Supply Chain Management
Expert-defined terms from the Professional Certificate in Public Health Operations Management course at LearnUNI. Free to read, free to share, paired with a professional course.
ABC (Activity‑Based Costing) #
ABC (Activity‑Based Costing)
Explanation #
A costing method that assigns costs to products based on the activities required to produce them.
Example #
A public‑health vaccine program uses ABC to determine the true cost of distribution by tracing labor, storage, and transportation activities.
Challenges #
Requires detailed data collection and can be time‑consuming for complex supply chains.
ABC analysis #
ABC analysis
Explanation #
Segments inventory into three categories (A, B, C) based on value and turnover to prioritize management focus.
Example #
A health department classifies essential medicines as “A” items, ensuring tight control and frequent review.
Challenges #
Misclassification can lead to stockouts of critical items or excess holding costs.
Advanced Planning and Scheduling (APS) #
Advanced Planning and Scheduling (APS)
Explanation #
Software tools that integrate constraints such as capacity, lead times, and material availability to generate optimal production schedules.
Example #
An emergency response unit uses APS to allocate limited PPE across multiple hospitals during a surge.
Challenges #
Requires accurate input data and may be costly to implement.
Aggregation #
Aggregation
Explanation #
Combining demand from multiple locations to create larger, less frequent orders, reducing per‑unit costs.
Example #
Regional health clinics aggregate vaccine orders to negotiate lower prices with manufacturers.
Challenges #
Increases inventory holding time and may delay delivery to individual sites.
Airway Bill (AWB) #
Airway Bill (AWB)
Explanation #
A contract between shipper and carrier that details the shipment’s contents, destination, and terms of transport.
Example #
A shipment of test kits includes an AWB to expedite customs processing.
Challenges #
Errors in the AWB can cause clearance delays and additional fees.
Allocation #
Allocation
Explanation #
The process of assigning limited resources to various demand points based on predefined criteria.
Example #
During a flu outbreak, limited antivirals are allocated to high‑risk populations first.
Challenges #
Determining fair criteria and managing stakeholder expectations.
Alternative sourcing #
Alternative sourcing
Explanation #
Identifying and qualifying additional suppliers to reduce reliance on a single source.
Example #
A health agency adds a secondary manufacturer for rapid‑diagnostic kits to avoid disruptions.
Challenges #
Additional qualification costs and potential variations in product quality.
Asset management #
Asset management
Explanation #
Systematic approach to tracking, maintaining, and optimizing physical assets throughout their useful life.
Example #
Managing cold‑chain refrigeration units to ensure vaccine potency.
Challenges #
Data accuracy, integration with finance systems, and budgeting for replacements.
Backorder #
Backorder
Explanation #
A customer order that cannot be filled at the time of request due to insufficient inventory.
Example #
A clinic places a backorder for a new malaria drug while awaiting shipment.
Challenges #
Customer dissatisfaction and increased administrative effort to track pending orders.
Barcoding #
Barcoding
Explanation #
Use of machine‑readable codes to identify and track items throughout the supply chain.
Example #
Each vaccine vial is labeled with a barcode that records receipt, storage temperature, and expiration.
Challenges #
Implementation cost, barcode damage, and staff training.
Benchmarking #
Benchmarking
Explanation #
Comparing an organization’s processes and performance against industry standards or peers.
Example #
A national health service benchmarks its cold‑chain loss rate against WHO targets.
Challenges #
Access to comparable data and adapting best practices to local contexts.
Bill of Materials (BOM) #
Bill of Materials (BOM)
Explanation #
Detailed list of raw materials, components, and sub‑assemblies required to produce a finished product.
Example #
The BOM for a rapid‑test kit includes swabs, reagents, and packaging.
Challenges #
Keeping the BOM up‑to‑date with design changes and supplier substitutions.
Blind procurement #
Blind procurement
Explanation #
A procurement method where supplier identities are concealed until after bids are submitted, preventing bias.
Example #
A government agency uses blind procurement to select a new mask supplier.
Challenges #
Requires robust evaluation criteria and may limit supplier interaction.
Block chain (in supply chain) #
Block chain (in supply chain)
Explanation #
A decentralized digital ledger that records transactions in immutable blocks, enhancing transparency.
Example #
Using blockchain to verify the provenance of donated medical supplies.
Challenges #
Technical expertise, integration with existing systems, and scalability.
