The Kenya Medical Supplies Authority (KEMSA) has adopted a new inventory management policy with the aim of improving its organizational integrity and efficiency.
Through the new policy, the KEMSA Board expects to ensure adherence to optimal storage levels and to see the Authority’s inventory exposure reduced from Kshs 14 billion to Kshs 9 billion of inventory. health products and technologies (HPT).
Speaking when confirming the adoption of the revised policy, KEMSA CEO Terry Ramadhani said the policy aligns with the Ministry’s National Health Products and Technology Supply Chain Strategy. Health 2020-2025.
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The adoption of the new policy, she said, is part of KEMSA’s three-pronged reforms and business transformation that focus on promoting operational excellence, improving customer experience and the repositioning of the organization.
During this fiscal year, KEMSA shipped Kshs 25.5 billion worth of Essential Medicines and Medical Supplies (EMMS) and National Health Strategic Programs (NHSP) supplies to over 8,741 health facilities across the country. country. Last week, more than 235 health facilities in Makueni County received 37.6 million Kenyan shillings worth of essential drugs from KEMSA following a consignment flag attended by Governor Prof. Kivutha Kibwana.
KEMSA’s revised inventory management policy, she added, would accelerate efforts to transform Nairobi’s central warehouses in Embakasi into a fully-fledged national distribution centre. The national distribution center will supply HPT supplies to regional centers in Mombasa and Kisumu as the Authority seeks to decentralize its operations.
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As part of the inventory management policy review, the Authority has also prioritized the automation of various supply chain processes to improve end-to-end visibility.
“The reform program to firmly position KEMSA as the government’s lead supply chain agent for HPTs remains firmly on track, and we are pleased to celebrate the reduction in lead time for orders of ‘a high of 46 days in February last year to an average of 12 days since last month,’ Ramadhani said.
“These developments have been facilitated by the recent adoption of a revised inventory management policy and strict adherence to key warehouse and logistics processes outlined in the policy.”
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KEMSA is also enhancing the use of the Master Supply Agreements model, enabling staggered delivery of supplies as part of adopting world-class inventory management practices. Adopting revised just-in-time (JIT) inventory management procedures, Ramadhani said, will help reduce the risk of holding slow-moving inventory that leads to waste as products with short shelf lives expire.
She further added that the Authority has made advanced use of information technology (IT) systems to support organizational agility and simplify business processes to improve order fulfillment rate. KEMSA has made significant progress on this front, with order processing time dropping from 46 days in February 2021 to 12 days at the end of May 2022.
KEMSA recently announced that it has turned a new page in its procurement excellence journey with the formal activation of an automated purchase order generation system. As part of its transformation journey, which includes the integration of information technology systems, KEMSA has unveiled an electronic Local Purchase Order (LPO) generation process. Automating the procurement process and eliminating manual procedures requiring human intervention, such as issuing LPOs, are also part of the Authority’s ethics and integrity assurance strategy.
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“Automating the LPO issuance process will ensure that we eliminate the time spent by suppliers choosing the physical copy before making medical supply deliveries,” Ramadhani explained.
“Such automation also eliminates the need for human intervention, which has been a key risk area for organizational integrity,” she added.
“Soon we will also be automating contracting so that suppliers don’t come to KEMSA to sign contracts, but rather have them emailed to them for them to review and sign before submitting them to us. . By doing so, we will reduce delays that occur when signatories are not available at the same time,” she said.
Additionally, all LPOs will have an expiration date to tame delays experienced when suppliers have taken too long to deliver within open delivery times.
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