Background
The
major reason for establishing National Medical Stores (NMS)
was the need to establish a reliable and sustainable drug
supply system. NMS, an autonomous government corporation established
by statute of parliament, is responsible for procurement,
storage and distribution of all essential drugs and medical
supplies primarily to public sector. However, implementation
of this responsibility has been associated with several challenges
that include but not limited to the following:
- Parallel
procurement of drugs and medical supplies by various programmes
of Ministry of Health, which undermined NMS’ mandate.
- Conflicting
government policies; privatization, liberalization, decentralization
and establishment of tender Boards for autonomous Health
Institutions.
- High level of indebtedness.
- Regular
stock out position of some essential drugs while having
excesses of others.
- Bureaucratic
procedures and controls focused on storage function of the
institutions other than sales and customer service.
The
above together with other macro policies governing the pharmaceutical
trade called for drastic measures that could enhance NMS’
efficiency and competitiveness in a liberalized economy. |
Kalangwa Albert
Ag. Head of Sales and Marketing
|
Marketing strategies to turn NMS into an efficient customer
oriented organization.
Although
NMS still maintains a uniform pricing policy, that promotes
equitable distribution of drugs and medical supplies throughout
the 56 district of Uganda, it has an uphill task of fulfilling
this social obligation in a financially viable manner.
Sustainability
of this equitable pricing greatly relies on our (NMS) ability
to retain the major pharmaceutical buyer, Government (Both
central and Local Govts), as well as recruit new customers.
Therefore various strategies have been developed, to increase
NMS competitiveness, by changing our focus from storage to
customer service and order fulfillment.
- Centralized
Order processing
Customer order processing was centralized in sales office
under marketing departments to improve the speed of processing
customer orders. Structural changes are under consideration
to further improve speed of order processing by moving sales
staff to the main stores.
- Credit
Sale Agreement arrangement
NMS changes regarding payment terms, from credit sales to
cash payment policy greatly contributed to drastic decrease
in our indebtedness position this year. However, cash payment
terms generated many complaints from many customers who
explained that their respective institutions’ payment
processing procedure was too lengthy to enable them timely
access drugs. Most customers indicated that it takes them
2 to 3 weeks to complete payment process.
NMS
responded to this concern by introducing a mechanism that
enables the districts/Hospitals access drugs and process
payment within 30 days. This mechanism is through signing
a credit sales agreement, which is essentially a commitment
from the customer to pay for drugs received within 30 days.
- Service
Delivery Promoters (SDPS)
A new program geared towards increased sense of ownership
and participation by local authorities, as promoted under
decentralization policy, has been initiated through appointment
of SDPs. These promoters nominated by the district key stakeholders
in drug supply management serve as a link between NMS and
the Districts/Autonomous Institutions.
- Electronic
banking
To ease receipt of payments from our upcountry customers,
e-banking was introduced. It also reduced on debt collection
periods as distance is no longer an issue in effecting timely
payments that match customer requirements.
- Kampala
Office
Establishment of a co-ordination office at Kampala minimized
customer concerns related to our disadvantaged location
in Entebbe. The Kampala Office has been electronically linked
to Entebbe, further easing access to stock information.
It also serves as an outlet for serving private sector and
promoting good public relations.
In addition, the presence of NMS in private sector has greatly
contributed to stable drug prices (whole sale prices) throughout
the country.
- Flexible
distribution schedules
NMS has adopted a flexible distribution plan. It has moved
away from the rigid quarterly deliveries to as and when
customers make commercially viable delivery requests.
- Flexible
Procurement methods.
To meet the ever-fluctuating customer needs, and reduce
on stock-out levels of essential drugs/excesses of others,
flexible procurement methods have been adopted within acceptable
public procedures.
- Total
Quality Management (TQM).
Management and staff of NMS are currently undergoing training
in various aspects of Quality Management Systems. Completion
of this exercise will lead to NMS becoming ISO 9001 2000
certification. In addition, it promotes efficiency through
monitored adherence to standardized procedure.
Contact: sales@natmedstores.org |
