6/19/2015 Outline Biosciences eastern and central Africa - PDF document

6/19/2015 Outline Biosciences eastern and central Africa – International Livestock Research Institute (BecA ‐ ILRI) Hub Mobilizing biosciences for Africa’s development • Definitions • Procurement process Supply Chain • • Challenges and bottlenecks • Suppliers perspective • Discussion • BecA ‐ ILRI Hub experience LMEO Workshop ‐ Presentation 21 RAB, Rubona, RWANDA 15 th ‐ 19 th June , 2015 Procurement process Definitions Definitions ‐ Definitions ‐ Procurement is the act of obtaining goods and services Procurement is the act of obtaining goods and services Supply Chain Network of entities that work to bring a product/service to client. Comprises of vendors, warehouses and stores, distributors, retailors, etc. Supply Chain Management Management of material and information to bring the best products from a producer to user ‐ in an effective and efficient manner. Role of Supply Chain in Research Evolution of Supply Chain Management Supply Chain has evolved to business and The processes required to ensure that a product is operational strategies in support research delivered to a client satisfactorily. Supplier Relationship Management • Purchasing of capital equipment and consumables. Green Procurement • Offering cost savings. labor savings Supply Chain Management Enterprise Response Planning Resource Management • Improving performance, Materials Response Planning Buying eProcurement Partnerships & collaboration • turnaround times &, backorders, clearance Whole lifecycle costing Logistics and customs. Commissioning • Storage/ Space Web • best product/price. Strategic Sourcing 1

6/19/2015 Role of Supply Chain in Research Challenges in the Supply Chain � Technological Advancement (Systems) ‐ Need to work on an integrated real time system to link and monitor inventory, seamless procurement process, finance and Effectiveness and efficiency in supply chain is indicated by most important accessible to users, for real ‐ time status of progress. the 5 rights of procurement. � Service delivery/Turnaround time ‐ This is the time between when an order is raised to the time the items are delivered which is influenced by a number of • buying at the right price factors like geographical location, nature of item, mode of transport among others. • right quality � Scientific/Laboratory Operations ‐ need to understand, integrate and relate SCM to nature of business and the frequent change of needs for kind of current right quantity • research designs underway. SC needs to be at par if not ahead of the changes • delivered at the right time anticipated in the institute/s � Cost: with the reduction in core funding there is urgent need to mitigate cost in • from the right source smart procurement and inventory management methods...planning, strategic • These are the values endowed onto research vendor relationships/partnerships � Global donor funding changes ‐ the aspect of uncertain funding scenarios Cont… Bottlenecks in procurement Inefficient bureaucracy � Policies – need for amendment to institutional policies to accommodate the relevant changes. Policy instability � TCoO – Total Cost of Ownership vis ‐ à ‐ vis Full Cost Recovery Inadequate Infrastructure � Demand planning responsiveness ‐ This can be achieved by having a close Corruption collaboration with suppliers and users so that demands are planned Poor work ethics accordingly to allow for very quick response to changes in the Supply Chain. This is often lacking. Inadequate Educated workforce � Supplier relationship collaboration ‐ This focuses on communicating and Tax Regulations collaborating with suppliers which leads to a reduction the lead ‐ time and total cost of acquisition, transportation and possession of goods and services for the benefit of both the buyer and seller. However most institutions maintain adversarial ,transactional relationships leaving no room for collaboration. Supplier’s perspective General Discussion Constra traint nt Implication ion Possi sible s ble solution tion Action Ac on by by • Alliance Global Ltd ‐ AGBL (apologies) Lead time Delayed results- Maintain back • Bio Zeq East Africa Ltd. Modification of orders, up front & • Carramore protocols, delayed clear indication • Estec project implementation • F & S Importation As above Pre shipment • Inqaba Biotech East Africa procedure notifications, using • Kobian reliable clearing • Wagtech and forwarding firms Long tender As above processes 2

6/19/2015 General Discussion General Discussion Constra traint nt Implication ion Possi sible s ble solution tion Ac Action on by by Constra traint nt Implication ion Possi sible s ble solution tion Ac Action on by by ILRI experience ILRI experience Purchasing process Purchasing process Research support Research support Choices of vendors Choices of vendors Relationship with vendors Relationship with vendors Thank you Julius Osaso Diagnostic Platform Manager/Asst Technology Manager BecA ‐ ILRI Hub j.osaso@cgiar.org Mobilizing biosciences for Africa’s development http://hub.africabiosciences.org 3