MEDICINE PROCUREMENT

8/13/2019 MEDICINE PROCUREMENT

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Definition

Procurement is the process of obtaining/acquiring supplies and services and can achieved

through purchase (buy), manufacture in-house (from available materials), receive

donation (in kinds), agencies W !, "#$%&' or bilateral aid program also this may

occurs in cycles, as long as need persists to consume the supplies and services

Pharmaceutical procurement is particularly prone to poor governance, as it entails

comple process, hich involves several stakeholders including government ministries,

manufactures, hospitals, and other distributors* When pharmaceutical procurement and

supply chain systems ork effectively they offer high levels of quality cost effectiveness,

product availability, transparency, accountability and value for money in the use of public

funds*

PHARMACEUTICAL PROCUREMENT IN TANZANIA.

Pharmaceutical procurement process in +an ania may occur at different service level

(%entral edical .tore, ealth faculties, Private pharmacy, distribuors etc) so at each

level may use different types of procurement depend upon on the policy system e ist* ll

pharmaceutical procurement method at any lever of the health system fall into one of the

basic categories0 !pen tender, restricted tender, competitive negotiation and direct

procurement* o ever each of these methods can be used ith any of the standard

purchasing models 1 annual, scheduled, or perpetual revie *

CENTRAL MEDICAL STORE

t the %entral edical .tore procurement of essential medicines and all other category of

product are procured by the .D +ender 2oard* +he tender board membership is

comprised of people ith different qualifications including, Pharmacists, 'inancial

e pert, aterial anagement staff and 3ogisticians* .o this may result into the central

buying unit manages the purchase on behalf of member* ost essential medicines and

supplies stocked at .D are procured by tender through $nternational %ompetitive

2idding, #ational competitive bidding, #egotiated tender, selective bidding, direct

procurement and shopping* .o the %entral edical .tore have the duties of to procure

and distribute to all health facilities in +an ania*


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PUBLIC HEALTH FACILITIES

+hose public health facilities dra their requirements from .D either through their

respective funds deposited at a .D direct by ! .W or by direct purchase using their

o n funds froma other sources including government basket funds* +hose ho

participate in procurements are .upplier officer, Pharmacist or 4% coordinator, %linical

officer, head of facility depending on the facility in question*

HOSPITALS:

+he ordering mechanism for essential drugs is as follo s0

ospital and D !5s procure directly from the .D on a cash and carry basis* +his is

undertaken by entering a onal store and procuring items in stock based on their amount

on their account or cash on hand*

.o kits are planned on annual basis together ith ! .W are procured and distributedaccording to this plan

HEALH CENTRES AND DISPENSARY

$ndent and $3. orders are in Principle the same, here Primary ealth 'acility fill in an

individual order (4 6 4) report hich have a list of all essential medicines according to

health facilities level, ('orm 7 , 'orm 72 and 7%) this is for dispensary, health center

and ospital respectiely and send to D ! ho channel it to .D here it is packed

individually and shipped to the D ! ith P ' name on the bo * $t is then transported to

the P ' by the D !* +his as done on quarterly basis

2ut no .D try doing a P$3!+ study of direct delivery services to the ealth 'acilitis


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Vertical pr !ra""e:

Procurement of vertical programme drugs is carried out partly by .D and partly by

e ternal procurement agents like %ro n gents and "#$%&' that is are procured only

under special request by the respective programme* .o the ! .W and programs

mobili e enough funds from the government or development partners or both and deposit

the same to .D hich in turn advertise tender,

via MSDvehicle

MSDCentral and Zonal

Stores

GovernmentDispensaries and

Health Centers

District

via districtvehicle

via MSD or hospitalvehicle

Dispensaries &Health Centers:

Serve clientsPrepare orders

Collect local funds

Hospitals :Serve clients

Prepare hospitalorders and funding

MSD Central/Zonal:Procure

StoreDistribute

Role

MOH Programme

Managers

MOH Central:Forecast needs

Allocate central fundsSupervise

CLIEN S

Hospitals(Government/FBO/

NGO

Flo! o" s#pplies

Flo! o" orders

NGODispensaries and

Health Centers

via district or N!"vehicle

Districts:Revie# $ approve

dispensar% and healthcenter orders

Allocate local fundsDeliver to facilitiesStore supplies in

transit


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ll vertical programme under the ! .W in +an ania use .D for storage and

distribution of their $tems* +he .D utili es the same storage and distribution net ork

for vertical programme items as is used for essential drugs that is its $+ system,

personnel, arehouse , trucks, etc,

.o it as the duty of programme manager or district coordinator to fill all the order report