Bulk purchasing #
Bulk purchasing
Explanation #
Acquiring large quantities of goods to obtain lower unit costs.
Example #
A regional health authority purchases a year’s supply of gloves in one contract.
Challenges #
Increased storage needs, risk of expiration, and cash flow impact.
Capacity planning #
Capacity planning
Explanation #
Determining the production capacity needed to meet future demand.
Example #
Estimating the number of vaccine doses that can be manufactured per month during a pandemic.
Challenges #
Uncertain demand, equipment downtime, and labor constraints.
Cold chain #
Cold chain
Explanation #
A temperature‑controlled supply chain necessary for preserving the efficacy of temperature‑sensitive products.
Example #
Maintaining a 2‑8 °C environment for COVID‑19 vaccines from manufacturer to clinic.
Challenges #
Power outages, equipment failures, and monitoring compliance.
Collaboration platform #
Collaboration platform
Explanation #
Digital environment that enables multiple parties to exchange information, coordinate activities, and track progress.
Example #
A cloud‑based platform where donors, logisticians, and health officials view shipment status.
Challenges #
Data security, user adoption, and interoperability with legacy systems.
Commercial off‑the‑shelf (COTS) #
Commercial off‑the‑shelf (COTS)
Explanation #
Pre‑packaged software or hardware solutions that can be used without extensive modification.
Example #
Deploying a COTS inventory management system for a national immunization program.
Challenges #
May not meet all specific regulatory requirements, leading to additional configuration.
Compliance audit #
Compliance audit
Explanation #
Systematic examination to ensure processes adhere to laws, standards, and internal policies.
Example #
Auditing a supply chain for adherence to WHO Good Distribution Practices.
Challenges #
Resource intensive and may uncover non‑conformities requiring corrective actions.
Consignment inventory #
Consignment inventory
Explanation #
Inventory that remains the supplier’s property until it is used or sold by the buyer.
Example #
A pharmaceutical company places vaccine vials on consignment at a remote clinic.
Challenges #
Accurate tracking, revenue recognition, and coordination of replenishment triggers.
Contract management #
Contract management
Explanation #
The process of creating, executing, and overseeing contracts with suppliers and service providers.
Example #
Managing a multi‑year contract for waste‑disposal services for medical facilities.
Challenges #
Maintaining compliance, handling amendments, and managing disputes.
Cross‑docking #
Cross‑docking
Explanation #
Direct transfer of goods from inbound to outbound transportation with minimal storage.
Example #
Receiving donated PPE at a central hub and immediately loading it onto trucks for distribution.
Challenges #
Precise timing, synchronization of inbound and outbound schedules, and limited handling capacity.
Cycle counting #
Cycle counting
Explanation #
Periodic counting of a subset of inventory items to verify records without a full physical count.
Example #
Quarterly cycle counts of high‑value insulin vials to ensure record accuracy.
Challenges #
Scheduling counts without disrupting operations and reconciling discrepancies.
Demand forecasting #
Demand forecasting
Explanation #
Estimating future product demand using historical data, statistical models, and expert judgment.
Example #
Forecasting the number of flu vaccines needed for the upcoming season based on past uptake.
Challenges #
Data quality, unpredictable outbreaks, and changing population demographics.
Distribution network #
Distribution network
Explanation #
The system of facilities, transportation modes, and pathways that move products from manufacturers to end users.
Example #
A national health system’s network of regional warehouses, district depots, and community clinics.
Challenges #
Balancing cost, speed, and service level across diverse geographic areas.
Drop‑shipping #
Drop‑shipping
Explanation #
Supplier ships goods directly to the end customer, bypassing the buyer’s warehouse.
Example #
A health NGO orders diagnostic kits that are shipped straight from the manufacturer to field sites.
Challenges #
Limited control over packaging and delivery timelines, and reliance on supplier performance.
Dual sourcing #
Dual sourcing
Explanation #
Maintaining two qualified suppliers for a critical item to reduce dependence on a single source.
Example #
Procuring antiretroviral drugs from both a domestic manufacturer and an overseas partner.
Challenges #
Managing price differences, quality consistency, and coordination of contracts.
E‑procurement #
E‑procurement
Explanation #
Use of electronic platforms to streamline procurement processes from requisition to payment.
Example #
An online portal where health facilities submit purchase requests for medical supplies.
Challenges #
System integration, user training, and ensuring data security.
