Harmonisation of key performance indicators

Harmonisation of key performance indicators

The aim of the key performance indicators (KPI) harmonisation exercise was to agree on a reduced number of core strategic supply chain indicators that will be adopted and integrated by agencies in their planning and reporting cycles. Reporting on a harmonised set of KPIs will result in better alignment of country and agency investments and strengthen data collection at the source, directly resulting in strengthening the data quality of logistics information systems. These efforts are likely to reduce the burden of reporting and allow countries to achieve greater end-to-end visibility of commodities across the supply chain. By collecting and comparing the same data, countries and agencies will be able to better coordinate, plan and use data for effective and evidence-based decision-making for procurement and supply chain management. Member organisations have begun to adopt the recommended indicators.

Key performance indicators

Stock out rate

  • Definition This indicator measures stock availability during a specified period
  • Domain Availability
  • Numerator Number of facilities stocked out, by product, on the day of the assessment (reporting day or day of visit)
  • Denominator Number of requests that are fulfilled without delay
  • Frequency Quarterly

Stock levels

  • Definition This indicator measures how much stock is available and whether stock levels are adequate
  • Domain Availability
  • Numerator Amount of available stock
  • Denominator Amount of required stock (based on consumption)
  • Frequency Quarterly

Percentage of total stock that expired in previous reporting period (value & quantity)

  • Definition This indicator measures the quantity and value of tracer commodities deemed unusable because of expiry as a percentage of the total quantity and value available for use at the CMS and selected service delivery points identified by each country
  • Domain Financial and cost efficiency
  • Numerator Amount of expired stock
  • Denominator Total amount of stock
  • Frequency Quarterly

Percentage of product selection based on National Essential Medicines List (NEML)

  • Definition This indicator measures the percentage of the products in the National Essential Medicines List that are procured: target is 100 percent
  • Domain Product selection
  • Numerator Percentage of products selected for procurement by the relevant national authority (via a forecast)
  • Denominator Percentage of products in the NEML
  • Frequency Annually

Order accuracy

  • Definition This indicator measures how many orders were correctly picked, packed and shipped correctly to the client (e.g. health facility or district store)
  • Domain Forecasting and supply planning
  • Numerator Number of correctly processed orders, lines or units
  • Denominator Total number of orders, lines or units
  • Frequency Quarterly

Percentage of emergency orders issued in the last 12 months

  • Definition This indicator measures the percentage of emergency orders placed during a 12 month period
  • Domain Procurement and supplier performance
  • Numerator Number of purchase orders or contracts that are issued as emergency orders in the last 12 months
  • Denominator Total number of purchase orders or contacts in the last 12 months
  • Frequency Quarterly

Supply adequacy (at facility, district or national level)

  • Definition At the facility level this indicator measures the percentage of stock keeping units (SKUs) with stock levels in compliance with min and max stock criteria. (District or national level: number of facilities with stock levels between min and max)
  • Domain Warehousing and inventory management
  • Numerator Number of SKUs with stock levels in compliance with min and max stock criteria
  • Denominator Total number of SKUs in facilities with stock
  • Frequency Monthly

Supplier on time and in full (OTIF)

  • Definition This indicator measures the supplier’s compliance with the agreed quantities and agreed delivery time
  • Domain Warehousing and inventory management
  • Numerator Number of orders in which the supplier was in compliance with the agreed quantities and delivery time
  • Denominator Total number of orders
  • Frequency Monthly

Temperature alarm rates

  • Definition This indicator measures the frequency (and sometimes the duration) of excursions outside of recommended ranges
  • Domain Warehousing and inventory management
  • Numerator Total number of temperature excursions
  • Denominator Total number of temperature measurements
  • Frequency Monthly

Reports submitted on time (for all and seperate reports)

  • Definition This indicator measures the facility reporting rates within the LMIS system to the central level and the completeness of the reports
  • Domain Stock monitoring / data and information
  • Numerator Number of reports completed in full and submitted on time
  • Denominator Total number of reports submitted to the central level
  • Frequency Quarterly

Data accuracy

  • Definition Data accuracy is defined as the closeness of the reported data to the true value
  • Domain Stock monitoring / data and information
  • Numerator Number of service points with data source and reports matching
  • Denominator Total number of service points
  • Frequency Quarterly

KPI harmonisation method

  • A large working group was established in 2020 and held a series of meetings to discuss all of the proposed indicators.
  • The group reviewed and consolidated performance frameworks (domains) from a variety of source documents.
  • Definitions were updated or developed for KPIs where none had been provided. KPIs with similar definitions were grouped together. Numerators and denominators were updated or constructed based on the design of the KPI.
  • The source documents used for this exercise included submissions from USAID (NSCA Core Assessment KPIs), World Bank Group, UNFPA, RHSC Stock Out Suite of KPIs, the Global Fund Indicator Guidance sheet, the D4M synthesis, the WHO Global Reference List Core Health Indicators Version 4 (2014), the WHO Harmonised monitoring and evaluation indicators for procurement and supply management systems.
  • From an initial list of 115 KPIs, agreement was reached on 11!
  • The 11 indicators were presented to the full ISG membership on March 26, 2021
  • Additional indicators were proposed for environmental sustainability as well as non-operational indicators such as percent of domestic resource mobilisation. These indicators will be discussed at the next KPI meeting (TBA).

Next steps:

  • Agency adoption and incorporation of KPIs into internal monitoring and reporting systems.
  • Link with other global KPI initiatives, such as the D4M Group, and the RHSC.
  • Create a mechanism to conduct periodic and systematic agency KPI reviews and manage the KPI development process from a global perspective, under the aegis of the ISG.
  • Encourage interagency data sharing and validation on a periodic basis.
  • Develop Indicator Protocol Reference Sheets.

Members

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