Consolidation or multiplicity in supply logistics for health commodities?

Public health-sectors of most low- and middle-income countries (LMICs) run a central medical stores (CMS) model that is monopolistic in character. Concerns raised about monopolistic CMS arrangements stress the need to encourage cost-reducing efforts and improve service levels (outputs) by having mul...

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Main Author: Ebenezer Kwabena Tetteh
Format: Article
Language:English
Published: Elsevier 2022-03-01
Series:Exploratory Research in Clinical and Social Pharmacy
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S266727662200004X
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author Ebenezer Kwabena Tetteh
author_facet Ebenezer Kwabena Tetteh
author_sort Ebenezer Kwabena Tetteh
collection DOAJ
description Public health-sectors of most low- and middle-income countries (LMICs) run a central medical stores (CMS) model that is monopolistic in character. Concerns raised about monopolistic CMS arrangements stress the need to encourage cost-reducing efforts and improve service levels (outputs) by having multiple competing logistics institutions. This paper examines the desirability of consolidation or multiplicity in supply logistics by focusing on the task of inventory management (that is, distribution, storage and warehousing). The paper uses theory and historical evidence to describe and suggest a desired form of multiplicity in LMICs. Consolidation shouldn't progress to the point of monopoly and multiplicity doesn't mean having an infinite number of logistics institutions. A limited number (2−10) of logistics institutions, that are full-line and national in their scope and scale of operations, should be enough to provide choice, support competition and minimize the risk of supply disruptions. Health policy and planning in LMICs should explore ways of turning existing logistics institutions in the public, private and non-governmental sectors into a multiplicity of types that are capable of assuring uninterrupted supplies of health commodities.
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spelling doaj.art-dfa1a293b24545c4a1a7599e2da6d2532022-12-22T00:08:12ZengElsevierExploratory Research in Clinical and Social Pharmacy2667-27662022-03-015100105Consolidation or multiplicity in supply logistics for health commodities?Ebenezer Kwabena Tetteh0Department of Pharmacy Practice & Clinical Pharmacy, School of Pharmacy, College of Health Sciences, University of Ghana, Legon, Accra, GhanaPublic health-sectors of most low- and middle-income countries (LMICs) run a central medical stores (CMS) model that is monopolistic in character. Concerns raised about monopolistic CMS arrangements stress the need to encourage cost-reducing efforts and improve service levels (outputs) by having multiple competing logistics institutions. This paper examines the desirability of consolidation or multiplicity in supply logistics by focusing on the task of inventory management (that is, distribution, storage and warehousing). The paper uses theory and historical evidence to describe and suggest a desired form of multiplicity in LMICs. Consolidation shouldn't progress to the point of monopoly and multiplicity doesn't mean having an infinite number of logistics institutions. A limited number (2−10) of logistics institutions, that are full-line and national in their scope and scale of operations, should be enough to provide choice, support competition and minimize the risk of supply disruptions. Health policy and planning in LMICs should explore ways of turning existing logistics institutions in the public, private and non-governmental sectors into a multiplicity of types that are capable of assuring uninterrupted supplies of health commodities.http://www.sciencedirect.com/science/article/pii/S266727662200004XConsolidationDistributionLogisticsMultiplicitySupplyWholesaling
spellingShingle Ebenezer Kwabena Tetteh
Consolidation or multiplicity in supply logistics for health commodities?
Exploratory Research in Clinical and Social Pharmacy
Consolidation
Distribution
Logistics
Multiplicity
Supply
Wholesaling
title Consolidation or multiplicity in supply logistics for health commodities?
title_full Consolidation or multiplicity in supply logistics for health commodities?
title_fullStr Consolidation or multiplicity in supply logistics for health commodities?
title_full_unstemmed Consolidation or multiplicity in supply logistics for health commodities?
title_short Consolidation or multiplicity in supply logistics for health commodities?
title_sort consolidation or multiplicity in supply logistics for health commodities
topic Consolidation
Distribution
Logistics
Multiplicity
Supply
Wholesaling
url http://www.sciencedirect.com/science/article/pii/S266727662200004X
work_keys_str_mv AT ebenezerkwabenatetteh consolidationormultiplicityinsupplylogisticsforhealthcommodities