Economic order quantity (EOQ) #
Economic order quantity (EOQ)
Explanation #
Formula that determines the optimal order size minimizing total inventory costs.
Example #
Calculating EOQ for a steady‑demand item such as disposable syringes.
Challenges #
Assumes constant demand and lead time, which may not hold in public‑health emergencies.
Emergency procurement #
Emergency procurement
Explanation #
Accelerated procurement procedures activated during emergencies to obtain critical supplies quickly.
Example #
Rapid acquisition of ventilators during a respiratory disease outbreak.
Challenges #
Balancing speed with due‑diligence, ensuring accountability, and managing post‑event audits.
End‑to‑end visibility #
End‑to‑end visibility
Explanation #
Ability to monitor and trace a product’s status throughout the entire supply chain.
Example #
A dashboard showing temperature logs, location, and ETA for a shipment of insulin.
Challenges #
Integrating data from multiple partners, data latency, and protecting sensitive information.
Environmental sustainability #
Environmental sustainability
Explanation #
Practices that minimize ecological impact of supply chain activities.
Example #
Using reusable containers for vaccine transport to reduce plastic waste.
Challenges #
Higher upfront costs, need for stakeholder buy‑in, and measuring sustainability metrics.
Escalation protocol #
Escalation protocol
Explanation #
Predefined steps for raising and addressing supply chain issues that exceed normal thresholds.
Example #
If a cold‑chain breach occurs, the protocol triggers immediate notification of senior logistics officers.
Challenges #
Ensuring timely communication and clear responsibility assignments.
Evaluation criteria #
Evaluation criteria
Explanation #
Set of factors and weights used to assess and compare proposals or suppliers.
Example #
Criteria may include price, delivery reliability, quality certifications, and social impact.
Challenges #
Subjectivity in weighting and potential bias.
FIFO (First‑In, First‑Out) #
FIFO (First‑In, First‑Out)
Explanation #
Inventory issuance method where the oldest items are used first to reduce waste.
Example #
Distributing the oldest vaccine batches before newer ones to prevent expiry.
Challenges #
Requires accurate tracking and disciplined handling procedures.
Fixed‑dose combination (FDC) #
Fixed‑dose combination (FDC)
Explanation #
A pharmaceutical product that combines two or more active ingredients in a single dosage form.
Example #
An antimalarial FDC containing artesunate and lumefantrine.
Challenges #
Manufacturing complexity and regulatory approval for each combination.
Forecast bias #
Forecast bias
Explanation #
Consistent over‑ or under‑prediction of demand, indicating a systematic error in forecasting.
Example #
Repeatedly over‑forecasting the need for seasonal flu vaccines leading to excess inventory.
Challenges #
Identifying root causes and adjusting forecasting models.
Freight forwarder #
Freight forwarder
Explanation #
An entity that arranges transportation of goods on behalf of shippers, handling documentation and coordination.
Example #
A freight forwarder consolidates shipments of medical kits for delivery to remote clinics.
Challenges #
Ensuring carrier reliability and managing cost transparency.
Full‑truckload (FTL) #
Full‑truckload (FTL)
Explanation #
Shipment that occupies an entire truck, maximizing efficiency and often reducing per‑unit cost.
Example #
Transporting a bulk consignment of PPE in a dedicated FTL to a regional hub.
Challenges #
Requires sufficient volume to fill the truck and may increase waiting time.
Functional safety #
Functional safety
Explanation #
Measures ensuring that a product operates safely under intended conditions, often relevant for medical devices.
Example #
Verifying that a portable oxygen concentrator meets functional safety standards before distribution.
Challenges #
Rigorous testing, documentation, and certification processes.
Gantt chart #
Gantt chart
Explanation #
Bar chart that illustrates a project schedule, showing tasks, durations, and dependencies.
Example #
Mapping out the rollout phases of a national immunization campaign.
Challenges #
Maintaining accuracy as tasks shift and dependencies change.
Global positioning system (GPS) #
Global positioning system (GPS)
Explanation #
Satellite‑based navigation system used to determine precise location of assets in transit.
Example #
Real‑time GPS tracking of a refrigerated truck delivering vaccines to rural outposts.
Challenges #
Signal loss in remote areas and data privacy concerns.
Good Distribution Practice (GDP) #
Good Distribution Practice (GDP)
Explanation #
International guidelines ensuring that products are consistently stored and transported under appropriate conditions.
