It includes an overview of arrangements for NHS England, NHS Scotland, NHS Wales and HSC Northern Ireland. In addition to the products it procures, the Agency also handles the storage and distribution of huge amount of program products donated by development partners. Spending on items that are not directly incorporated into the value creation process is often neglected. Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.. Procurement generally involves making buying decisions under conditions of scarcity. Electronics and Electrotechnical Industry, Sustainable, measurable savings on the entire procurement volume, Strong positioning of your procurement in relation to suppliers, Introducing your own standards and specifications gives you a competitive advantage, Reduced process costs and continually improving value creation, Sustainable improvement in supply chain performance, The ability to respond quickly to market developments. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. The pharmaceutical division at Sykehusinnkjøp HF effectuates the procurement of pharmaceutical products on a national basis for all health authorities in the country. PDF | On Jan 1, 2017, Joy Muhia and others published Factors Affecting the Procurement of Pharmaceutical Drugs: A Case Study of Narok County Referral Hospital, Kenya | … lead times, complaint rates) and an implementation plan and implemented them using workshops. Practical guidelines on pharmaceutical procurement for countries with small procurement agencies. P ublic procurement of medicines has proven to be a tricky business. From early involvement in development projects to outsourcing entire production stages, INVERTO designs models of integration, which cope with your company’s challenges and turn your suppliers into active value creation partners. Case study: Media procurement by a manufacturer of generic drugs We made savings of around 18% on the media procurement of a German generic drug manufacturer,while increasing the quality of service. This conceals indirect spend costs amounting to approximately 16% of turnover. There are products that must be shipped at controlled room temperature (15-25°C), body temperature (≈37°C), cold temperatures (≈ -20°C) and even as low as at cryogenic temperatures (-150°C). The challenge is that purchases in these areas are often made by the departments themselves and the procurement department is included in the procurement process either too late or not at all, and inadequate procurement resources make things even more difficult. PHARMACEUTICAL PRODUCTS IN THE PUBLIC AND PRIVATE MEDICAL SECTORS Overview 6.1 This chapter sets out the Review Committee’s findings and recommendations on procurement and supply of pharmaceutical products in the public medical sector including DH and the Hospital Authority (HA), after detailed examination of their existing procurement system. It is intended as a resource document for those individuals working in the NHS who do not have a background in medicines and pharmaceutical products and services With respect to infrastructure, a total of 17 modern warehouses were In the last years, transport of sensitive pharmaceuticals has moved away from the more simplistic notion of cold chain, with the conventional meaning of a temperature interval between 2-8°C, to the wider aspect of temperature-controlled transport, which include a range of different temperature intervals. Public procurement of medicinal products and medical devices by the Ministry of Health of Ukraine faced a number of issues for many years. We will support you to implement your new processes and/or transition to new suppliers. I thoroughly recommend working with INVERTO.“, Dr. Jürgen Wickl, Managing Director of Styria Media IT, „By preparing a functional specification, we managed to advertise requirements in a tailored way. media strategy consulting) decision criteria. Production or contract manufacturing often dominate procurement in pharmaceutical companies. This is why we systematically involve existing and potential suppliers in the optimization of supply chain processes. Other Elements of UNDP’s Procurement Architecture. The Food and Agriculture Organization of the United Nations (FAO) invites you to submit an offer for the procurement of Drugs and Pharmaceutical Products to be delivered to various destinations in Sudan. 1 Directive 2004/17/EC of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors, O.J. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. The course is an introductory level course on Procurement and Supply Management in general, and to Procurement and Supply Management issues related to medicines for Discuss How to Organize & Manage The Procurement System 6. Leadership ... We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Based on these goals, it looks into the reasons for intervening in pharmaceutical markets and different forms of intervention. As a result, companies are set up for dynamic, new market situations for the long term and can achieve sustainable savings and secure competitive advantages. