Sourcing & Procurement

  • Procurement for Impact (P4i)

    P4i is a major initiative taking place at the Global Fund which is fundamentally changing the Global Fund’s approach to the procurement of goods and services, to deliver greater value for money and improved impact, in both value and lives saved.

    Under the direction of Christopher Game, the Chief Procurement Officer, the Global Fund is setting a new standard for sourcing and procurement in global health.

    Vision

    The P4i vision is :

    • Using simple, clear leading-edge processes and tools designed by and for the organization.
    • Minimizing waste.
    • Eliminating activities that do not add value.
    • Building collaborative relationships with partners and donors.
    • Ensuring effective governance and watertight compliance

    Overview

    Why is P4i needed? What will change?

    Several assessments have concluded that particularly in light of the important volume of core and non-core products purchased with Global Fund funding, these investments have not traditionally been optimizing the leveraging possibility that exists. Procurement has tended to be reactive, based on grant disbursement, with spot tendering through procurement service agents and minimal cross agency leverage.

    Through P4i, the Global Fund will fundamentally change the way it works across the supply chain. P4i will result in:

    • Earlier involvement and closer collaboration with manufacturers
    • Better planning and scheduling to support continuity of supply
    • Improved purchasing capability and changed contracting models
    • Optimized international supply chain to reduce cost
    • More products delivered at the right time and place to more people

    Who will benefit?

    P4i is expected to bring benefits to everyone associated with the Global Fund.

    • If you purchase health products (e.g. treatment, diagnostics, long-lasting insecticide-treated bednets, etc.) with Global Fund grants...
    • If you purchase non-health products (e.g. vehicles) with Global Fund grants...
    • If you support Principal Recipients who purchase health or non-health products with Global Fund grants…
    • If you produce or supply health or non-health products purchased with Global Fund grants…
    • If you rely on goods or services purchased with Global Fund grants to treat your patients…
    • If you depend on goods or services purchased with Global Fund grants for your or your family’s well-being…

    …then you will notice the positive impact of this new approach as it rolls out over time.

    What is already happening?

    The P4i project is now rapidly gaining momentum. Members of the Procurement and Supply Chain Management Department together with colleagues elsewhere in the Secretariat are commencing work across a range of areas.

    Activities underway include:

    • Aligning with the New Funding Model, Finance’s Step Up program and the Global Fund strategy.
    • Engagement and consultation with key stakeholders, including the MDAG, FPOC, several Board members and others.
    • Convening conferences with suppliers of health products (e.g. long-lasting insecticide-treated bed nets, antimalarials, malaria rapid diagnostic tests).
    • Optimizing the relationship with our Procurement Service Agents
    • Exploring a joint initiative with UNITAID around a new first line ARV.
    • Developing a greater value for money approach regarding the procurement of condoms.
    • Leveraging the Global Fund’s scale to ensure more cost-effective vehicle procurement.
    • Analysing in detail “categories of spend” to identify opportunities for improvement.
    • Creating the new team and areas for skills development.

    Events

    8-9 September 2015 – Global Fund & UNICEF LLIN Suppliers Meeting

    Agenda - Global Fund and UNICEF LLIN Suppliers Meeting

    Presentations - Global Fund and UNICEF LLIN Suppliers Meeting

    10-11 September 2015 – Global Fund HIV and Malaria RDT Suppliers Meeting

    Agenda - HIV and Malaria RDT Suppliers Meeting

    Presentations - Global Fund HIV and Malaria RDT Suppliers Meeting