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The Department of Health is proposing to establish a new bureau to strengthen the delivery of healthcare services
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Plan is to transform the existing Supply Chain Management Service into the Supply Chain Management Bureau “with stronger governance, expanded authority, and end-to-end organizational responsibility”
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The SCMB will manage the entire logistics life cycle of health commodities – from demand forecasting to procurement strategy, warehousing and inventory control, distribution across the islands, and the last mile deliveries in barangays
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The proposal has been submitted to the Department of Budget and Management for approval
The Department of Health (DOH) is proposing to establish a new bureau to address gaps, improve availability of medicines and vaccines, and strengthen the country’s delivery of healthcare services.
Under the plan, the existing Supply Chain Management Service (SCMS) will be transformed into the Supply Chain Management Bureau (SCMB) “with stronger governance, expanded authority, and end-to-end organizational responsibility”, DOH undersecretary Randy Escolango said in a presentation during the recent Logistics Summit 2026 by the Procurement and Supply Institute of Asia.
Unlike the SCMS that only covers warehousing and distribution, the SCMB will manage the entire logistics life cycle of health commodities – from demand forecasting to procurement strategy, warehousing and inventory control, distribution across the islands, and the last mile deliveries in barangays.
The SCMB is seen to strengthen key areas such as the cold chain system for vaccines and biologics, emergency and disaster logistics, and disease outbreaks.
Escolango said the proposal has been approved by DOH’s executive committee and submitted to the Department of Budget and Management for approval.
Escolango said they are hopeful that the proposal will be approved this year, noting that it is “one of the most significant reforms in the history of our health logistics system” as the health department recognizes that supply chain governance is not a support but a strategic function and “a pillar” of universal healthcare.
“The future of healthcare depends on the strength of our supply chains. Hindi po ito (This is not an exaggeration… Because in reality, a health system is only as strong as the supply chain that supports it,” he said.
“Our supply chain is active, operational, functioning but if we are honest, it is also institutionally fragmented,” he added.
Weaknesses
Challenges of the current healthcare supply chain include weak demand forecasting that is not always data driven, procurement planning is not always aligned with real demand, limited stock visibility across facilities, cold chain infrastructure is under pressure, and not enough supply chain expertise in DOH and local health offices.
He noted for example that due to a planning issue, no stocks of flu vaccines were acquired last year.
“For many years we have been operating in silos, programs working independently, data systems not fully connected. Warehouses operating without complete coordination. Accountability is spread across multiple units at alam naman natin ang isang common na linya sa gobyerno…pwede na yan. But in healthcare supply chains, hindi pwedeng pwede na. Ang kailangan po natin ay sigurado,” Escolango said.
The SCMB will operate through an integrated supply chain planning and execution (ISCPE) – a unified, disciplined way of planning and executing the entire supply chain as one system that is adopted to the realities of public health.
At its core, the ISCPE is a monthly decision-making cycle that aligns demand, supply, programs and resources.
“In practical terms, it changes how we operate – from reacting to shortages to preventing them before they happen; from fragmented actions to synchronized execution; from uncertainty to predictability and control,” Escolango said.
The SCMB is anchored in national policies, including Republic Act No. 11223 (Universal Health Care Act) that mandates the integration and standardization of supply chain functions; DOH 8-point agenda that directs institutional reform and modernization; and the Healthcare Financing Strategy 2023-2028 that aims to provide medicines and commodities to reach all Filipinos in all settings.
Aside from the proposed SCMB, DOH in 2022 also launched its electronic logistics management information system (eLMIS), which will digitize the health commodity management and distribution of the health department.—Roumina Pablo
