hp supply chain management case study

Hewlett Packard: Supply chain, the great enabler

HP EMEA’s supply chain continues to strengthen the company’s market leading position in printing and personal systems, helping it to better deliver for customers on a day-to-day basis. Listed at number 17 in Gartner’s top global supply chains, the combination of agility, brain power and strength is paying dividends for all stakeholders.

“Firstly, our supply chain is important for our customers. The way we interact with customers, and take, update on and deliver orders is driving customer satisfaction,” says Volker Schmitz, vice president and head of EMEA Supply Chain at HP Inc. His mission: for the supply chain to go above and beyond for customers, delivering a competitive advantage for HP’s business and its partners.

On November 1, 2015, after 76 years of innovation, the printing and personal systems divisions became a standalone business as HP Inc., with servers, storage, networking and services forming Hewlett-Packard Enterprise.

Such has been the seamless transition to what is now HP Inc., it is testament to the multifaceted and hugely complex work carried out by a company-wide cross-functional team that the business, and therefore customers, have suffered no disruption. In fact, the company’s global market position has actually strengthened over the course of the past year.

“The separation was the greatest cross-department collaboration the company has ever seen,” Schmitz explains. “The complexity was simply huge. Within Supply Chain we have changed so many structures, systems, logistics routes, supplier relations and organizational structures, and to do it in under a year was a huge achievement for the company.” HP also had a 76-year legacy to honour, an identity and hallmark of quality that is vitally important to keep intact.

Transition complete, the new company is already starting to reap dividends from a more flexible, agile supply chain setup, backed up by what is still a $48+ billion Fortune 100 organisation. “What has changed the most is our agility and how we are running our company,” Schmitz adds. “Before the separation our strategy was extremely broad, ranging from cloud services and software to various products, but now we are focused on two major franchises – personal systems and printing.”

With fewer organisational layers to navigate, quick decision making between strategically-aligned senior management has facilitated flexible, rapid development. A more nimble employee base of approximately 50,000 compared to 300,000 under Hewlett-Packard has also helped create a leaner organisation.

If HP needed any more proof that progress is being made, Gartner has listed its global supply chain as the 17th best in the world with a perfect 10 in corporate social responsibility, identifying the company as a long-term leader in this area. Not only is HP delivering satisfaction for customers receiving its products, but also economic and social empowerment for the communities in which it operates.

The great enabler

The supply chain is an important enabler in a number of areas, from customer satisfaction and cost effectiveness to cash flow and sustainability.

The ultimate result of a world class supply chain operation is to deliver numerous benefits to customers in terms of efficiency, reliability and cost, whether these be corporate clients running large scale business operations or a consumer ordering the latest HP PC or printer.

Schmitz and his team keep close tabs on net promoter scores, which assess the likelihood of customers recommending and promoting HP to others. What they have found is a clear correlation between improvements in speed and predictability of the supply chain and boosts in this customer satisfaction metric.

A key part of this is engagement between HP’s operational teams and its customers. Through continual dialogue and feedback, the company is able to communicate clarity and ensure reliability and responsiveness in its service. Strong customer engagement has doubtlessly lead to enhanced net promoter scores across the organisation.

Internally, HP’s supply chain is an enabler of cost effectiveness and ultimately increases in margins and profits. “We are in a business which does not allow mistakes on pricing,” Schmitz adds. “Our margins can be tight, so we are very focused on costs and making savings every day and every week.

“Cash flow is a big focus for us as well. It is not just about how we manage our inventories but also about how we manage our suppliers and customers. Cash is king and there are times where this is as important as cost reductions.”

Personal systems and print powerhouse

The ultimate consequence of continuous supply chain improvement is that HP can now deliver to customers its best ever product portfolio. It is the worldwide leader in commercial PCs, workstations and printing, and outright leader for all PCs and printing in EMEA.

Add to this renowned graphics solutions and rapidly-growing 3D printing prowess, and it becomes clear that the supply chain requirements to fulfil this stature are formidable.

Schmitz explains: “Although we have just two distinct franchises, the variety of products and consequent supply chain needs are huge. Within printing we start with volume printers and corresponding supplies, and end up with graphics solutions and now 3D printers. A 20-metre long printing press will require a very different supply chain compared to an ink cartridge that we sell millions of every year. Within Personal Systems we have high volume PCs and customized solutions, to high end workstations and accessories, which require targeted supply chain solutions.”

HP’s supply chain scale

To grasp an idea of the sheer scale of the supply chain operation required to keep HP’s global engine room running, Schmitz breaks down oft-cited annual numbers into facts and figures by the minute. Every 60 seconds the company ships 35 PCs, 26 printers and 280 ink and toner cartridges into more than 100 countries in Europe, Middle East and Africa – a supply chain which does not sleep.  

“We can talk about billions of dollars and millions of units over the course of a year, but something more tangible to grasp the scale of HP’s supply chain is to picture what we ship in a single minute,” Schmitz says. “This is operating 24/7 and needs to be active 365 days a year.”

Orders are manufactured by a network of factories across the world, with the company’s largest factory base being in Asia. Regional factories nearer to key customers handle more specific, complex requirements. Distribution is handled through a network of distribution hubs and subcontracted logistics activities. Centres of excellence right across EMEA, staffed by hundreds of workers, manage this huge supply chain.

A considerable amount of activity is outsourced via several vital partnerships with big manufacturing and logistics companies. A very early adopter of the outsourcing concept, Schmitz believes that this is a crucial component in HP’s ability to achieve scale and remain agile.

Corporate citizen

The environmental and social sustainability performance of HP is another area which stems from its supply chain, recognised by Gartner with a perfect 10 rating for Corporate Social Responsibility.

Environmentally, the company has three major goals in place to achieve by 2020. These include commitments to using 40 percent renewable energy in global operations with a long term goal of 100 percent, zero-deforestation associated with HP paper and paper-based packaging, and a 25 percent reduction in its product portfolio’s greenhouse gas (GHG) emissions intensity compared to 2010. The supply chain is already one step ahead in this regard; HP’s supply chain is already 20 percent less GHG intensive than it was just six years ago.

HP is also reducing the environmental footprint throughout both its value chain and product lifecycles by shifting both product design and business models toward a materials- and energy-efficient circular economy. HP innovations that support a circular economy include core technologies such as inkjet and LaserJet cartridges made with closed loop plastics and breakthrough technologies like 3D print solutions as well as transformative business models that offer printing and personal systems as ongoing services rather than products to buy and replace.

On the social side, HP has a vital role to play in the communities it is present. This is no more apparent than in China, where much energy has gone into boosting economic areas inland. Schmitz explains: “We have been working closely with the Chinese government to establish economic activity inland, as historically a high proportion took place on the coast. We piloted the first factory inland which actually turned out to be a far better setup as workers don’t need to relocate for their jobs, and the area benefits from the development both of the factory itself and surrounding infrastructure.”

Such infrastructure includes the development of what is known as the new Silk Road, a train route connecting inland China with Duisburg in Germany, via Kazakhstan, Russia, Belarus and Poland. Opened in mid-2011, the line now carries up to five trains a week full of HP goods, greatly reducing turnaround times and cutting costs. And HP continues to pursue further development of this route. Recently, printers produced in southern China are also shipped via this route. 

HP has also been championing the rights of workers in the supply chain for decades. For instance, in China the company has been working with its manufacturing partner to ensure legal rights in areas such as overtime payments. “Sustainability has been one of the best kept secrets about HP, but Gartner has rightly pointed it out as an area where we excel,” Schmitz says. “The big commercial customers are very conscious about where their goods come from and more and more this is becoming a key part in contractual agreements.”

In Europe, HP was in a leading position in supply chain management when it became visible in the revitalisation of the Greek port of Piraeus. Schmitz continues: “In the past all of our sea freight into Europe went via Rotterdam, but several years ago we identified an opportunity to go via Greece and worked closely with our partners to develop the harbour. We have used that base to reduce costs and turnaround times while also supporting the local economy.”

5 pillars of success – Customers first

The success criteria for a supply chain are often measured with financials, however for HP it is determined by the satisfaction of customers. And this means catering to wide ranging set of requirements.

Schmitz explains: “Different customers have different expectations, for example we know that big corporate customers want something different than a European retailer in our distribution channel. In some areas predictability is the key to customer satisfaction, in others it is about speed or special services. As well as using our own internal metrics, we communicate a lot with customers about their metrics of evaluating us to see whether we are performing the best we can.”

In recent years a concept of a ‘perfect order’ was introduced, which not only measures delivery performance but also follows the concept of the right product, at the right time, in the right quality and with the paperwork at the customer. A series of projects triggered strong improvements in the performance towards customers.

Some supply chains are more internal, however reaching out directly to customers helps HP to bring more external perspectives into the supply chain. For instance, managers in Schmitz’s team are all made an operational sponsor of a corporate account, which involves direct interaction with key customers to further improve the service provided to them.  

Operational excellence

“First and foremost we need to run an operation that is the best it can possibly be, and there are many ways you can look at this,” Schmitz says.

A supply chain function will never operate at its best when not closely embedded into business processes and functions. It is key to be a reliable partner for internal stakeholders to deliver on their objectives such as revenue and market share. In addition, it is also about influencing other functions on programs which improve the end-to-end process, such as projects around forecast accuracy.

“On the one hand we can judge by our success in the market, which proves we can deliver the 35 PCs every minute. But on top of that we need to look at how we deliver those 35 PCs – you could simply do it with a lot of firefighting, but we are firm believers in strong process management.”

This means drawing on a network of experts who own various processes in the supply chain. For each process HP has identified a process manager who is always looking for ways to improve, using all available metrics to make informed decisions.

Automation is another area which is helping HP boost operational excellence. Robotics and smart automation techniques hosted in the cloud are taking on manual, repetitive tasks, cutting out human error and speeding up important processes. Around 300 such smart robots are currently operating at HP worldwide.

World class financials

“A supply chain is not just responsible for simply producing and delivering, but doing so within a sustainable cost frame. We are in a business where competition is tough and products can change every two or three months. Whether it’s planning, sourcing, producing or delivering, we have functional owners who operate with the mantra ‘make it better’, finding new opportunities to save money on a component wherever they can or improve processes to reduce costs or improve cashflow. This ultimately helps us to have competitive prices on the market.”

“For me this is a triangle made up of inventory, costs and customer satisfaction, and balancing on the tips of this triangle is what we must do,” Schmitz adds.

 A winning team

Continuous development of employees makes up the fourth pillar. Employees based in European centres of excellence pool together knowledge from different functions into one place, which is backed up by extensive training programmes.

“In supply chain it is very important that we have specific skills and capabilities, and to ensure that we have very targeted development programmes, whether it be on analytics and spotting trends in data or being certified to run big projects,” Schmitz says.

“As a company we have a new learning concept which involves a greater focus on interactive ways of learning, not just training classes but online support and groups which connect people looking for the same outcomes.”

Futureproof through innovation

Finally, and perhaps the most significant in terms of strengthening HP’s position at the front of the printing and personal systems industry, is supply chain innovation.  “To operate a supply chain as described, it is also important to spend sufficient time and energy on innovation and improvements – this is what often is called ‘Bi-modal’, Schmitz continued.

One example in a series of initiatives to drive innovation is Instant Ink, a new subscription service to cater for replacement ink supplies. Customers pay a monthly fee and in return receive ink as soon as the printer communicates to HP that it is running low – this ensures a continuous supply of ink while removing the need for clients to manually order.

Schmitz explains: “If you have a printer and run out of ink the usual step is to visit a contract supplier or retailer to acquire more, but we are asking why this can’t be done for you. We started this in several countries and are seeing huge growth rates and, because it is so easy, customers continue using it. It is one of the fastest growing web services in the world – and for us it is like a digital supply chain.”

In the future, Instant Ink is likely to fill printers made with components that have themselves been printed. While 3D printing is not new for HP, the latest product launches are based on technology that the company has developed in-house with its own intellectual property.

There are many implications for the supply chain when launching new categories like 3D printing, where a new ecosystem will need to be generated with a new supplier network.

“The really compelling thing is that we have started to 3D print components for our own printers,” Schmitz says. “There is no reason why we can’t print plastic components and when we started to change the design of those plastics, it has helped us to realise strong cost savings. We believe this can change the way manufacturing is done in the world, and HP is in a position to lead the growth of this. We are partnering with companies in sectors such as automotive, fashion and chemicals to explore opportunities and speed up this development.”

It is innovation in areas such as subscription printing and 3D printing technology that will allow HP to maintain its global market-leading status, with Schmitz determined to deliver this at a sustainable cost and at speed.

He adds: “The quicker and cheaper we can develop this, the more we can increase volumes and make it a profitable venture. We did this with thermal inkjet printers decades ago, and we can disrupt the market again.”

Continual innovation in the supply chain will be key to enabling HP to further improve customer satisfaction levels in the months and years to come, maintaining a competitive advantage not only for itself but also its network of partners around the world

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How Kellogg's, Nike, and HP handled 2020 supply chain disruptions

• Performance management
• Supply chain
• Risk Mitigation

Managers have been tasked with devising lean global supply chains resilient enough to withstand a certain level of risk. Few imagined the months of disrupted production and distribution that came with the COVID-19 pandemic.

Major public companies disclosed in their US financial filings the strategies they used to keep up sales and production during the pandemic. Those strategies include producing more of their most popular products; increasing online sales to consumers; securing alternate, local suppliers of materials and packaging; and building slack into their supply chain.

“The most resilient companies were the ones who had really embraced risk management planning — and had visibility into their whole supply chain network, not just their immediate suppliers,” said Mike Crum, DBA, professor of supply chain management at Iowa State University’s Ivy College of Business, in an interview with FM magazine .

Companies need to prepare for future supply chain disruptions, due to the potential for extreme weather, financial crises, terrorism, and future pandemics. In a recent report, the McKinsey Global Institute predicts the average company could expect major supply chain disruptions — those lasting at least one month — to occur every 3.7 years.

The financial disclosures of Kellogg’s , Nike , and HP showed that consumer-facing companies radically shifted their supply chains amid the pandemic to serve customers at home after their offices and institutions were forced to shut. Companies made use of slack built into their supply chains and earlier IT investments that let them track raw materials, components, and finished products. And while most credited the heroics of their staff during the pandemic, all three announced cost savings or accelerated investment in automation that could lead to job loss.

Kellogg Co. (NYSE: K )

Food companies such as Kellogg Co. had to flip from sending bulk volumes to schools and restaurants to feeding people working from home who suddenly had time for breakfast. Finding enough paperboard packaging for cereal boxes became a constraint.

With families staying home and limiting supermarket trips, the pandemic boosted sales of Kellogg’s cereals, noodles, and snacks. For the multinational, food consumed at home more than offset declines in on-the-go channels. While growth had moderated by September, Kellogg’s sales over the first nine months of 2020 increased 7% over the year-ago period, to $10.5 billion, excluding the effects of divestitures and currency rate fluctuations.

One highlight was the Asia Pacific, Middle East, and Africa (AMEA) region, where third-quarter net sales — excluding currency fluctuations — jumped by nearly 11% to $600 million and operating profit grew 6% to $59 million, over the year-ago quarter.

“There was one day in March when our third-party warehouse had to do the equivalent to a week’s worth of dispatching, and then we worked at that level for three weeks,” said Shanaka Wijesuriya, FCMA, CGMA, FCPA (Australia), CFO for Kellogg’s in Australia and New Zealand, who also heads up planning and end-to-end logistics. “We are used to big surges during promotions, but this was unprecedented.” The Sydney-based Wijesuriya said the company quickly went through its several weeks’ “safety stock” in Australia, where Kellogg’s has manufactured for 92 years. 

