PSM landscape, IHP+ June 2014, Geneva 1 |1 | Procurement and Supply Management Landscape of existing investments and priorities Lisa Hedman Department

PSM landscape, IHP+ June 2014, Geneva1 |

Procurement and Supply Management

Procurement and Supply Management

Landscape of existing investments and priorities

Lisa HedmanDepartment of Essential Medicines and Health Products

Policy Access and Use


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

Landscape of investmentsLandscape of investments


Rationale 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 – 20121-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

http://apps.who.int/nha/database


Rationale 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


Investments are strong, but coordination could be better


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Well-resourced GF procurement reported a 36% OTIF rate.

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Interagency Supply GroupInteragency 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


Interagency Supply GroupInteragency 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


Investment by responding agenciesInvestment by responding agencies

Principal supply-chain efforts by agency and health condition

RH HIV Malaria TB MCA Imm. NTD

USAID 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

RMNCH 14 0 0 0 14 0 0


Investment by program typeInvestment by program type

Reproductive Health 3.2HIV 2.6Malaria 2.5TB 1.6Maternal and Child Health 2.1Immunization 2.8NCDs 0.2

Average number of intervening agencies per intervention area, by health condition

Number of X per interventionPooled procurement/demand consolidation 21LMIS, implementation/ operations 19LMIS, capacity development 20Human resources development 19Procurement, policy and governance 16Procurement, capacity development 17Supply chain, capacity development 20Decentralization initiatives 12CMS structures 8Monitoring and evaluation 173PLs 10Cold chain 8

Supply chain integration 22

15

15Last mile 19

Alternate transportation model (e.g. rolling warehouse)Supply chain technologies (e.g., RFIDs, bar coding)In

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

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

decentral-ization

Warehousing - distribution

Insurance - financing

LMIS upgrades

HR development Coordination Last mile

Technology - barcoding

Kenya X X X XZambia X X XZimbabwe X X XTanzania X X X XUganda XEthiopia X X X


Global initiatives and opportunitiesGlobal 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.


ConclusionConclusion

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.


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.

WHO activitiesWHO activities


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.

IHP+ potential rolesIHP+ potential roles

Documents

PSM landscape, IHP+ June 2014, Geneva 1 |1 | Procurement and Supply Management Landscape of existing investments and priorities Lisa Hedman Department