Transcription of chapter 18 Managing procurement - WHO
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chapter 18 Managing procurement - WHO
chapter 18 Managing procurementSummary Introduction The procurement cycle Factors influencing pharmaceutical prices and total costs prices Reorder frequency and the total cost of purchasing Visible and hidden Overview of procurement methods Good pharmaceutical procurement practices payment and good financial management procurement by generic name (International Nonproprietary Name) procurement limited to essential medicines list or formulary list Increasing procurement volume by aggregating demand Formal supplier qualification and monitoring Competitive procurement Monopsony and pooled procurement Order quantities based on reliable estimate of actual need Transparency and written procedures Separation of key functions Product quality assurance program Annual audit with published results Regular reporting on procurement Organization and management of the procurement and distribution functions by senior management Responsibilities in the procurement process procurement office staffing and management Financial sustainability of funds for pharmaceutical procurement Access to foreign currency exchange Reliable payment mechanism Financial support f
18 / Managing procurement 18.3 18.1 Introduction The pharmaceutical procurement system is a major deter-minant of pharmaceutical availability and total pharmaceu-
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