Risk Category | ARV Supply Chain Risks | Risk 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.