Abstract
From 2006 to 2014, Supply Chain Management System (SCMS), the global procurement and distribution project for the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), distributed over US$1.6 billion worth of antiretroviral drugs and other health commodities, with over US$263 million purchased from local vendors in 14 countries in sub-Saharan Africa. A simple framework was developed and 39 local suppliers from 4 countries were interviewed between 2013 and 2014 to understand how SCMS local sourcing impacted supplier development. SCMS local suppliers reported new contracts with other businesses (77%), new assets acquired (67%), increased access to capital from local lending institutions (75%), offering more products and services (92%), and ability to negotiate better prices from their principles (80%). Additionally, 70% (n=27) of the businesses hired between 1 and 30 new employees after receiving their first SCMS contract and 15% (n=6) hired between 30 and 100 new employees. This study offers preliminary guidance on how bilateral and multilateral agencies could design effective local sourcing programs to create sustainable local markets for selected pharmaceutical products, laboratory, and transport services.
Highlights
Amidst a growing concern about sustainability of global health aid, and in a context of increasing focus on aid-recipient countries taking over their health budgets, the development of national program capacity has been attracting considerable policy interest.[1,2,3,4,5] There is a strong interest in identifying viable institutional frameworks and policy options that can help countries graduating from foreign development assistance for health to effectively manage their health systems with local implementing partners.[2]
Global Health: Science and Practice 2018 | Volume 6 | Number 3. This imperative for greater sustainability and higher value for money is most pronounced in the procurement and distribution programs run as part of global health initiatives such as the U.S President’s Emergency Plan for AIDS Relief (PEPFAR); the Global Fund to Fight AIDS, Tuberculosis, and Malaria; and Gavi, the Vaccine Alliance
The goal of this study was to understand the impact of Supply Chain Management System (SCMS) local sourcing on long-term development of a high-quality local supplier base
Summary
Amidst a growing concern about sustainability of global health aid, and in a context of increasing focus on aid-recipient countries taking over their health budgets, the development of national program capacity has been attracting considerable policy interest.[1,2,3,4,5] There is a strong interest in identifying viable institutional frameworks and policy options that can help countries graduating from foreign development assistance for health to effectively manage their health systems with local implementing partners.[2]. Global Health: Science and Practice 2018 | Volume 6 | Number 3. This imperative for greater sustainability and higher value for money is most pronounced in the procurement and distribution programs run as part of global health initiatives such as the U.S President’s Emergency Plan for AIDS Relief (PEPFAR); the Global Fund to Fight AIDS, Tuberculosis, and Malaria; and Gavi, the Vaccine Alliance. USAID had initiated a strategy to increase local procurement with an intent to promote sustainability and country ownership of its programs.[6] These trends are based on a hypothesis that local procurement—the practice of purchasing goods and/or services through local suppliers—can help achieve sustainability and build the capacity of local market actors and institutions
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