Decision-Making for Cost-Effective Medical Supply

Since January 2023

Hospitals in conflict zones often do not reliably receive the medical supplies they order from ICRC logistics due to bottlenecks, stockouts, and oversupply in the distribution system. This inconsistency threatens healthcare delivery in war zones, leading to waste from excess inventory and increased morbidity and mortality from stockouts. With shrinking budgets, ICRC needs a more efficient and reliable supply chain.

To address these issues, an analytics tool, which was developed in the context of a Humanitarian Action Challenge by Prof. Stephan Wagner (ETH Zurich) and his research team), was integrated into ICRC’s Enterprise Resource Planning (ERP) system as a Tableau dashboard. This tool helps planners make data-driven decisions about buffer stock targets and investments by addressing root causes of supply chain inefficiencies, such as workload imbalances and outdated inventory planning methods. By accounting for uncertainties in demand and supply, it ensures more reliable and consistent fulfillment of orders.

The solution was successfully rolled out in Nigeria, Central African Republic, Kenya, South Sudan, Yemen, Jordan, Ukraine, Lebanon, Ethiopia, and Afghanistan. ICRC planners in these regions are actively using the tool, transforming planning into a data-driven process and improving the responsiveness and efficiency of the medical supply chain. The project also strengthened organizational capacities, ensuring lasting improvements in logistics operations.

ICRC focal points: Ruben Naval Artal and Samah El Sayed Mohamad

Photo: Copyright: ICRC/ Chitti Irache/ 28.05.2023/ Caption: Cabo Delgado. The ICRC and the Mozambique Red Cross Society receive the supplies that will be distributed in the neighbourhood./ Reference: V-P-MZ-E-00349

Read more about this solution and how it is being used at the ICRC: Red Pulse – Silver method, silver linings_ how we optimise our delivery of medical aid.