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Family Planning Centers Business Guide

9Documented Cases
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All 9 Documented Cases

Poor Data Quality on Contraceptive Consumption Leads to Bad Purchasing and Planning Decisions

Mis‑forecasting that overshoots actual consumption by even 25% for slow‑moving methods can tie up thousands of dollars in idle stock and eventual expiries per clinic each year, while under‑forecasting high‑demand methods leads to the stockout‑linked revenue losses described above; combined, poor decisions around method mix and quantities can easily swing budgets by 10–20% of annual contraceptive commodity spend.

Family planning centers often operate with incomplete or inaccurate data on contraceptive stock levels and consumption, as evidenced by low bin‑card accuracy and error‑prone logistics reports. This undermines forecasting and purchasing, causing recurring cycles of overstock for some methods and chronic shortages for others.

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Expired and Overstocked Contraceptives Drive Write‑Offs and Rush Orders

If a typical center holds $10,000 of contraceptive stock and 10–20% expires due to poor rotation and overstock each year, this is $1,000–$2,000/year in direct write‑offs; emergency orders can add 10–25% to purchase and freight cost for stock‑out items, easily another few thousand dollars annually in busy clinics (extrapolated from documented stock‑outs, weak data, and industry estimates of medical inventory waste).

Poor contraceptive inventory practices (not using FEFO, weak forecasting, incomplete bin cards) lead simultaneously to excess stock that expires on shelves and emergency stockouts that trigger premium‑priced rush orders. Studies on family planning commodities show lengthy stock‑out durations and incomplete bin card use, indicating frequent misalignment between actual consumption and ordering, which inflates total commodity cost per patient served.

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Stockouts of Key Contraceptive Methods Reduce Service Capacity and Client Throughput

If a center experiences a 70‑day stockout of a high‑demand method (e.g., injectables or implants) that normally generates 10 billable services/day at $10 net per service, that can represent up to $7,000 in lost billable volume for that method in a single prolonged stockout period; repeated annually, this is a five‑figure revenue loss per site.

Inadequate contraceptive inventory management leads to extended stockouts of popular methods, directly limiting how many clients can be served and how many visits result in a completed method provision. In one multi‑facility assessment, mean stock‑out duration for family planning and maternal/child health medicines was over 70 days, indicating that centers can be unable to dispense certain contraceptives for months at a time.

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Delayed and Inaccurate Logistics Reports Slow Reimbursement and Resupply

If resupply and reimbursement cycles are monthly but only 40–60% of reports are timely/accurate, 40–60% of facilities can experience at least a one‑cycle lag in commodity and financing flow; for a clinic with $3,000/month in contraceptive‑related reimbursements, a one‑month delay effectively increases working capital needs by that amount and may force short‑term borrowing or service reductions.

In family planning facilities, commodity logistics reporting (consumption and stock on hand) is often late, incomplete, or inaccurate, which delays both resupply of contraceptives and related financing flows tied to performance or cost reimbursement. In a 23‑facility study, only about 40.5% of report and resupply forms were submitted on time and just under 60% were accurate, indicating systemic reporting delays and corrections.

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