Economic evaluation of public health supply chains in three African countries

Decision makers in developing countries must continually choose between different courses of action as they pursue public health goals. Among their most critical choices is how best to strengthen contraceptive and other commodity supply chains. Economic evaluation—studies that compare the costs and consequences of alternative supply chain investments—can be an important decision tool. The USAID | DELIVER PROJECT developed a framework for applying principles of economic evaluation to public health supply chains. Using this framework, the project designed and conducted supply chain economic analysis in three countries. In Nigeria, an experiment in 2013-14 compared the cost-effectiveness of a vendor managed inventory approach to delivering contraceptives and other public health commodities to other, traditional supply chain designs. The vendor-managed inventory approach was almost as cost effective as one other existing distribution system; it was more cost effective than two other systems. In Tanzania, a 2013-15 study employed cost-effectiveness and cost-benefit analysis to examine the impact of upgrading contraceptive and other supply management systems, including shifting from a paper-based to an electronic logistics management information system. In Zimbabwe in2014-15, cost-effectiveness analysis examined the impact of merging four separate distribution systems—including one focused on contraceptive supply--into a single, integrated management and distribution model. The presentation will describe the methods and results of each study. The studies in Tanzania and Zimbabwe are ongoing, with baseline data captured and analyzed in 2013 and 2014. End line data collection will occur in March-June 2015, with results expected by July 2015.