Examination of Health Supply Chain Integration in Kenya for Recommendation to Other Countries

- Integration of DP-wise supply chain functions

Although DP used to procure items by themselves or their designated procurement agencies and gave KEMSA as in-kind donation, now 70% of program drugs are purchased by KEMSA. KEMSA provides procurement, warehousing and distribution services to DP with fee, and is sustainable as business. For DP, they can reduce operational cost compared to having standalone supply chain. DP also considers that merging it supply chain with KEMSA supply chain is more sustainable and strengthen local capability.

- Supply coordination for forecasting and quantification between DPs, MOH and KEMSA based on demand data

It has been commonly noted in developing countries that DPs do not coordinate supplies of drugs with each other, resulting in void of support (stock-out) or duplication (wastage). In Kenya, forecasting and quantification for supply is coordinated among DPs and MOH, with presence of KEMSA.

- Integration of fragmented layers of supply chain to increase visibility of information and activities across the supply chain.

One of the interviewee pointed out that end-to-end integration has not been focused or achieved in Kenya. According to her, end-to-end integration (vertical integration) should be the one which solve stock-out or wastage issue, but the data and system is not fully integrated from downstream to upstream.

5