Example #
Adhering to GDP for handling biologics throughout the supply chain.
Challenges #
Training staff, auditing compliance, and adapting to local infrastructure limitations.
Good Manufacturing Practice (GMP) #
Good Manufacturing Practice (GMP)
Explanation #
Standards governing the manufacturing environment, processes, and documentation to ensure product quality.
Example #
Ensuring a vaccine manufacturer complies with GMP before entering a procurement contract.
Challenges #
Continuous monitoring, corrective actions, and costly compliance upgrades.
Gross margin #
Gross margin
Explanation #
Difference between sales revenue and the cost of producing the goods, expressed as a percentage.
Example #
Calculating gross margin for a donated drug to assess cost recovery when reselling.
Challenges #
Accurate cost allocation and fluctuating price structures.
Hazard analysis and critical control points (HACCP) #
Hazard analysis and critical control points (HACCP)
Explanation #
Systematic approach to identify, evaluate, and control hazards throughout a product’s lifecycle.
Example #
Applying HACCP to ensure safe handling of blood products during transport.
Challenges #
Requires detailed documentation and ongoing monitoring.
Health Technology Assessment (HTA) #
Health Technology Assessment (HTA)
Explanation #
Systematic evaluation of the medical, social, economic, and ethical implications of a health technology.
Example #
Using HTA results to decide whether to procure a new diagnostic platform.
Challenges #
Data availability, methodological consistency, and stakeholder alignment.
Hybrid supply chain #
Hybrid supply chain
Explanation #
A supply chain that combines resources from government, NGOs, and private sector to achieve common goals.
Example #
A joint vaccine distribution effort between a national health ministry and a private logistics firm.
Challenges #
Coordination of differing objectives, contractual arrangements, and data sharing.
Inventory turnover #
Inventory turnover
Explanation #
Ratio measuring how many times inventory is sold or used over a period, indicating efficiency.
Example #
High turnover of disposable gloves suggests effective demand forecasting.
Challenges #
Balancing turnover with service level; low turnover may signal over‑stocking.
Just‑in‑Time (JIT) #
Just‑in‑Time (JIT)
Explanation #
Inventory strategy that delivers goods exactly when needed, reducing holding costs.
Example #
Scheduling vaccine deliveries to arrive shortly before scheduled immunization sessions.
Challenges #
Vulnerable to supply disruptions and requires precise coordination.
Kitting #
Kitting
Explanation #
Process of assembling individual items into ready‑to‑use kits before distribution.
Example #
Creating malaria‑test kits by bundling lancets, reagents, and instruction sheets.
Challenges #
Additional labor, quality control, and storage considerations.
Lean logistics #
Lean logistics
Explanation #
Application of lean principles to streamline logistics processes, eliminate non‑value‑added activities, and improve flow.
Example #
Reducing unnecessary handling steps in the distribution of antiretroviral tablets.
Challenges #
Cultural change, employee engagement, and measuring lean impact.
Lot size #
Lot size
Explanation #
Number of units produced or ordered in a single batch.
Example #
Determining optimal lot size for manufacturing a new oral vaccine.
Challenges #
Balancing production efficiency with inventory holding risk.
Logistics performance index (LPI) #
Logistics performance index (LPI)
Explanation #
Composite indicator measuring a country’s logistics efficiency across customs, infrastructure, and tracking.
Example #
Using LPI scores to assess feasibility of importing essential medicines.
Challenges #
Data comparability and relevance to specific health logistics contexts.
Loss prevention #
Loss prevention
Explanation #
Strategies to reduce loss of inventory due to theft, damage, or misplacement.
Example #
Implementing sealed containers and RFID tags for high‑value vaccines.
Challenges #
Cost of security measures versus potential loss, and training personnel.
Make‑to‑order (MTO) #
Make‑to‑order (MTO)
Explanation #
Production approach where items are manufactured only after receiving a customer order.
Example #
Customizing a rapid‑test kit with specific language instructions for a target region.
Challenges #
Longer lead times and need for flexible manufacturing capacity.
Material Requirements Planning (MRP) #
Material Requirements Planning (MRP)
Explanation #
System that calculates material needs based on demand forecasts, lead times, and existing inventory.
Example #
MRP software determines when to order reagents for a laboratory network.
Challenges #
Data accuracy, change management, and integration with ERP systems.
