Tata Steel Group Benefits from Integrated Procurement Approach
The Benefits of Joint Procurement
Transcript of The Benefits of Joint Procurement
ORGANISATION OF EASTERN CARIBBEAN STATES
Pharmaceutical Procurement Service (PPS)
The Benefits of Joint Procurement:
hardware, software, and pharmaceuticals
9 September 2009, CDB W/Shop
Outline
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• Organogram
• Vision
• Justification
• Milestones
• Institutional arrangement
• Critical success factors
• Benefits of joint procurement
Organogram
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OECS Director General
Dr. Len Ishmael
OECS Social and Sustainable
Development Division (SSDD)
Director
Dr. James Fletcher
OECS/PPS
Staff
Mission
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OECS/PPS
MISSION STATEMENT
“Our mission is to maximize healthcare
services of the OECS countries by
pooled procurement and management of
pharmaceuticals and related medical
supplies.”
OECS Member States
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Antigua and Barbuda
Anguilla
British Virgin Islands
Dominica
Grenada
Montserrat
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
570K people
Background
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Financial constraints have made it difficult
for OECS countries to adequately finance
supply of medicines to health institutions.
Justification
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Efficient procurement provides greatest
opportunity for cost-savings.
Selection
ProcurementUse
Distribution
Managing
Drug Supply
Milestones
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1986 - ECDS established in St. Lucia
1990 - Attained self-financing status
1995 - Authority renamed OECS/PPS
2004 - Topped ECM$10 in purchases
2009 - Spiralled to M$21 procurement
Achieved annual cost savings of approx. 30%
Institutional Arrangements
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• Accession
• Secession
• Legal agreement
• Full judicial personality
• ECCB is payments’ agency
Critical Success Factors (1)
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•Reliable MIS
•Written, transparent procedures
•Permanent Secretariat with professionals
•International Competitive Bidding (ICB)
Critical Success Factors (2)
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• Formal, signed agreements
• Existing umbrella organization
• OECS participating committees
• High-level Political commitment
• Common ,stable, currency and Central Bank
Procurement
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700 Product portfolio
• Contraceptives
• Pharmaceuticals
• Medical Supplies
• Radiological products
Ordering Process
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Client submit
requisition
PPS place
order
Supplier ship
to consigneeClient submit
GRN to PPS
Benefits of joint procurement
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• Monopsony, strong bargaining power
• Sharing of information & experience
• Regional & functional cooperation
• Enhanced quality control strtegies
• Coodinated training in managing meds
• Increased access to essential medicines
Benefits of joint procurement
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• Common Regional Formulary
• Continuing Medical Education
• Drug Utilization Review studies
Medicine Formulary
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7th edition of OECS medicine
formulary listing 550 medicines to be
be published in September 2009.
Challenges
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• Late payments
• Managing donations
• Purchasing outside the cartel
• Opposition and influence by suppliers
• Countries poor forecasting and tardy response
Benefits of joint procurement
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• 1k PSA
• 8k supplier
• US$M35 savings
Hardware and software –
Romania e-gov’t Project
Benefits of joint procurement
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• 50 employees
• Technical savvy
• Strong political will
• Network of 3,000 computers
• Operational information society nucleus
Hardware and software –
Cape Verde e-gov’t Project
Benefits of joint procurement
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• Increased transparency
• Enhanced tax collection
• Reduced fraud and corruption
• Reduced unit cost of public service delivery
Hardware and software –
Cape Verde e-gov’t Project
Benefits of joint Regional integration
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• 6 OECS governments
• World Bank- financed
• ICT for public sector modernisation
legal,financial management,e-procurement
OECS E-GRIP Project
Benefits of joint procurement
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Joint procurement of hardware,software,medicines:
A cost-effective strategy ICT modernisation
Take home message
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Thank You
Head of Unit