Wijesuriya was part of a steering committee that decided to focus on the top stock-keeping units (SKUs) of their more than 100 items, including Nutri-Grain cereal bars, Coco Pops, Special K, and Corn Flakes, the original product of the Battle Creek, Michigan-based Kellogg’s. They quickly used up a lot of the grains stored in silos and warehouses. Kellogg’s factory and warehouse employees — and those of its suppliers and transportation partners — “worked incredible hours” to ramp up production and quickly load more trucks and containers. “When your retailers are demanding extra things, it’s your warehouse that needs to stretch the most,” he said.

Packaging became a bottleneck, as the region’s Korean supplier ran short due to shipping delays caused by the COVID-19 pandemic. The procurement team “scoured the world” for a new source of paperboard and found an alternative supplier next door in New Zealand. Lower transportation costs helped to make up for the higher cost of the New Zealand paperboard.

For Wijesuriya, COVID-19 “highlights the importance of not having your supply chains spread out all over the world. It’s led us to look at the diversity of the supply chain … and the benefits of having a supplier closer to home,” Wijesuriya said. “Higher inventory was worth it to satisfy consumers who were glad to find a trusted brand on the shelf.”

Kellogg’s has emerged from the crisis having gained market share.

As companies move to automate processes, in part to withstand future health crises, Wijesuriya credits the human part of the supply chain for its ability to stretch. “We were able to do amazing things because of how the people across our business and supply chain banded together to meet demand,” he said. “I know mechanisation is coming and it’s a good thing, but our human spirit and resilience came out even more.”

Nike (NYSE: NKE )

The pandemic hit hard at Nike’s distribution, third-party manufacturing, and logistics operations. For 2020, net income before taxes fell by 40% over the prior year to $2.9 billion, according to its July annual report. After the pandemic forced Nike to shutter stores first in its brisk China market and then around the globe, inventory swelled 31% to $7.4 billion by fiscal year end on 31 May, compared to $5.6 billion at the end of fiscal 2019. Reduced shipments to wholesalers, labour shortages, and other “supply chain effects” curtailed Nike’s ability to calibrate supply and demand and increased costs of production and distribution.

In response, the Beaverton, Oregon, company accelerated plans to expand direct online sales, where profits are 10% higher than when it sells products wholesale, CFO Matthew Friend said on the first-quarter earnings call. Nike Brand Digital was its “fastest-growing channel, growing 79% on a currency-neutral basis with each of our geographies growing over 50%”, for the quarter ending 31 May, the company said in its annual report. The athletic wear maker cleared inventory by cancelling factory orders, offering discounts, and shifting product destined for stores to fulfil online orders.

Already in 2020, Nike’s success at raising average selling prices “was more than offset” by higher US tariffs on imported goods, according to its annual report. The pandemic increased costs for cancelled purchase orders and led to higher inventory obsolescence. Margins dropped as its supply chain costs were spread over “a lower volume of wholesale shipments”.

CEO John Donahoe called COVID-19 “a stress test” of the company’s direct connections to consumers, setting a goal of selling 50% online. In 2020, the company sold about 35% or $12.4 billion of its $35.6 billion in Nike-branded goods online, either directly or through partners.

While the company makes nearly all of its products in Asia, Donahoe said the company would try to speed delivery through “a more dynamic supply chain network that positions product closer to the consumer”, according to his July letter to shareholders.

During the pandemic, Nike depended on its use of radio-frequency identification (RFID) technology, which uses tiny radio parts embedded in tags to automatically identify and track all its footwear and most of its apparel. During the supply chain disruptions, Nike tracked “1 billion units at 99.9% readability”, Friend said during the September earnings call. “We were able to leverage the inventory visibility in order to be able to take advantage of … the demand that we had across the marketplace and across our retail stores.”

Nike expects RFID to lower the cost of inventory holding and transportation, building on the data capabilities it bought through its 2019 acquisition of Celect, a predictive analytics and demand-sensing company. “That’s where the scale competitive advantage comes from in our supply chain because we will be able to forecast demand, get the right inventory in the right places to get it to consumers quickly both for ourselves and maybe even over time, that’s an added benefit for our strategic wholesale partners,” Donahoe said on the September earnings call.

HP Inc. (NYSE: HPE )

During the pandemic, videoconferencing became essential to connect people suddenly working, studying, and socialising from home. Demand for notebook computers exploded, and an industrywide shortage of computer panels and central processing units constrained supply.

COVID-19 radically shifted demand for computers that could be used in offices to those for the home, where adults worked and children now logged in for school, creating both challenges and opportunities for the California-based maker of computers and peripherals. By May, HP’s Personal Systems division was selling more “as the focus moved to keeping people connected, productive, and secure”, according to the second-quarter earnings call. Demand rose for printers and ink supplies as people set up home offices and remote-learning sites. On the other hand, HP’s office printing business suffered with office closures and cancellations of large events.

HP ran out of certain products after the pandemic forced it to close factories in China and Southeast Asia. That didn’t stop consumer demand . “The PC is more central to daily life than ever, and PC use is up more than 20% since COVID emerged,” CEO Enrique Lores said in the third-quarter earnings call on 27 August.

As countries went into lockdown, logistics problems delayed deliveries of printing and personal computing equipment to sellers and direct customers, HP announced in its third-quarter filing. Regulations to stem the spread of COVID-19 also disrupted HP’s retailers, or channel partners, who cancelled and reduced orders.

The printer and personal computer maker said manufacturing capacity had returned to normal levels by early May, except in Southeast Asia, where local regulations slowed the recovery until June. Industrywide shortages of computer panels and central processing units (CPUs) was expected to keep manufacturers including HP from fully meeting demand for notebooks through the first half of 2021, Lores said on the 24 November earnings call.

HP finished its fiscal year with $56.6 billion in revenue, down 3.6% from the prior year’s $58.8 billion. Net earnings slid further, down 10% to $2.8 billion from $3.2 billion the prior year, as the company absorbed higher costs on lower volumes.

Marie Myers, acting chief financial officer, said in the company’s fourth-quarter earnings call that volatility in the supply chain and the need to ship more products via air added costs. Interestingly, strong sales of home printers also dented profits, as they have “negative margins upfront”, meaning that the company sells printers at a loss and makes money selling ink. The relatively short supply of home computers and printers let HP cancel plans to offer discounts and helped it keep pricing higher. The company accelerated planned cost-cutting to bolster its margins.

HP introduced new products and services to make it easier to work and learn from home, including monitors to lower eye strain, subscription ink business, and a centralised billing service for commercial clients working from home.

2020 tested companies’ ability to overcome supply chain disruptions by spending more to meet consumer demand. They also accelerated plans to cut costs through restructuring and automation, processes that in turn may reshape companies faster than they had imagined.

— Sara Silver is a freelance writer based in New York City. To comment on this article or to suggest an idea for another article, contact Chris Baysden, an FM associate director, at [email protected] .

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Hewlett Packard: Performance Measurement in the Supply Chain

In a maturing market, HP’s attention moved from Return on Sales to Return on Net Assets. Mismatches between demand and supply, aggrevated by a long supply chain, were a burden on profit. HP realized that conventional logistics costs (warehousing, inventories, transport) were only the tip of the iceberg. Hidden underneath were large costs due to price protection, material devaluation, returns and obsoletes (Inventory Driven Costs). Uncovering all true demand/supply mismatch costs allowed HP to redress the situation and restore competitiveness.

The case aims to illustrate the strategic impact of supply chain management and the increasing cost of supply/demand mismatches. To enable sound decision making (e.g. in prioritizing supply chain improvement projects), a clear link needs to be established between supply chain performance indicators and bottom-line impact.

• Supply chain management
• Performance measurement
• Inventory-driven costs
• Financial performance

Hewlett Packard: Performance Measurement in the Supply Chain (Condensed Version)

By   Regine Slagmulder ,  Luk Van Wassenhove

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3D Printing, Innovation, and Supply Chain Resiliency More Important Than Ever, Say Manufacturing Decision Makers

Global HP study finds that digital manufacturing can drive economic growth, faster innovation, and more sustainable production

October 15, 2020

Palo Alto, Calif.– October 15, 2020 — Today at its global Innovation Summit, HP and members of its worldwide partner and customer community along with industry experts showcased the power of digital manufacturing to transform industries. Underpinning the event was a new HP study delivering insights on digital manufacturing technologies and trends such as industrial 3D printing.  As a leader driving this digital transformation, HP’s Summit featured discussions with executives from Additive Integrity, Decathlon, Forecast3D, IDC, Nissan, SOLIZE Products, the World Economic Forum, and more.

Surveying thousands of manufacturing executives across the globe, HP’s Digital Manufacturing Trend Report finds that companies are increasingly investing in advanced 3D printing solutions that provide the agility, speed, and flexibility necessary to grow their business and become more resilient in an ever-changing environment.

One of the key insights from the global manufacturing industry is that regardless of sector or location, companies are looking to 3D printing to strengthen their supply chains, become more agile, and create more innovative product development and manufacturing strategies. This is underscored by a rising investment in 3D printing, support for 3D printing as a viable alternative to traditional manufacturing, and a greater desire for closer ecosystem collaboration to drive adoption.

Manufacturing decision makers also see opportunities for accelerated innovation, recognizing that 3D printing is uniquely suited for the mass personalization of new products, and by also reducing waste and promoting a more sustainable economy.

“ The global manufacturing sector is clearly signaling a desire for greater supply chain resiliency, more manufacturing flexibility, increased speed of innovation, and stronger environmental sustainability,” said Ramon Pastor, General Manager, HP 3D Printing & Digital Manufacturing. “ And they are seeing industrial 3D printing as a way to not only lower costs and go to market faster, but as a unique competitive advantage that accelerates innovation for customers.”

HP Digital Manufacturing Survey Highlights

- by Data courtesy of HP

HP’s Digital Manufacturing Trends Report Highlights Include :   

  Digital Manufacturing Technologies are Spurring Economic Advancement and Agility 

• 99% of global respondents believe that digital manufacturing technologies can lead to economic growth. 
• 89% of respondents are looking to evolve their business models because of the current world business environment.  
• Over the next 12 months, 71% plan on investing in digital manufacturing technologies, and over four-in-five respondents (85%) indicated that their company plans to increase their additive manufacturing/3D printing investment. 
• Three-quarters of respondents said that additive manufacturing/3D printing helps their company be more agile, is a viable alternative to traditional manufacturing, and is a backup to traditional manufacturing. 
• Over nine-in-ten respondents said they are investigating new production/supply chain models, with 59% evaluating hybrid models and 52% looking into localized production. 

Accelerated Innovation Transforms Industries 

• The most cited benefit by respondents using additive manufacturing/3D printing is the increased ability to innovate. 
• The top new areas of innovation that companies are investigating include mass customization for direct-to-consumer products, production on demand, and digital warehousing/virtual inventory. 
• In particular, 91% of respondents want to explore the innovation that mass customization provides and believe it could be applicable to their business if parts could be personalized through 3D printing/additive manufacturing. 
• Medical, industrial, and automotive were called out as the industries most ripe for innovation in additive manufacturing/3D printing over the next five years.

Opening Up New Opportunities for Collaboration

• 85% of respondents indicated that collaboration across sectors to embrace new digital manufacturing technologies is important. 
• 81% indicated their company has future plans to collaborate with government entities on digital manufacturing products.
• The top barrier to entry in the additive manufacturing/3D printing entry for respondents is finding a qualified workforce.
• To address this skills gap, 64% want to offer more professional training services, and 53% want companies, governments, institutions, and citizens to work together to make investments in educational and job-skilling programs.

Sustainable Production Will Continue to Be a Business Imperative

• The top ways that additive manufacturing/3D printing can reduce waste and promote a circular economy are reducing the amount of materials used and better matching supply and demand, followed by shortening and simplifying traditional supply chains and improving service options that can prolong the life of products. 
• 90% of respondents said that the recyclability of additive manufacturing/3D printed powders and parts is important. 
• 88% of respondents believes that it is important that governments create a sustainable ecosystem by incentivizing investment in and development of socially and environmentally beneficial digital manufacturing technologies. 

About the HP Digital Manufacturing Report

The HP Digital Manufacturing Report is a global study by HP Inc. It was conducted by SME Media/Research across three continents and nine geographic areas including Canada, China, France, Germany, Japan, Mexico, Singapore, the UK, and the U.S. Fieldwork was conducted from July 28 – August 11, 2020 across 2,175 3D printing and digital manufacturing decision makers.

About HP HP Inc. creates technology that makes life better for everyone, everywhere. Through our product and service portfolio of personal systems, printers and 3D printing solutions, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com/go/3Dprinting .

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HP Inc. (NYSE:HPQ) is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming, and more. For more information, please visit: HP.com .   Contact: [email protected]

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HP Supply Chain Chief: ‘We Are Going On Offense’

‘We’ve got to think differently. What’s become the key is resiliency. I want to think of resiliency as insurance … it’s this idea of mitigating against potential points of failure,’ says Ernest Nicolas, HP’s new chief supply chain officer, at the partner-focused Amplify Executive Forum.

HP’s Ernest Nicolas (Photo by Shane Snider)

Ernest Nicolas may have only started his role at HP Inc. in May, but the supply chain veteran is already forging a bold game plan for the IT giant.

“We are going on offense,” Nicolas said.

HP executives spent a good chunk of time Thursday during the partner-focused Amplify Executive Forum 2022 talking about supply chain issues. It was a strikingly candid and rare public discussion about supply chain specifics from a major vendor. And Nicolas, in company’s newly created position of chief supply chain officer, appears to be HP’s secret weapon in the fight to maintain supply consistency.

The Palo Alto, Calif., powerhouse has struggled with supply chain issues along with every other tech company. In 2021, HP reported a $10 billion backlog because of pandemic-fueled supply chain disruptions.

The world’s supply chain has been snarled by intermittent COVID-19 lockdowns (especially in manufacturing hub and port-heavy China). Vendors have addressed the issue but stuck in the middle are solution providers, who often wait months for orders customers need now.

Enter Nicolas: A former General Motors supply chain guru, HP snapped up Nicolas from Rockwell Automation this spring to deal with an unforgiving supply chain nightmare. He told the audience at the Amplify event that everyone needs to change the way they think about supply chain.

“Even before the pandemic, there were some challenging macroeconomic conditions that were already telling us it’s time to change … to pivot away from what has been historically the lean supply chain … and companies want to get back to the way things were,” he said. “Well, quite honestly, that’s over and we’ve got to think differently. What’s become the key is resiliency. I want to think of resiliency as insurance … it’s this idea of mitigating against potential points of failure.”

Nicolas said agility, resilience and visibility should be used as weapons in the fight.

“I like to think about resiliency as essentially being the defense,” he said. “It’s being responsive and having a business continuity plan—that’s agility. That, to me, is going on offense. It’s being a bit more strategic. It’s actually working through a plan for these macroeconomic challenges that happen.”

Rene LaVigne, president and CEO of Iron Bow Technologies in Herndon, Va., said he was encouraged by HP’s supply chain discussion. “Being a diverse player in the space, I’ve seen supply chain issues across the industry,” he said. “And most vendors up to this juncture have not really communicated to the partner a robust plan of how they’re going to tackle it.”

HP’s willingness to discuss the issue was refreshing for LaVigne.

“And I’ll tell you, just on a personal note, over the course of the last 25 months, we have not been able to get credible supply chain information for our customers,” he said. “We totally understand this was the fault of the pandemic. But it created an over-dependency on foreign markets. And that dependency has been an albatross around our necks.”

Speaking of Nicolas, he said, “I thought his articulation of what’s happened, where we are, and where we’re going was really on point.”

Harry Zarek of Ontario, Canada-based Compugen was cautiously optimistic about HP’s supply chain effort led by Nicolas.

