TABLE. ARV Supply Chain Risks and Corresponding Risk Mitigation Strategies by the SCMS Project
Risk CategoryARV Supply Chain RisksRisk Mitigation Strategies
Supply• Production delays• Multiple-source procurement
• Shipping delays• Pooled procurement
• Use of RDCs
• Flexible product specification
Demand• Expanding treatment programs• Frequent update and review of supply plans
• Inaccurate and/or delayed demand forecasting and supply planning• Regional aggregation of country forecasts and supply plans for pooled procurement
• Burdensome procurement procedures• Restocking RDCs based on analysis of likely demand (as opposed to firm orders)
Cost• High per-unit product costs• Pooled procurement based on aggregate demand plans
• High shipping costs• Freight consolidation and ocean shipping
  • Abbreviations: ARV, antiretroviral; RDC, regional distribution center; SCMS, Supply Chain Management System.