managing the outsourcing relationships and ensuring collaboration and information sharing. Representatives from both the outsourcer and provider were on this committee.
  • Communication: Clear communication channels were set up through the MSA to ensure information sharing between the outsourcer and provider through managers working across the two entities and joint teams.

Lessons learned and key takeaways

Performance metrics and monitoring

A robust performance monitoring system was put in place to mitigate the inherent risk in outsourcing.

  • The provider’s performance was monitored using a broad range of metrics, and the Joint Working Committee regularly reviewed the results.
  • These monitoring systems help solve the trade-off between governmental control over the outsourcing and the autonomy of the service provider to operate strategically.


Governance

There must be a balance between formal (contractual) guidance from the outsourcer and informal governance mechanisms.

  • The outsourcer must be willing to collaborate and share knowledge with the provider.

Summary of Enabler Tool: People

As you worked through the Enabler Tool, People, you have learned about workforce development and how the four pathways — Staffing, Skills, Working Conditions, and Motivation—to build human resources interact with the enablers. This tool also introduced you to several workforce development tools and resources. In the following Enabler Tool, Technology, you will learn how various digital tools can help you maintain and interpret data and information for a more efficient supply chain.

NEXT: Learn about the Enabler Tool: Technology

About | Framework | Pharmacy toolkit | Laboratory services toolkit | Tool Index | Acknowledgements | Contact


Source: Heather Skipworth, Emanuela Delbufalo, Carlos Mena, Logistics and procurement outsourcing in the healthcare sector: A comparative analysis, European Management Journal, Volume 38, Issue 3, 2020, Pages 518-532, ISSN 0263-2373, https://doi.org/10.1016/j.emj.2020.04.002. (http://www.sciencedirect.com/science/article/pii/S0263237320300542)