“I was very impressed that [Nicolas] spoke differently than some other folks about the supply chain,” Zarek said. “I think it’s brilliant that they brought in a supply chain chief. He sounds as though he has the right mix of background, and I think it’s great that he comes from outside the industry.”

Nicolas continued the supply chain discussion on stage during a panel session that included several executives, including acting Chief Commercial Officer Luciana Broggi and CEO Enrique Lores. Lores said improvements to ERP software systems are improving supply chain monitoring. “We need to remember that we had 11 ERP systems that were not connected … and now we have one that connects the whole company. It has been a Herculean job to make that happen,” Lores said.

Broggi said the company had to continue working on ways of forecasting supply chain issues by accessing more data to “predict and forecast in a much more effective way.”

Zarek said he hopes Nicolas and HP can keep in constant communication with partners about the state of the supply chain. “Let us hear what is happening more often,” he said. “And let us communicate that to our customers.”

The Evolution of Supply-Chain-Management Models and Practice at Hewlett-Packard

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• Modrak V Soltysova Z (2017) Novel Complexity Indicator of Manufacturing Process Chains and Its Relations to Indirect Complexity Indicators Complexity 10.1155/2017/9102824 2017 Online publication date: 21-Jun-2017 https://dl.acm.org/doi/10.1155/2017/9102824
• Leung L Chen G Van Hui Y He W (2016) An Airfreight Forwarder's Shipment Bidding and Logistics Planning Transportation Science 10.1287/trsc.2015.0604 50 :1 (275-287) Online publication date: 1-Feb-2016 https://dl.acm.org/doi/10.1287/trsc.2015.0604
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Case study: How HP promotes sustainability among its suppliers

HP is a global technology leader, seeking to create technology that makes life better for everyone, everywhere – every person, every organisation, and every community around the globe. HP engages with its suppliers in multiple ways to understand their sustainability performance, identify and address issues, and drive ongoing progress.     Tweet This!

This case study is based on the 2020 Sustainable Impact Report by HP , prepared in accordance with the GRI Standards, that can be found at this link . Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

To minimise the potential for supply chain-related risks, HP works with its suppliers and other stakeholders in a wide range of ways to promote responsibility, so as to create an ethical, sustainable, and resilient supply chain. In order to promote sustainability among its suppliers HP took action to:

• use a supplier Self-Assessment Questionnaire
• conduct supplier audits

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• How HP proceeded with stakeholder engagement , and
• What actions were taken by HP to promote sustainability among its suppliers

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What are the material issues the company has identified?  

In its 2020 Sustainable Impact Report HP identified a range of material issues, such as energy use and GHS emissions, human rights, product and operational health and safety, diversity and inclusion. Among these, promoting sustainability among its suppliers stands out as a key material issue for HP.

Stakeholder engagement in accordance with the GRI Standards 

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups HP engages with:   

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics HP engaged with its stakeholders through interviews with a wide range of internal and external stakeholders and an employee survey with more than 1,400 responses.

What actions were taken by HP to promote sustainability among its suppliers?

In its 2020 Sustainable Impact Report HP reports that it took the following actions for promoting sustainability among its suppliers:

• Using a supplier Self-Assessment Questionnaire
• HP’s supplier Self-Assessment Questionnaire (SAQ) includes detailed questions around social and environmental management and practices. As well as assisting HP to evaluate risk, identify areas for improvement, and determine a firm’s inclusion in its audit programme, self-assessment helps suppliers become more familiar with HP’s expectations of conformance to its Supplier Code of Conduct. During 2020, 167 production suppliers and 13 nonproduction suppliers completed SAQs.
• Conducting supplier audits
• HP’s supplier audit process is an essential component of its risk assessment framework and a key mechanism for identifying opportunities for sustained improvement with its suppliers. Supplier audits measure conformance with all provisions of the HP Supplier Code of Conduct in the areas of labour, health and safety, environmental, ethics, and management systems. HP also works with its final assembly suppliers to confirm they are conducting risk assessments of companies in their own supply chains that represent approximately 80% of their spend and auditing 25% of sites determined to be high risk, based on the RBA Code of Conduct. In 2020, HP completed 137 audits of production suppliers, product reuse and recycling vendors, and nonproduction suppliers, as well as three other assessments of production suppliers. HP also conducts targeted assessments to supplement its comprehensive audits, focusing on specific risk areas, including vulnerable workers (such as student, dispatch, and foreign migrant workers) and health and safety (including fire safety and emergency preparedness).

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 414-1 New suppliers that were screened using social criteria

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5 : Gender Equality
• Targets: 5.2
• Sustainable Development Goal (SDG) 8 : Decent Work and Economic Growth
• Targets: 8.8
• Sustainable Development Goal (SDG) 16 : Peace, Justice and Strong Institutions
• Targets: 16.1

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This case study is based on published information by HP, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

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What are the HP Supply Chain Responsibility principles? Print

Modified on: Tue, 18 Oct, 2022 at 4:12 PM

HP relies on one of the IT industry’s largest supply chains, made up of hundreds of production suppliers and thousands of nonproduction suppliers. 1 Ranging from multinational enterprises to small firms, and operating in countries around the globe, these suppliers provide us with materials, components, and assembly for our products, shipping and delivery to our customers, as well as a wide variety of other goods and services.

We strive for an ethical, sustainable, and resilient supply chain to protect the people making our products, safeguard our business and brand, strengthen customer relationships, and create opportunities to innovate. We require that all workers in HP’s supply chain receive fair treatment, freely chosen employment, and safe working conditions. To reduce our footprint, we collaborate with suppliers to decrease greenhouse gas (GHG) emissions, water use, waste, and other environmental impacts.

We engage with suppliers in a wide range of ways to advance responsible practices. HP’s Supplier Code of Conduct stipulates that suppliers must adopt or establish a management system that ensures compliance with applicable laws, regulations, and customer requirements. The management system must also identify and mitigate risks related to the Code and be designed to facilitate continual improvement in the business’s social and environmental performance

Suppliers representing 95% of HP’s total production supplier spend have gone through a social and environmental assessment. 

The strength of our supply chain responsibility program enables us to address customer expectations. In 2021, approximately $2 billion in retained, existing and new sales took supply chain responsibility into account. 2

We have uncompromising expectations of ethical behavior by our suppliers, partners, and employees. Our suppliers are our partners. Together, we set shared commitments to drive change and prioritize sustainability alongside other business imperatives. We align our approach with the expectations of the UN Guiding Principles on Business and Human Rights for companies’ due diligence, and comply with the UK Modern Slavery Act, California Transparency in Supply Chains Act,  and the Dodd-Frank Act.

Three core principles guide our management of social and environmental topics in the supply chain, driving us to improve the lives of the people who make our products and support our business, and protect the planet by reducing negative environmental impacts.

• We believe that every person deserves to be treated with dignity and respect —We insist that workers in our supply chain have fair treatment, safe working conditions and freely chosen employment.
• Our commitment expands beyond the factory floor —We engage extensively with workers to promote wellness and enhance their skills, empowering them to become leaders in their community.
• We use or global reach to drive lasting improvements —We are transparent about the challenges in our supply chain and we rally business and government to build resilience and respect for human rights and the environment.

Moreover, we want to share our progress:

• PRIORITY - Put workers at the center of our program by offering worker empowerment programs
• Reach 1 million workers through worker empowerment programs by 2030, since the beginning of 2015. 3
• PROGRESS IN 2021 - Through 2021, we reached 349,000 workers.
• PRIORITY - Enable suppliers to develop and strengthen their policies, management systems, and mechanisms to take ownership for meeting social and environmental compliance requirements and elevate performance
• GOAL - Double factory participation 4 in our supply chain sustainability programs by 2025, compared to 2015.
• PROGRESS IN 2021 - HP has achieved this goal, with a 114% increase through 2021, compared to 2015 (therefore, we will not report on this goal moving forward).

1 HP uses the terms “production suppliers,” “product transportation suppliers,” and “nonproduction suppliers” throughout this report. “Production suppliers” provide materials and components for our product manufacturing and also assemble HP products, and are the primary focus of our HP Supplier Code of Conduct audits, assessments, KPI program, Sustainability Scorecard, and capability-building initiatives. “Product transportation suppliers” provide services for the shipping and delivery of HP products. Learn more in Supply chain responsibility: Environmental impact. “Nonproduction suppliers” provide goods and services that do not go into the production of HP products (such as staffing, telecommunications, and travel). These suppliers are a significant focus of our supplier diversity efforts.

2 Retained, existing, and new sales are tracked through internal HP processes that identify customer requests related to sustainability and supply chain responsibility. Sales values take into account total contract values .

3  This replaces and expands on our prior goal to develop skills and improve the wellbeing of 500,000 factory workers by 2025, since the beginning of 2015. Progress through 2021 against that goal includes a total of 349,000 factory workers: 77,800 factory workers in 2015; 45,700 in 2016; 119,900 in 2017; 12,000 in 2018; 11,000 in 2019; 46,000 in 2020; and 37,000 in 2021. Prior to 2020, data included production supplier workers only. In 2020, we expanded the scope of our program to also include nonproduction supplier workers and workers at HP controlled manufacturing facilities. Total does not equal sum of data for each year due to rounding.

4 This data does not include participation in RBA audits. “Participation in our supply chain sustainability programs” is quantified by those programs that go beyond audits to build supplier capabilities to meet our standards. This includes deep-dive assessment, weekly reporting of labor metrics, procurement engagement through our supplier Sustainability Scorecard, and in-depth coaching and workshops tailored to supplier risks.

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AWS Big Data Blog

How hpe aruba supply chain optimized cost and performance by migrating to an aws modern data architecture.

This blog post is co-written with Hardeep Randhawa and Abhay Kumar from HPE.

HPE Aruba Networking , formerly known as Aruba Networks, is a Santa Clara, California-based security and networking subsidiary of Hewlett Packard Enterprise company. HPE Aruba Networking is the industry leader in wired, wireless, and network security solutions. Hewlett-Packard acquired Aruba Networks in 2015, making it a wireless networking subsidiary with a wide range of next-generation network access solutions.

Aruba offers networking hardware like access points, switches, routers, software, security devices, and Internet of Things (IoT) products. Their large inventory requires extensive supply chain management to source parts, make products, and distribute them globally. This complex process involves suppliers, logistics, quality control, and delivery.

This post describes how HPE Aruba automated their Supply Chain management pipeline, and re-architected and deployed their data solution by adopting a modern data architecture on AWS.

Challenges with the on-premises solution

As the demand surged with time, it was imperative that Aruba build a sophisticated and powerful supply chain solution that could help them scale operations, enhance visibility, improve predictability, elevate customer experience, and drive sustainability. To achieve their vision of a modern, scalable, resilient, secure, and cost-efficient architecture, they chose AWS as their trusted partner due to the range of low-cost, scalable, and reliable cloud services they offer.

Through a commitment to cutting-edge technologies and a relentless pursuit of quality, HPE Aruba designed this next-generation solution as a cloud-based cross-functional supply chain workflow and analytics tool. The application supports custom workflows to allow demand and supply planning teams to collaborate, plan, source, and fulfill customer orders, then track fulfillment metrics via persona-based operational and management reports and dashboards. This also includes building an industry standard integrated data repository as a single source of truth, operational reporting through real time metrics, data quality monitoring, 24/7 helpdesk, and revenue forecasting through financial projections and supply availability projections. Overall, this new solution has empowered HPE teams with persona-based access to 10 full-scale business intelligence (BI) dashboards and over 350 report views across demand and supply planning, inventory and order management, SKU dashboards, deal management, case management, backlog views, and big deal trackers.

Overview of the solution

This post describes how HPE Aruba automated their supply chain management pipeline, starting from data migration from varied data sources into a centralized Amazon Simple Storage Service (Amazon S3) based storage to building their data warehouse on Amazon Redshift with the publication layer built on a third-party BI tool and user interface using ReactJS.

The following diagram illustrates the solution architecture.

In the following sections, we go through the key components in the diagram in more detail:

• Source systems
• Data migration
• Regional distribution
• Orchestration
• File processing
• Data quality checks
• Archiving processed files
• Copying to Amazon Redshift
• Running stored procedures
• UI integration
• Code Deployment
• Security & Encryption
• Data Consumption
• Final Steps

1. Source systems

Aruba’s source repository includes data from three different operating regions in AMER, EMEA, and APJ, along with one worldwide (WW) data pipeline from varied sources like SAP S/4 HANA, Salesforce, Enterprise Data Warehouse (EDW), Enterprise Analytics Platform (EAP) SharePoint, and more. The data sources include 150+ files including 10-15 mandatory files per region ingested in various formats like xlxs, csv, and dat. Aruba’s data governance guidelines required that they use a single centralized tool that could securely and cost-effectively review all source files with multiple formats, sizes, and ingestion times for compliance before exporting them out of the HPE environment. To achieve this, Aruba first copied the respective files to a centralized on-premises staging layer.

2. Data migration

Aruba chose AWS Transfer Family for SFTP for secure and efficient file transfers from an on-premises staging layer to an Amazon S3 based landing zone. AWS Transfer Family seamlessly integrates with other AWS services, automates transfer, and makes sure data is protected with encryption and access controls. To prevent deduplication issues and maintain data integrity, Aruba customized these data transfer jobs to make sure previous transfers are complete before copying the next set of files.

3. Regional distribution

On average, Aruba transfers approximately 100 files, with total size ranging from 1.5–2 GB into the landing zone daily. The data volume increases each Monday with the weekly file loads and at the beginning of each month with the monthly file loads. These files follow the same naming pattern, with a daily system-generated timestamp appended to each file name. Each file arrives as a pair with a tail metadata file in CSV format containing the size and name of the file. This metadata file is later used to read source file names during processing into the staging layer.

The source data contains files from three different operating Regions and one worldwide pipeline that needs to be processed per local time zones. Therefore, separating the files and running a distinct pipeline for each was necessary to decouple and enhance failure tolerance. To achieve this, Aruba used Amazon S3 Event Notifications . With each file uploaded to Amazon S3, an Amazon S3 PUT event invokes an AWS Lambda function that distributes the source and the metadata files Region-wise and loads them into the respective Regional landing zone S3 bucket. To map the file with the respective Region, this Lambda function uses Region-to-file mapping stored in a configuration table in Amazon Aurora PostgreSQL-Compatible Edition .

4. Orchestration

The next requirement was to set up orchestration for the data pipeline to seamlessly implement the required logic on the source files to extract meaningful data. Aruba chose AWS Step Functions for orchestrating and automating their extract, transform, and load (ETL) processes to run on a fixed schedule. In addition, they use AWS Glue jobs for orchestrating validation jobs and moving data through the data warehouse.

They used Step Functions with Lambda and AWS Glue for automated orchestration to minimize the cloud solution deployment timeline by reusing the on-premises code base, where possible. The prior on-premises data pipeline was orchestrated using Python scripts. Therefore, integrating the existing scripts with Lambda within Step Functions and AWS Glue helped accelerate their deployment timeline on AWS.

5. File processing

With each pipeline running at 5:00 AM local time, the data is further validated, processed, and then moved to the processing zone folder in the same S3 bucket. Unsuccessful file validation results in the source files being moved to the reject zone S3 bucket directory. The following file validations are run by the Lambda functions invoked by the Step Functions workflow:

• The Lambda function validates if the tail file is available with the corresponding source data file. When each complete file pair lands in the Regional landing zone, the Step Functions workflow considers the source file transfer as complete.
• By reading the metadata file, the file validation function validates that the names and sizes of the files that land in the Regional landing zone S3 bucket match with the files on the HPE on-premises server.

