by Samson Omattah (M. Pharm., B. Pharm., ISCEA-CSCA, mPSN, mFIP, mRPS…

Introduction

The Coronavirus (COVID-19) pandemic is reshaping the pharmaceutical supply chain and it may mark a rebalancing of where drugs are made as nations recognize a security imperative. It has affected the entire supply chain and the economic of the world as the way people do things has suddenly changed.

We now have

1. Security challenges

2. Grounding of aviation industry affecting imports

3. Extended lead times on procurement

4. Massive shutdown of the Economy

5. Millions of people rendered jobless

6. Reduced cash flow and purchasing power leading to inability to procure products or  pay suppliers

7. Changing priorities for customers as most resources are now being channeled to fighting the Pandemic

8. Price hike of COVID-19 related materials

Others are Low sales •Stock outs •Expiries/Dead stock •High demand of products that are normally slow movers eg PPEs •High staff cost – staff working less hours due to curfew – fewer staff at a time due to social distancing. Productivity is low.

All these are as a result of Rise in number of local infections • Lock down/ Containment • Source markets affected by Covid-19 • Hospitals handling only emergency cases • General uncertainty • Curfew • Loss of Jobs • Closure of businesses • Working from home • Social distancing • Slow down in economy.

Management at different levels of the supply chain

• Distributor/Importer

• Wholesaler

• Retailers

• Cross cutting issues

Distributor/Importer/Wholesaler

1. Forecasting and quantification of needs

• Proper quantification considering – Actual current consumption            

 – Projected consumption for the next 6 months considering current situation –

– Cash flow             –

 -Lead times

2.Procurement planning and management –

 Order planning – Timely placement of orders

3. Warehousing and inventory management – Storage of commodities- prevent contamination and maintain integrity – Staff   – Protect from infection – Inventory control – monitor to ensure continued supply and prevent losses

4. Distribution Management – Ensure clients are getting what they need when they need it. – Rationalizing supply to ensure most clients are supplied. This may involve rationing – Cash Flow management – Transport considerations

Retailers

➢ Timely placement of orders

➢ Stock up on chronic medication to ensure continued supply to patients.

➢ Review purchases to match current demand and consider ability to pay suppliers -e.g.  Offers: to take or not to take   

➢ For commodity shortages consider alternative suppliers

➢ Proper storage of commodities to preserve integrity of products

➢ Proper Inventory management to minimize on losses

➢ Consider stocking up on items relevant to the pandemic

➢ Manage staff costs

➢ Infection control due to high traffic of customers

➢ Ensure all essential products are availed to the patients e.g. insulins, ARVs. For the retail sector this may involve reaching out to individual clients and asking them to stock up due to uncertainty of supplies. This is also important since there could be a tendency to hoard by some.

➢ Consider online sales

➢ Home deliveries

Cross cutting issues

1. Storage of commodities – Minimize contamination – Quality assurance to ensure integrity of products – Cleaning and Disinfection of storage areas – Regular stock management e.g. stock count

2. Staff – Provision of PPEs and sensitization of staff on hygiene practices – Social distancing – Working from home – Manage Staff costs – Working hours – Productivity of staff eg when working from home

3. Cash Flow management – due to the crisis there is a slow down in the economy leading to reduced cash flow. There is there need to manage this by – Rationalizing on purchases. Only purchase what you are able to pay for. – Step up debt collection – manage credit terms being offered to clients – Renegotiate payment terms with clients – Negotiate with suppliers on payment terms – Negotiate with Banks – Manage other costs egstaff, office expenses, operational costs.

Conclusion

• Plan procurement/orders • Monitor stock movement/ don’t overstock • Ensure continued supply/Meet client needs • Protect staff • Manage cash flow • Minimize contamination • Avoid infection • Stay safe

Reference:

Chemical and Engineering News

Presentation on Phillips Pharmaceutical Group  Dr Lilian

Sponsors

The President of the Pharmaceutical Society of Nigeria (PSN) Pharm. (Mazi) Sam I. Ohuabunwa OFR, MON, FPSN, FNAPharm, FPCPharm, NPO inaugurates the Strategy Entrepreneurship, Innovative & Empowerment.

*Terms of Reference.*

1. Work  out  a  plan  of  action  to  update  the  PSN  Strategic  document  –  2050  and  get  it  fully adopted  and  owned  by  the  entire  members of  PSN.
2.  Work out  a  plan  to  operationalize  the  plan  on  a  phased  basis
3.  Work  with  the  Federal  Ministry  of  Health  and  Pharmacists  Council  of  Nigeria,  the  entire Pharmaceutical  Industry  and  PSN  Technical  Groups  to  establish  and  commence  central  posting  of  intern  Pharmacists  from  the  next  batch  of  graduating  Pharmacists
4.  Design  and  establish  a  PSN  Entrepreneurial  academy  that  will  help  to  support  and promote  the  Entrepreneurial pursuits  of  Pharmacists,  especially  the  young
5.  Work  out  the  modalities  for  establishing  a  PSN  Entrepreneurial  Support  Fund  in partnership  with  Financial  Institutions  to  help  young  and  even  elderly  Entrepreneurial Pharmacists to  access  low  priced  funding. 6.  Identify  and  advise  on  how  Pharmacists  can  take  advantage  of  the  innovations  and technological advances in  the  economy
7.  Identify  and  advise  on  new  and  evolving  area  of  practice  that  Pharmacists can  take advantage  of  in  their  practice-in  the  hospital, community,  industry  ,and  academia
8.  Generally  recommend  actions  that  PSN  and  the  members  can  take  to  expand  scope and  raise  productivity  and  income.
9.  Recommend  such  other  things  that  will  see  the  full  implementation  of  all  approved initiatives related  to  the  EMPOWERMENT  of  all  Pharmacists in  Nigeria.

The  Membership  of  the  Committee  is as follows:
1.  Pharm.  Claire  Omatseye
2.  Pharm.  Olumide  Akanmu
3.  Pharm.  Eddy  Igwe
4.  Pharm.  Martins Oyewole
5.  Pharm.  Ken  Ogunzlofor
6.  Pharm.  Calixthus Okoruwa
7.  Pharm.  Uju  Onwuatuegwu,  FPSN
8.  Pharm.  Chris Ehimen
9.  Pharm.  Moses  Asoo
10.  Pharm.  Samson  Omattah
11.  Pharm.  Amaka  Okafor
12.  Pharm.  Zainab  Sheriff
13.  Pharm.  (Dr)  Ahmed  Ndagi,  FPSN
14.  Pharm.  Adesina  Opanubi
15.  Pharm.  Bolade  Jaiyeoba
16.  Pharm.  Igweobi Anieto,  FPSN
17.  Pharm.  Olagunju  Muyiwa
18.  Pharm.  Okame  Okah-Avae
19.  Pharm.  M.Y.  Budah  FPSN
20.  Pharm.  Lere Baale  FPSN