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Roundtable #1: Procurement Initiatives
| Moderator | Henk den Besten, International Dispensary Association, The Netherlands |
| Resource persons | Andrew Barraclough, Francis Burnett, Malcolm Clark, Michael Gabra, Andrey Zagorskiy |
| Note takers | Alix Beith (lead), Robert Staley |
View the PowerPoint presentation online.
View the transcript of the presentation online.
Download the transcript of the presentation (PDF - 123KB).
Background and Issues
An effective procurement process ensures the availability of the right drugs in the right quantities, at reasonable prices, and at recognized standards of quality.
Key lessons from essential drug procurement systems, both national and pooled, have been identified as part of work completed for the World Health Organization (WHO STOP TB: A Discussion Document on Supply Chain and Procurement Management for a Global Health Facility-see Background Materials). The lessons considered highly relevant include the following.
- Bulk purchasing contributes to reduced prices but does not guarantee access to best prices.
- Political commitment to the system is an essential condition for success.
- Guaranteed and timely payment to suppliers underpins supplier confidence.
- A strong procurement agency is essential to good prices and high levels of service.
- For multicountry procurement initiatives, harmonization of treatment regimens and product specifications facilitates good procurement practice and compliance with recommended treatment regimens.
- Generic tendering is an essential basis of essential drug procurement.
- Prequalification of suppliers simplifies procurement management and control.
- Forecasting rather than guaranteeing quantities spreads risks more fairly.
- Monitoring the performance of procurement agents and suppliers, as well as commitment to sole-source agreements, is important for successful pooled procurement systems.
- Discrete national registration requirements can be a barrier to increased product competition.
- The ability to respond to emergency needs is a feature of successful drug supply systems.
Discussion Points
- Harmonization of drug registration would facilitate pooled procurement across countries. What are the barriers to harmonization of drug registration? What could be done to encourage it?
- Information on supplier performance is important in making procurement decisions. What information should be collected? Can this information be shared? How significant are the liability concerns in sharing such information?
- How can political commitment and will in relation to developing appropriate and effective procurement systems be strengthened?
- How can transparency be ensured in procurement decisions?
- How can product quality best be assured in procurement decisions? What is the role of prequalification? Is there a role for WHO's certification system? Is it being effectively applied?
- What can be done to ensure guaranteed and timely payment to suppliers?
Background Materials
Burnett, Francis. 2001. The OECS Pharmaceutical Procurement Service: Reducing the Cost of Pharmaceuticals through Multi-state Pooled Procurement. Published for the 13th Commonwealth Health Ministers' Meeting, 25-29 November 2001, New Zealand, by OECS Pharmaceutical Procurement Service. Castries, St. Lucia.
Clark, Malcolm, and Thomas Moore. 2000. WHO STOP TB: A Discussion Document on Supply Chain and Procurement Management for a Global Drug Facility. Published for the World Health Organization by Management Sciences for Health. Arlington, VA.
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