Sourcing & Management of Health Products

Sourcing & Procurement of Health Products

The Global Fund play a significant role in global markets for health products for these three diseases as a key financier and support countries get the most value for their investment. To ensure that the Global Fund’s purchasing power is best used to impact the three diseases, our Board has approved a Market Shaping Strategy.

The sourcing and management of health products which ranges from antiretrovirals (ARVs), anti-malarials, TB medicines, insecticide-treated nets to laboratory supplies is a critical component of the response to AIDS, TB and malaria.

One key tool for maximizing the purchasing power is the Pooled Procurement Mechanism, through which we are able to negotiate the best prices and delivery conditions with manufacturers on behalf of our Principal Recipients.

Through this mechanism, a strategy for each category of health product is developed using a standardized, rigorous and analytical approach. All procurement is guided by the relevant Global Fund quality assurance and procurement policies. Information on all procurement carried out by Global Fund-supported programs is made available through our online database, the Price & Quality Reporting tool.

Between 2012 and 2015, the Global Fund has seen measurable results in sourcing products through global tenders, including:

  • Cost savings of nearly US$500 million
  • Increase in on-time delivery, from 48 percent to 80 percent (for core health products ordered through the Pooled Procurement Mechanism)
  • Growth in orders managed through the Pooled Procurement Mechanism (from US$300 million in 2012 to US$1.2 billion in 2013)

Another tool is our new online procurement platform, wambo.org. This innovative e-marketplace will allow implementers to search and compare pricing and availability across all suppliers, and will let suppliers reach a broader market.

Procurement strategy

Our focus is on improving value for money to maximize our impact on the three diseases, as outlined in the Board’s approved Market Shaping Strategy.

With such a significant role to play in the global market for health products, it is critical that our strategies for sourcing is based on market intelligence reflecting demand and supply; is in compliance with our procurement requirements and quality assurance policies and based on a standardized and rigorous approach.

Ensuring access to lifesaving health products is a cornerstone of the progress we have made and will continue to make in the fight against AIDS, TB and malaria.

Sourcing strategies

Based on the Board’s Market Shaping Strategy, we have developed an approach for core health products, including:

  • Antiretrovirals (ARVs)
  • Long-lasting insecticidal nets
  • Artemisinin-based combination therapies (ACTs)
  • Viral load tests
  • Rapid diagnostic tests

Other health products such as: medicines for opportunistic infections, condoms and lab supplies will also eventually be included.

Strategy development

These strategies were developed and implemented following a four-step process:

  • Understand and design: understanding current market conditions and designing an approach based on these
  • Engage and manage: engaging with partners and suppliers, then actively managing performance