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Dos and Don'ts of Procurement Dr Ashutosh Sharma MBBS; CIA;CISA; LA-ISO 9001 RFHHA MDP 21-22 FEB 2015

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Page 1: Dos and Don’ts of Procurement - Foundationrfhha.org/pdf/DOs and DONT'S of Procurement by Dr... · • When the period of currency is prescribed in departmental regulations is specified

Dos and Don'ts of Procurement

Dr Ashutosh SharmaMBBS; CIA;CISA; LA-ISO 9001

RFHHA MDP 21-22 FEB 2015

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Comfort

Are you comfortable as ProcurementSpecialists?

Did you think when you took the PMT ( neverliked maths) that one day you will have to dealwith numbers?

“Sometimes you meet your destiny on the veryroad you took to avoid it”.

Are you comfortable as ProcurementSpecialists?

Did you think when you took the PMT ( neverliked maths) that one day you will have to dealwith numbers?

“Sometimes you meet your destiny on the veryroad you took to avoid it”.

RFHHA MDP 21-22 FEB 2015

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When you see him what comes tomind?

Theory of Relativity, Nobel Prize, Photo electric Effect, E=mc2

RFHHA MDP 21-22 FEB 2015

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This may be of interest

RFHHA MDP 21-22 FEB 2015

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First a few warm up questions

• What is the vision, mission, strategicplan(Short term/medium term/long term) ofyour hospital?

• What is the difference between a managerand an administrator?

• Do you want more patients in your hospital?

• What is the vision, mission, strategicplan(Short term/medium term/long term) ofyour hospital?

• What is the difference between a managerand an administrator?

• Do you want more patients in your hospital?

RFHHA MDP 21-22 FEB 2015

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Procurement and Financial Budgeting

• What is it?• Is it the same as Financial

Management?• How relevant is it to Government

Institutions?• What is Expenditure Management?

• What is it?• Is it the same as Financial

Management?• How relevant is it to Government

Institutions?• What is Expenditure Management?

RFHHA MDP 21-22 FEB 2015

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Some more warm up questions

• What is the IRR for the new shiny piece ofequipment you just bought for yourhospital(say a CT machine)

• Fixed vs variable cost• Costing must even for free services

• What is the IRR for the new shiny piece ofequipment you just bought for yourhospital(say a CT machine)

• Fixed vs variable cost• Costing must even for free services

RFHHA MDP 21-22 FEB 2015

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Hallmarks ofGovernment Institutions

• Dependant on Government for most finances• Limited ability to raise resources on their own• Normally defined tenure of those at the top• Accountability – at least not in financial terms• Audit- is a fact of life like it or not

• Dependant on Government for most finances• Limited ability to raise resources on their own• Normally defined tenure of those at the top• Accountability – at least not in financial terms• Audit- is a fact of life like it or not

RFHHA MDP 21-22 FEB 2015

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More characteristics

• Health care is primarily demand driven andgood quality care is in short supply even in theprivate sector.

• Huge differences even in the public sector interms of resource availability

• Health care is primarily demand driven andgood quality care is in short supply even in theprivate sector.

• Huge differences even in the public sector interms of resource availability

RFHHA MDP 21-22 FEB 2015

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Expenditure

Expenditure should not be prima facie more than theoccasion demands

Apply the same vigilance on public expenditure as onexpenditure from personal funds

Sanction of expenditure should not result in financialadvantage to sanctioning authority

Public money not to be spent for the benefit of aparticular person or a section or a community

Expenditure should not be prima facie more than theoccasion demands

Apply the same vigilance on public expenditure as onexpenditure from personal funds

Sanction of expenditure should not result in financialadvantage to sanctioning authority

Public money not to be spent for the benefit of aparticular person or a section or a community

RFHHA MDP 21-22 FEB 2015

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Receipts (Government Centric)

All moneys received by or on behalfof the government either as dues ofgovernment or for deposit,remittance or otherwise shall bebrought into government accountswithout delay.

All moneys received by or on behalfof the government either as dues ofgovernment or for deposit,remittance or otherwise shall bebrought into government accountswithout delay.

