Nigeria: Segmentation of the Supply Chain for Essential Medicines

Segmentation is an approach that can help identify opportunities in supply chains where products or customers can be grouped together or combined in such a way that improves product availability and decreases costs and functional redundancies (Allain et al. 2010). The framework strategically organizes the supply chain into distinct groupings or segments that have common logistics requirements, which best respond to customer needs. Each group is managed according to the characteristics of that group, aligning operating procedures with product and customer requirements.

Technical advisors applied this framework in two states in Nigeria: Kano and Edo. Using requisition data from secondary hospitals, advisors determined the approximate demand of products that should flow through the state central medical stores (CMSs). These product and additional facility (customer) characteristics were used to suggest supply chain system designs modified for the unique situation in each of the states