Managing health supply chain risk through strategic outsourcing in low- and middle-income countries
Abstract
This paper explores how strategic outsourcing of public health supply chain functions to private sector companies in low- and middle-income countries (LMICs) is a catalyst to reduce operational risks and achieve agility and efficiency. Private sector engagement in public health supply chains increases market competitivity, improves efficiency and allows for cost reduction, while enabling ministries of health to focus on their core competencies and become stewards of their supply chain operations. The paper highlights best practices on strategic outsourcing for contracting entities and third-party logistics (3PL) to minimise risk. Strategic outsourcing has become increasingly common across LMIC contexts as emerging economies take advantage of private sector growth; however, outsourcing does not automatically mean increased efficiency or transparency, unless it is done properly. Recommended best practices include ensuring transparent and fair competition; understanding market capabilities and geographical constraints, as well as available infrastructure; setting up key performance indicators; improving service agility; and creating the best distribution network for higher efficiency. The paper also presents three case studies, including lessons learned and results from strategic outsourcing in Zambia, Angola and the Democratic Republic of the Congo.
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Author's Biography
Julia Perri is a senior international development leader with 15 years’ experience in programmatic implementation and operational management for large, complex USAID-funded programmes, focusing on global health and supply chains. Julia has served as Project Director since 2020 at Chemonics International, leading programmes in Asia and currently West Africa. In addition, she serves as co-lead for the Warehousing and Distribution Working Group, focusing on technical direction. Previously, Julia served as Director of Operations and Finance for the GHSC-PSM project in Angola. In previous roles, she worked in business development, performance-based financing and backstopping health portfolios. Her long-term country experience spans sub-Saharan Africa and the Caribbean. She holds an MA in international development and international economics from Johns Hopkins University.
Giuliana Canessa Walker is a development practitioner with 20 years’ experience designing and managing projects across Africa, Europe and Eurasia, Latin America and the Middle East. She currently serves as the Senior Global Supply Chain Practice Lead, heading strategy, knowledge sharing and thought leadership within Chemonics’ supply chain portfolio. Previously, she led the Knowledge, Innovation and Technology department, which provides guidance and resources to integrate deep and innovative technical knowledge in Chemonics’ work. Before that, Giuliana was a Director in the Corporate Partnership department working with private sector partners, and a deputy chief of party for USAID’s Asia and Middle East Economic Growth Best Practices Project. Prior to Chemonics, she was a Project Director for Peru 2021, where she advised companies on shared value strategies, conducted social performance assessments and designed community development projects. Giuliana has an MBA from the George Washington University.
Ségolène D’Herlincourt is the Deputy Country Director for Operations for GHSC-PSM in Zambia. Her focus is on the management of subcontracted activities designed to support the Zambia Medicines & Medical Supplies Agency (ZAMMSA) and the Zambian government with improvements in the warehousing and distribution of public health commodities. This includes infrastructure improvements for warehousing and storage of public health commodities and multiple last-mile, third-party logistics (3PL) distribution subcontracts servicing up to more than 2,000 facilities countrywide. Prior to joining GHSC-PSM in Zambia, Ségolène worked as a Country Director in Haiti and Afghanistan, where she encouraged economic growth by connecting small- and mediumsized enterprises to supply chains and investment opportunities as well as working with local governments on compliance and labour issues. She also has experience in business development for the private sector in Asia. She holds an MS in environmental management.
Citation
Perri, Julia, Walker, Giuliana Canessa and D’Herlincourt, Ségolène (2023, September 1). Managing health supply chain risk through strategic outsourcing in low- and middle-income countries. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 6, Issue 1. https://doi.org/10.69554/WYFZ3836.
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