A significant proportion of procurement and distribution of essential
drugs in most countries in sub-Saharan Africa is done by the Ministry of
Health (MoH) or a para-statal agency closely linked to the Ministry of
Health. The drug distribution needs within a country, however, usually
overwhelm such drug distribution logistic systems along one or more of
these dimensions. Outsourcing provides one means of augmenting the
performance of existing logistics systems as needed. However, our
understanding of how to couple such outsourcing with government run
systems in developing countries is very limited.
The purpose of this work is to develop a framework/approach for
considering and selecting outsourcing opportunities as a means of
improving public sector pharmaceutical supply chain performance. In
addition, this work includes developing a set of tools for modeling the
potential cost and performance of these outsourcing opportunities that
can support the design and assessment of outsourcing policy proposals.
The primary audience for this work is both developed and developing
country policy makers and practitioners working in the pharmaceutical
Following the background to the study and details of the literature
review, the approach for evaluating the opportunity for distribution
outsourcing in a government run distribution system is described. The
final section provides the results of the application of the approach to
a drug revolving fund in Kano, Nigeria, used to provide essential
medicines to primary and secondary health facilities within the state.
Appendix A forms part of the main report, Appendix B (Assessment Survey,
Costing Surveys, and Costing Model) is appended as a separate document.
Watson, N.; Forster, G.; Hasselback, L. Framework on Distribution Outsourcing in Government-Run Distribution Systems. MIT-International Zaragoza Logistics Programme at Zaragoza Logistics Center (ZLC), Zaragoza, Spain (2011) 67 + 86 pp.