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. Having your own standards and specifications can considerably increase the procurement volume of individual materials, resulting in significant cost savings. procurement conditions of the agency) and qualitative (e.g. Supply chain optimization is usually driven by improving internal processes. In addition to the options describe in previous sections of the Manual, that enable procurement of pharmaceuticals and other health products to meet the needs of Global Fund grants implemented by UNDP, UNDP has developed a number of complementary bespoke supply systems of interest to requesting units. In our experience, the greatest savings potential lies in marketing, logistics, facility management and IT. In a short quick scan analysis, we go through your procurement data, conduct interviews with departments and buyers and evaluate your procurement processes. Pharmaceutical procurement occurs in many contexts. A co-operation between the World Intellectual Property Organization (WIPO) and the International Federation of Pharmaceutical Manufacturers and Associations (IFMPA), the global trade association representing the research-based pharmaceutical industry, was launched on the 25 th of September 2018. falsified pharmaceutical products and reduce the risk of subsequent deterioration, thereby potentially reducing the incidence of product complaints and recalls, financial losses, and most important, the risk of harming patients’ health. Essential criteria to make an objective, qualitative assessment of agencies were pharmaceutical expertise and the range of services offered. Global data and statistics, research and publications, and topics in poverty and development. At the same time, the significant financial resources and the number of players involved in pharmaceutical procurement makes the process susceptible to corrupt practices. It … Case study: Packaging optimization for a medium-sized company The strategic orientation of packaging procurement significantly lowered production costs at a traditional pharmaceutical company. Furthermore, this centralization led to a huge additional revenue from our waste paper business. We will show you where this potential is in your procurement organization. From supplier-side inventory planning and management to cooperative planning, INVERTO communicates with your employees and suppliers to ensure the successful implementation of optimization concepts. GOOD PHARMACEUTICAL PROCUREMENT PRACTICES by FOLA TAYO. has increased by about 140% as compared to that of 2003 E.C. The close involvement of employees in this structured tender process is an additional bonus, and something which will benefit us in years to come.“, Siniša Mitrović, mag.oec., Managing director, Styria Tiskara Zagreb, „Due to the flexibility of the team, we managed to receive additional offers from suppliers and hence increase competition between existing suppliers. At the same time, the significant financial resources and the number of players involved in pharmaceutical procurement makes the process susceptible to corrupt practices. Our experts Jan-Christoph Kischkewitz and Frank Albrecht are at your disposal for any questions regarding cost-reductions and performance improvements in the pharmaceutical sector. Digital procurement: find the right solutions with the Digital Solution Navigator. pharmaceuticals distributed by the Agency in 2009 E.C. This was achieved through the clear separation of quantitative (e.g. It then focuses on the goals of National Drug Policies. „INVERTO conducted a detailed analysis of our international processes, and by introducing a new strategic approach for our procurement, it achieved substantial efficiency gains.“, Patrick Juhl, Head of Procurement, Seven Seas, „As a result of the central procurement organization implemented by INVERTO, as well as the pooling of demands, we were able to make double-digit percentage savings.“, Thomas Pfeiffer, Head of Product Development at willhaben.at, „Together with INVERTO, we have achieved a result that we did not think possible at the beginning of the project. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Creating your own standardizations and specifications for products to be purchased and technical facilities is a significant way for your procurement to achieve strong positioning and reduce your dependence on suppliers. Through tendering total demand across all sites, standardization and the implementation of specialized suppliers, the procurement conditions for folding boxes, labels and instructions were considerably improved. INVERTO oversaw the analysis of the procurement organization, concept development and implementation, right up to monitoring the quantitative targets. Following this, we support you to implement the optimization measures. Procurement and Supply Management of Pharmaceuticals and other Health Products. INVERTO succeeded in getting the most out of the media budget by implementing a multi-stage process with clients’ employees from the marketing and procurement departments. OBJECTIVES: 1. Review Procurement Cycle 2. Procurement of pharmaceuticals in World Bank projects