Sourcing & Management of Health Products

Overview

Between 2014 and 2016, the Global Fund partnership invested more than US$10 billion to support countries fighting AIDS, TB and malaria and strengthening health systems. We invested about half of that amount in the procurement and management of health products. Sourcing and management of medicines and health program commodities is therefore a critical component in the fight against the three diseases.

Still, stock-outs, poor-quality medicines, insufficient supplies of medical products and a number of other challenges put lives at risk and endanger the progress we have made against the diseases.

We are committed to ensuring that countries managing programs with Global Fund financing have the tools and information to:

  • Access health products that meet stringent quality requirements
  • Obtain the best prices and conditions available for medicines and health products
  • Adequately plan and manage the selection, purchase, delivery, warehousing and distribution of products
  • Work with partners to support countries in improving their supply chain

Procurement tools

US$158 million
in savings in 2016
through
more effective procurement

The Global Fund plays a significant role in global markets for health products related to the three diseases in order to support countries in achieving the best value for their investment. Through our Market Shaping Strategy, our Pooled Procurement Mechanism is used to maximize purchasing power and negotiate favorable procurement pricing and delivery terms for the health products we finance. Partners can learn more about the significant cost savings and benefits associated with the Global Fund’s Pooled Procurement Mechanism. See our Sourcing & Procurement of Health Products page for more.

Another tool is our innovative online purchasing platform, wambo.org, which provides access to negotiated pricing and key information for medicines and health products. Wambo.org provides grant recipients access to products, suppliers and negotiated/reference prices to enable them to search, select and process their own orders. Each order undergoes relevant internal controls with total transparency. For more, see our wambo.org page.

Health products management is not only about procurement, but encompasses the whole supply chain. As such, we are committed to:

  • Communicating treatment guidelines that determine what should be purchased
  • Ensuring that what is purchased meets stringent quality requirements
  • Making sure that goods are delivered, on time and in good condition, all the way to the patient