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Procurement and Supply Management

Procurement and Supply Management. Landscape of existing investments and priorities Lisa Hedman Department of Essential Medicines and Health Products Policy Access and Use. Landscape of investments. Interagency Supply Group (ISG) members* † undertook an informal landscaping exercise.

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Procurement and Supply Management

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  1. Procurement and Supply Management Landscape of existing investments and priorities Lisa HedmanDepartment of Essential Medicines and Health ProductsPolicy Access and Use

  2. 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

  3. 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 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

  4. 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

  5. Investments are strong, but coordination could be better

  6. Photo: Lisa Berg Hedman, WHO Well-resourced GF procurement reported a 36% OTIF rate.l OTIF = on time in full

  7. 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

  8. 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

  9. Investment by responding agencies

  10. Investment by program type

  11. Investment by technical area

  12. Alignment with country priorities (highlights from select GF PSM concept notes)

  13. 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.

  14. 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. 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. 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.

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