GPI: CAN TRANSPARENCY IN THE SUPPLY CHAIN IMPROVE DRUG SUPPLY TO HOSPITAL PHARMACIES?

Author(s): 

Lars Munck

What was done?: 

We established a national Sales & Operations planning (S&OP) unit able to develop and implement a national S&OP process for drugs on national tender: • All hospital pharmacies estimate their expected purchase volume (number of packs) of each item-number. • National estimates for each item-number are shared on a national supplier portal (web-page). • Advise suppliers, when new estimates are shared on the portal, to confirm supply capability or report potential supply problems. • Proactive solutions/decisions are made for potential supply problems. • Suppliers share production lead-time to enable planning of tenders and drug-changes accordingly. • Monthly review process in place: hospital pharmacies/clinical pharmacy update estimates for changed drug use, suppliers re-confirm their supply capability accordingly, and national solutions/decisions are made for new potential supply problems.

Why was it done?: 

After years with increasing numbers of backorders and unplanned drug changes implemented in the hospitals under time pressures, we decided in 2017 to replace firefighting with proactive action through better transparency between hospital pharmacies and drug suppliers.

How was it done?: 

1. INVOLVING hospital pharmacies and suppliers in step-by-step development. 2. HELPING hospital pharmacies to estimate and identify estimates that require revision to improve estimate accuracy. 3. ACTIVE COMMUNICATION of estimates to suppliers. 4. Rebuild supplier’s TRUST in our estimates as accuracy improved. 5. Ask suppliers to confirm supply capability. 6. Open and CROSS-FUNCTIONAL DIALOGUE. Dialogue concerning possible solutions to potential supply problems.

What has been achieved?: 

Proactive solutions/decisions for potential supply problems have improved the overall supply situation/information, and have improved patient safety, as fewer unplanned drug changes are implemented under time pressures. The number of backorders have stabilised during 2017 to 2018. We have not experienced the explosions in backorders that some of our neighbouring countries have experienced. Transparency across the supply chain has generated trust and enabled more value-adding and cross-functional dialogue such as sharing causes of estimate changes and early sharing of potential supply problems. Positive feedback from hospital pharmacies and suppliers regarding resources/benefits from participating in the S&OP process.

What next?: 

Continue to improve the S&OP process/tools. Helping hospital pharmacies in predicting changes in drug estimates, based on the impact of national decisions about drug selection in therapeutic areas. Willing to help other countries.

EDQM

The EDQM is a leading organisation that protects public health by:

  • enabling the development,
  • supporting the implementation, and
  • monitoring the application

of quality standards for safe medicines and their safe use. Our standards are recognised as a scientific benchmark world-wide. The European Pharmacopoeia is legally binding in member states. Similarly, the EDQM develops guidance and standards in the areas of blood transfusion, organ transplantations and consumer health issues.

Please find out more about EDQM by visiting their website.

 

European Medicines Agency

The European Medicines Agency (EMA) is a decentralised agency of the European Union (EU), located in London. It began operating in 1995. The Agency is responsible for the scientific evaluation, supervision and safety monitoring of medicines in the EU.

EMA protects public and animal health in 28 EU Member States, as well as the countries of the European Economic Area, by ensuring that all medicines available on the EU market are safe, effective and of high quality. EMA serves a market of over 500 million people living in the EU.

Learn more about EMA by visiting their website