Interagency Supply Chain Group (ISG)

Liliane Kandeh and her son picking up their malaria drugs, Freetown, Sierra Leone. © UNICEF/Asselin.
Interagency Pharmaceutical
Coordination Group
Hitesh Hurkchand
RMNCH Strategy and
Coordination Team
Washington DC June 6, 2016
Interagency Supply Chain Group Update to
the Interagency Pharmaceutical
Coordination Group
Interagency Supply-Chain Group comprising policy and funding bodies
• Overall Vision - The global development partners will collaborate in support of
countries’ efforts to reach the goals of universal health coverage in part through
sustainable access to quality essential health commodities and supplies at the right
time, in the right place and at affordable cost for those who need them, through
cost-effective and efficient procurement and supply systems.
• Partnership of 14 major actors involved in providing supply chain support to
countries:
The Global Fund, USAID, DFID, The World Bank, GAVI, UNICEF, UNFPA, WHO, The
Bill and Melinda Gates Foundation, Norway, Canada, German Development
Bank, The Global Drug Facility and World Food Program
• Informal Group - ISG Secretariat hosted by the RMNCH Trust Fund since 2014
through support from the Norwegian Government. Transitioning to WHO as of July
2016.
Update – Overview from March ISG
• USAID GHSC
• Information Systems and Data Visibility
• Supply Chain Key Performance Indicators
• Commodity Credit Facility
• Global Financing Facility
• ISG Global Collaboration Review
• Commodity Handling Fee
• Engagement with the Accessibility Platform
• Global Response to Medicine Shortages
• ISG Secretariat
GHSC
Procurement and Supply
Management (GHSC-PSM)
Rapid Test Kits
(GHSC-RTK)
Technical
Assistance (GHSC-TA)
Procurement & shipping of health
commodities; supply chain technical
assistance
Procurement &
shipping of HIV
RTKs
Supply chain technical
assistance
Chemonics
Remote
Medical
International
11/22/23
2/26/18
Chemonics
Axios
LMI
PricewaterhouseCoopers
Systems for
Improved Access to
Pharmaceuticals and
Services (SIAPS)
Supply chain and
pharmaceutical
services technical
assistance
Technical
assistance for
medicines quality
assurance
mechanisms
MSH
USP
9/22/17
9/17/19
3/1/23
Research and Development
TBD
Quality Assurance (GHSC-QA)
The Coca-Cola Last Mile Project
Quality assurance of procured commodities; technical assistance
Applying Coke best practices to public
health supply chains
06/2019
FHI360
12/31/19
Promoting the
Quality of
Medicines (PQM)
R&D for health supply chains and
related commodity security
issues
Business Intelligence and Analytics (GHSC-BIA)
Collect and integrate data across programs to support GHSC
management and coordination
Intellicog
4/24/19
Supply Chain
Management
System
USAID |
DELIVER
PROJECT
Update – IPC June 6
• ISG General Impressions on GHSC
• Red box - risk of any partners in RB not getting sufficient traction with
USAID support
• USAID to extend current mechanism to allow for enough overlap (risk
mitigation) and assure a smooth transition of work done both at country
and global level under Deliver and PFSCM.
• Under the TA box, there is risk that IPs deliver conflicting marketing
pitches resulting in confusion that might be create at the various levels
with stakeholders. TA coordination must be done at a higher level,
presumably under leadership of USAID with support of ISG.
Update – IPC June 6
• Info systems and data visibility (interoperability with DHIS2).
• UNICEF are finalizing a LTA with University of Oslo for DHIS2 support
globally.
• RMNCH Trust Fund has also supported two projects in Senegal and
Tanzania
• WBG supporting interoperability project in DRC.
• Also clear that the DHIS 2 is not a LMIS, however where there there’s
not an electronic system the DHIS2 is quite useful and a maturity model
should be put in place (same applies to LMIS implementation) with a
focus on people and processes.
Update – IPC June 6
• Info systems and data visibility (interoperability with DHIS2).
• Also critical to get visibility on demand and the challenges on
interoperability.
• Outcome from the ½ day HMIS / LMIS interoperability meeting is to
understand how to manage the demand from countries, and map out
current investments.
Update – IPC June 6
• Supply Chain Key Performance Indicators
• ISG KPI harmonization exercise in 2015. Ask to the ISG was to adopt a
uniform set of KPIs for up/down stream reporting on SCM
• Adoption is slow
• TGF has been using these in guidelines to countries;
• USAID have provided KPIs to their partners as standard indicators to
include in their PMP
• Feedback from agencies on operationalizing KPIs at June ISG
• Disseminate KPIs through the IAHPL, UNCoLSC and other platforms.
• WHO KPI policy development
Update – IPC June 6
• Commodity Credit facility
• RMNCH TF through consultative efforts with donors and agencies have
put together model of a commodity credit facility to resolve some
country bottlenecks and potentially fund a pilot using the USAID pledge
guarantee fund
• RMNCH TF would resource pilot but the question is could this credit
facility work in Africa?
• The use of Pledge Guarantee for Health Fund from USAID is now not
available and the pilot was in a holding pattern as of March 2016
• Sida loan guarantee made available and RFP launched in May 2016.
Update – IPC June 6
• Global Financing Facility
• Commodities and supply chain have come up in context of GFF at
country level.
• GFF is prioritizing this issue within their current and new investment
cases
• There will be an agenda item in June 2016 meeting of GFF on
commodities with the main entry point as the transition of UN
Commodities Commission, which is winding down.
Update – IPC June 6
• ISG Global Collaboration Review
• Global health leaders meeting has had supply chain on their agenda for
1-1.5 year
• The SCT prepared a TOR for a review of level of collaboration at the ISG
at country level. Country visits (Senegal, Nigeria, Tanzania, Zambia, and
Ethiopia) done only in February
• The ISG should have a deliberate consideration of donor coordination
at the ISG global level then decide on how to support country
coordination.
• On learnings and take away from the review, the question is how to
communicate recommendations to the countries
Update – IPC June 6
• ISG Global Collaboration Review
• Differences in models and ideology
• Political economy of supply-chain reality is often not factored into planning in
these SCM investment cases.
• Communication, Trust, empathy and understanding of what drives better
collaboration was perceived as limited between agencies and governments
• Power balance, competition and positioning
• Coordination takes time, resources and effort
• Institutional incentives and ways of working may not be aligned.
Update – IPC June 6
• Commodity Handling Fee
• The range of fees span from managing, storing and distributing commodities. TGF for
example, pay 5% handling fees in some countries. Government are also having to charge
more to cover costs. One country review showed management fee to be 8% with 6.5%
flat fee and a potential 1.5% extra when achieving agreed upon benchmarks.
• There are also separate agreements between donors and Government regarding who
pays what. The issue on handling fees are relevant to the ISG because it seems that
different financiers are having different approaches.
• Is there a path to a more coherent approach to this harmonizing the handling fees?
• ISG should generate an output dedicated to country stakeholders for them to
determine a fair mark up fee.
• Consider a position paper with strategic action points to address the challenge of
commodity handling fees, that we take to the health leaders at some point
Update – IPC June 6
• Engagement with the Accessibility Platform
• The Accessibility Platform is an informal group comprised of a 14
pharmaceutical corporations that contracted an NGO in Geneva to
understand how they can better support SC coordination.
• ISG agreement to informally assist AP with guidance and engage
accordingly.
Update – IPC June 6
• Global Response to Medicine Shortages
• ISG Secretariat
• Decision to host the ISG secretariat in 2016.
Thank you