Sourcing & Management of Health Products

The Global Fund / Karin Schermbrucker

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$175 million
million savings generated in 2018 by Pooled Procurement

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.

Past Pooled Procurement Mechanism tenders are available for download for reference.

  • Past tenders

wambo.org

The Global Fund’s innovative procurement tool, wambo.org makes the Global Fund’s Pooled Procurement Mechanism-negotiated terms and pricing available to Global Fund partners through an easy-to-use online platform. The tool gives in-country procurement teams the power to search, compare and purchase quality-assured products used by health programs. It can improve market visibility, simplify orders and improve administrative lead time.

Wambo.org is currently available to Global Fund implementers using Global Fund grant funds to procure through the Pooled Procurement Mechanism. As an initial step to make wambo.org available to all organizations and programs that contribute to the fight against the three diseases, we are piloting a limited number of transactions by current governmental Principal Recipients using their domestic funding.

Global Fund implementers not registered with the Pooled Procurement Mechanism may access a basic wambo.org membership that offers visibility into products and prices but does not allow the organizations to place orders.

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