RFHHA MDP 21-22 FEB 2015

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Responsibility of controlling officer isrespect of budget allocation

• Expenditure does not exceed the budget allocation• Expenditure is incurred for the purpose for which funds

have been provided• Expenditure is incurred in public/organizational

interest• Adequate control mechanism is functioning in his

department for prevention, detection of errors andirregularities in the financial proceedings of hissubordinated offices and to guard against waste andloss of money

• The mechanism or check contemplated are effectivelyapplied

• Expenditure does not exceed the budget allocation• Expenditure is incurred for the purpose for which funds

have been provided• Expenditure is incurred in public/organizational

interest• Adequate control mechanism is functioning in his

department for prevention, detection of errors andirregularities in the financial proceedings of hissubordinated offices and to guard against waste andloss of money

• The mechanism or check contemplated are effectivelyapplied

RFHHA MDP 21-22 FEB 2015

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Sanctions( Govt Centric)A sanction for any fresh charge shall, unless it is

specifically renewed, lapse if no payment inwhole or in part has been made during a periodof twelve months from the date of issue of suchsanction provided that-

• When the period of currency is prescribed indepartmental regulations is specified in thesanction itself

• When it is to be met form the budgetaryprovision of specified financial year it shall lapseat the close of the financial year

A sanction for any fresh charge shall, unless it isspecifically renewed, lapse if no payment inwhole or in part has been made during a periodof twelve months from the date of issue of suchsanction provided that-

• When the period of currency is prescribed indepartmental regulations is specified in thesanction itself

• When it is to be met form the budgetaryprovision of specified financial year it shall lapseat the close of the financial year

RFHHA MDP 21-22 FEB 2015

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Sanctions( Govt Centric)

In the case of purchase of stores as sanctionshall not lapse if tenders have been acceptedor the indent has been placed on the centralpurchase organization within the period ofone year of the date of issue of such sanctioneven if the actual payment in whole or in parthas not been made during the said period.

In the case of purchase of stores as sanctionshall not lapse if tenders have been acceptedor the indent has been placed on the centralpurchase organization within the period ofone year of the date of issue of such sanctioneven if the actual payment in whole or in parthas not been made during the said period.

RFHHA MDP 21-22 FEB 2015

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Budget formulation andimplementation (G. C. )

• Budgetary estimates and revised estimates• Re-appropriation powers• Savings and surrender• AC bills and DC Bills

• Budgetary estimates and revised estimates• Re-appropriation powers• Savings and surrender• AC bills and DC Bills

RFHHA MDP 21-22 FEB 2015

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Related areas of ExpenditureManagement

• Procurement of goods and services (includinge procurement)

• Inventory Management• Contract Management (including outsourcing)

• Procurement of goods and services (includinge procurement)

• Inventory Management• Contract Management (including outsourcing)

RFHHA MDP 21-22 FEB 2015

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Useful ……….(will visit later for theseare very G.C)

• TA Claims• LTC• OTA• Arrear claims• Time barred claims• Retrospective sanctions• PF advance /withdrawal

• TA Claims• LTC• OTA• Arrear claims• Time barred claims• Retrospective sanctions• PF advance /withdrawal

RFHHA MDP 21-22 FEB 2015

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Procurement

• No matter what model is used to manage theprocurement and distribution system,efficient procedures should be in place:

• to quantify the needs• to pre-select potential suppliers;• to manage procurement and delivery;• to ensure good product quality; and• To monitor the performance of suppliers and

the procurement system.

• No matter what model is used to manage theprocurement and distribution system,efficient procedures should be in place:

• to quantify the needs• to pre-select potential suppliers;• to manage procurement and delivery;• to ensure good product quality; and• To monitor the performance of suppliers and

the procurement system.

RFHHA MDP 21-22 FEB 2015

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Main problems in procurement• Inadequate/too much rules, regulations and structures;• Public sector staff with little experience in responding to

market situations;• Absence of a comprehensive procurement policy;• Government funding which is insufficient and/or released

irregularly;• Donor agencies with conflicting procurement regulations;• Fragmented drug procurement at provincial or district

level;• Lack of unbiased market information;• Lack of trained procurement staff.

• Inadequate/too much rules, regulations and structures;• Public sector staff with little experience in responding to

market situations;• Absence of a comprehensive procurement policy;• Government funding which is insufficient and/or released

irregularly;• Donor agencies with conflicting procurement regulations;• Fragmented drug procurement at provincial or district

level;• Lack of unbiased market information;• Lack of trained procurement staff.

