Modernized supply chain management needed to expedite delivery of medicines — Herbosa

Health Secretary Teodoro Herbosa underscored on Wednesday, Jan. 17, the need to modernize the agency’s supply chain management so that it could ensure the speedy and timely delivery of medicines.

"I want to modernize procurement all the way to delivery. The delivery and supply chain should be well-organized, so that's what I need to fix at the DOH. The department has the budget, being the third-highest funded, so what is truly needed is for the medicine to reach those in need, and the vaccines not to spoil in the refrigerator,” Herbosa said during the Kapihan sa Manila Hotel Forum.

Herbosa pointed out the importance of better logistics and supply chain as he addressed the problem of about P1 million worth of medicines expiring without being used at the Rural Health Unit (RHU) in Bacacay, Albay.

He emphasized that the solution to the problem could be found “not in the medical field” but rather in “supply chain and logistics.”

Herbosa pointed out that although the budget of the DOH increased, there was no provision for storerooms for the medicines because the agency is not allowed to establish warehouses, which are not considered healthcare facilities. As such, the department stands to be flagged by the Commission on Audit (COA) if it uses its budget for non-health purposes.

“So sometimes, the small warehouse is filled with all deliveries, continuously accumulating, and later on, when items are removed, there are vaccines at the back that have already expired). This is third-world logistic supply chain management. I need to modernize it; this is not acceptable for me," he emphasized.

“You have stockouts, and then you have medicines that are expiring, and this is important because it was mentioned in the news that some of the medicines were given by the DOH," he added.

This is why Herbosa is calling on logistics experts to assist the DOH in addressing the situation, stating, "When drugs expire, that's a failure. It needs more expertise, and I'm calling on the logistics expert to help me out on this one.”

“The problem with some LGUS is that they keep asking for medicine but are unable to distribute them,” he pointed out.

Herbosa also added that the problem might not be with the DOH because he will review it when the LGU requests it.

“Either you're inefficient because I gave you medicine and you didn't distribute it and it expired, or maybe you don't need that much," he said.