Procurement and Supply
Management
Landscape of existing
investments and priorities
Lisa Hedman
Department of Essential Medicines and Health Products
Policy Access and Use
1 | PSM landscape, IHP+ June 2014, Geneva
Landscape of investments
 Interagency Supply Group (ISG) members*† undertook
an informal landscaping exercise.
 ISG polled current participants on their investments in
Procurement and Supply Chain Management (PSM).
– What program areas?
– What technical PSM areas?
– If possible, how much funding?
*WHO, UN Commission on Life Saving Commodities, and Reproductive Maternal
Newborn and Child Health Trust (RMNCH) (Hedman, L, Bijleveld, P)
†RMNCH Trust includes investments from Norway, DFID and others
2 | PSM landscape, IHP+ June 2014, Geneva
Rationale
Global medicines market estimated
to increase:
US$235 billion, reaching up to $1.2 trillion
by 2017
Increasing role of external funding
in country medicines budgets:
15% average increase from 2000 – 2012
landscape, IHP+ June 2014, Geneva
3 | PSM
1-The Global Use of Medicines: Outlook through 2017. Report by the IMS Institute for Healthcare Informatics.
2-World Health Organization Global Health Expenditures database http://apps.who.int/nha/database
Rationale
Proliferation of performance indicators
– Few relate to performance, management
or connect to systems such as results
based financing
Promising technologies, innovations are
fragmented in use, unclear if scale up
would be possible
– SMS-for-Life, C-stock, Rolling
Warehouse, Topping up
4 | PSM landscape, IHP+ June 2014, Geneva
Investments are strong, but
coordination could be better
5 | PSM landscape, IHP+ June 2014, Geneva
Photo: Lisa Berg Hedman, WHO
OTIF = on time in full
6 | PSM landscape, IHP+ June 2014, Geneva
Interagency Supply Group
Overall Vision
The global development partners will collaborate in
support of countries’ efforts to have sustainable access
to quality essential health commodities and supplies at
the right time, in the right place and at lowest possible
cost for those who need them, through cost-effective
and efficient procurement and supply systems.
Current participants: WHO, UNICEF, UNFPA, GAVI, RMNCH
Trust, World Bank, Global Fund, multiple implementing partners
7 | PSM landscape, IHP+ June 2014, Geneva
Interagency Supply Group
 Recently hosted by the Interagency Pharmaceutical
Coordination (IPC) and drafted a common vision
 Undertook an informal landscaping of PSM investments
 Priority global activities identified by the ISG
–
–
–
–
–
Revisions of PSM KPIs
Incentives to engage in coordination down to operational levels
Information sharing e.g., assessments
In depth analysis of systems options for the future
Supporting country PSM strategic plans
8 | PSM landscape, IHP+ June 2014, Geneva
Investment by responding agencies
Principal supply-chain efforts by agency and health condition
RH
USAID
HIV
Malaria
TB
MCA
Imm.
NTD
16
17
15
11
11
10
4
Gates Found.
6
1
1
1
0
10
0
Global Fund
0
17
17
17
0
0
0
GAVI
0
0
0
0
0
16
0
UNICEF SD
12
12
12
0
12
15
0
UNFPA
10
0
0
0
0
0
0
WHO
0
0
0
0
0
0
0
World Bank
0
0
0
0
0
0
0
14
0
0
0
14
0
0
RMNCH
9 | PSM landscape, IHP+ June 2014, Geneva
Investment by program type
Average number of intervening agencies per intervention
area, by health condition
Reproductive Health
3.2
HIV
2.6
Malaria
2.5
TB
1.6
Maternal and Child Health
2.1
Immunization
2.8
NCDs
0.2
10 | PSM landscape, IHP+ June 2014, Geneva
Investment by technical area
Number of X per intervention
Pooled procurement/demand consolidation
21
LMIS, implementation/ operations
19
LMIS, capacity development
20
Human resources development
19
Procurement, policy and governance
16
Procurement, capacity development
17
Supply chain, capacity development
20
Decentralization initiatives
12
CMS structures
8
Monitoring and evaluation
17
3PLs
10
Cold chain
Supply chain integration
Alternate transportation model (e.g. rolling
warehouse)
Supply chain technologies (e.g., RFIDs, bar
coding)
Last mile
8
22
15
15
19
Alignment with country priorities
(highlights from select GF PSM concept notes)
Kenya
Zambia
Zimbabwe
Tanzania
Uganda
Ethiopia
decentral- Warehousing - Insurance - LMIS
HR
Technology ization distribution financing upgrades development Coordination Last mile barcoding
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
12 | PSM landscape, IHP+ June 2014, Geneva
Global initiatives and opportunities
 Country PSM strategic plans are submitted within the
new GF new funding model, so opportunities for
coordination are high.
 World Bank and Gates launching knowledge initiatives
on future models to accommodate growth.
 Interagency Supply Group, RMNCH Trust are
committed to harmonizing with a view of increasing the
impact of investments, country efforts.
13 | PSM landscape, IHP+ June 2014, Geneva
Conclusion
 Growth in demand for medicines may outpace existing
investment approaches.
 Serious consideration of future PSM systems and
models is urgent.
 Investments on the part of countries is considerable, but
could be better quantified.
 Efforts to harmonize systems need to be both strategic,
operational, and require incentives.
15 | PSM landscape, IHP+ June 2014, Geneva
WHO activities
 As Secretariat to the Interagency Pharmaceutical
Coordination group, offered to host the ISG long term.
 Expert meeting on KPIs scheduled for 4th Q 2014.
 Continued mapping of activities, moving into country
priorities.
 Supporting the steering committees of the World Bank
knowledge project.
 Leveraging work on the UN Commission on Life Saving
commodities to raise awareness of PSM needs.
16 | PSM landscape, IHP+ June 2014, Geneva
IHP+ potential roles
 In alignment with behavior #4 on procurement.
 Long term coordination plans in countries need support.
 IHP+ as a key partner in ISG and coordination activities.
17 | PSM landscape, IHP+ June 2014, Geneva