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Procurement and Supply ManagementPotential roles for IHP+

IHP+ Steering Committee12 December 2014

Rationale for IHP+ engagement

• Importance in health service delivery• Leverage better use of domestic health

spending as well as external funds• Multiple parallel systems: inefficient, wasteful,

unsustainable• Difficult area: some countries far from having

procurement capacity DPs want to use • Scope for progress: (at least) harmonisation of

supply chains

Current major supply chains in the Myanmar health system

Issues from CHTM 2014

• Countries at very different stages– Myanmar example: developing a single supply chain strategy for all

partners to support– Ethiopia example: High % of DP funded procurement through national

agency, gradual strengthening of systems– Guinea Bissau, Chad et al struggling to reform PSM, with fragmented

support • Issues include

– Performance improvements are hard to sustain – how to respond to declines (corruption, crises)?

– Outsourcing to private sector – requires skills in contracting; willing, competent providers; recurrent financing

– Drug quality assurance - continuing need to strengthen– Capacity building & knowledge transfer needed

Global procurement mechanisms

• Benefits of lower prices, faster procurement appreciated (but sometimes countries can buy cheaper)

• Multiple mechanisms which work differently a challenge to learn at country level

• May be inconsistent with country regulations (registration, procurement process etc)

• Scope to identify combined effects and good practices

Roles for IHP?

• Inter-agency Supply Chain Group (ISG) has identified areas for collaboration including joint PSM planning for Nigeria and DRC, common performance indicators

• ISG is an informal global group, no governance or funding (so far)

• IHP+ could review progress and learn lessons – Progress at country level in harmonising PSM support and

strengthening systems: joint procurement assessments, joint plan for support, reducing parallel and inconsistent systems, use of national procurement

– Feedback from countries on effect of multiple, diverse global procurement mechanisms, how to improve

Questions to the Steering Committee

• Are these the most relevant issues for IHP+ to address?

• What are highest priorities for IHP+ efforts? • How to take forward? Suggestions– Case studies (at country request) e.g. progress in

Myanmar, DRC and/or Nigeria; other volunteers– Engage countries, implementers and CSOs to

oversee case studies, spot gaps (as steering or working group)