Toggle navigation. For regular news on Procurement & SCM topics and information on events or INVERTO itself follow us at: I accept the privacy notice and agree to the processing of my personal data. public procurement rules, these products are treated like any other goods. The responsibilities of each party should be defined clearly in the agreement. We support our clients, national pharmaceutical companies and international pharmaceutical groups, in their global procurement, achieving transparency across the entire supply chain. Our detailed analysis achieved transparency in terms of the strengths and weaknesses of the existing operational and organizational structure. The overall package of tender preparation, service provider workshops and rounds of negotiations at top management level has raised our hosting landscape to a new level of price performance. Production or contract manufacturing often dominate procurement in pharmaceutical companies. We take these results as a benchmark, so you know where you stand within the industry and where there is potential for optimization. This conceals indirect spend costs amounting to approximately 16% of turnover. 13 December 2007 Stop TB workshop on Global Fund grant negotiation and implementation The World Bank Group works in every major area of development. Jan Christoph KischkewitzManaging Director, +49 221 485 687-0 [email protected] View my LinkedIn profile View my XING profile, +49 221 485 687 0 [email protected] View my XING profile, Project: Pharma manufacturer Patheon cuts packaging costs despite rising raw material prices. The pharmaceutical industry has been experiencing profound changes for years, with mergers and acquisitions dominating the industry. World Health Organization (2002) Practical Guidelines on Pharmaceutical Procurement for Countries with Small Procurement Agencies. International acquisitions meant new requirements for logistics and supplier management. Manila, Philippines: World Health Organization. Who We Are. INVERTO’s orientation towards precise customer requirements and benchmarks as well as professional negotiations has contributed significantly to the success of this project. On this basis, we make clear recommendations for your business. Give Detailed Account of Good Pharmaceutical Procurement Practices 5. Environmental and Social Policies for Projects. Do you want to be prepared for dynamic and new market conditions in the pharmaceutical sector, achieve sustainable savings and secure competitive advantages? procurement of medicines and pharmaceutical products and services in the UK. On average, we have achieved 15% savings for our pharmaceutical industry clients. By implementing new processes and working with procurement staff, the achieved savings enhance sustainability and will result in a more profitable organization.“, Erwan Quemener, Purchasing Director, Chassis Brakes International, „INVERTO helped us in raising undreamed-of sources of savings in both direct material and indirect material areas. Pharmaceutical Products Sourcing through UNICEF Supply Division. With our supply chain performance check, you will know where you stand in virtually no time. Discuss factors influencing drug prices & total costs briefly 3. They have the ability to talk the clinicians language, optimise the procurement process and deliver a result the trust could not have achieved itself.“, Bart Stubbe, Vice President of Purchasing LINPAC Group, „INVERTO are assisting LINPAC since early 2008 in transitioning from a decentralised to a category purchasing structure, bringing sourcing expertise, skilled resources, technology and methodology to recognise, create and release value to the company.“, +49 221 485 687 0 +49 221 485 687 140 [email protected] All locations Approach, https://www.inverto.com/en/expertise/pharmaceutical-industry/. INVERTO uses its specialist client project expertise to create the necessary steps between technology and procurement. The cost of procuring pharmaceutical products – especially medicines – represents a major share of public health spending. We then defined quantitative supply chain targets (e.g. Procurement Transformation – What really matters: A precise understanding of future success factors. IHRPP, the International Procurement Platform. The mechanism of pharmaceutical products public procurement was discussed today in the course of the meeting with the President Фото: president.gospmr.org The goal is to discuss relationship between the state and business in the procurement of pharmaceuticals and equipment. World Health Organization. INVERTO took over project management and supported operational implementation up to effective delivery. with the professionalization of the procurement organization and accompanied the supplier negotiations for various products and services. Download The cost of procuring pharmaceutical products – especially medicines – represents a major share of public health spending. The project work with INVERTO was very professional and made this great result possible.