Optimizing national immunization program supply chain management in Thailand: an economic analysis.

Area of Science:

• Health economics
• Supply chain management
• Vaccine logistics

Background:

• Conventional vaccine supply and logistics systems face challenges in efficiency and cost.
• Optimizing vaccine supply chains is crucial for public health programs.

Purpose of the Study:

• To conduct an economic analysis of transitioning Thailand's conventional vaccine supply and logistics systems to a vendor managed inventory (VMI) system.
• To evaluate the cost-effectiveness and efficiency improvements of the VMI system.

Main Methods:

• An ingredients-based approach was used for survey design and data collection.
• Economic analysis covered vaccine procurement, storage, and distribution costs.
• Costs were analyzed using a 2010 US dollar baseline.

Main Results:

• The vendor managed inventory (VMI) system showed a slight increase in per-unit costs (US$0.66/cm³ and US$1.43/dose) compared to the conventional system (US$0.60/cm³ and US$1.35/dose).
• However, the VMI system resulted in significant annual savings of US$6.6 million due to reduced wastage of unopened vaccines.
• Outsourcing the supply chain via VMI improved overall immunization program cost-efficiency.

Conclusions:

• The transition to a vendor managed inventory (VMI) system offers substantial cost savings for Thailand's immunization program.
• The new supply chain system demonstrates improved efficiency and potential financial benefits compared to traditional methods.
• Implementing VMI is recommended for enhancing vaccine supply chain management and reducing program expenditures.