6. Data quality checks

When the files land in the processing zone, the Step Functions workflow invokes another Lambda function that converts the raw files to CSV format followed by stringent data quality checks. The final validated CSV files are loaded into the temp raw zone S3 folder.

The data quality (DQ) checks are managed using DQ configurations stored in Aurora PostgreSQL tables. Some examples of DQ checks include duplicate data check, null value check, and date format check. The DQ processing is managed through AWS Glue jobs, which are invoked by Lambda functions from within the Step Functions workflow. A number of data processing logics are also integrated in the DQ flow, such as the following:

• Flag-based deduplication – For specific files, when a flag managed in the Aurora configuration table is enabled, the process removes duplicates before processing the data
• Pre-set values replacing nulls – Similarly, a preset value of 1 or 0 would imply a NULL in the source data based on the value set in the configuration table

7. Archiving processed files

When the CSV conversion is complete, the original raw files in the processing zone S3 folder are archived for 6 months in the archive zone S3 bucket folder. After 6 months, the files on AWS are deleted, with the original raw files retained in the HPE source system.

8. Copying to Amazon Redshift

When the data quality checks and data processing are complete, the data is loaded from the S3 temp raw zone into the curated zone on an Redshift provisioned cluster, using the COPY command feature .

9. Running stored procedures

From the curated zone, they use AWS Glue jobs, where the Redshift stored procedures are orchestrated to load the data from the curated zone into the Redshift publish zone. The Redshift publish zone is a different set of tables in the same Redshift provisioned cluster. The Redshift stored procedures process and load the data into fact and dimension tables in a star schema.

10. UI integration

Amazon OpenSearch Service is also integrated with the flow for publishing mass notifications to the end-users through the user interface (UI). The users can also send messages and post updates via the UI with the OpenSearch Service integration.

11. Code Deployment

Aruba uses AWS CodeCommit and AWS CodePipeline to deploy and manage a bi-monthly code release cycle, the frequency for which can be increased on-demand as per deployment needs. The release happens across four environments – Development, Testing, UAT and Production – deployed through DevOps discipline, thus enabling shorter turnaround time to ever-changing user requirements and upstream data source changes.

12. Security & Encryption

User access to the Aruba SC360 portal is managed via SSO with MFA authentication and data security managed via direct integration of the AWS solution with HPE IT’s unified access management API. All the data pipelines between HPE on-premises sources and S3 are encrypted for enhanced security.

13. Data Consumption

Aruba SC360 application provides a ‘Private Space’ feature to other BI/Analytics teams within HPE to run and manage their own data ingestion pipeline. This has been built using Amazon Redshift data sharing feature, which has enabled Aruba to securely share access to live data in their Amazon Redshift cluster, without manually moving or copying the data. Thus, the HPE internal teams could build their own data workloads on core Aruba SC360 data while maintaining data security and code isolation.

14. Final Steps

The data is finally fetched into the publication layer, which consists of a ReactJS-based user interface accessing the data in the Amazon publish zone using Spring Boot REST APIs. Along with data from the Redshift data warehouse, notifications updated in the OpenSearch Service tables are also fetched and loaded into the UI. Amazon Aurora PostgreSQL is used to maintain the configuration values for populating the UI. To build BI dashboards, Aruba opted to continue using their existing third-party BI tool due to its familiarity among internal teams.

In this post, we showed you how HPE Aruba Supply Chain successfully re-architected and deployed their data solution by adopting a modern data architecture on AWS.

The new solution has helped Aruba integrate data from multiple sources, along with optimizing their cost, performance, and scalability. This has also allowed the Aruba Supply Chain leadership to receive in-depth and timely insights for better decision-making, thereby elevating the customer experience.

To learn more about the AWS services used to build modern data solutions on AWS, refer to the AWS public documentation and stay up to date through the AWS Big Data Blog .

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Home » Management Case Studies » Case Study: Competitive Advantage of Hewlett Packard (HP)

Case Study: Competitive Advantage of Hewlett Packard (HP)

Hewlett Packard popularly called HP is a company that provides technology solutions to consumers, businesses and all forms of institutions worldwide. The company later expands its operations to IT infrastructure, personal computing and access devices, global services and imaging and printing services. The company is known throughout the world by operating in more than 170 countries around the world. The mission of the company is to facilitate how technology and services can assist individuals and institutions in addressing their problems and challenges so as to realize their dreams. The company applies new thinking and ideas come out with basic and valuable experiences with the technology with her IT corporation headquarter in Palo, Alto, California, USA. The company has been maintaining a lead among her contemporaries due to the effective strategic planning of the company and this has been jealously guided by the company in virtually all her businesses.

How Competitive Advantage helps HP Company

HP Company being one of the world largest IT companies with a quarterly revenue of approximately $97.1 billion is able to maintain such a wonderful record through the sustainable competitive advantage over the competitors. The sustainable competitive advantage has benefited the company in so many ways that she has no other choice other than sustaining such record. The gained competitive advantage has increased the company’s revenue tremendously. In year 2006, HP recorded a much better revenue of $91.7 billion against the rival, IBM with $91.4 billion. In year 2007, the annual revenue of the company was jacked up to $104 billion to become the first IT company reported to have a revenue of more than $ 100 billion, it doesn’t stop there, acquisition of the EDS in 2008, also jacked up the revenue to $118.4 billion. All these achievements in terms of boosting in the revenue are products of the gained competitive advantage.

The competitive advantage gained and sustained ever since by HP can be also attributed to her leadership position in the world technology with groups strategically assigned to drive industry leadership in main technology areas. The Personal Systems group are responsible for the lead in the business and consumer PCs, mobile computing equipment’s and work station. In the same manner, the imaging and printing group is responsible for the successes recorded in all forms of printing devices (personal and commercial printing), printing supplies and the enterprise business group is in charge of all business products. The performance of each of these groups among others is what makes HP what it is today among her equal.

In addition HP became the largest world seller of personal computers as a result of her competitive advantage. In January 2010 a report from Gartner and IDC (Market Research Firms) shows that there is a wide gap between HP and Dell with HP taking 8.3% market share lead at the end of 2009. It was equally reported that HP is the 6th largest world software company.

HP Company is equally reported in year 2008, to have retained the global leadership position in Jacket, laser, large format and multifunction printers market and at the same time the second IT service provider throughout the world. All these benefits/achievements do not come by chance it is as a result of being able to maintain some degree of superiority over the competitors. This results in to competitive advantage and the benefits being discusses the created values based on the competitive advantage.

Analysis of Competitive Advantage in HP Company

HP is able to achieve and sustain competitive advantage with her distinctive competencies . First of all, the company is committed to simplifying technology experiences for all its customers. This is applicable to all the services rendered ranging from printing, personal computing, software, services and IT infrastructure. This is very important since it assists in making virtually all the HP products usable by the intended users by putting the customers first.

There is no way one can analyze the competitive advantage of HP Company without discussing the HP values; HP values is associated with the complete adherence to the ways or paths set out by the founding HP leaders. These unique ways account for the decision-making and the firm’s advancement since it is just like a roadmap. Also, HP pioneers based the corporate culture on the integration and reinforcement of critical opposites. This is achieved by simultaneously creating an environment that both celebrates individualism and at the same time supports the team work. The beauty of it is that such a practice will allow the company to tap from the benefits of both approaches as the case may be and also to neutralize their associated risks.

Another way by which the competitive advantage of HP Company is sought is through her concept of developing cross functional individuals. Unlike other companies that just hire staffs and train them for a specific job requirement to be assigned to such staffs throughout their stay in the organization, HP makes sure that all her employees move more than 4 to six functional areas within the company to allow them to work in more than one departments of the company and thereby effectively managing the organizational knowledge through effective sharing among her staffs. It has been widely agreed that in this knowledge era, effective knowledge management will surely lead to achievement of competitive advantage.

The quest for developing employee has always been the strength of HP company in attaining competitive advantage since this makes the company to achieve effective organizational change considering the rampant changes in the business organizations. Since 1980, HP has been engaged in extensive employee retraining program called Software Job Skills (SJS). Personnel who might ordinarily be laid-off underwent serious retraining the complex set of required skills and techniques. This makes the company to be able to sustain her competitive advantage since the employees always continue to be relevant and compliant with the new trend organizational need and employee are considered important in the performance of every organization.

Organizational competitiveness is derived by the implementation of knowledge management and its associated benefits. Knowledge management helps in reducing the production cost as a result of the possibility of reusability. This allows the organization to be able to offer services of the same quality or even better than that of its competitive at a relatively low cost. This is an important way of gaining competitive advantage. In addition, the implementation of knowledge management brought about enhanced employee productivity and coordination which has a resulting positive effect on organizational performance .

Another important factor is early delivery or ubiquitous service deliver powered by the real time communication facility. It is a wise saying of HP as quoted as follow “If only HP know what HP knows!” It means that the required knowledge and skills for solving your problem resides somewhere within the company. This means that the company has achieved a lot through effective communication. All these account for achieving sustainable competitive advantage. There have been series of academic evidences responsible for the early delivery experienced in the company due to regular improvement and enhancement of the supply chain .

Full optimization of the business supply chain cannot be achieved using only the Operation Research (OR) approach in this demanding fast-paced ubiquitous business environment of the globalized era. Using OR alone will require a lot of time which might result in to delay in the service delivery and thereby negatively affect customer satisfaction . HP strategic planning and modeling (SPaM) came out with a more efficient approach which combines the optimization ability of OR and scenario analysis of the expert knowledge to arrive at an effective supply chain approach capable of solving complex supply chain decision problem for HP’s imaging and printing group of company. the earlier the customers can get the required service the more satisfied they are, the efficient supply chain of HP has been of the secretes of the company’s sustainable competitive advantage.

It ha equally been argued that the risk associated with supply chain are related to product demand, component cost and availability uncertainties and they all affect the company’s revenues and profits. Procurement management group is formed in HP and they developed and implemented a mathematical model, business process and software to estimate and manage risks associated with supply chain. This has brought a lot of benefits to the company. To the extent that in year 2006, HP was able to manage $7 billion of her spending by saving only material cost of not less than $128 million. This really maximizes the company’s profits and contributes to the sustainable competitive advantage of the company.

The products of HP are always better than that of her competitors and such are refined and re-branded from time to time to meet the changing technological needs of the customers. Just in November 2009, HP StorageWorks X9000 was introduced as the new network storage system which is primarily designed to meet the emerging trend of the explosive data growth and to enhance the performance of the file-based applications using scale-out network storage that has the ability to manage information efficiently using a single namespace. This has fetched the company more popularity in the networking society since such an innovation is needed in virtually all organizations that deal with large data. The StorageWorks is very efficient in storing data and it is known for relatively low down time.

Related posts:

• Case Study: The Hewlett-Packard and Compaq Merger
• Case Study: Amazon’s Competitive Advantage
• Case Study: Google’s Quest for Competitive Advantage
• Case Study: Google’s Competitive Advantage
• Case Study: Competitive Advantage of Boeing
• Case Study: Dell’s Competitive Advantage
• Case Study of Apple: Competitive Advantage Through Innovation
• Case Study of Dyson: Competitive Advantage through Innovation
• Porter’s Five Forces Analysis of Hewlett Packard (HP)
• Case Study of Burger King: Achieving Competitive Advantage through Quality Management

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How PwC Unlocked End-to-End Supply Chain Value for Halcor

Operating on a global scale, PwC is recognised as one of the world’s Big Four consulting firms, specialising in audit and assurance, tax and advisory. 

It’s in the latter realm that PwC Greece – part of the organisation’s global network – was primed and ready to carry out end-to-end supply chain diagnostics for Halcor, the copper and alloys extrusion division of ElvalHalcor.

Having outlined areas in which Halcor’s supply chain had potential to transform, PwC has continued to work on a variety of different projects and engagements.

Explaining the partnership’s evolution, Mata Chatzicharalampous, Director Supply Chain at PwC, says: “It started with diagnostics for a problem that Halcor couldn’t quantify. They asked us to provide some insights, data and expertise in certain domains across the supply chain spectrum. 

“Every time we touched on a specific area, there was another step to take. We’ve covered the entire supply chain: planning, production, shop floor, proliferation of the portfolio, uniqueness of the market – and there’s more to come.”

Why select PwC?

PwC competed with numerous other consulting firms in Greece to win Halcor’s business. 

What enabled the company to stand out was its deep expertise and wide range of capabilities within the supply chain domain, while offering a competitive price. 

“One concern Halcor had is that consulting firms have a tendency to strategise without going into detail,” explains Athanasios Spanos, Partner at PwC specialising in supply chain.

“The synthesis within our team meant we could be very pragmatic in our approach, offering tangible benefits with a clear roadmap as to how to achieve and unlock value.”

What also stood out from the get-go was PwC Greece’s use of data analytics, with Athanasios taking responsibility for the firm’s data analytics and AI hub. 

“It’s something that, as a supply chain capability, differentiates us – especially in Greece,” continues Eleni Papandreou, Project Manager for Supply Chain at PwC. “This was another enabler for us to deliver a high-quality service.”

She adds: “Our approach was very hands-on but holistic. We studied Halcor’s supply chain end to end, from production and logistics all the way through to commercial and customer-service departments, taking all parameters into consideration.”

Host of benefits for Halcor

PwC Greece’s approach when starting a supply chain consultancy project is to identify quick wins that can be implemented while more strategic recommendations are being designed. 

Among a host of immediate benefits being enjoyed by Halcor is the fostering of a continuous improvement culture, a reduction in dispatching lead times and increased readiness for future projects thanks to value stream mapping. 

In the long-term, PwC is providing recommendations aimed at enhancing operational efficiencies, such as fine-tuning changeovers within the plant operation to increase machine hours. 

“We covered the whole spectrum, from strategic thinking as to where you want to go with your supply chain and what you will gain, all the way to a tactical level – how to achieve those benefits on a day-to-day basis,” says Athanasios. 

Looking ahead, Mata concludes: “Next, we want to capitalise on our work with Halcor to make sure we see long-term value from our partnership. In that sense we will come together as one team and work towards the same goal.”

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How process-mining in the automotive supply chain drives efficiency

By Megan Kelly 2024-09-12T12:26:00+01:00

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The automotive supply chain has been adopting digital technologies to improve visibility, particularly in the finished vehicle logistics (FVL) sector, helping to speed up deliveries and keep costs at a minimum.

The next step for the FVL sector is process-mining, which can turn qualitative data to quantitative, measurable data and help logistics firms become more efficient and more profitable.

In Automotive Logistics’ recent livestream , hosted in partnership with Celonis, Riad Mannan, content producer, Automotive Logistics spoke to leaders from Toyota North America, Celonis and PwC to discuss how process-led transformation can accelerate change.

What is process mining?

Celonis has partnered with multiple OEMs, including VW on its Industrial Cloud

Process mining, according to Celonis, is a widely-used technology to model, analyse and optimise logistics business processes. It means that every step of a business process sleaves a digital footprint in the form of data, and allows firms to track the effects of changing processes on time and cost. In the FVL industry, where OEMs, suppliers and logistics firms need to react swiftly and flexibly, processes and their alignment with one another can make a massive difference in the speed of deliveries and thereby ROI and profitability. 

Challenges in FVL and process mining solutions

From an FVL standpoint, there are major challenges to deal with on a daily basis, including damage prevention, transparency, regulatory compliance, timing and cost efficiency.

Brennan McKinlay, executive transformation leader, Toyota North America said that the OEM approaches these challenges through three key technology areas, including data analytics, automated solutions and tracking systems.

“We use data analytics, data mining, data science and data engineering,” McKinlay said. “Data is the currency of today and we’re trying to make good use of what we have around us and improve our supply chains. Using data wisely and using good analytics and decision-making is extremely important.”