(464) and submit them to .D for processing*

Pri#ate $%pplier:

Private holesalers operate under the simple mechanism of procuring items and selling

them ith mark up covering the cost of the operation as ell as profit* +he prices of

private holesale are not regulated by the government but the selection of medicines is

limited to drugs registered under the +'D *

.o some health facilities, procure medicines and supplies from private pharmaceutical

holesalers and private pharmacies* +his ill happen after the items ere out of stock

from .D so can be procured through quotation basis or vendor system depend on hich

system e ists at that district or regional level*

A!e&cie$ ' D &ati &:

lso sometime hospitals, health centers and dispensary may get assistance of

pharmaceutical products from the donors or gencies such as W ! and "#$%&'* 2ut

this assistance of pharmaceutical products should comply ith the list of #ational

&ssential Drugs according to the level of services and .tandard +reatment 8uideline*

OB(ECTIVES OF )OOD PROCUREMENT PRACTICE

Procure the right drugs in the right quantities at the lo est possible total cost* +his

may help to reduce the occurrence of drug resistance and the over stock of the

products

.elect reliable suppliers of quality products* .upplier should be fle ible and able

to provide service and satisfy the need of the customer*


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&nsure timely delivery and notification* .upplier should be able to delivery the

service on time and according to the planned schedule and contract made* +his

may increase the sustainability of pharmaceutical product

E*AMPLES OF )OOD PHARMACEUTICAL PROCUREMENT PRACTICE

8eneric name0

l ays e use generic names ($nternational #on-Proprietary name, $##) for fair

competition* .o e need to specify 9uality .tandards, not specific brands, for drugs

ith bioavailability problems* .ince this emphasi e the #&&D to reduce cost via

generic purchase*

3imited to essential medicines list or formulary list0

+his can be done by .elect .afe, &ffective, %ost-effective drugs* .ince e cant buy

every thing in a real situation* lso hen required, use formal approval procedures

for procurement of non-listed medicines

2ulk purchases0

%oncentrate purchases on limited 3ist to increase quantities, reduce price also e

need to specify divided deliveries

'ormal supplier qualification and monitoring*

"se formal supplier qualification based on medicine quality, service reliability, and

financial viability* +his may help to the service to be standard and smooth oriented

ith minimal resistance pprove suppliers before tendering (Prequalification) or after

(Postqualification) this may be done by using a formal onitoring .ystem to &nsure

continued supplier qualification*


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%ompetitive bidding process*

"se %ompetitive bidding on all but very small or &mergency purchases to obtain the

best prices* $n 4estrictive tender, only prequalified suppliers should be allo ed to

compete* $n !pen tenders, suppliers must be evaluated after submission of bids*

%ommitment to a sole source0

Procure all contracted medicines only from inning suppliers* Do not enter into any

separate deals ith non-contracted suppliers* $f you do so it may reach a point they

ill sell to us at high price or even high chance of corruption to occur

EFFICIENT AND TRANSPARENCY PHARMACEUTICAL PROCUREMENT.

$t may happen in system hereby all duties of procurement of pharmaceutical material

ere done by one person or one office* +hese duties such as product selection,

forecasting, product specification etc all these ere done by one individual person or

office* +his may result into people using this loop hole being engage in corruption

activities* .o it should better if different procurement and supply management activities

and responsibilities should be divided among different offices, committees and

individual, each ith appropriate e pertise and resources for specific function*

lso in most of public sector conte t the reality is that all function of the drug

procurement process are entirely in the hand of one office or official* .o ithout

appropriate separation of function and authority the procurement process is much more

susceptible to influence by special interest* +his may result into procurement personnel

may be able to bias drug selection, manipulate orders to increase the quantities, pre:udice

supplier qualification decisions, manipulate the final a ard tender and slant product

specification to limit competition* .eparations of key functions contribute to

professionalism accountability and efficient procurement system*

lso in a system here by management may not ant a computeri ed system in order for

the benefit of people* +his may result into a system being not efficient in using their


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resource since people may use this loop hole to benefit themselves* .o it as advisable to

have a procurement and supply management activities that are ell planned and

performance to be monitored regularly*

&very thing conducted in procurement should be reported* +he organi ation should make

sure that efficient and reliable information management system should be in place this

may help to track the flo of product in the system*

* lso it is required even once a year the procurement department be audited by e ternal

auditor and audit report issued

MEDICINE PROCUREMENT

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