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ORIGINAL ARTICLE
Open Access

A Rapid Cost Modeling Tool for Evaluating and Improving Public Health Supply Chain Designs

Michael Krautmann, Mariam Zameer, Dorothy Thomas, Nora Phillips-White, Ana Costache and Pascale R. Leroueil
Global Health: Science and Practice December 2020, 8(4):759-770; https://doi.org/10.9745/GHSP-D-20-00227
Michael Krautmann
aWilliam Davidson Institute, University of Michigan, Ann Arbor, MI, USA.
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  • For correspondence: mpkrautm{at}umich.edu
Mariam Zameer
b VillageReach, Seattle, WA, USA.
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Dorothy Thomas
b VillageReach, Seattle, WA, USA.
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Nora Phillips-White
b VillageReach, Seattle, WA, USA.
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Ana Costache
b VillageReach, Seattle, WA, USA.
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Pascale R. Leroueil
aWilliam Davidson Institute, University of Michigan, Ann Arbor, MI, USA.
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Key Findings

  • The Rapid Supply Chain Modeling (RSCM) Tool addresses a need for more rapid and flexible ways to model the cost impact of changes to a country’s supply chain design or context.

  • We compared the RSCM Tool against existing cost modeling tools and found it capable of producing similar results across a wide range of countries and supply chain designs.

  • The ideal user for the RSCM Tool is a technical officer familiar with Excel and supply chain concepts; the outputs can inform both technical discussions and high-level policy decisions.

Key Implications

Health system leaders and their technical teams should consider using the RSCM Tool to streamline the beginning stages of a supply chain design initiative, particularly in the following use scenarios:

  • Generating estimates of high-level impact to inform initial advocacy efforts

  • Sustaining momentum from initial workshops by quickly addressing supply chain questions

  • Narrowing down a wide range of initial supply chain design possibilities to help policy makers more quickly focus on the highest-impact design changes 

ABSTRACT

Effective and efficient health supply chains play a vital role in achieving health outcomes by ensuring supplies are available for people to access quality health services. However, supplying health commodities to service delivery points is complex and costly in many low- and middle-income countries. Thus, governments and partner organizations are often interested in understanding how to design their health supply chains more cost efficiently.

Several modeling tools exist in the public and private market that can help assess supply chain efficiency and identify supply chain design improvements. These tools are generally capable of providing users with very precise cost estimates, but they often use proprietary software and require detailed data inputs. This can result in a somewhat lengthy and expensive analysis process, which may be prohibitive for many decision makers, especially in the early stages of a supply chain design process. For many use cases, such as advocacy, informing workshop and technical meetings, and narrowing down initial design options, decision makers may often be willing to trade some detail and accuracy in exchange for quicker and lower-cost analysis results. To our knowledge, there are no publicly available tools focused on generating quick, high-level estimates of the cost and efficiency of different supply chain designs.

To address this gap, we designed and tested an Excel-based Rapid Supply Chain Modeling (RSCM) Tool. Our assessment indicated that, despite requiring significantly less data, the RSCM Tool can generate cost estimates that are similar to other common analysis and modeling methods. Furthermore, to better understand how the RSCM Tool aligns with real-world processes and decision-making timelines, we used it to inform an ongoing immunization supply chain redesign in Angola. For the use cases described above we believe that the RSCM Tool addresses an important need for quicker and less expensive ways to identify more cost-efficient supply chain designs.

  • Received: May 10, 2020.
  • Accepted: October 22, 2020.
  • Published: December 23, 2020.
  • © Krautmann et al.

This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are properly cited. To view a copy of the license, visit http://creativecommons.org/licenses/by/4.0/. When linking to this article, please use the following permanent link: https://doi.org/10.9745/GHSP-D-20-00227

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Global Health: Science and Practice: 8 (4)
Global Health: Science and Practice
Vol. 8, No. 4
December 23, 2020
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A Rapid Cost Modeling Tool for Evaluating and Improving Public Health Supply Chain Designs
Michael Krautmann, Mariam Zameer, Dorothy Thomas, Nora Phillips-White, Ana Costache, Pascale R. Leroueil
Global Health: Science and Practice Dec 2020, 8 (4) 759-770; DOI: 10.9745/GHSP-D-20-00227

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A Rapid Cost Modeling Tool for Evaluating and Improving Public Health Supply Chain Designs
Michael Krautmann, Mariam Zameer, Dorothy Thomas, Nora Phillips-White, Ana Costache, Pascale R. Leroueil
Global Health: Science and Practice Dec 2020, 8 (4) 759-770; DOI: 10.9745/GHSP-D-20-00227
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  • Article
    • ABSTRACT
    • BACKGROUND
    • METHODOLOGY: DESIGNING A TOOL FOR RAPID ANALYSIS USE CASES
    • VALIDATING THE RSCM TOOL’S METHODOLOGY
    • TESTING THE TOOL IN AN IMMUNIZATION SUPPLY CHAIN CONTEXT
    • DISCUSSION
    • CONCLUSION
    • Acknowledgments
    • Notes
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