Most antiretroviral therapy (ART) programmes use costly airfreight for shipping HIV/AIDS commodities. Supply Chain Management Systems (SCMS) implements an innovative logistics system largely based on sea freight. Accurate forecasting and preparation of supply plans is essential for such a model to work. This model led to reduction in shipping costs of about $5.5 million in 2008 alone (http://scms.pfscm.org/scms/docs/papers/in_brief_FL_abstract1.pdf).

What is your experience in getting the lowest shipping costs, whilst assuring on-time delivery of life saving essential health commodities?

Quote by: Pamella Kyagonza

Most antiretroviral therapy (ART) programmes use costly airfreight for shipping HIV/AIDS commodities. Supply Chain Management Systems (SCMS) implements an innovative logistics system largely based on sea freight. Accurate forecasting and preparation of supply plans is essential for such a model to work. This model led to reduction in shipping costs of about $5.5 million in 2008 alone (http://scms.pfscm.org/scms/docs/papers/in_brief_FL_abstract1.pdf).

What is your experience in getting the lowest shipping costs, whilst assuring on-time delivery of life saving essential health commodities?

It is saving tremendous costs to ship ARV's by ocean. However this can only be done if there is accurate forecasting available and if supply plans are in place so that orders can be placed well in advance so that there is time enough to ship orders by Ocean in stead of Air. Because of the lack of accurate forecasting and supply plans a lot of extra costs are made because orders will be shipped by air because they were not placed in advance enough to ship it by ocean. Also the use of LCL containers should be explored more because this can save a lot of costs for the small orders as well.