Medical countermeasure (MCM) #
Medical countermeasure (MCM)
Explanation #
Products such as vaccines, antivirals, or diagnostics used to protect public health during a crisis.
Example #
Maintaining a national stockpile of anthrax vaccine as an MCM.
Challenges #
Shelf‑life management, funding, and rapid deployment logistics.
Mitigation strategy #
Mitigation strategy
Explanation #
Planned actions to reduce the impact of identified risks on supply chain performance.
Example #
Establishing backup cold‑chain equipment to mitigate power outage risks.
Challenges #
Allocating resources and ensuring strategies are regularly updated.
Mode selection #
Mode selection
Explanation #
Decision process for choosing the most appropriate transportation method (road, air, sea, rail).
Example #
Selecting air freight for time‑critical vaccine shipments versus sea freight for bulk, non‑perishable items.
Challenges #
Balancing cost, speed, reliability, and regulatory constraints.
Multi‑criteria decision analysis (MCDA) #
Multi‑criteria decision analysis (MCDA)
Explanation #
Structured approach to evaluate alternatives based on multiple criteria, each weighted according to importance.
Example #
Using MCDA to select a logistics partner based on cost, capacity, and sustainability.
Challenges #
Determining appropriate weights and managing subjective inputs.
Net‑revenue cost #
Net‑revenue cost
Explanation #
The total expense incurred to deliver a product or service, subtracted from the revenue generated.
Example #
Calculating net‑revenue cost for a subsidized malaria treatment program.
Challenges #
Capturing indirect costs and aligning with funding mechanisms.
Non‑conformance report (NCR) #
Non‑conformance report (NCR)
Explanation #
Document describing a deviation from specified requirements, triggering investigation and remediation.
Example #
Reporting a temperature excursion in a vaccine shipment as an NCR.
Challenges #
Timely reporting and effective root‑cause analysis.
On‑time delivery (OTD) #
On‑time delivery (OTD)
Explanation #
Metric measuring the percentage of orders delivered by the agreed‑upon date.
Example #
An OTD rate of 95 % for monthly distribution of antimalarial tablets.
Challenges #
External factors such as customs delays and transportation disruptions.
Order fulfillment #
Order fulfillment
Explanation #
Complete process of receiving, processing, and delivering a customer order.
Example #
From receiving a request for cholera kits to delivering them at the field site.
Challenges #
Coordination among procurement, warehousing, and transport functions.
Order #
to‑cash (O2C) cycle
Explanation #
End‑to‑end business process that starts with order receipt and ends with cash collection.
Example #
Tracking the O2C cycle for a contract supplying syringes to a health ministry.
Challenges #
Delays in payment, credit risk, and reconciliation of invoices.
Outsourcing #
Outsourcing
Explanation #
Delegating certain supply chain functions to external organizations.
Example #
Engaging a 3PL to manage last‑mile delivery of vaccines in remote regions.
Challenges #
Loss of direct control, data sharing, and ensuring service quality.
Performance dashboard #
Performance dashboard
Explanation #
Interactive tool that displays key performance indicators for quick monitoring.
Example #
Dashboard showing temperature compliance, order lead times, and inventory levels for a national immunization program.
Challenges #
Data integration, user training, and avoiding information overload.
Perishable inventory #
Perishable inventory
Explanation #
Items that deteriorate or become unusable after a certain period, requiring careful handling.
Example #
Live attenuated vaccines that must be used within six months of manufacture.
Challenges #
Forecast accuracy, waste reduction, and storage constraints.
Pharmacovigilance #
Pharmacovigilance
Explanation #
Ongoing process of detecting, assessing, and preventing adverse effects of medicinal products.
Example #
Tracking vaccine side‑effects through a national pharmacovigilance system.
Challenges #
Data collection from remote sites and timely analysis.
Physical security #
Physical security
Explanation #
Measures to protect facilities, equipment, and inventory from unauthorized access or theft.
Example #
Secure storage rooms with biometric locks for high‑value antiretroviral drugs.
Challenges #
Balancing security with ease of access for authorized personnel.
Pick‑and‑pack #
Pick‑and‑pack
Explanation #
Process of selecting items from inventory (pick) and preparing them for shipment (pack).
Example #
Picking individual test kits from bulk inventory and packing them for distribution to clinics.
Challenges #
Error rates, ergonomics, and efficient layout design.
Plan‑Do‑Check‑Act (PDCA) cycle #
Plan‑Do‑Check‑Act (PDCA) cycle
Explanation #
Four‑step model for implementing and refining processes.
