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Dr. Orin Levine

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What International Medical Distribution Systems Can Learn From Coca-Cola

Posted: 06/21/11 01:37 PM ET

Like many global health professionals, I've spent days traveling by airplane, bus, motorcycle and foot to remote villages in Africa and Asia, only to find Coca-Cola distribution businesses thriving, while children visiting health centers remain unimmunized and without essential medicines. This observation gained public notice when it was voiced aloud by singer Annie Lennox, who once famously asked, "why can we distribute Coca-Cola all around the world, but we can't seem to get medication to save a child from something as simple as diarrhea?"

Nobody dies from failing to get their hands on a Coke, but diarrhea kills more than 1.5 million children every year -- so Ms. Lennox's question deserves an answer. But overhauling distribution systems requires more than just a charming anecdote, no matter how true or compelling in its simplicity. It requires evidence and analysis.

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Recently, my colleagues at Johns Hopkins' International Vaccine Access Center (IVAC), Kyla Hayford and Lois Privor-Dumm, and I joined together with a team of experts at McKinsey & Co to try to put some evidence behind the anecdote. The results of our work will be published today in a report, "Improving Access to Essential Medicines through Public-Private Partnerships." What we found, is that while essential health supplies certainly face challenges that a Coke bottle or calling cards do not -- such as strict temperature or humidity requirements, closer tracking systems and sometimes even the need for skilled staff to administer the product -- there are other areas where global health can learn valuable lessons from the private sector.

The way we analyzed the situation was by looking for consumer packaged goods (CPGs) that shared key characteristics with essential health products (EHPs) and then comparing key distribution indicators for the same geographic areas. The first key finding from our report -- which may be the most important -- is that private sector distribution systems have better data than public sector systems for health products. In short, comparisons were hard to do because we need better data on distribution system effectiveness for health products.

The one indicator of distribution system effectiveness that we could reliably find for both consumer and health products is the "out of stock" rate. This measure indicates how often either a retailer was out of a consumer product (like beer, cigarettes or mobile phone cards) or how often a health center or hospital had not a single dose of a vaccine or life-saving antibiotics. The results confirmed our initial suspicion.

Out of stock rates were generally higher and more variable for essential health products than for consumer goods -- and the levels of out of stock rates were unacceptably high. Imagine that in parts of Africa some injectable antibiotics were out of stock more often than they were in stock, and at the same time, these communities were out of mobile phone cards at rates of less than 5 to 10 percent.

Examining practices in the private sector also generated some ideas for how to improve distribution of health products. For example, health supplies in parts of Africa might only be restocked every 90 days, while consumer goods are restocked every four to 14 days. Moving to constant, lower inventory levels through frequent and responsive deliveries would reduce waste, lessen storage space requirements and reduce the risk of being out of stock. Similarly, we also could learn from a beer company that increased their frequency of deliveries in order to overcome local stores' natural inclination, not to invest too much in inventory. Our estimates indicate that up to 30 million doses of vaccines and $80-160 million might be saved each year from better distribution systems.

Our study concluded with four calls to action that include:
1) Standardizing the data for monitoring health supplies distribution
2) Building partnerships to exchange knowledge on distribution practices
3) Sharing infrastructure among partners
4) Encouraging research and product innovation to lower distribution barriers

What makes this field so exciting is that knowledge truly can come from any source. DHL recently partnered with UNICEF Kenya and helped drive a 10-fold increase in the number of children sleeping under bed nets. Partnerships like these could be the next great breakthrough in global health if the innovation of business is harnessed for the cause of saving children's lives.

This explains why, instead of announcing the launch of this report in a traditional global health environment, I'm here today at the Cannes Lions International Festival of Creativity, a hub of private sector creative thinkers, looking for partners interested in harnessing their private sector know how for global health success.

Anyone interested?

 

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01:17 AM on 08/08/2011
Partner with Coca-Cola and Nokia. Let them do their charity work and tax write offs via vaccine campaigns. Attach a packet of ORS to every bottle and have SMS updates on multivitamin pregnancy pills. The Western World will approve as these companies embrace buzzwords "sustainable, giving back, one world," etc. and while they are running their charitable course public health learns how they do what they do from the inside.
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HUFFPOST BLOGGER
Eric Ehrmann
09:12 PM on 06/22/2011
Coca-Cola, Nestle, Yakult, other bigs get it right because they focus on process controls and making them work globally, particularly in cultures that do not have a historic awareness of expiration dates, public health. I saw the problem first hand in Mogadishu in 1981 where glass ampoules of vaccines and other injectables were out in the sun in a marketplace, and beer imported from the Netherlands was stashed in the darkness, iced, out of sight from police and clerics. Corruption and warlords as mentioned above are problematic. But the business to business feel good dynamic this article promotes implies that governments are an impediment, which is just not the case. How many vacccine botches have occured thanks to private business. Everybody needs to work together to make it better.
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Ghostberry
All empty souls tend toward extreme opinions.
05:38 PM on 06/22/2011
One factor they did not address, is that in a lot of these countries medical supplies are a prime target by local warlords wtc. Not many people are jacking a pepsi truck. Important thing to plan for.
01:18 PM on 06/22/2011
According to the CDC in 1999, rotavirus was causing 20 to 40 infant deaths annually in the US when the first rotavirus vaccine, RotaShield, was introduced. It was estimated that about 50,000 hospitalizations occurred in the US because of severe diarrhea and dehydration.

Today, even though almost all US infants receive vaccines for rotavirus, and despite efforts to improve the management of childhood rotavirus-associated diarrhea, hospitalizations of children in the U.S. with the disease have not significantly declined in the past two decades: the CDC says rotavirus infection is still responsible for an estimated 400,000 doctor visits; more than 200,000 emergency room visits; and 55,000 to 70,000 hospitalizations in the US.

The CDC also says that 20 to 60 infant deaths now die every year in the US due to rotavirus infection. The CDC says that children ages 6 months to 24 months old are most at risk for serious complications or death from rotavirus, when supportive treatment, or re-hydration, is not given during the illness.

http://www.nvic.org/vaccines-and-diseases/Rotavirus.aspx
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HUFFPOST SUPER USER
Ghostberry
All empty souls tend toward extreme opinions.
05:40 PM on 06/22/2011
Does this take into account increased population, and increased methods of testing? The second can skew disease results massivley.
01:18 PM on 06/22/2011
The GlaxoSmithKline manufacturer product information insert for Rotarix states:

“There is a possibility that the live vaccine virus can be transmitted to non-vaccinated contacts. The potential for transmission of vaccine virus following vaccination should be weighed against the possibility of acquiring and transmitting natural rotavirus.â€

Merck’s RotaTeq product information insert contains nearly the same language:

“RotaTeq is a solution of live reassortant rotaviruses and can potentially be transmitted to persons who have contact with the vaccine. The potential risk of transmission of vaccine virus should be weighed against the risk of acquiring and transmitting natural rotavirus.â€

http://www.nvic.org/vaccines-and-diseases/Rotavirus.aspx
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Dyson
debunking pseudoscience, one fallacy at a time.
03:07 PM on 06/23/2011
A win win situation - for zero cost you might be able to immunize close contacts.
06:43 PM on 06/21/2011
Let's save the children so that they can slowly starve to death over years of time and they can suffer horrendously but we liberals can say we did something? We gave them false hope and we liberals are really good at promising the impossible and giving them false hope???