RFHHA MDP 21-22 FEB 2015

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Prototype

Drugs Procurements for Hospitals

RFHHA MDP 21-22 FEB 2015

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Four strategic objectives of pharmaceuticalprocurement

1. Procure the most cost-effective drugs in theright quantities

2. Select reliable suppliers of high-qualityproducts

3. Ensure timely delivery4. Achieve the lowest possible total cost

1. Procure the most cost-effective drugs in theright quantities

2. Select reliable suppliers of high-qualityproducts

3. Ensure timely delivery4. Achieve the lowest possible total cost

RFHHA MDP 21-22 FEB 2015

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1. Procure the most cost-effectivedrugs in the right quantities

• All organizations responsible for procurement,whether they are public, private non-profit orprivate for-profit, should develop an essentialdrugs list to make sure that only the most cost-effective drugs are purchased.

• Procedures must also be in place that accuratelyestimate procurement quantities in order toensure continuous access to the productsselected without accumulating excess stock.

• All organizations responsible for procurement,whether they are public, private non-profit orprivate for-profit, should develop an essentialdrugs list to make sure that only the most cost-effective drugs are purchased.

• Procedures must also be in place that accuratelyestimate procurement quantities in order toensure continuous access to the productsselected without accumulating excess stock.

RFHHA MDP 21-22 FEB 2015

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2. Select reliable suppliers of high-quality products

• Reliable suppliers of high-quality productsmust be pre/post selected, and

• Active quality assurance programmesinvolving both surveillance and testing mustbe implemented.

• Reliable suppliers of high-quality productsmust be pre/post selected, and

• Active quality assurance programmesinvolving both surveillance and testing mustbe implemented.

RFHHA MDP 21-22 FEB 2015

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3. Ensure timely delivery

• The third strategic objective is that theprocurement and distribution systems mustensure timely delivery of appropriatequantities to central or provincial stores andadequate distribution to health facilitieswhere the products are needed.

• The third strategic objective is that theprocurement and distribution systems mustensure timely delivery of appropriatequantities to central or provincial stores andadequate distribution to health facilitieswhere the products are needed.

RFHHA MDP 21-22 FEB 2015

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4. Achieve the lowest possible TotalCost

• The procurement and distribution systems mustachieve the lowest possible total cost,considering four main components:

• the actual purchase price of drugs;• hidden costs due to poor product quality, poor

supplier performance or short shelf-life;• inventory holding costs at various levels of the

supply system; and• operating costs and capital loss by management

and administration of the procurement anddistribution system.

• The procurement and distribution systems mustachieve the lowest possible total cost,considering four main components:

• the actual purchase price of drugs;• hidden costs due to poor product quality, poor

supplier performance or short shelf-life;• inventory holding costs at various levels of the

supply system; and• operating costs and capital loss by management

and administration of the procurement anddistribution system.

RFHHA MDP 21-22 FEB 2015

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Total Cost of Ownership(TCO ?)And the Iceberg Principle

• Evaluation of all factors that make up thecost of goods and services

A = Acquisition Cost

T = Training Costs

O = Operating Costs

M = Maintenance Costs

S = Storage Costs

D = Disposal Costs

J = Junk(scrap) value

• Evaluation of all factors that make up thecost of goods and services

A = Acquisition Cost

T = Training Costs

O = Operating Costs

M = Maintenance Costs

S = Storage Costs

D = Disposal Costs

J = Junk(scrap) value

TCO = (A + T+O+M+S+D) - JRFHHA MDP 21-22 FEB 2015

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12 Operational Principles for“3Es” in Pharmaceutical

Procurement

12 Operational Principles for“3Es” in Pharmaceutical

Procurement

RFHHA MDP 21-22 FEB 2015

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Category A: Efficient and TransparentManagement

Category A: Efficient and TransparentManagement

RFHHA MDP 21-22 FEB 2015

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1. Segregation of Duties

• Drug selection should be done by a formulary or essential drugs list(EDL) and not as a wishlist

• Quantification of drug requirements should have inputs from themedical stores and/or from district or health facility managers indecentralized systems. (However, the procurement office shoulddraw up the final procurement list).

• Product specifications, which should be prepared by a Technicalcommittee.

• Pre/Post selection of suppliers should be done by a broad-basedprocurement committee composed of managers and technical staff,including quality assurance experts. (Pharmacist is a must)

• Adjudication of tenders should be reserved for the procurementcommittee or tenders board.

• Procurement office staff can make technical recommendations butshould not have a vote in the contract decision.

• Drug selection should be done by a formulary or essential drugs list(EDL) and not as a wishlist

• Quantification of drug requirements should have inputs from themedical stores and/or from district or health facility managers indecentralized systems. (However, the procurement office shoulddraw up the final procurement list).

• Product specifications, which should be prepared by a Technicalcommittee.

