Sourcing & Management of Health Products

Sourcing & Procurement of Health Products

The Global Fund plays a significant role in global markets for health products used in the fight against the three diseases. As a key financier in public health, we are committed to maximizing our investments through achieving affordable, quality assured, timely delivered health and medical products. These benefits are offered through innovative procurement tools such as the Pooled Procurement Mechanism and the procurement platform.

Pooled Procurement Mechanism

The Pooled Procurement Mechanism is a Global Fund strategic initiative that aggregates order volumes on behalf of participating grant recipients to negotiate prices and delivery conditions with manufacturers. In 2017, the Pooled Procurement Mechanism managed US$1 billion in orders, serving grant recipients in 63 countries.

84% increase
in-COUNTRY on-time-In-Full deliveries IN 2017

The mechanism:

  • Provides access to competitive market terms and prices no matter the size or value of the order
  • Eliminates procurement delays due to complicated tendering processes
  • Supports timely grant expenditure
  • Ensures that quality assured goods and medicines reach those most in need in a timely manner

Core health products available through the mechanism include:

Individual implementers can also obtain through this mechanism a broader range of non-core health products, such as laboratory and diagnostic products, drugs for opportunistic infections, condoms and other products.

Procurement strategy

The Pooled Procurement Mechanism is a key tool used to implement the Global Fund’s Market Shaping Strategy using our purchasing power to achieve the greatest impact on product markets in a sustainable manner.

With such a significant role to play in the global market for critical health products, we base our procurement strategies on:

  • Market intelligence
  • Supplier and partner engagement
  • Aligning demand and supply
  • Compliance with Global Fund guidance and requirements on procurement and quality assurance
  • Ensuring sustainable and healthy markets