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Inventory Management

Stock-out and expiration risk management are the responsibility of the Country Office (CO), which must regularly monitoring the stock status of health products. This includes close monitoring of the consumption rates against performance targets, of stock-on-hand and stock-on-order (in the pipeline), and of expiry dates of products in-stock so that the CO can make informed decisions (e.g., delaying procurement or accelerating shipments), and take the necessary actions to avoid emergency orders, stock-outs and expiration of products.

NOTE

Regardless of the PU/DR cycle, COs must notify the Global Fund Country Team of all “risks of stock-outs and/or expiry” that they identify.

Ideally, where national mechanisms exist to monitor the supply chain on a monthly/quarterly basis, the UNDP CO should participate in these meetings.

It is important for relevant stakeholders (e.g., the programmes, CMS, UNDP COs) to do periodic audits and inspections (“supervision visits”) of all points in the distribution chain to confirm that records are being properly maintained and that information is being accurately reported; regular supervision visits can also help prevent diversion of valuable commodities.

To perform this function effectively, UNDP COs will require access to data from Logistics Management Information System (LMIS) or regular access to reports such as the national stock status report.

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