Home fortification, using Multiple
Micronutrient Powders
Products, Procurement
and Supply
Jan Komrska & Alison Fleet
UNICEF Supply Division
Medicines and Nutrition Center,
Nutrition Unit
Outline
• Key product characteristics
• How MNP products could be
purchased/ordered?
• Product Price
• Manufacturing Process
Objective of the Supply
• To deliver right quantities of right
product, to the right locations and at the
right time.
• To minimize costs and to satisfy quality
requirements.
Supply Process
Plan
Expression of need
for a product
Procure
Produce
Deliver
Product arrives to
the port of entry
Plan
•
•
•
•
•
Definition of requirements
What?
How many?
Where?
When?
How much?
•
•
•
•
•
Specification
Quantity
Delivery address
Delivery date
Available budget
Plan
Vitamin and Mineral
Powder
(MNP)
Product
Plan
Specifications (HF TAG)
• Name of the product
– VITAMIN and MINERAL POWDER
• Composition
– 15 components
• Label language
– English x local language
• Instructions for use
– Text x Pictograms
Plan
Standard Product(1)
Plan
Standard Product(2)
Plan
Standard Product(3)
• Available through UNICEF Supply Division
• Suitable for pilot projects or small orders
Plan
Customised Products
Haiti
Yemen
Nepal
Rwanda
Kyrgyzstan
Plan
Product characteristics
Product shelf life – 2 years
Under storage conditions indicated by the
manufacturer
Plan
Quantification of needs
• Good forecast and higher volumes result
in:
– Cost saving (obtaining better price from the
supplier)
– Better lead time
– Less stock in warehouse
– Uninterrupted supply
Plan
Timelines
Standard
product
3 – 4 weeks
Confirmation of Layouts
Warehouse Processing
4 weeks
8 – 12 weeks
Production
Shipment by Sea
Clearance at the port
TOTAL
Customised
product
4 – 6 weeks
4 – 6 weeks
2 weeks
2 weeks
10 – 12 weeks
17 – 24 weeks
Plan
Lessons Learnt
• Product specification - refer to HF TAG
Programmatic Note
• Customisation of the product layouts possible
but allow enough time
• Product shelf life is short – plan for continuous
orders to avoid long storage time
• Storage conditions need to be adhered to keep
the product fresh
• Forecasting product quantities is very important
Procure
Regulatory environment(1)
• Principles of public procurement:
– Fairness
– Transparency
– Equal treatment
• Registration of the product:
– Law on medicinal product for human
use
• Import/VAT regulations
Procure
Regulatory environment(2)
• Why MNP should not be registered as
medicine?
– Product does not claim to treat a specific disease
– Product is not usually manufactured by
pharmaceutical companies
– Premix components comply with the Food
Chemical Code (FCC) not Pharmacopoeias
– Product is not distributed exclusively through
pharmacies
• MNP should be registered as food supplement
however country specific constrains may require
other registration avenues
Supplies of MNP
Procure
Number of countries ordering MNPs
45
40
2011: 4 million
monthly doses
purchased
35
30
2014: 11 million
monthly doses
purchased
25
20
15
2012: 9 million
monthly doses
purchased
10
5
0
2007
2008
2009
2010
2011
Total number of countries
2012
2013
2014
MNP Prices
Procure
Price of 15 component standard layout product (USD/sachet)
0.026
0.025
0.025 USD/sachet
~
0.75 USD/PAC-30
0.024
0.023
0.022
Additional costs:
- Shipping cost
- Clearance
- Customs duties
0.021
Programming costs
0.020
0.019
2008
2009
2010
2011
USD/sachet
2012
2013
2014
Procure
HF Products Prices
Daily Dose Cost (USD ex Factory basis)
0.10
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
MNP
LNS Small Quantity
Procure
How could home-fortification
products be ordered/
procured?