“, Marc Lamure, Director, Montagu Private Equity Associates LLP, „INVERTO has helped D.O.R.C. Give Overview of Procurement Methods 4. The subsequent sections analyze in further detail the procurement of in-patent and off- Procurement of pharmaceuticals in an environmental context and its inclusion into the CSR Compass 9 Another main objective with this project is to suggest amendments to the CSR (Corporate Social Responsibility) Compass based on the experiences from the studies of procurement of pharmaceuticals as input to allow for development of the Our many years of experience mean that we not only know the technical and product-specific challenges you face, we also know the solutions. We analyse which specification limits of materials can be used by your facilities and how these can be purchased both efficiently and cost effectively throughout the procurement process. We determine your current supply chain performance based on a set of criteria, placing particular focus on supply chain integration, using IT solutions to analyse your overarching strategy and the interlinking of the planning process, quality of cooperation and process support. In addition, products are… It is intended as a resource document for those individuals working in the NHS who do not have a background in medicines and pharmaceutical products and services When preparing a new procurement of antibiotics, suppliers that can document good environmental efforts during the manufacturing process will, for the first time, be rewarded in the procurement process. of pharmaceutical procurement policies. Consequently, suppliers of pharmaceutical products should always be required to demonstrate compliance with national registration requirements as a condition for contract effectiveness. Although the operational principles presented here are in many respects applicable to all procurement settings and for most types of procurement situations, their primary target is pharmaceutical procurement for public sector health systems. , L 134, 30 April 2004, as lastly modified by Procurement of Pharmaceutical Preparations 2019 - 2022 Feb, 05 2019 Scope: The National Health Fund, an agency of the Ministry of Health, Jamaica, now invites bids from eligible bidders for the periodic supply of pharmaceutical preparations, as listed in the Schedule of Requirements of the tender documents, for a 36-month contract period, for use in the Government health facilities. Figure 2: Quality assurance framework for the procurement of pharmaceutical product s However, in our experience as a successful supply chain management consultancy, the most significant improvements are achieved through intensive cooperation between respective partners. They did not only identify these potentials but they supported us in the implementation phase with a great professionalism.“, Nick Gerrard, CFO, MID Essex Hospital Services NHS Trust, „INVERTO’s market and product knowledge have been invaluable in helping the Trust deliver substantial cost savings in a short space of time. (‎2002)‎. Working with the customer services teams from the production, quality assurance and procurement departments, we achieved savings of over 20% while simultaneously improving quality. The ever-increasing complexity of multinational corporations and their global logistics concepts often present a challenge for pharmaceutical companies. Through centralization of our former pick-up locations in Croatia and Bosnia-Herzegovina we managed to reduce the operational work for our employees. At the same time, demographic trends show the growing importance of the pharmaceutical industry. Regional Office for the Western Pacific. Food and Health Bureau (2013) Procurement and Supply of Pharmaceutical Products in Public and Private Medical Sectors. Pharmaceutical Products Lesson Name: Course Introduction Page 1 Welcome to this course on Procurement and Supply Management, or PSM, of Pharmaceutical Products. WHO recommends that procurement agencies enter into an agreement or contract with the manufacturer before purchasing any products. Countries may provide a fast-track registration process for certain types of drugs (life-saving drugs, unique drugs for which no alternatives exist, or well-established generics). Specifically, individuals involved in pharmaceutical procurement must determine, accredit, and monitor appropriate supply sources; evaluate suppliers’ performance; choose a buying strategy or approach; monitor drug deliver y; assess clinical and use outcomes; … We help you to reduce your purchasing costs for the long term and act as an interface to aid cooperation between procurement and other departments. Before we can develop a ‘roadmap’ for performance optimization and cost reduction, we first identify and prioritise existing potential. It includes an overview of arrangements for NHS England, NHS Scotland, NHS Wales and HSC Northern Ireland. Spending on items that are not directly incorporated into the value creation process is often neglected. Government regulations to reduce costs in the health care sector affect businesses of all sizes, from corporate groups to medium-sized businesses. 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