Watch the livestream on demand now

He said that this data can then be used to help adapt processes, or even automate them. “We are automating decision-making where it’s possible so that our people can focus on the most critical issues, even automating in some cases the movement of vehicles or the movement of goods through robotics are major opportunities for us,” he said.

Defining and seperating processes with stakeholders

Of course, before process mining can take place, standard definitions of processes need to be set and agreed upon by all stakeholders in a supply chain. 

Brennan McKinlay, Toyota North America

“It’s very important when taking a look at an improvement project to define what your impacts in the project will be, and to define them together with a client,” said Kenny Petzold, senior manager, Process Mining and Optimisation, PwC. “With process mining, as it connects down real-time in the system you’re getting that real-time feedback, you’re getting insight, you’re seeing exactly whether the ‘medication’ you’re giving to your organisation is helping or if it’s causing troubles in another domain or pushing problems away from one department to another.”

He said that process-mining can give you an end-to-end view of processes and how they interlink, making this information quantifiable so you can calculate business cases based on certain process changes and simulate the effects of adjusting them, leading to faster ROI calculations. 

Julian Thomßen, global automotive and manufacturing industry lead, Celonis agreed: “We can also measure the benefit of, for example, automating some of these activities. We can identify how we can shorten lead times, how to adjust parameters that lead to better material availability or on-time delivery, so you can track what actions have been taken and what value has been realised.”

But Petzold stressed that processes need to be broken down and looked at individually in order to get the most benefits in terms of efficiency and cost-saving. “It’s really important to come up with a qualitative hypothesis in the beginning, so come up with certain things you want to analyse, because if you don’t have those objectives set out clearly you’re looking at a picture but seeing nothing because there is so much information,” he said. “It’s like putting a human body into an X-ray and looking at the full human instead of only the broken wrist. Although it gives you end-to-end visibility you need to slice it into digestible bits that you can analyse and then from there go a little further.”

Preparing for process-mining

To get ready for process-mining, definitions and standards need to be set, but also, Toyota’s McKinlay highlights that data needs to be clean and shared across the business, with clear data governance.

“Data governance is critical, because partners like Celonis are doing an excellent job where data may be unstructured or there may be some inconsistencies, but there’s a lot of work to be done to bridge gaps and a lot of other companies are not quite at that level yet,” he said.

“We need to make sure that business data governance is done really well to gather information and make sure the data is clean. It’s important that we break silos and create value across the whole data stream.”

Julian Thomßen, global automotive & manufacturing industry lead, Celonis will be speaking on a panel at the upcoming Automotive Logistics & Supply Chain Globa l event with experts from Ford, RPM and Cognosos, discussing precision finished vehicle logistics.

The event will run from September 24-26 in The Henry Hotel, Dearborn, Michigan.

Register to attend here.

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Sustainable Packaging in Logistics and Supply Chains

At the heart of the supply chain , the quest for sustainable solutions has become imperative. Sustainable packaging has become one of the most important factors for consideration.

What is sustainable packaging and how can it truly transform your supply chain ?

This article will guide you step by step. Discover all the information related to sustainable packaging and the positive impacts its use can have on your supply chain.

I. What is sustainable packaging?

Sustainable packaging is designed with the environment in mind.

Eco-design is a design approach that integrates environmental considerations throughout the product development process.

This method aims to minimise the product’s environmental impact , from its design to its end of life, taking into account the different stages of the product life cycle (manufacturing, distribution, consumption, recycling, etc.).

Sustainable packaging allows:

• Optimisation of resources;
• Minimisation of greenhouse gas emissions;
• Reduction of energy consumption;
• Limitation of waste production.

Eco-design is an approach that also integrates social concerns, such as the health and safety of workers involved in the project.

As you may have gathered, sustainable packaging fulfils user needs while also reducing its environmental footprint!

II. The different types of sustainable packaging for your supply chain

A. reusable packaging.

Sustainable packaging can be reusable.

This refers to all packaging that can be repaired, cleaned, and used multiple times.

To use sustainable packaging, you must implement an effective maintenance system within your supply chain for the inspection and cleaning of your packaging, unless you choose to collaborate with a supplier who takes care of the maintenance of your packaging as part of their service.

Some examples:

• Wooden pallets offer unparalleled properties of robustness and repairability. LPR is committed to responsible and sustainable wood sourcing, with PEFC certification . At LPR, pallets collected at the end of the chain are reintegrated into the fleet, then maintained and repaired. They undergo multiple rotations and are used until the end of their life cycle. Pallet pooling like this reduces the environmental impact of the supply chain.
• Reusable plastic or metal crates and containers , which can be cleaned and used multiple times, thereby reducing the use of single-use packaging.

To learn more: 4 expert tips for optimising the management of reusable packaging

B. Recyclable packaging

Not all packaging can necessarily be reused. However, some can be recycled and used for other purposes. This includes:

• Cardboard Packaging : Cardboard is widely used in the logistics sector and is found in various types of packaging. Both durable and lightweight, it can withstand a relatively heavy load, and it is easily recyclable. Made from wood fibres, cardboard is biodegradable.
• Kraft Packaging : Kraft is one of the most eco-friendly materials. It is frequently used to replace plastic bags in retail outlets. Made from water and wood, kraft is a biodegradable material that can withstand up to 7 kilograms.
• Plastic Packaging : Although not all types of plastic are recyclable, those made of PET are. A lightweight material that, once recycled, can be found in various everyday items
• Wooden Packaging : At LPR, pallets that are no longer repairable are recycled for other purposes. For example, pallets can be transformed into wood chips and converted into energy.

C. Smart packaging

Technologies such as sensors or RFID chips can be placed on packaging to enable their monitoring. These technologies help minimise the need for over-packaging by reducing the risks of damage and loss of packaging during transport.

Smart features like these can make packaging sustainable by improving their reusability.

——-

Now that you’re aware of all the sustainable packaging solutions at your disposal for you and your supply chain, make sure to consider:

• the specific characteristics of the goods you transport (weight, storage conditions);
• the logistical constraints of your supply chain (are your handling tools automated?);
• the sustainability goals set by your company (not all packaging solutions are equal in terms of reducing greenhouse gas emissions!).

III. How can sustainable packaging revolutionise your supply chain?

Beyond their ecological and responsible impact, sustainable packaging can bring other benefits to your supply chain.

By using sustainable packaging, you can:

A. Reduce the costs of your supply chain

By opting for reusable packaging, the purchase of single-use packaging is eliminated!

Through efficient management of maintenance and collection, the use of sustainable packaging allows you to achieve significant cost savings for your supply chain.

Used for managing all flows of goods, pallets are essential for the smooth operation of the supply chain.

By opting for a pallet rental and management system , you no longer need to invest in purchasing transport packaging.

At LPR – La Palette Rouge, our pallets have a lifespan of at least 7 years, and we manage them until the end of their life.

B. Enhance the performance of your supply chain

With sustainable packaging, you significantly reduce the waste generated by your supply chain and decrease your greenhouse gas emissions as a result.

This brings both ecological and strategic advantages: you no longer have to manage the procurement and disposal of your transportation and handling packaging.

C. Stand out from your competitors!

In recent years, sustainable packaging has been gaining more importance within companies’ supply chains.

This change is strongly influenced by increasingly numerous and strict regulations , but it is still far from being the norm.

Ecological packaging is an effective way to differentiate yourself from your competitors and to convince potential suppliers and clients who share your vision to collaborate with you.

In fact, common values are a vital step towards establishing a commercial relationship based on trust and loyalty, and they can sometimes make all the difference in a collaboration.

IV. Case study: red pallets, sustainable packaging

A. why are red pallets sustainable packaging.

At LPR, our pallets are sustainable packaging :

• Eco-designed pallets: LPR is committed to a responsible wood sourcing policy. 74% of the wood used for our pallets comes from sustainably managed forests. LPR’s approach is also PEFC certified.
• Reusable pallets: After use, our pallets are collected, inspected, cleaned, and repaired if necessary, before being reintroduced. Thanks to this circular process, our pallets have a lifespan of at least 7 years, significantly reducing the environmental impact associated with pallet production.
• Recyclable pallets: In cases where pallets can no longer be repaired and reused, they are recycled into sustainable energy. Even at the end of their cycle, our pallets make a positive contribution to the environment.

In comparison with normal pallet consumption outside of the pooling system, the pallet pooling model makes the supply chain more efficient and environmentally friendly!

B. The advantages of LPR pallet pooling

As you will have seen, at LPR, our pallets are not for sale.

• To fight against the purchase of single-use pallets and the waste of natural resources.
• To prevent pallets from being lost and damaged during the supply chain.
• To provide a quality, 100% outsourced service to players in the distribution and FMCG sectors.

Our method allows you to:

• Reduce or even eliminate the hidden costs of your supply chain, thanks to the elimination of investments in pallet purchases and the reduction in the management costs of used pallets.
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Open Access

Peer-reviewed

Research Article

Drug supply management at first-level public health facilities: Case of Pyay District, Myanmar

Roles Conceptualization, Data curation, Formal analysis, Funding acquisition, Investigation, Methodology, Project administration, Resources, Software, Supervision, Validation, Visualization, Writing – original draft, Writing – review & editing

* E-mail: [email protected]

Affiliation Township Public Health Department, Zigon Township, Bago Region, Myanmar

Roles Data curation, Formal analysis, Investigation, Project administration, Supervision, Validation, Visualization

Affiliation Township Public Health Department, Paungde Township, Bago Region, Myanmar

• Thein Hlaing, 
• Tun Win Lat

• Published: September 10, 2024
• https://doi.org/10.1371/journal.pgph.0003692
• Peer Review
• Reader Comments

First-level public health facilities (PHFs) serve as primary providers of essential medicines, necessitating critical attention to drug availability and quality assurance. This study aimed to examine the status of functional areas within the drug supply chain management framework and assess the overall capability maturity at first-level PHFs. The cross-sectional study was conducted among 183 drug store sites from six townships of Pyay District. Only situational analysis was exercised to determine the existing situations. The overall capability maturity was determined according to the definitions of levels of the Capability Maturity Module Tool. 58.47% lacked formal drug supply management training, with 23.5% not undergoing performance reviews. Drug forecasting predominantly relied on a pen-paper system (91.6%) and factors like patient load (87.39%), drug consumption (85.71%), and disease prevalence (64.71%). Store site analysis revealed that 65.03% exhibited marginal capability, lacking standardized drugstores and employing unstandardized procedures. Storage practices varied, with 48.69% storing drugs conveniently and others categorizing them by drug type (32.79%) or using the first-expired-first-out system (40.98%). Approximately 42.69% reported having expired drugs. Concerning transportation costs, 37.16% incurred expenses exceeding 20,000 Kyats per time, with management staff often covering the costs. Waste management methods included burial pits (49.18%), incineration (62.84%), and sharp pits (55.19%). A majority (78.14%) used safety boxes, and 57.38% implemented a color-coded system for waste bins. The logistics management information system was entirely paper-based (100%). On average, assessments of drug quality conditions and physical damages scored 46.51% and 48.20%, respectively. The overall supply chain maturity at first-level public health facilities is at a marginal capability level (36.35%). While some basic drug supply chain management procedures were in place, they were not consistently followed, and many systems remain manual. The findings underscored significant inconsistencies in the management functions of supplied drugs, with poor adherence to Standard Operating Procedure guidelines.

Citation: Hlaing T, Lat TW (2024) Drug supply management at first-level public health facilities: Case of Pyay District, Myanmar. PLOS Glob Public Health 4(9): e0003692. https://doi.org/10.1371/journal.pgph.0003692

Editor: Bashar Haruna Gulumbe, Federal University Birnin Kebbi, NIGERIA

Received: May 28, 2024; Accepted: August 15, 2024; Published: September 10, 2024

Copyright: © 2024 Hlaing, Lat. This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Data Availability: All collected data and synthesized information were displayed in the forms of words and tables in the finding portion and more information can be enquired from the Institutional Review Board, Naypyitaw, Myanmar, [email protected] . The authors have attached two files; Inform Consent Form and Human Subject Research Checklist regarding ethical consideration. Besides, the detailed information about ethical consideration has already mentioned under the sub-title "Ethical Consideration" in the section of " Material and method ".

Funding: The required funds for conducting this research were granted by Ministry of Health and Sports (MOHS) Research Grant, Myanmar, (2022-2023). The grant number is 089/2022/MOHS. Date of receiving grant is 2 December 2022. The research grant is only for the study. The funder had no role in the study design, data collection and analysis, decision to publish, or preparation of manuscript.

Competing interests: The authors have declared that no competing interests exist.

Introduction

Primary healthcare and the provision of essential medicines constitute the primary functions of first-level public health facilities. Operating under the auspices of the Myanmar Ministry of Health, the National Supply Chain Management System (NSCMS) has transitioned to a "pull-based supply chain," driven by demand, as opposed to the erstwhile "push-based supply chain" characterized by central control over drug needs. Notably, NSCMS increased the public health spending share from 11.4% in 2009 to 23.9% in 2012, aiming to enhance the availability and relevance of crucial essential drugs across medical and public health sectors [ 1 ]. These strategic actions aim at bolstering the drug supply chain system in Myanmar. NSCMS extends technical assistance to three national programs (acquired immunodeficiency syndrome (AIDS), Tuberculosis, and Malaria) and other sub-recipients. Additionally, it oversees warehouses and storage facilities at State and Regional procurement and supply management sections. The NSCMS management’s responsibilities encompass training procurement and supply system management staff in medicinal forecasting, ordering, procurement, receiving, storing, distributing processes, and the logistics management information system. Health spending is allocated to the State, Regional, District, and Township departments for their individual procurement and supply management. Rural Health Centers (RHC) and Sub-Rural Health Centers (Sub-RHC) retrieve key essential medicines from their respective township health departments or hospitals, with their procurement handled externally. However, they are responsible for forecasting drug needs, store and inventory management, transportation and distribution, waste management, and information system logistics management. Formal training and refresher courses are provided to equip the public health professional with the essential skills [ 2 ].

In Myanmar, it is important to collaborate with basic public health professionals to manage drug supply at first-level public health facilities. Their understanding of correct supply chain processes at their respective levels is paramount. All facility staff utilize essential drugs to implement various components of primary health care, including accessible and affordable healthcare services, treatment of common ailments, communicable and non-communicable disease controls, basic medical care for mental health, maternal and child health, nutritional management, pre-referral treatments, local endemic disease control, and emergency management [ 3 ]. Public health facilities, including RHC and Sub-RHC, play a pivotal role as providers of essential medicines, where drug availability and quality assurance are imperative. The distribution of substandard drugs can lead to unsuccessful treatments, drug resistance development, and adverse impacts on individual health [ 4 ]. Effective budgeting and procurement necessitate standardized and robust methods for forecasting drug needs at every provider site. The budgeting exercise, forecasting, and supply planning of the NSCMS rely on evidence-based estimations from provider sites under the "pull" system. Accurate forecasting supports optimal allocation, and budget control, and prevents wastage of medicine [ 5 , 6 ].

Inventory management emerges as another critical factor for effective drug supply management at all levels. It requires a regular and organized approach, aligning with recommended guidelines, to ensure the proper storage of drugs and prevent issues such as stockouts and expiries [ 7 ]. This comprehensive approach ensures the sustainability and efficiency of drug supply systems, safeguarding patient outcomes and minimizing wastage. As per Tolliver and Bartram’s report, numerous drug stores in Myanmar face challenges associated with age and overcrowding. These conditions impede store management staff from reaching their optimal potential to adhere to best-standard guidelines for drug store management [ 2 ]. The report underscores the pivotal role of effective and efficient medical supply maintenance in enhancing the utilization rate of outpatient departments (OPD). Jha and Mahatme et al., similarly emphasize the significance of store management tasks in balancing existing budgets and addressing drug necessities. This includes prioritizing purchases and distributions, ensuring adequate stock, preventing pilferage, and strategically reallocating nearly expired drugs [ 8 , 9 ]. The findings from Tolliver and Bartram’s report also shed light on the absence of a defined waste management procedure for public health products and the lack of clear instructions on managing public healthcare waste at any level [ 2 ]. Addressing these issues is crucial for optimizing healthcare resources and ensuring the effective functioning of medical facilities.

