Sourcing & Management of Health Products

Procurement Tools

Strong procurement systems and supply chains are essential to ensuring that the right medicines get to the right places at the right time. Since 2007, strengthening procurement and supply chains in the countries we work in has been one of the Global Fund’s priorities.

Implementing partners can choose to procure medicines and health products by joining the Global Fund’s Pooled Procurement Mechanism, by commissioning a procurement service agency to purchase on their behalf, or directly through their own procurement services.

The Global Fund provides several tools and services to enable countries to efficiently and effectively procure lifesaving medicines and health products, and to enable health programs achieve the greatest impact for their investment:

These services are intended to help countries fill gaps in knowledge or expertise in terms of procurement and supply management, or where in-country partners may not have the resources to carry out all aspects of procurement or quality assurance for themselves.

Pooled Procurement Mechanism

US$174 million
savings generated in 2019 by the Pooled Procurement Mechanism

The Pooled Procurement Mechanism is a key initiative we use to aggregate order volumes on behalf of participating grant implementers to negotiate prices and delivery conditions with manufacturers. In 2018, the Pooled Procurement Mechanism managed approximately US$1 billion in orders, serving grant implementers in 63 countries.

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

Health products available through the mechanism include antiretrovirals, antimalarial medicines, essential medicines, long-lasting insecticidal nets, viral load tests and rapid diagnostic tests.

Reference prices and estimated lead times for health products can be found on each category page. We offer a budget guidance tool to help in-country partners with the total cost of ownership, including freight, insurance and quality testing costs associated with their Pooled Procurement Mechanism orders:

  • Pooled Procurement Mechanism: Freight, Insurance, Quality Assurance/Quality Control Indicative Reference Costs
    download in English

Individual implementers can also obtain a broader range of health products, such as laboratory and diagnostic products, drugs for opportunistic infections, condoms and other products through the Pooled Procurement Mechanism.

wambo.org

The Global Fund’s online procurement platform, wambo.org, offers buyers access to different procurement channels, including the Global Fund’s Pooled Procurement Mechanism (PPM), for health products and selected non-health products used primarily for HIV, tuberculosis and malaria health programs. Implementing country procurement teams can search for quality products and submit and track orders and invoices. It can improve market visibility, simplify transaction management, and improve procurement lead times, while increasing access to quality and value-for-money products.

Wambo.org is currently available to both Global Fund implementers using Global Fund grant funds and to governments and other eligible organizations using domestic or other donor funding that would like to secure products through the Pooled Procurement Mechanism and other procurement channels available through wambo.org. Eligible buyers, regardless of funding source, have access to all products, services and functionalities in wambo.org, including framework agreements for HIV and malaria products, in addition to certain TB and COVID-19 products (COVID-19 Health Product Supply).

Procurement of health products through wambo.org for countries that use non-Global Fund grant funds may be subject to regulatory restrictions and is subject to the Global Fund’s confirmation and availability of supply. Pre-payment of goods is required for those countries that procure using non-Global Fund grant funds.

For more information see:

  • Process Overview for Non-Global Fund Grant transactions
    download in English
  • Wambo.org platform: Potential Benefits for Non-Global Fund Grant transactions
    download in English

Governments and non-government development organizations in Global Fund-eligible and transitioned countries that would like to use either their domestic or other donor funds to procure through the Global Fund’s wambo.org platform can contact .

Private Sector Co-Payment Mechanism

The Private Sector Co-Payment Mechanism is a financing model used by the Global Fund to expand access to quality-assured ACTs, the most effective antimalarial medicines available today, through private sector distribution channels. The mechanism is well suited for countries where the private retail sector is a major provider of antimalarial medicines and currently operates in six countries.

The Private Sector Co-Payment Mechanism, along with its predecessor the Affordable Medicines Facility - malaria (AMFm), has demonstrated significant results in terms of lowering retail prices to patients and increasing access to quality-assured ACTs. The model leverages Global Fund-negotiated ACT prices and further reduces the price to pharmaceutical importers in participating countries through a co-payment made by the Global Fund directly to manufacturers on their behalf. Country-led supporting interventions, such as large-scale mass communications around treatment seeking for malaria, are instrumental in rapid and large changes in price, availability and market share of quality-assured ACTs.

Several key actors – including implementing partners, national governments, ACT manufacturers, Local Fund Agents and participating pharmaceutical importers – work together to enable the co-payment mechanism to achieve its objectives.

Reference documents are available for download.

  • Reference documents