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A program-owned transportation system purchases its own vehicle to
transport contraceptives to and from the warehouse and distribution outlets.
This provides:
- Greater control over receipt and delivery
- Greater flexibility in scheduling shipments
- A reduced need for commercial transportation in rural locations
A commercial transportation system hires a commercial vehicle or uses
public transportation to transport contraceptives. Its advantages are:
- Simplified administration, since the program is not responsible for operating and repairing vehicles or hiring drivers;
- Savings in capital investment in vehicles and repair facilities;
- Greater flexibility and capacity for handling different sizes of shipments.
A combination of program-owned and commercial transportation may have
special advantages in some situations. For example, a manager could use
commercial transportation to transfer large quantities of contraceptives and
program vehicles to transport smaller quantities of contraceptives between
regional warehouses and outlets. It may also be to the program's
advantage to use commercial carriers to transport contraceptives to remote
distribution points, but cheaper and easier to use project vehicles in urban
areas.
Managing Inventory: Maintaining Adequate Supply Levels
Maintaining adequate supply levels to prevent the disastrous consequences of
stockouts is a significant challenge for all managers at every level of the
system.
Having a basic understanding of inventory management will enable managers to
determine the appropriate minimum and maximum supply levels, reorder intervals,
and reorder levels so that there are always adequate quantities of supplies on
hand. Inventory management also helps to reduce the occurrence of
contraceptive expiration or deterioration on the shelf. By using the inventory
management technique First-to-Expire, First-Out (FEFO), managers can keep
up-to-date, high-quality contraceptives on hand for distribution to their
clients and help to prevent theft and mismanagement of supplies.
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