According to the report by Tolliver and Bartram, numerous public health sector supply chains in Myanmar lack standardized drug stores. These stores, ideally situated in isolated, shaded, accessible, and secure locations with sturdy structures to prevent environmental damage and pest infestation, are deemed crucial for proper drug storage [ 2 ]. The absence of such infrastructure raises concerns about maintaining drug quality and the availability of safety equipment [ 10 ]. The medicines distribution system of Central Medical Store Depot (CMSD) and vendors mainly focus on the State/Regional and Township health departments and major hospitals, not including RHC and Sub-RHC. The report highlights high stockout rates and the presence of expired drugs within many public health sector supply chains. Additionally, it identifies inadequacies in the healthcare waste management system. This underscores the importance of evaluating the drug supply management processes at first-level public health facilities, particularly how RHC and Sub-RHC maintain drug quality without dedicated drug stores. Key considerations include storage practices, transportation modes from township departments to RHC and Sub-RHC, cost resolution, stockouts management, and management of nearly expired and expired drugs. The assessment also extends to the accuracy of inventory management and drug forecasting procedures at RHC and Sub-RHC. Furthermore, scrutiny of the applied methods and procedures for healthcare waste management is imperative to ensure hygiene and safety for communities and healthcare providers. The potential challenges and obstacles in the entire public health sector supply chain process needs to be systematically investigated and analyzed. Notably, there is a lack of published Myanmar studies on drug supply management at first-level public health facilities, making this research output a critical baseline. The study aims to evaluate the obstacles and challenges in drug supply management at first-level public health facilities, with specific objectives including assessing supply chain management training, drug forecasting planning, drugstore and inventory management, transportation and delivery issues, waste management system, logistics management information system, quality control procedures, and overall capability maturity of the drug supply chain.

Material and method

Ethics statement.

The research adhered to strict ethical standards, receiving approval from the Institutional Review Board (Nay Pyi Taw), Ministry of Health, Myanmar. The study, approved under IRB number 2023–06, emphasized ethical practices throughout its execution. Participation was voluntary, with formal consent obtained through detailed forms translated into Myanmar and explained verbally when necessary. Anonymity and confidentiality were maintained, with data securely stored for five years and restricted access to authorized personnel. Results were presented accurately, and precautions were taken to avoid harm during data collection.

Study design and scope

This research employed a cross-sectional and descriptive approach to examine the drug supply chain at first-level health facilities (RHC and Sub-RHC) at a specific point-in time. The investigation focused solely on the first-level public health drug supply chain, excluding any assessment of the supply chain levels of the township public health department, township hospital, and station hospital. The study comprehensively evaluated all functional areas of the current medicinal supply chain, including CMSD, Nutrition, Tuberculosis (TB), Human Immunodeficiency Virus (HIV), Malaria, Epilepsy, Leprosy, and Non-communicable diseases (NCD), distributed by the township public health department. However, it did not assess the vaccine-related supply chain and other supplies provided by the community and local donors.

Study settings and population

The study targeted all 43 RHCs, 6 Maternal and Child Health Centers (MCHs), and 134 Sub-RHCs, totalling 183 public health facilities within Pyay District, Bago Region. Face-to-face interviews were conducted with the health personnel managing the drug stores (a total of 183) from each RHC and Sub-RHC. Pyay District was chosen as the study area due to the active functionality of all public health facilities, the accelerated utilization of supplied drugs in OPD clinics, NCD clinics, and special clinics for retired persons, and the availability of representative and required data in this district.

Data collection techniques and sources of information

Primary data were gathered through face-to-face interviews, self-administration, and observations. Background characteristics of public health facilities and drug supply management staff, training information, self-perceived capacity for drug forecasting and planning, infrastructures and safety equipment in the drugstore, and conditions of stockouts of supplied drugs were collected through self-administration. Observations covered the conditions of the place where the supplied drugs are stored and all relevant documents of drug supply management. Face-to-face interviews were conducted to gather information on several functional areas of the drug supply chain. These areas included forecasting drug requirements, storage procedures, ordering, receiving and dispensing supplied drugs, transportation and delivery issues, waste management, the logistics management information system, and quality control procedures.

Preparation of data collection tools

The semi-structured interview questionnaire was developed based on various sources, including training materials and checklists from the World Health Organization (WHO)/ Child Health Development (CHD) and Basic Support for Institutionalizing Child Survival (BASICS) [ 11 ], the capability maturity model tool by Tolliver and Bartram (2014) [ 2 ], the USAID Global Health Supply Chain Program’s capability maturity module questionnaire (2019) [ 12 ], drug store guidelines from MOH Myanmar (2016) [ 13 ], and checklists from Basic Support for Institutionalizing Child Survival [ 11 ]. The questionnaire consisted of open-ended questions, multiple-choice questions and "Yes or No" questions. It covered background information, training, drug forecasting and planning, drug storage and inventory management, transportation and delivery issues, waste management, the logistics supply management information system, and quality control procedures. Various checklists, such as those for physical conditions of the drug store, drug storage procedures, bin cards, drug requisition forms and ordering drug supplies, receiving drug supplies, and dispensing procedures, were applied for structuring the research questionnaire. The questionnaire underwent testing for face and content validity, computation of Cronbach alpha values, and subsequent revisions to ensure reliability.

Assessment of capability maturity of drug supply chain

This study aimed to evaluate the capability maturity of the drug supply chain at first-level health facilities, utilizing a modified capability maturity model (CMM) proposed by Tolliver and Bartram [ 2 ]. The CMM, adapted for measuring five maturity levels—minimal, marginal, qualified, advanced practice, and best practice—was applied to assess various functional areas within the drug supply chain (Tables 1 and 2 ).

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https://doi.org/10.1371/journal.pgph.0003692.t001

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To determine the capability maturity of each functional area, the researcher rated the areas on a scale of 1–20%, 21–40%, 41–60%, 61–80%, and 81–100% upon completion of each maturity level.

Training of data collectors

A proficient data collection team, consisting of ten members comprising retired public health supervisors, midwives, and lady health visitors with fundamental medical knowledge, was assembled. Two members conducted face-to-face interviews, two served as observers, and another guided participant in self-reporting. The team underwent comprehensive training on all data collection instruments and a concise training guide. A pilot study was conducted in selected RHC and Sub-RHC within Nattalin Township, Bago Region, to assess the feasibility of data collection instruments, evaluate the data collectors’ comprehension of methods and procedures, and estimate the time required for data collection.

Data collection

Before data collection, the research objectives and contents were communicated to all regional, district, and township public health authorities, with the researcher advocating for stakeholder participation within Pyay District. The data collection plan aligned with the numbers and locations of primary public health facilities in the chosen township, with five to six rural health facilities visited a day. The data collection was started on 31 st March 2023 and ended on 9 th May 2023. The entire data collection process spanned approximately 40 working days, strictly adhering to the current COVID-19 prevention guidelines issued by central and local health authorities. Supervisors (principal researcher and co-researcher) played a crucial role in maintaining a positive relationship between data collectors and participants, addressing unexpected challenges, ensuring adherence to field data collection protocols, and overseeing the secure storage of research questionnaires and checklists. Supervision was conducted daily, encompassing in-person and tele-supervision.

Data management and analysis

The collected data underwent coding and entry into a Statistical Package for the Social Sciences (SPSS) spreadsheet. SPSS software was then employed for data cleaning, correction, and transformation into the desired format for subsequent analysis. This study employed situational analysis to identify obstacles and challenges in the implementation of the drug supply chain at first-level health facilities. Frequencies and proportions were computed to list and rank different types of obstacles and challenges in each functional area of drug supply management. Strengths, weaknesses, and risk factors for functional development were determined by setting 50th percentiles based on the average scores of each functional area. Additionally, the overall maturity of the first-level health facility supply chain was computed using the average score of each functional area, classified into five levels (1–20%, 21–40%, 41–60%, 61–80%, and 81–100%), and interpreted according to the definitions of the five levels of the CMM tool.

Research period

The recruitment period for this study commenced on March 31, 2023, and concluded on December 31, 2023. This timeframe encapsulated an extended window during which participants were actively sought and enlisted for the research endeavour. The nearly two-year span allowed for a comprehensive approach to participant recruitment, ensuring a diverse and representative sample for the study.

Background characteristics of public health facilities and drug supply management staff

The survey and interviews encompassed 183 first-level public health facilities and an equivalent number of drug supply management staff. Among these, 6 (3.28%) were MCH, 43 (23.49%) were RHC, and 134 (73.22%) were Sub-RHC. The majority (85.79%) possessed a main health facility building, but 56.05% required repairs. Notably, 35.03% were over 10 years old, with 50.32% repurposed as staff houses. Among the drug supply management staff, 91.80% were female, with graduates (82.51%) and midwives (MW) (82.51%) representing the predominant educational and professional backgrounds. Concerning public sector service length, 45.36% had less than or equal to 10 years, while 54.64% exceeded 10 years. The comprehensive background characteristics of the study sample are outlined in Table 3 .

https://doi.org/10.1371/journal.pgph.0003692.t003

Drug supply management training

Regarding training in drug supply management, 41.53% reported having no training, 33.88% had completed one course, and 7.65% had attended multiple courses. Of those trained, 34.21% received training before 2017, with 75% participating in refresher training and 64.47% in typical training. Regarding comprehension, 36.84% understood a quarter, 28.95% half, 25.00% about two-thirds, and 9.21% more than three-quarters of the latest training. Additionally, 42.08% lacked training guidelines. Performance evaluations for drug management staff were conducted quarterly or more often (30.05%), bi-annually (32.24%), annually (11.48%), less frequently than annually (2.73%), and 23.5% were never reviewed. In the past year, 17.49% received supportive supervision, with 84.38% obtaining feedback and corrective actions. Further details are available in Table 4 .

https://doi.org/10.1371/journal.pgph.0003692.t004

Strengths, weakness and risks (SWR) analysis of capacity building

In the SWR analysis aimed at assessing the strengths, weaknesses, and risks in the current capacity-building scenario, this study focused on various training variables, including years, frequency, status, types, subjects, and the presence of training guidelines. Each participant received a score out of 21, categorizing those scoring 10.5 (50%) and above (17, 0.29%) as having good capacity building, while the majority (166, 90.71%) scoring below 10.5 (50%) were deemed to have poor capacity building. Notably, 17.49% of participants enhanced their capacities through supportive supervision, while 73.77% did so through performance reviews. The self-perceived understandability of drug supply management procedures was identified as a risk, with 161 participants (87.98%) falling into the risk group due to self-perceived understandability below 50%. In the SWR analysis, guidelines and performance reviews emerged as strengths, while training and supportive supervision were identified as weaknesses, and self-perceived understandability was pinpointed as a risk.

Forecasting the drug requirements

Among the 183 first-level health facilities surveyed, 34.97% did not forecast drug requirements in the past year, and 63.39% lacked SOPs for forecasting. About 47.54% perceived their capacity for drug forecasting to be only 25%. Most facilities based their forecasts on service data (87.39%), drug consumption/issue data (85.71%), population data (66.39%), disease prevalence (64.71%), and previous forecasting data (33.61%). However, 26.89% used convenient forecasting methods. Over half (54.1%) regularly monitored drug consumption, 31.69% did so occasionally, and 14.2% did not monitor at all. Regarding report submissions, 91.26% submitted their LMIS data to upper levels, with 73.65% doing so monthly, 14.49% half-yearly, and 2.99% bi-monthly. Additional details are in Table 5 .

https://doi.org/10.1371/journal.pgph.0003692.t005

SWR analysis of drug forecasting

The analysis focused on variables such as SOPs, basis, patterns, practices, LMIS report submission status, and drug consumption monitoring to assess the satisfaction levels of functions. Each participant or facility received a score of 9 based on the drug requirement forecasting checklist, with 4.5 scores (50%) serving as the cutoff to categorize functions as satisfied (50% and more) or unsatisfied (less than 50%). The research identified that the overall functions of SOPs availability, drug forecasting patterns, and software availability were unsatisfactory, while the basis of drug requirement forecasting, drug consumption monitoring, and LMIS reporting status were deemed satisfactory. In terms of frequency and proportion, 73 participants (39.89%) had unsatisfactory functions, while the remaining 110 (60.11%) exhibited satisfactory functions in drug requirement forecasting. The main variable considered, the system of forecasting practice, was identified as a risk factor for functional development. In this regard, 91.6% of those practicing a pen-paper-based system for forecasting drug requirements were deemed risky for system development. Thus, in this functional area, the basis of drug requirement forecasting, monitoring drug consumption, and LMIS reporting status were strengths, SOPs availability, drug forecasting patterns, and software availability were weaknesses, and the pen-paper-based system was recognized as a risk.

Drug store or site where the supplied drugs are stored

In a survey of 183 health facilities, 46.45% lacked a designated drug store, and 85.25% did not have standardized drug stores or SOPs. About 19.67% stored drugs on the floor, and 65.03% had insufficient space for all drugs. Additionally, 85.79% did not use a two-lock system, and 51.91% couldn’t keep the drug store locked every time. Structural issues included cracks (31.15%), holes (34.97%), water damage (13.11%), pest infestation (35.52%), dusty shelves (57.92%), and upswept floors (8.20%). Many lacked essential features like ceilings (40.44%), fans (98.36%), screens (99.45%), and proper ventilation (33.33%). Infrastructure deficiencies included the absence of electricity (62.29%), thermometers (93.44%), shelves (56.83%), fire extinguishers (90.16%), and entry/exit records (95.63%). Further details are provided in Table 6 .

https://doi.org/10.1371/journal.pgph.0003692.t006

SWR analysis of drug stores and store sites

This analysis assesses the satisfaction of functional areas based on drug stores, SOPs guidelines, structure maintenance, and adherence to guidelines, while infrastructures of drug stores are evaluated to determine the risk of functional development. The cut-off points were established at 50% of the average scores, designating scores below this threshold as unsatisfied functional areas or risks to functional development. The results indicate that, concerning the availability of standardized drug stores and SOPs, structure maintenance, and adherence to guidelines, the average scores of 175 drug stores or sites fell below the cut-off point, rendering their functional areas unsatisfactory. Regarding the infrastructures of drug stores, the average scores of 182 stores were beneath the cut-off point, indicating these areas are deemed risky for functional development.