• Pre/Post selection of suppliers should be done by a broad-basedprocurement committee composed of managers and technical staff,including quality assurance experts. (Pharmacist is a must)

• Adjudication of tenders should be reserved for the procurementcommittee or tenders board.

• Procurement office staff can make technical recommendations butshould not have a vote in the contract decision.

RFHHA MDP 21-22 FEB 2015

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2. Transparent Procurement procedures

• Formal written procedures should be developed andbe followed throughout the tender, and explicit criteriashould be used to make procurement decisions.

• Tender adjudication should be done properly and theaward of contracts and issuing of orders should becompleted within the shortest period of time possible.

• Information on the tender process and results shouldbe public, to the extent permitted by law.

• At the very least, both bidders and health personnelshould have access to information on the successfulsuppliers and the prices for all winning contracts.

• Formal written procedures should be developed andbe followed throughout the tender, and explicit criteriashould be used to make procurement decisions.

• Tender adjudication should be done properly and theaward of contracts and issuing of orders should becompleted within the shortest period of time possible.

• Information on the tender process and results shouldbe public, to the extent permitted by law.

• At the very least, both bidders and health personnelshould have access to information on the successfulsuppliers and the prices for all winning contracts.

RFHHA MDP 21-22 FEB 2015

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3. Planned Procurement / procurement performance shouldbe monitored regularly.

• A reliable management information system (MIS) isone of the most important elements in planning andmanaging procurement.

• The MIS should track the status of each order andpayment, and compile the information required forsupplier monitoring, .

• It is important that the MIS also tracks the number oforders placed, payments made, quantities actuallypurchased compared with estimates, purchases fromall contract suppliers, and drug purchases from non-contract suppliers.

• Annual Audit is a must

• A reliable management information system (MIS) isone of the most important elements in planning andmanaging procurement.

• The MIS should track the status of each order andpayment, and compile the information required forsupplier monitoring, .

• It is important that the MIS also tracks the number oforders placed, payments made, quantities actuallypurchased compared with estimates, purchases fromall contract suppliers, and drug purchases from non-contract suppliers.

• Annual Audit is a must

RFHHA MDP 21-22 FEB 2015

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First…… a little poem

Never ask of money spent,Where the spender thinks it went,

Nobody was ever meant,To remember or invent,

What he did with every cent.

First…… a little poem

Never ask of money spent,Where the spender thinks it went,

Nobody was ever meant,To remember or invent,

What he did with every cent.

RFHHA MDP 21-22 FEB 2015

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Now…….What is Audit?

A systematic and independent examination ofdata, statements, records, operations andperformances (financial or otherwise) of anorganization for a stated purpose.

Auditing is analytical, critical, investigative Conduct of audit leads to a report BANG for the BUCK

Now…….What is Audit?

A systematic and independent examination ofdata, statements, records, operations andperformances (financial or otherwise) of anorganization for a stated purpose.

Auditing is analytical, critical, investigative Conduct of audit leads to a report BANG for the BUCK

RFHHA MDP 21-22 FEB 2015

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Types of Audit

Internal Audit (First Party)External Audit (Third Party)Statutory AuditTechnical AuditSecond Party Audit

Types of Audit

Internal Audit (First Party)External Audit (Third Party)Statutory AuditTechnical AuditSecond Party Audit

RFHHA MDP 21-22 FEB 2015

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Auditor and the Auditee

• Auditor Says : I am here to help you

And

• Auditee says: You are welcome

• Auditor Says : I am here to help you

And

• Auditee says: You are welcome

RFHHA MDP 21-22 FEB 2015

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Category B : Drug Selection and Quantification

RFHHA MDP 21-22 FEB 2015

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4. Essential Procurement

• No public or private health care system in theworld can afford to purchase all drugs circulatingin the market within its given budget.

• Public Sector procurement should be limited toan essential drugs list or national/local/hospitalformulary list

• For exceptions specific approval from authorized/competent authority. (Not on a budget spendingbasis by different units/departments )

• No public or private health care system in theworld can afford to purchase all drugs circulatingin the market within its given budget.

• Public Sector procurement should be limited toan essential drugs list or national/local/hospitalformulary list

• For exceptions specific approval from authorized/competent authority. (Not on a budget spendingbasis by different units/departments )

RFHHA MDP 21-22 FEB 2015

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5. Drugs by their International Nonproprietary Name (INN),or generic name.

• When purchasing products which presentpotential problems with pharmaceuticalequivalence or bio-equivalence theprocurement request should specify thequality standards but not mention specificbrands.

