Examination of Health Supply Chain Integration in Kenya for Recommendation to Other Countries

- For other cases of health supply chain integration in developing countries, it is mostly done as integration of item-wise supply chains

- In supply chain management literature, followings are the major patterns of supply chain integration o Internal integration o Vertical integration (with suppliers/customers) o Horizontal integration ▪ Integration of multi-product supply chain ▪ Horizontal collaboration - Supply chain reforms have been performed in Kenya, prior to or in parallel with supply chain integration, including: o Recruiting new managers and staffs o Legal framework for KEMSA with autonomy o Transparent procurement o Pull distribution system based on demand data o Transport outsourcing to 3PL

Results Following four aspects of integration were mentioned by interviewees;

- Integration of item-wise parallel supply chains

Whereas there were other national entities respectively for laboratory kit and tuberculosis, now the warehousing and distribution service is integrated under KEMSA supply chain. However, vaccine is managed by another entity, and not integrated with KEMSA supply chain. Mixed handling of vaccine is not permitted under regulation, and persons on vaccine side perceives that the quality of KEMSA supply chain is not capable enough to handle vaccine. In addition, although other program drugs are basically integrated into KEMSA supply chain, consolidation of cargo tend to be challenging as order approval authority is different department within MOH and the approval is not made at concurrent timing to each other.

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