Storage procedure

In the examination of drug storage procedures, it was discovered that 151 out of 183 stores lacked SOPs/guidelines for the proper storage of supplied drugs. Among the studied stores, the storage methods varied, with some organizing drugs by category, others alphabetically or by generic names, and a significant portion following the FEFO (First Expired First Out) system. However, nearly half of the stores opted for a more convenient storage approach. Alarmingly, expired drugs, including Aspilet, Cotrimoxazole, injection Adrenalin, Salbutamol inhalers, Metro Syrup, and Albendazole, were found in 78 of the studied stores. The majority of stores (90.16%) had never utilized Bin Cards, and only about three-fifths conducted regular physical counts of supplied drugs. When facing stockouts, responses varied, with some reallocating from the township drugstore, others from different health facility stores, and some relying solely on re-ordering. The study also highlighted various strategies for dealing with near-expiry and expired drugs, such as implementing the FEFO system, informing upper levels, and returning or reallocating drugs. Notably, a considerable number of drug stores lacked competent health workers for managing storage procedures, as indicated in Table 7 .

https://doi.org/10.1371/journal.pgph.0003692.t007

SWR analysis of storage procedures

When evaluating the satisfaction levels and risks associated with storage functions, factors such as SOPs guidelines, storage procedures, physical counting, solutions for near-expiry and expired drugs, drug expiries, and the availability of competent health workers were taken into consideration. The researchers set the cut-off point at 50% of the average scores, designating variables below this threshold as either satisfied or presenting risks. In the analysis, variables related to SOPs guidelines, storage procedures, physical counting, and solutions for near-expiry and expired drugs demonstrated average scores below the 50%-cut-off point for 173 stores and store sites, indicating dissatisfaction with these aspects for the functional development of storage procedures. Regarding the availability of competent health workers and the presence of expired drugs, proportions with competent health workers and those without expired drugs were 20.77% and 49.73%, respectively, falling below the 50%-cut-off point. Therefore, these variables were identified as posing risks for the functional development of storage procedures.

Ordering and receiving the supplied drugs

In a survey of first-level health facilities, 85.79% used a pull system for ordering drugs. However, 78.69% lacked SOPs, 79.23% had no skilled health worker for ordering, and 72.13% did not have written requests for drugs. Almost all staff (96.17%) did not calculate reorder levels or know the appropriate time to reorder. For receiving drugs, 69.95% lacked SOPs, and inspections were often incomplete, with only 40.98% checking proper packing and 34.43% verifying quantities. Additionally, 77.05% retained proofs of deliveries, with 87.94% keeping them for over 12 months. Discrepancies in drug quantities were noted in 43.17% of facilities. Common supply chain challenges included near-expiry drugs (84.15%), late deliveries (66.67%), and partial deliveries (14.21%). Further details are in Tables 8 and 9 .

https://doi.org/10.1371/journal.pgph.0003692.t008

https://doi.org/10.1371/journal.pgph.0003692.t009

SWR analysis of ordering and receiving the supplied drugs

In assessing the variables influencing the strengths, weaknesses, and risks within the ordering and receiving processes, the researchers scrutinized key factors such as the drug supply system, documentation practices, SOPs guidelines, checking procedures for drug items, procedural skills, and encountered challenges. The determination of these factors utilized a cut-off point set at 50% of the average scores. This investigation revealed that functions related to the pull system (85.79%), maintenance of proofs of delivery (77.05%), and documentation of drug supply-related information (77.05%) exhibited strengths, as their average scores surpassed the 50% threshold. Conversely, functions associated with SOPs guidelines, the checking process of supplied drugs, and the use of Bin cards were identified as weaknesses due to their average scores falling below 50%. Notably, the analysis pinpointed less proficiency in calculating and ordering supplied drugs (79.23%), delivery of near-expiry drugs (84.15%), late deliveries (66.67%), and partial deliveries (68.85%) as risks to functional development, given their proportions exceeding 50%.

Dispensing the supplied drugs

In evaluating drug dispensing at the studied store sites, it was found that 66.67% lacked SOP guidelines, and many used convenient dispensing practices. Despite this, 85.25% consistently recorded dispensed drugs. About 44.81% of the sites used the FEFO system, while 52.46% used a convenient storage system. Common methods for recording dispensed drugs included sub-stock ledger books (83.06%), OPD registers (97.81%), field registers (96.17%), antenatal records (90.71%), and under-five records (72.68%). However, 54.1% dispensed drugs without labelling, and 60.11% did so without original packaging or expiration dates. Additionally, 45.9% implemented preventive measures against drug theft. Further details are available in Table 10 .

https://doi.org/10.1371/journal.pgph.0003692.t010

SWR analysis of dispensing the supplied drugs

In scrutinizing the comprehensive dispensing patterns of supplied drugs across 183 store sites, it became evident that functions related to SOP guidelines, dispensing patterns, storage practices, and the management of supplied drugs without original generic names and expiration dates scored below the 50th percentile. This indicates that these aspects represent weaknesses within the functional area. Conversely, functions associated with documentation surpassed the 50th percentile, signifying that these variables are strengths contributing to the efficiency of the functional areas.

Transportation and delivery issues of the supplied drugs

In evaluating drug transportation and delivery, 81.97% of store sites did not use direct public sector delivery, instead relying on motorcycles. Most (83.06%) transported drugs within an average of 3 hours from the township drugstore. On average, 37.16% spent 20,000 Kyats per trip, with costs covered by various budgets: health facility (25.68%), facility leader (42.68%), and drug supply staff (28.96%). A significant 68.31% found transportation costs burdensome. Additionally, 90.16% lacked SOPs, and 88.52% had no clear transport plan. Further details are in Table 11 .

https://doi.org/10.1371/journal.pgph.0003692.t011

SWR analysis of transportation and delivery issues of the supplied drugs

The analysis revealed that the scores related to the presence of SOP guidelines, the carriage plan, and the availability of government-owned vehicles were below the 50th percentile, indicating functional weaknesses. Conversely, the scores for variables associated with closely observing drug carriage pathways and checking drug items were above the 50th percentile, signifying functional strengths. Additionally, functions related to the absence of a public sector transportation mechanism and the payment for transportation costs were identified as functional risk variables due to their average scores surpassing the 50th percentile.

Waste management of the supplied drugs

In examining waste management practices at 183 first-level health facilities, common methods included burial pits (49.18%), incineration (62.84%), and sharp pits (55.19%). Most facilities had adequate safety boxes (78.14%) and waste bins (69.40%). Used needles were safely disposed of by 80.87%, and 57.38% used a color-coded system for waste bins. However, 32.24% incurred costs for waste management, with 38.98% spending over 5000 kyats. These costs were primarily covered by health facility-owned budgets (22.95%), facility leader-owned budgets (25.68%), and drug supply management staff-owned budgets (48.09%). Further details are available in Table 12 .

https://doi.org/10.1371/journal.pgph.0003692.t012

SWR analysis of waste management of the supplied drugs

The analysis revealed that the functional areas related to five variables (presence of SOP guidelines, waste management techniques, usage of safety boxes, usage of waste bins, and disposal procedures) attained scores surpassing the 50th percentile, signifying strengths. Conversely, the availability of public services concerning waste management received a score below the 50th percentile, denoting a weakness. Notably, the scores indicating the absence of trained waste handlers and costs associated with waste management surpassed the 50th percentile, categorizing them as potential risk factors for functional development.

Logistics management information system (LMIS)

In examining the LMIS across 183 public health facilities, 62.84% lacked SOP guidelines, and all used paper-based systems. Documentation performance was generally good for most variables, including invoice vouchers (89.62%), stock ledger books (99.45%), and OPD registers (98.91%). However, bin cards (9.84%) and discrepancy report forms (32.24%) had lower performance. Consistency in drug balances between stock books and stores averaged only 13.66%. Challenges included stock out of tools (87.98%), delayed feedback (13.11%), filling difficulties (23.50%), and insufficient training (62.84%). Further details are in Table 13 .

https://doi.org/10.1371/journal.pgph.0003692.t013

Quality control procedures of the supplied drugs at health facility

When evaluating the quality control procedures for supplied drugs at 183 drugstore sites, it was discovered that 71.04% lacked SOP guidelines. Approximately half of the sites conducted monthly checks on various parameters such as packing damages, brand integrity, seal and instruction conditions, changes in colors, sedimentation in injections, cracks, humidity, leaking, oil drying, crushed or broken drugs, loss of drugs from blister cards, stickiness, unusual odors, and expiration dates (refer to details in Table 14 ).. On average, the evaluation of drug storage quality and physical damage scored 46.06% and 48.20%, respectively, falling below the 50th percentile (125 sites or 68.30% and 96 sites or 52.46%). Regarding physical drug quality checking, the average score of 52.46% of stores was below 50 (see Table 14 for details).

https://doi.org/10.1371/journal.pgph.0003692.t014

Capability maturity level of the functional areas of the drug supply chain at the first-level health facilities

In assessing the capability maturity level of various functional areas within drug supply management, each area’s average scores were categorized into five levels (0–20%, 21–40%, 41–60%, 61–80%, and 81–100%), based on the fulfillment of predefined criteria outlined in the method section. The outcomes of this analysis, revealing the capability maturity levels of the functional areas, are presented in Table 15 . The overall supply chain maturity, derived from the collective assessment of these functional areas, is identified as being at a marginal capability level, with an average score of 36.35% ( Table 15 ). This indicates that there is room for improvement across the evaluated domains to enhance the overall maturity and effectiveness of the drug supply management system.

https://doi.org/10.1371/journal.pgph.0003692.t015

The capability maturity level of various functional areas within drug supply management is depicted in the provided table, offering insights into the percentage distribution across different capability levels for each area. Starting with capacity building, the majority of facilities (32.11%) fall under the best category, indicating a high level of maturity, while others range from minimal to advanced. In drug forecasting, a significant portion (42.72%) achieved the Advanced level, showcasing strong capabilities in forecasting drug requirements. However, the drug store category demonstrates a predominant concentration in the marginal level (32.76%), highlighting a need for improvement in storage facility management.

Storage procedure capabilities exhibit a varied distribution, with a substantial portion (25.41%) falling in the marginal level. Ordering drugs and receiving drugs present challenges, with the majority of facilities at the Minimal level (38.67% and 43.17%, respectively). Dispensing drugs and transportation areas exhibit a more balanced distribution across various levels, with significant portions in the advanced and best categories, reflecting relatively mature practices.

Waste management reveals a notable strength, with a considerable proportion (51.47%) falling in the best category, indicating effective waste management practices. The drug quality checking area shows a balanced distribution across different levels, with a considerable portion (47.39%) at the Advanced level, suggesting a commendable quality control mechanism.

The average scores across all functional areas collectively indicate a moderate capability maturity level (36.35%) in the studied drug supply management facilities. The average score across all functional areas indicates an overall moderate capability maturity level in drug supply management for the studied facilities. Areas like ordering drugs and storage procedures appear to have lower maturity levels, while receiving drugs, dispensing drugs, waste management, and drug quality checking show relatively higher maturity levels.

This primary research aimed to assess the capability maturity of the drug supply chain and identify the obstacles and challenges faced by first-level public health facilities in Myanmar. Before this study, Tolliver and Bartram conducted a baseline assessment in 2014 that provided an overview of Myanmar’s national supply chain. [ 2 ]. However, this assessment did not specifically address the functional aspects of the drug supply chain at first-level public health facilities. Given the critical role played by these facilities, particularly RHC and Sub-RHC, in delivering low-cost essential health services, their drug supply chains are vital for providing accessible primary healthcare to approximately 70% of the country’s population. With a significant rural population facing challenges in accessing higher-level healthcare services, strengthening the drug supply chain at the first-level public health facilities is crucial. This research serves as a baseline assessment to enhance the maturity of the first-level public health supply chain, identifying weaknesses and areas of risk that require attention for improved drug supply quality.

Supply chain management training

The research findings on training information about drug supply management highlighted several key aspects of capacity building among the studied staff. The prevalence of inadequate training, with 41.53% having no training, indicated a significant gap that needs attention. A comparative analysis of existing research highlighted the importance of continuous training in pharmaceutical management to ensure effective and safe healthcare delivery. [ 14 ]. Studies such as [ 14 , 15 ] have underscored the positive impact of training programs on enhancing the skills and knowledge of healthcare professionals in drug supply management. The temporal distribution of training courses, with 34.21% conducted before 2017, revealed a potential need for updated training content in alignment with evolving pharmaceutical practices. Internationally recognized study, such as [ 16 ], have emphasized the importance of periodic updates in training programs to keep healthcare professionals abreast of the latest advancements in drug supply management.

The self-perceived understandability assessment provided insights into the effectiveness of the training received. The fact that a significant proportion (36.84%) understood only 1/4 of the training course suggested potential issues with the clarity and comprehensibility of the training content. Research by [ 17 ] has emphasized the need for tailored and easily understandable training materials to maximize knowledge retention and application. The absence of training guidelines for 42.08% of the participants raised concerns about the standardization and consistency of training programs. Internationally recognized guidelines, such as those proposed by the World Health Organization [ 18 ], stressed the importance of standardized training frameworks for ensuring uniformity and effectiveness across healthcare settings. The SWR analysis provided a comprehensive evaluation of capacity building in drug supply management. The identification of strengths, weaknesses, and risks offers a valuable framework for strategic interventions. Comparable study, such as [ 19 ], have utilized SWR analyses to inform capacity-building initiatives in healthcare systems, emphasizing the need for a multifaceted approach. The research findings underscored the critical need for targeted interventions in the training and capacity-building initiatives for drug supply management staff. Recommendations include the development of updated and standardized training programs, incorporating feedback from participants to enhance understandability. Collaborative efforts with international organizations can provide insights into best practices, ensuring the alignment of capacity-building efforts with global standards. Regular performance reviews and supportive supervision should be integral components of ongoing capacity-building initiatives, fostering continuous improvement in drug supply management practices.

Drug forecasting planning

The research findings on drug requirement forecasting at first-level health facilities revealed several challenges and strengths within the existing system. A comparative analysis with existing research findings from international journals sheds light on global best practices and potential solutions. The significant proportion (34.97%) of facilities not practicing drug requirement forecasting highlighted a crucial gap in pharmaceutical management. Study such as [ 20 ] emphasized the importance of forecasting in ensuring a stable drug supply, reducing stockouts, and improving overall healthcare service delivery. The lack of forecasting practices may lead to inefficient resource allocation and compromise the ability to meet patient needs promptly. A significant weakness was the lack of SOPs for drug forecasting in more than three-fifths (63.39%) of the facilities. Internationally recognized guidelines, such as those recommended by the World Health Organization [ 18 ], stressed the importance of SOPs in ensuring consistency, reliability, and accuracy in forecasting. SOPs act as a cornerstone for effective pharmaceutical management, guiding staff in standardized procedures.

The self-perceived capacity of about half (47.54%) of the facilities at only 25% indicated a potential lack of confidence or training in drug forecasting practices. A comparative study, such as [ 21 ], highlighted the positive correlation between staff training and forecasting accuracy. Recommendations include targeted capacity-building programs to enhance the skills and confidence of healthcare professionals in drug forecasting. The basis for drug requirement forecasting, including patient load, drug consumption data, population data, disease prevalence, and previous forecasting data, highlighted a reliance on diverse information sources. A study by [ 22 ] underscored the importance of integrating multiple data sources for accurate forecasting, emphasizing the need for a comprehensive approach similar to the one observed in the surveyed facilities.

The SWR analysis provided a structured evaluation of the functional areas related to drug forecasting. The identification of SOPs, basis, patterns, practices, submission status of LMIS reports, and monitoring drug consumption as variables in the analysis aligned with best practices in pharmaceutical management [ 23 ]. The consideration of a cut-off point at 50% added objectivity to the evaluation process. The finding that 39.89% of participants had an unsatisfied function in drug requirement forecasting suggested critical areas for improvement. The identification of a pen-paper-based system as a risk factor echoed findings from [ 24 ], which emphasized the benefits of transitioning to electronic forecasting systems for increased accuracy and efficiency. The research underscored the need for targeted interventions in SOP development, capacity building, and system improvement for drug requirement forecasting at first-level health facilities. Recommendations include the implementation of SOPs, enhanced training programs, and the adoption of modern forecasting tools to mitigate risks associated with manual systems.

