WHO/UNICEF Technical Briefing Seminar on
Essential Medicines Policies
Geneva, 19-23 September 2005.
UNICEF is mandated to advocate
for children’s rights and to help
meet their basic needs.
ACCESS to essential supplies is
fundamental to children’s right
to good health, basic education
and protection from harm.
LEARNING OBJECTIVES
At end of presentation, participants will be able to broadly:
• Define supply chain management, including
procurement, in the context of medicines.
• Identify elements of a typical supply chain and UNICEF’s
global and country supply function.
• Identify key elements of a medicine supply system,
including operating environment, tender management,
quality assurance, logistics and management information
system.
• Identify current good practice principles and strategic
objectives for medicines supply management.
DEFINITIONS
SUPPLY CHAIN MANAGEMENT:
• An organised oversight/coordination of the
movement of products, information, and
finances in a supplier/ consumer/supplier cycle
of events.
PROCUREMENT:
• Actions and arrangements for getting
possession of/obtaining a needed
product/service.
BASIC COMPONENTS OF SUPPLY
CHAIN MANAGEMENT.
(SUPPLY CHAIN OPERATIONS REFERENCE MODEL)
PLAN:
Strategic resource management, forecasting supply/demand,
developing metrics to monitor efficiency, costs, delivery time,
quality etc.
SOURCE:
Pre- qualify and manage supplier relationships, optimise pricing,
delivery and payment processes, monitoring and improve
relationships, inventory management.
MAKE:
Pack and prepare goods/services for delivery.
DELIVER:
"Logistics." - coordinate receipt of orders and warehousing,
transportation, accounting paper work and action.
BASIC SUPPLY CHAIN
MANAGEMENT OUTCOMES
•
•
•
•
•
Right goods and services
Right place
Right time
Right quantity
Right cost.
EMBODIMENT OF “ACCESS”
BRIDGING THE SUPPLIES
“NEED/ACCESS” GAP
NEED
ACCESS
CREATING THE ENABLING
ENVIRONMENT
UNICEF PRIORITIES 2002-5 AND
THE SUPPLY FUNCTION
IMMUNIZATION
PLUS
• Vaccine Campaigns
• Vaccine Security
• GAVI
• Vaccine Safety
• Polio Eradication
CHILD
PROTECTION
•School-in-a-Box Kit
HIV/AIDS
• Tech. Support
•WES
GIRLS’
EDUCATION
• ARVs
• Roll Back Malaria
• PMTCT
• Essential Medicines
• Test Kits
• Micronutrients
• Water & Sanitation
• Emergency
Response
EARLY
CHILDHOOD
UNICEF WORKING WITH COUNTRY PARTNERS ON
SUPPLY ISSUES
PLAN
Product
Selection
Country
Rational Use
Govts.
&
CSOs.
Distribution
Forecasting
SOURCE
& MAKE
Receipt and
Storage
DELIVER
Supplier
Selection
Product
Procurement
Quality
Assurance
Office
Supply
Division
FUNCTIONAL
ORGANISATION
Programs
Country
Offices
Partners
Customer
Services
Procurement
Technical
& PMT
Technical
& PMT
Services
Suppliers
Suppliers
Contracting
Contracting
Quality
Asurance
Quality
Assurance
Copenhagen
Warehouse
UNICEF Management and Support Services
SUPPLY SYSTEM ISSUES
• National Policy/Regulatory/Legislative framework
• Programme design: product selection, standard setting,
quantification
• System choice – CMS, Autonomous, Direct delivery,
Prime vendor, Fully private
• Costing/Funding
• Trade/Commerce
• Tender process and management
• Logistics
• Quality Assurance
• Monitoring and Evaluation
PROCUREMENT OF MEDICINES special considerations
•
•
•
•
•
Quality, Safety and Efficacy are critical
Regulatory environment is rigid
Delay in delivery could border on life & death
Consumer’s choice is generally limited
Public Healthcare is socially & politically sensitive
PRINCIPLES OF GOOD
MEDICINES PROCUREMENT
•
•
•
•
•
•
•
•
•
•
Procurement by generic name
Procurement to be guided by National/WHO EML list
Bulk procurement
Competition
Formal supplier qualification/monitoring
Order quantities based on reliable estimate of need
Good financial management including payments
Transparency and written procedures
Separation of key functions
Proactive quality assurance
CONCLUSION
•
•
•
•
•
MEDICINES PROCUREMENT IS PART OF
PROGRAMME RESPONSE : we should understand
the basics of our programme
SUPPLY CHAIN MANAGEMENT REQUIRES
SYSTEMATIC/CO-ORDINATED ORGANISATION:
Define system in detail, assign responsibilities and
accountabilities and routinely monitor events.
FINANCING IS CRITICAL: Secure and manage
funds effectively and efficiently
HUMAN RESOURCE CAPACITY: Recruit, motivate,
train competent and trustworthy personnel
PRINCIPLES: Follow tried and tested good practices
CONCLUSION
•
•
•
•
LEGISLATIVE, REGULATORY AND COMMERCIAL
CONTEXT: understand and ensure full compliance in
advance.
SUPPLIER INTEGRITY: pre-qualify suppliers,
manage tender process transparently, monitor
performance.
PRODUCT AND PROCESS QUALITY: monitor and
evaluate and take action.
INFORMATION SYSTEM: maintain information
integrity and flow for action. Sources abound on the
internet.
Some useful references

Managing Drug Supply (Second edition) ,
Management Sciences for Health in collaboration
with WHO, 1997, 832 pages [E]
ISBN 1-56549-047-9

Operational Principles for Good Pharmaceutical
Procurement Interagency guidelines, 2000, 24 pages
[E]
Ref.no. WHO/EDM/PAR/99.5

Management of Drugs at Health Centre Level,
Training Manual (AFRO 2004)
http://www.who.int/medicines/library/general/Manage
mentDrugsHealthCenterLevel_whoafredp04_3.pdf
Some useful references contd.




Guidelines for the Storage of Essential Medicines
and Other Health Commodities
(JSI/DELIVER/WHO/UNICEF 2003)
http://www.who.int/medicines/library/theme/theme_su
p.shtml#1
Inter-agency Guidelines on Drug Donations (1999)
http://www.who.int/medicines/library/par/who-edmpar-1999-4/who-edm-par-99-4.shtml
Inter-agency guidelines on safe disposal of unwanted
pharmaceuticals in and after emergencies (1999)
http://www.who.int/medicines/library/par/who-edmpar-1999-2/who-edm-par-99-2.shtml
UNICEF Supply Catalogue -
http://www.supply.unicef.dk/catalogue/