who medicines strategy - libdoc.who.int - World Health Organization

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WHO MEDICINES STRATEGY 2004-2007 | 78EO 4.4Procurement practices andpurchasing efficiency improvedthrough guidance on goodprocurement practices, medicinesmanagement informationsupport, and work with countriesto strengthen procurementprocedures.RationaleGood procurement practices are essential toensure access to essential medicines. Procurementinvolves efforts to quantify drug requirements,select procurement methods, prequalify productsand suppliers, manage tenders, establish contractterms, assure drug quality, obtain best prices, andensure adherence to contract terms.The aim is to:> procure the most cost-effective drugs in thequantities needed> select reliable suppliers of quality products> ensure timely delivery> achieve the lowest possible total cost.Transparent procurement procedures influencequality and affordability and are essential toensure a reliable supply of medicines 39 . Inefficientprocurement systems have been found to payup to twice the world market price for essentialmedicines. 40 Poor quality medicines or delayeddeliveries from unreliable suppliers contribute tounnecessary waste of budgets, life-threateningshortages, antimicrobial resistance, and avoidablefatalities.ProgressOver recent years, WHO has supported countries,directly or through regional efforts, in their effortsto help strengthen procurement. Savings of 25%-50% in purchase prices and procurement ofquality medicines have been documented in someof these programmes. Assistance has also beenprovided for the establishment of sub-regionalprocurement systems in West Africa and thePacific Islands.Recent policy guidance and operational researchhas included:> Operational Principles for GoodPharmaceutical Procurement, published byWHO with five UN agencies, 1999.> Practical Guidelines on PharmaceuticalProcurement for Countries with SmallProcurement Agencies. WHO Western PacificRegional Office (WPRO), 2002.> Interim Guidelines for the Assessment of aProcurement Agency. WHO, 2003,> Updated lists of qualified suppliers of selectedmedicines for HIV/AIDS, TB, and malaria.This is one of the outcomes of the PilotProcurement Quality and Sourcing Project,supported by UN agencies and the WorldBank.> Operational Package for Assessing CountryPharmaceutical Situation. WHO, 2003.
COMPONENTS OF THE STRATEGY | 79Challenges remainingExisting government policies, rules, andregulations for procurement, as well asinstitutional structures, are frequently inadequateand sometimes hinder overall purchasingefficiency. Other continuing challenges includeerratic funding, lack of accurate objectiveinformation, poor decision-making processes,and poor supplier performance. More recentchallenges include: increasing pressure onprocurement agencies to obtain the lowestpossible price; greater difficulty in assuring thesource and quality of medicines in an increasinglyglobal pharmaceutical market; and the needfor procurement agencies to better understandpatents and the available safeguards in the TRIPSAgreement. Government procurement agenciesare also affected by emerging trends such asincreasing interest in regional and sub-regionalprocurement, large-scale procurement withGlobal Fund financing, and the integration of theprocurement of products for reproductive healthinto the regular government procurement systems.Meeting the challenges 2004-2007Over the next four years WHO will:> expand its work on good procurementpractice to support regional and nationalefforts to improve procurement systems andpractices.OUTCOME INDICATORS1999 2003 2007No. of countries with at least 75% of public sectorprocurement carried out by competitive tender> complete work on the Guidelines forAssessment of a Procurement Agency.> expand the listing of qualified suppliers ofselected essential medicines and technicalguidance on patents.> provide support to at least 20 countries in theuse of the Operational Package for AssessingCountry Pharmaceutical Situation.> facilitate WHO’s ‘3 by 5’ initiative bysupporting about 30 countries with high HIV/AIDS incidence in efforts to strengthen theirnational procurement systems.#REPORTING % TARGET#REPORTING % TARGET81/88 92% 95% 58/70 83% 87%
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REFERENCES | 1471Annual report 2000
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