• When purchasing products which presentpotential problems with pharmaceuticalequivalence or bio-equivalence theprocurement request should specify thequality standards but not mention specificbrands.

RFHHA MDP 21-22 FEB 2015

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6. Order quantities should be based on a reliable estimate ofactual need.

• Past actual consumption ( and not past purchase)is themost reliable way to predict and quantify future demand,

• >provided that the supply pipeline has been consistentlyfull and that consumption records are reasonably accurate<

• Such consumption data must be adjusted in the light ofknown or expected changes in morbidity patterns, seasonalfactors, service levels, prescribing patterns and patientattendance.

• The downside of basing quantification only on pastconsumption is that any existing patterns of irrational druguse will be perpetuated.

• Past actual consumption ( and not past purchase)is themost reliable way to predict and quantify future demand,

• >provided that the supply pipeline has been consistentlyfull and that consumption records are reasonably accurate<

• Such consumption data must be adjusted in the light ofknown or expected changes in morbidity patterns, seasonalfactors, service levels, prescribing patterns and patientattendance.

• The downside of basing quantification only on pastconsumption is that any existing patterns of irrational druguse will be perpetuated.

RFHHA MDP 21-22 FEB 2015

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Category C: Financing and CompetitionCategory C: Financing and Competition

RFHHA MDP 21-22 FEB 2015

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Financing and Competition

• Mechanisms should be put in place to ensurereliable financing for procurement.

• Good financial management proceduresshould be followed to maximize the use offinancial resources.

• Mechanisms should be put in place to ensurereliable financing for procurement.

• Good financial management proceduresshould be followed to maximize the use offinancial resources.

RFHHA MDP 21-22 FEB 2015

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8. Economies of scale

• Clubbing of requirements(???) from differentunits/locations etc.

• A large contract awarded to one supplier by nomeans implies that the entire volume must beshipped at once.

• Many procurement services specify, as part ofcontract terms, divided deliveries over the periodof the contract or to multiple delivery points.

• Some supply systems use estimated quantitytenders, with orders placed throughout thecontract period as needed.

• Clubbing of requirements(???) from differentunits/locations etc.

• A large contract awarded to one supplier by nomeans implies that the entire volume must beshipped at once.

• Many procurement services specify, as part ofcontract terms, divided deliveries over the periodof the contract or to multiple delivery points.

• Some supply systems use estimated quantitytenders, with orders placed throughout thecontract period as needed.

RFHHA MDP 21-22 FEB 2015

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8.Procurement in the public health sector should be based oncompetitive procurement

• There are four main methods for purchasingdrugs.

o Competitive: restricted tenders,o Open tenders ando Competitive negotiations.o Direct negotiation with a single supplier.

• There are four main methods for purchasingdrugs.

o Competitive: restricted tenders,o Open tenders ando Competitive negotiations.o Direct negotiation with a single supplier.

RFHHA MDP 21-22 FEB 2015

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Rule of Five

• Generic prices generally reach their minimumwhen there are at least five genericalternatives on the market and that prices intendering systems are at their lowest wherethere are at least five bids per item.

• Generic prices generally reach their minimumwhen there are at least five genericalternatives on the market and that prices intendering systems are at their lowest wherethere are at least five bids per item.

RFHHA MDP 21-22 FEB 2015

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Therapeutic Class Tendering• In situations where most or all of the products in a therapeutic

category are single-source or branded products, the number ofdifferent drugs in a therapeutic category can be reduced throughcost-effectiveness analysis. Competition can be induced bytherapeutic class tendering.

• For example, among the newer antibiotics there may be severalwhich are therapeutically similar, at least for specific indications.

• Therapeutic class tendering means that offers are requested ontwo, three or more therapeutically similar but generically differentproducts.

• The selection of the most cost-effective drugs within a therapeuticcategory should be done by the Hospital drugs committee, not bythe procurement office.

• In situations where most or all of the products in a therapeuticcategory are single-source or branded products, the number ofdifferent drugs in a therapeutic category can be reduced throughcost-effectiveness analysis. Competition can be induced bytherapeutic class tendering.

• For example, among the newer antibiotics there may be severalwhich are therapeutically similar, at least for specific indications.

• Therapeutic class tendering means that offers are requested ontwo, three or more therapeutically similar but generically differentproducts.

• The selection of the most cost-effective drugs within a therapeuticcategory should be done by the Hospital drugs committee, not bythe procurement office.