Example #
Applying PDCA to improve cold‑chain monitoring procedures.
Challenges #
Maintaining momentum and documenting each cycle.
Point of Use (POU) #
Point of Use (POU)
Explanation #
Location where a product is actually used, often requiring local stock management.
Example #
Storing oral rehydration salts at community health posts for immediate access.
Challenges #
Accurate demand estimation and preventing stockouts at POU.
Predictive analytics #
Predictive analytics
Explanation #
Use of statistical techniques and algorithms to predict future events based on historical data.
Example #
Predicting surge demand for PPE during a pandemic wave using time‑series models.
Challenges #
Data quality, model selection, and interpretability.
Procurement lifecycle #
Procurement lifecycle
Explanation #
Sequence of activities from identifying need to closing the purchase and evaluating performance.
Example #
The lifecycle for acquiring a new diagnostic platform includes market research, RFP issuance, evaluation, and post‑award monitoring.
Challenges #
Aligning timelines with program schedules and ensuring compliance at each stage.
Product lifecycle management (PLM) #
Product lifecycle management (PLM)
Explanation #
Managing a product from conception through disposal, ensuring quality and regulatory compliance.
Example #
Tracking a vaccine from development, through approval, distribution, and eventual phase‑out.
Challenges #
Coordinating across multiple departments and handling version control.
Quality Management System (QMS) #
Quality Management System (QMS)
Explanation #
Structured set of procedures and processes to ensure product quality and regulatory compliance.
Example #
Implementing a QMS for a national drug procurement agency to standardize supplier evaluation.
Challenges #
Documentation burden and maintaining staff competence.
Quantity discount #
Quantity discount
Explanation #
Reduced unit price offered when a buyer purchases a larger volume.
Example #
Negotiating a 10 % discount for ordering 100,000 doses of a vaccine.
Challenges #
Balancing discount benefits against storage capacity and demand uncertainty.
Quick Response Code (QR code) #
Quick Response Code (QR code)
Explanation #
Two‑dimensional barcode that can store more information than a traditional barcode.
Example #
Scanning a QR code on a medical device to retrieve its serial number and warranty details.
Challenges #
Smartphone compatibility and ensuring data accuracy.
Rack and shelf management #
Rack and shelf management
Explanation #
Systematic arrangement of items on racks and shelves to optimize space and retrieval efficiency.
Example #
Placing temperature‑sensitive vaccines on lower shelves near climate control units.
Challenges #
Dynamic inventory turnover and space constraints.
Recall management #
Recall management
Explanation #
Process for identifying, communicating, and retrieving defective or unsafe products from the market.
Example #
Coordinating a recall of a batch of contaminated syringes across multiple health facilities.
Challenges #
Rapid communication, tracking distributed items, and maintaining public trust.
Reorder point (ROP) #
Reorder point (ROP)
Explanation #
Inventory level at which a new order should be placed to replenish stock before it runs out.
Example #
Setting ROP for antimalarial tablets based on average monthly consumption plus safety buffer.
Challenges #
Accurate demand forecasting and lead‑time variability.
Reverse logistics #
Reverse logistics
Explanation #
Flow of products backward in the supply chain for returns, recycling, or disposal.
Example #
Collecting unused vaccine vials for safe disposal after a campaign ends.
Challenges #
Tracking, regulatory compliance, and cost recovery.
Risk assessment matrix #
Risk assessment matrix
Explanation #
Tool that maps risks based on likelihood and severity to prioritize response actions.
Example #
Mapping the risk of cold‑chain failure against its potential impact on vaccine efficacy.
Challenges #
Subjectivity in scoring and updating as conditions change.
Safety stock #
Safety stock
Explanation #
Extra inventory held to protect against uncertainties in demand or supply.
Example #
Maintaining a safety stock of oral rehydration salts to cover unexpected outbreaks.
Challenges #
Tying up capital and potential for waste if demand is over‑estimated.
Scenario planning #
Scenario planning
Explanation #
Developing and evaluating multiple plausible future states to inform decision‑making.
Example #
Modeling supply chain performance under scenarios of a 30 % transport disruption versus normal operations.
Challenges #
Data intensity and ensuring scenarios are realistic.
Service level agreement (SLA) #
Service level agreement (SLA)
Explanation #
Formal document outlining expected service standards and remedies for non‑performance.