• Through Agencies (UNICEF country programme /
WFP / NGOs)
• Through Procurement Agents (UNICEF
Procurement Services or GAIN Premix Facility)
• Direct procurement by the governments from
manufactures or appointed traders
Procure
Procurement
through UN Agencies
UNICEF country programme / WFP / NGOs
• Advantage:
– Funding is secured outside government (initial phases)
– Good product quality and good price
• Disadvantage:
– Product is imported, cleared under Agencies' name
– Capacity of the government is not built
– Capacity of the local industry is not built
• Suitable for initial stages of programs/pilots and in
emergency response phase
Procure
Through
Procurement Agents
Through UNICEF Procurement services (PS) or GAIN
Premix Facility (GPF)
• Advantage:
– Government is securing funds (through own resources or
donors)
– Good product quality and good price
– GAIN provides credit arrangement
– Product is imported, cleared under Governments' name
• Disadvantage:
–
–
–
–
Advance payment is required by UNICEF
Capacity of the government is not built
Capacity of the local industry is not built
Often conditioned by Donors
• Suitable for nationwide distribution
Procure
Government
direct procurement
From the manufacturer or appointed traders
• Advantage:
– Government is securing funds
– Ownership
– Capacity building for local industry
• Disadvantage:
– Prone to irregularities during the procurement process
– Technical capacity to evaluate product quality might be a
challenge
– Product quality may become less important in selection
process
– Challenge when no local suppliers/agents available
• Suitable for nationwide distribution
Procure
Lessons Learnt
• International purchase:
– Results in better price compared to local purchase
– Quality of product is easier to assure
– Conducting open international bidding might be
difficult to implement for national authorities
• Challenges in technical evaluation:
– Limited data on product provided by supplier
– Stability study to confirm product shelf life is not
available
Produce
Manufacturing process(1)
Requirements for food manufacturers:
1. Licence for food manufacturing
2. Hazard Analysis and Critical Control
Points (HACCP)
3. Recommended International Code of
Practice - General Principles of Food
Hygiene of Codex Alimentarius
4. ISO 22000:2005 (Food Safety
Management System)
Produce
Manufacturing process(2)
• Requirements for the product:
– Safety, Efficacy, Quality
– Stability Data
– Certificates of Analysis (CoA)
Finished
product
Premix


CoA
CoA

CoA
Produce
Manufacturing process(3)
Blending
Packaging
Premix
Finished
product
Produce
Manufacturing process(4)
“Local” production of MNP requires
•
•
•
Investment in 1 gram sachet filling machine
Compliance to strict hygiene and quality rules
Import of pre-mix and foil
It is not cheaper compared to international
procurement
Produce
Packaging of sachets
Produce
Finished product
Produce
UNICEF Approved Suppliers
• DSM France/Bulgaria
• DSM South Africa
• DSM/Fortitech Malaysia
• Renata, Bangladesh
• Piramal Healthcare, India
Potential suppliers:
• Stern Vitamins, Germany
• Glanbia, Germany
Consult HF
TAG website
Produce
Lessons learnt
• Limiting points in manufacturing process
– Capacity of the blender
– Capacity of the packaging machine
– Customized foil production time
• Manufacturers understanding of quality
requirements varies
– Finished product analysis are not carried out
systematically
Deliver
Product Receipt
About 100,000 packs
in one 20’’ container
Deliver
Product Storage
• Product must be stored as per product
label (dry, clean storage below 25 C)
• Good distribution practice (batch
management and tractability
• Product expiry date
Deliver
•
•
•
•
Complaints
Color
Odor
Layouts
Not possible to open sachets
Deliver
Lessons learnt
• Respect supplier’s instruction on how to store
HF products (even though these products are not
classified as pharmaceuticals)
• Allow sufficient time for stock
replenishment/reordering to avoid stock outs
• Provide feedback to purchaser/person who
drafted specification to implement
improvements
Plan
Procure
Thank you !
Produce
Deliver