Drug store and inventory management

The examination of drug stores and storage facilities at first-level health facilities has revealed a spectrum of challenges and strengths crucial for the pharmaceutical supply chain. In comparing these findings with established research from international journals, it becomes apparent that deficiencies in infrastructure, suboptimal storage practices, and maintenance issues are prevalent concerns. A substantial number of health facilities lacked essential elements such as ceilings, fans, screens, and secure windows, as highlighted by a previous study [ 23 ]. Additionally, the storage practices, such as piling drugs on the floor, underscore the need for standardized storage procedures to ensure drug stability and prevent contamination, as emphasized by research [ 23 ]. Structural problems, like cracks and signs of water damage, underscored the need for regular maintenance, aligning with existing literature [ 23 ]. The absence of security measures, such as a system of two locks and maintaining locked doors, raised concerns regarding unauthorized access, aligning with recommendations stressing stringent security protocols in pharmaceutical storage [ 23 ].

The SWR analysis further categorized the findings into unsatisfied functional areas and risks for functional development. Average scores below the 50% cut-off point indicated unsatisfactory functional areas, particularly in drug stores, SOPs adherence, structure maintenance, and guideline adherence. Research corroborated the critical role of SOP adherence to the effective pharmaceutical management. Infrastructural aspects, with scores below the cut-off point, suggested potential risks for functional development, as supported by international studies correlating infrastructural deficiencies with risks to pharmaceutical storage [ 23 ].

In light of these findings, recommendations for improvement include prioritizing infrastructure enhancements, strict adherence to SOPs guidelines, regular maintenance schedules, and the implementation of robust security measures. Previous research supported these recommendations, emphasizing the positive impact of SOP adherence and proactive maintenance on pharmaceutical quality [ 23 ]. Addressing the identified challenges and implementing the recommended interventions will contribute to enhancing the functionality and reliability of drug stores and storage sites at first-level health facilities, ensuring the integrity and quality of the pharmaceutical supply chain.

In Myanmar, the Department of Public Health distributed drug store guideline manuals to first-level public health facilities in 2016 [ 1 ] and provided training to the public health supply system management staff in 2014 and 2020 [ 13 ]. However, the absence of separated drugstores was a significant challenge, leading to difficulties in inventory management. Most facilities stored drugs by piling them, lacking protection against environmental damage, pilferage, and pest infestation. While the average storage time was four months, facilities faced challenges in following storage guidelines and dealing with expired drugs. Recommendations include prioritizing public health spending for drugstore infrastructure. Concerning drug orders, facilities lacked effective adherence to the principle of maintaining a minimum of twice to a maximum of four times the monthly requirement. Staff struggled with calculating reorder factors and levels, citing discrepancies between their orders and supplies from upper levels. Additionally, drug pre-orders from lower-level facilities were not definitively provided. Challenges in the drug-receiving process included the lack of timely drug supply and acceptance of nearly expired drugs. In drug dispensing, first-level facilities exhibited a random extraction pattern, often taking drugs directly from the main drugstore. This may be due to convenience and uncertainties about the safety of drugs in isolated storage. The study suggests that upper-level authorities need to provide effective supervision and training for systematic drug orders, acceptance, and distribution. A top-down approach for better inventory management is recommended.

The study on drug storage procedures revealed that 151 out of 183 stores lacked SOPs or guidelines for proper drug storage. The storage practices varied, with some stores grouping drugs by type, alphabetical order, the FEFO system, or supply sources. Nearly half of the stores stored drugs conveniently. A concerning finding was the presence of expired drugs, including Aspilet, Cotrimoxazole, injection Adrenalin, Salbutamol inhalers, Metro Syrup, and Albendazole, in 78 stores. The majority (90.16%) never used Bin Cards, and 58.47% conducted physical counts. Responses to stockouts included reallocation from the township drugstore, other health facility stores, or reordering. The SWR analysis evaluated SOPs, storage procedures, physical counting, solutions for near-expiry and expired drugs, the presence of expired drugs, and competent health workers. Findings indicated that the average scores for 173 stores were below the 50% cut-off point, indicating dissatisfaction with the functional development of storage procedures. Additionally, the availability of competent health workers and the absence of expired drugs were considered risky for the functional development of storage procedures.

Scientifically, these findings aligned with international literature emphasizing the importance of standardized storage procedures and the need for competent health workers in pharmaceutical management [ 25 ]. Existing research [ 25 ] highlighted the risks associated with poor storage practices, including the presence of expired drugs. Recommendations include the urgent implementation of SOPs, training programs for storage management, and addressing the critical shortage of competent health workers. Future studies should explore effective strategies for improving storage procedures and mitigating risks in pharmaceutical management.

The study focused on the functional aspects of ordering and receiving supplied drugs at first-level health facilities. It revealed that the majority (85.79%) of store sites utilized a pull system, but a significant portion lacked SOPs/guidelines for drug ordering (78.69%) and skilled health workers for calculating and ordering drugs (79.23%). A notable finding was that 72.13% of store sites had no written request for supplied drugs, and 96.17% of drug management staff did not calculate reorder levels or know the time to reorder. In terms of receiving supplied drugs, challenges were identified, including the lack of SOPs (69.95%) and issues such as late deliveries (66.67%), partial deliveries (14.21%), and damaged supplies (7.65%). The study highlighted the use of stock ledger books (90.16%) for recording supplied drugs. The SWR analysis categorized functions related to the pull system, maintenance of proofs of deliveries (POD), and documentation of drug supply-related information as strengths due to average scores above 50%. Conversely, functions related to SOPs, checking processes for supplied drugs, and the use of Bin cards were deemed weaknesses with average scores below 50%. Risks for functional development were identified, including less skill in calculating and ordering supplied drugs (79.23%), delivery of near-expiry drugs (84.15%), late deliveries (66.67%), and partial deliveries (68.85%).

This aligned with existing literature [ 23 ] emphasizing the importance of standardized procedures, documentation, and skilled personnel in drug supply management. Recommendations include urgent SOP implementation, targeted training for health workers, and addressing challenges in the ordering and receiving processes. Future research should explore effective strategies to enhance these functional areas and mitigate identified risks.

The study delved into the dispensing patterns of the store sites, revealing notable findings. A significant proportion (66.67%) operated without SOPs guidelines, and more than half adopted convenient dispensing patterns. Despite 85.25% maintaining records of dispensed drugs, around 44.81% applied the FEFO system, and 52.46% employed a convenient system for storing supplied drugs at dispensing sites. Regarding documentation, the majority used various records, including sub-stock ledger books, OPD registers, field registers, antenatal records, and under-five records. However, 54.1% dispensed drugs without labeling them with generic names, and 60.11% did not label drugs with expiration dates. Additionally, 45.9% implemented preventive measures against drug theft in dispensing sites. The SWR analysis highlighted weaknesses in variables related to SOP guidelines, dispensing patterns, and storage methods. These aspects scored below the 50th percentile, indicating functional weaknesses. Conversely, documentation-related variables scored above the 50th percentile, suggesting strengths in the functional areas.

Existing research [ 20 ] emphasizes the critical role of SOPs in ensuring consistent and safe dispensing practices. Recommendations include the urgent implementation of SOPs, training programs for dispensing staff, and the adoption of standardized labelling practices. Future research should explore strategies to enhance dispensing patterns and improve drug security measures.

Transportation and delivery issues

At present, Myanmar’s Ministry of Health shoulders the significant task of procuring and disseminating medicines essential for over 10,000 public health facilities [ 1 ]. The orchestration of drug distribution becomes intriguing when contemplating the journey of these vital medicines. The Central Medical Store Depot (CMSD) takes the reins, ensuring a seamless flow as it dispatches medicines directly to the Township Public Health Department (TPHD) and upper echelons. This dynamic process eliminates the need for excessive pondering on transportation logistics for TPHD and upper levels [ 2 ].

The intricate dynamics of transportation and delivery of supplied drugs at first-level health facilities in Myanmar warrant careful consideration. An overwhelming 81.97% of store sites operated outside public sector supply mechanisms, relying on motorcycles as the primary mode of transport, covering an average distance of less than 3 hours from the township drugstore. Notably, the financial responsibility for transportation costs was distributed among health facility-owned budgets (25.68%), health facility leader-owned budgets (42.68%), and drug supply management staff-owned budgets (28.96%), emphasizing the economic strain faced by these entities, as reported by 68.31% of respondents. A glaring procedural deficiency was highlighted, with 90.16% of cases lacking SOPs for drug transportation and delivery, indicating a critical gap in operational guidelines. The SWR analysis accentuated functional weaknesses in the absence of SOP guidelines and carriage plans, compounded by the dearth of government-owned vehicles. Counteractively, strengths were discerned in the meticulous observation of drug carriage pathways and thorough checks on drug items. However, the absence of a public sector transportation mechanism and the financial burden associated with transportation costs emerged as significant risks in this intricate supply chain. Strategic interventions were imperative to address these challenges and enhanced the efficiency and reliability of drug transportation and delivery systems at the first-level health facilities in Myanmar. Comprehensive research studies and interventions in comparable global contexts should be explored for potential insights and best practices to inform tailored improvements in Myanmar’s supply chain.

Waste management

The examination of waste management practices associated with supplied drugs across 183 first-level health facilities in Myanmar unveiled a nuanced scenario. Predominant techniques encompassed burial pits (49.18%), incineration (62.84%), and sharp pits (55.19%). Notably, a significant proportion maintained an adequate supply of safety boxes (78.14%) and waste bins (69.40%). Moreover, there was a commendable disposal rate for used needles, with 80.87% ensuring safe disposal, and 57.38% employing a color-coded system for waste bins. Nevertheless, challenges persisted, as 32.24% incurred costs for waste management, and nearly 39% of these spent over 5000 kyats. The financial burden was primarily shouldered by health facility-owned budgets (22.95%), health facility leader-owned budgets (25.68%), and drug supply management staff-owned budgets (48.09%).

A comprehensive SWR analysis underscored strengths in the functional areas of SOP guidelines, diverse waste management techniques, adequate provision of safety boxes, proper utilization of waste bins, and effective disposal procedures—all scoring above the 50th percentile. However, a notable weakness was evident in the availability of public services for waste management, with a score below the 50th percentile. The absence of trained waste handlers and the financial costs associated with waste management emerge as potential risk factors, given their scores above the 50th percentile.

To enhance waste management practices, Myanmar’s health facilities could benefit from fortifying public services, ensuring training for waste handlers, and exploring cost-effective waste management strategies. These findings underscored the importance of tailored interventions to address specific weaknesses and risks in waste management within the first-level health facilities of Myanmar.

In evaluating overall performance across different functional areas in our study, the waste management system emerged as the top performer, with the highest capability maturity level score. This notable achievement can be attributed to strategic provisions for waste management stemming from diverse programs within the first-level public health facilities. Take, for instance, the proactive measures implemented to tackle the COVID-19 pandemic, which equipped health facilities with essential infrastructures and tools for both disease prevention and the proper disposal of vaccines. However, our investigation unearthed a significant caveat–the burden of waste management fell directly on the shoulders of the drug management staff, demanding their direct involvement and financial commitment. The absence of trained waste handlers and the associated costs of waste management pose potential risks, casting shadows over the sustained effectiveness of this critical functional area.

Logistics management information system

The evaluation of the LMIS in 183 public health facilities reveals a mixed landscape. Alarmingly, a substantial 62.84% lacked SOP guidelines for the operational definitions of LMIS and exclusively relied on paper-based systems. While the performance percentages for various LMIS documentation aspects, such as invoice vouchers, stock ledger books, and health facility stock report books, exhibited robust figures, there are notable exceptions like Bin cards (9.84%) and discrepancy report forms (32.24%). The consistency of drug balance between stock books and stores remained a critical concern, with an average percentage of only 13.66%.

Challenges plaguing LMIS implementation included frequent stockouts of tools, delayed feedback, difficulties in data filling, analysis, and retrieval, usage of different tool versions, reliance on outdated tools, inadequate training (62.84%), insufficient human resource capability (19.13%), and a shortage of staff (38.25%). These findings underscored the urgent need for targeted interventions to streamline and fortify LMIS processes. Benchmarking against established international best practices, alongside tailored training programs and resource augmentation, was imperative to enhance LMIS effectiveness in the dynamic landscape of public health facilities. This warranted collaborative efforts and knowledge exchange with global initiatives addressing similar LMIS challenges, ensuring a comprehensive and sustainable improvement. The distribution of SOP/Guidelines within the LMIS functional domain emerged as a weak link, with each department relying solely on a pen-and-paper-based system for LMIS operations. On a positive note, document maintenance and record-keeping exhibited robust practices across most departments. However, when delving into the challenges faced by LMIS, a deficiency in formal training and a scarcity of essential resources like stock, registers, and reporting forms came to the forefront, posing hurdles to the seamless functioning of the system.

Quality control procedures

The assessment of quality control procedures for supplied drugs across 183 drugstore sites revealed notable gaps, with 71.04% lacking SOP guidelines. Approximately half of the sites conducted monthly checks on various parameters such as packing damages, brand integrity, seal and instruction damages, changes in colors, sedimentation of injections, cracks, humidity, leaking, drying of oil, crushed/broken drugs, loss of drugs from blister cards, sticky drugs, unusual odors, and expiry dates. In-depth scrutiny of physical damage conditions encompassed considerations like overlay (27.32%), dusty drugs and packing (80.33%), signs of pest infestation (74.86%), signs of water damage (66.67%), presence of waste bins (69.40%), "No Smoking" signboard (42.62%), presence and condition of fire extinguishers (24.59% and 19.67% respectively), presence of sandbags near the drug store (13.11%), preventive measures for pest infestation (27.87%), and data quality assessment (29.51%). The average scores for checking storage quality conditions and physical drug damages were 46.06% and 48.20%, respectively, both falling below the 50th percentile.

These findings underscored significant deficiencies in the quality control measures implemented in drugstore sites, warranting immediate attention and improvement. A previous study [ 20 ] on pharmaceutical quality control and storage practices can provide valuable insights for enhancing these procedures. Implementing robust SOPs, investing in regular training programs, and adopting advanced technologies for monitoring drug quality can contribute to a more effective and reliable quality control framework within first-level health facilities.

The study reveals that the overall supply chain maturity at first-level public health facilities is at a marginal capability level (36.35%). While some basic drug supply chain management procedures are in place, they are not consistently followed, and many systems remain manual. The findings underscore significant inconsistencies in the management functions of supplied drugs, with poor adherence to SOP guidelines. This research highlighted critical deficiencies in various aspects of the drug supply chain at first-level public health facilities in Myanmar. Gaps in training, forecasting practices, storage management, ordering and receiving processes, dispensing patterns, transportation, waste management, LMIS, and quality control procedures were identified. The findings align with international studies, emphasizing the need for standardized procedures, enhanced training, and infrastructure improvements. Urgent interventions, benchmarking against global best practices, and collaborative efforts with international organizations are recommended to address these challenges and enhance the reliability and effectiveness of the pharmaceutical supply chain in Myanmar. Future research should explore tailored strategies for improvement in specific functional areas.

Dissemination plan

The researchers intend to disseminate the outcomes of the research to the entirety of public health practitioners within the designated research domain, the regional public health department situated in the Bago region, and the procurement and supply division operating at the Central level. Ultimately, the research findings will be showcased at the Myanmar Research Congress and subsequently published in a reputable international journal.

Acknowledgments

Our hearts brim with gratitude towards the IR (Implementation Research) Granters from the esteemed Department of Medical Research, whose generous funding has been the lifeblood of this research endeavor. A heartfelt appreciation extends to the benevolent Deputy Director General and Deputy Directors of the Bago Regional Public Health Department, whose kind permission has paved the way for our exploration. Special thanks dance towards the Deputy Director, Assistant Directors, and the compassionate public health professionals of Pyay District, whose invaluable in-kind support has been a beacon guiding our journey. Last but certainly not least, our sincere thanks to all the respondents, whose active participation has infused this research with vibrancy and significance.

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