Example #
SLA specifying 95 % on‑time delivery for a cold‑chain logistics provider.
Challenges #
Defining measurable metrics and enforcing compliance.
Six Sigma #
Six Sigma
Explanation #
Data‑driven methodology aimed at reducing process variation and defects to 3.4 per million opportunities.
Example #
Applying Six Sigma to reduce labeling errors in vaccine packaging.
Challenges #
Requires training, cultural change, and sustained leadership support.
SKU (Stock Keeping Unit) #
SKU (Stock Keeping Unit)
Explanation #
Unique code assigned to each distinct product for inventory tracking.
Example #
SKU 12345‑A denotes a 10‑dose vial of a specific vaccine.
Challenges #
Managing large numbers of SKUs and ensuring consistent labeling.
Sourcing strategy #
Sourcing strategy
Explanation #
Plan that defines how an organization will obtain the goods and services it needs.
Example #
A mixed strategy using single sourcing for critical reagents and multi‑sourcing for consumables.
Challenges #
Aligning cost, quality, and risk considerations.
Spare parts management #
Spare parts management
Explanation #
Planning and controlling inventory of replacement parts to ensure equipment uptime.
Example #
Stocking spare compressors for cold‑chain units in remote warehouses.
Challenges #
Predicting failure rates and balancing holding costs.
Stakeholder engagement #
Stakeholder engagement
Explanation #
Process of involving all parties with interest or influence in the supply chain to achieve shared objectives.
Example #
Engaging community leaders in planning the distribution of malaria nets.
Challenges #
Managing divergent priorities and ensuring transparent communication.
Standard Operating Procedure (SOP) #
Standard Operating Procedure (SOP)
Explanation #
Written instructions detailing how to perform a specific task consistently and safely.
Example #
SOP for temperature monitoring of vaccine shipments.
Challenges #
Keeping SOPs up‑to‑date and ensuring staff adherence.
Strategic sourcing #
Strategic sourcing
Explanation #
Systematic approach to procurement that aligns sourcing decisions with organizational objectives.
Example #
Developing a strategic sourcing plan for essential diagnostics over a five‑year horizon.
Challenges #
Market intelligence, change management, and measuring strategic impact.
Supply chain mapping #
Supply chain mapping
Explanation #
Visual representation of all entities, processes, and flows within the supply chain.
Example #
Mapping the flow of antiretroviral drugs from manufacturer to patient.
Challenges #
Gathering accurate data from multiple partners and maintaining the map as the network evolves.
Supply chain resilience #
Supply chain resilience
Explanation #
Ability of a supply chain to anticipate, absorb, and recover from unexpected shocks.
Example #
Building redundant routes for vaccine transport to mitigate road closures.
Challenges #
Cost of redundancy and complexity of coordination.
Supply chain risk management (SCRM) #
Supply chain risk management (SCRM)
Explanation #
Systematic process of identifying, assessing, and controlling risks throughout the supply chain.
Example #
Conducting SCRM to evaluate geopolitical risks affecting import of essential medicines.
Challenges #
Dynamic risk landscape and limited visibility into supplier practices.
Supply chain visibility #
Supply chain visibility
Explanation #
Extent to which all participants can see real‑time information about inventory, shipments, and demand.
Example #
Real‑time dashboards showing location and temperature of each vaccine shipment.
Challenges #
Data integration, confidentiality concerns, and technology adoption.
Supply chain segmentation #
Supply chain segmentation
Explanation #
Dividing the supply chain into distinct segments based on characteristics such as product criticality or demand variability.
Example #
Treating emergency medical supplies as a high‑priority segment with dedicated logistics.
Challenges #
Correctly defining segments and allocating resources appropriately.
Supply chain sustainability #
Supply chain sustainability
Explanation #
Incorporating economic, environmental, and social considerations into supply chain decisions.
Example #
Selecting suppliers that adhere to fair‑labor practices and low‑carbon transportation.
Challenges #
Measuring sustainability metrics and balancing with cost constraints.
Supply chain visibility platform #
Supply chain visibility platform
Explanation #
Software solution that aggregates data from various sources to provide a unified view of supply chain status.
Example #
A web‑based platform displaying shipment locations, temperature logs, and inventory levels for a national immunization program.
Challenges #
Data standardization, user access controls, and system scalability.
Supply chain workforce development</ #
Supply chain workforce development