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9.Strength in numbers --- Divided we fall

• Normally, group purchasing achieves lower pricesthan would be available to the same group ofhealth facilities if they purchased individually.

• Suppliers that do not win contracts in acompetitive tender may offer more competitiveprices on a short term basis in an attempt to splitthe purchasing group.

• If group members do not resist such pricedumping, the prices at subsequent tenders willrise to previous unfavourable high levels.

• Normally, group purchasing achieves lower pricesthan would be available to the same group ofhealth facilities if they purchased individually.

• Suppliers that do not win contracts in acompetitive tender may offer more competitiveprices on a short term basis in an attempt to splitthe purchasing group.

• If group members do not resist such pricedumping, the prices at subsequent tenders willrise to previous unfavourable high levels.

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Category D: Supplier Selection and QualityAssurance

Category D: Supplier Selection and QualityAssurance

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10. Traceability

• One important aspect of quality assurance isthe concept of “traceability”. (Hint….)

• The supplier must be able to trace the productto the finished product manufacturer, and thelatter must be able to trace the ingredients totheir producers, all in a transparent manner.

• One important aspect of quality assurance isthe concept of “traceability”. (Hint….)

• The supplier must be able to trace the productto the finished product manufacturer, and thelatter must be able to trace the ingredients totheir producers, all in a transparent manner.

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11. Monitoring• A formal monitoring system which tracks lead time,

compliance with contract terms, partial shipments,quality of drugs, remaining shelf-life, compliance withpackaging and labelling instructions, etc.

• A cumulative file(dossier) for each supplier shouldhave copies of registration papers, references, specialcorrespondence, complaints and other anecdotalsupplier information.

• The information system should track chronologicallythe number and value of tender contracts awarded,and the value of total purchases from the supplier byyear and performance for each tender.

• A formal monitoring system which tracks lead time,compliance with contract terms, partial shipments,quality of drugs, remaining shelf-life, compliance withpackaging and labelling instructions, etc.

• A cumulative file(dossier) for each supplier shouldhave copies of registration papers, references, specialcorrespondence, complaints and other anecdotalsupplier information.

• The information system should track chronologicallythe number and value of tender contracts awarded,and the value of total purchases from the supplier byyear and performance for each tender.

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Four components of an effective quality assurance system:

i. Selecting reliable suppliers of quality drugs;ii. Using existing mechanisms, such as the WHO

Certification Scheme(s)iii. Establishing a programme of product defect

reporting; andiv. Performing targeted quality control testing.

i. Selecting reliable suppliers of quality drugs;ii. Using existing mechanisms, such as the WHO

Certification Scheme(s)iii. Establishing a programme of product defect

reporting; andiv. Performing targeted quality control testing.

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Monitoring ….contd

• Some products vary substantially in formulationand bio-availability from supplier to supplier.

• For drugs used in chronic diseases there shouldbe a significant cost benefit before changes aremade.

• If supplier selection is managed effectively it isnot necessary to carry out quality control testingon every batch of every drug received.

• Many procurement agencies limit routine testingto new suppliers and to sensitive products.

• Some products vary substantially in formulationand bio-availability from supplier to supplier.

• For drugs used in chronic diseases there shouldbe a significant cost benefit before changes aremade.

• If supplier selection is managed effectively it isnot necessary to carry out quality control testingon every batch of every drug received.

• Many procurement agencies limit routine testingto new suppliers and to sensitive products.

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12. Contract ManagementStrategies

• Standardize the Contract Procedures-Organization wide

• Establish a Central knowledge data base that isaccessible (Web/Intranet etc)

• Integrate with Financial System

• Improve Automation (due dates, expiration dates,etc)

• Standardize the Contract Procedures-Organization wide

• Establish a Central knowledge data base that isaccessible (Web/Intranet etc)

• Integrate with Financial System

• Improve Automation (due dates, expiration dates,etc)

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Role in Organization

Procurement Personnel today, want to be:

Relevant Effective Efficient Economic Part of the ‘Team’ Viewed as being Valuable

How do we go about doing this?

ADD VALUE

Procurement Personnel today, want to be:

Relevant Effective Efficient Economic Part of the ‘Team’ Viewed as being Valuable

How do we go about doing this?

ADD VALUE

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Don’t’s ?

Fall foul of GFR/CVC or …..Fall foul of GFR/CVC or …..

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Example

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And Finally

Three Monkeysand

a Banana

Three Monkeysand

a Banana

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Thank YouThank You

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