Essay on Logistics

1521 Words Oct 27th, 2014 7 Pages
The Logistics System:
A Key Element of Contraceptive Security Planning

A logistics system provides excellent customer service by fulfilling the six “rights”: ensuring that the right goods, in the right quantities, in the right condition, are delivered to the right place, at the right time, for the right cost.

Logistics Cycle

Over the years, experts have developed a logistics cycle that describes the activities of a logistics system. The logistics cycle comprises the following:

• The logistics management information system (LMIS), which is at the heart of the cycle; • Quality monitoring, which is a continuing activity throughout the cycle; and • Policies and adaptability, which constitute the logistics
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While a retail business may fulfill most but not all of the six rights and still provide acceptable customer service, a health system must fulfill all six rights.

Product selection. In any logistics system, product selection is crucial. In a health logistics system, product selection may be the responsibility of a national formulary and therapeutics committee, pharmaceutical board, board of physicians, or other government-appointed group. Most countries have developed lists of essential drugs based on World Health Organization recommendations. The designated board’s ability to select specific products is influenced by other elements of the logistics cycle. The most important of these elements is the budget available to purchase the chosen products. For example, boards often choose generic drugs over name brands, which are often more expensive.

Many programs supplement the development of essential drug lists (products deemed most cost-effective in treating priority health issues) with programs to promote rational drug use. Rational drug use efforts aim to help prescribers choose the right product for each health problem and in the correct quantity.

Forecasting and procurement. After product selection, managers of the logistics cycle must determine and procure the quantity required of each product. The forecasting process focuses on estimating the quantities of the specific commodities that will be needed for a specified time period. The

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