Building on decades of USAID’s work procuring health commodities and strengthening supply chains, the Global Health Supply Chain-Procurement and Supply Management project is working to transform global and national supply chains for health commodities. The project integrates two former USAID programs into one efficient supply chain that serves many of the world’s most vulnerable and difficult-to-reach communities. The project is designed to meet today’s critical global health challenges — eliminating HIV and AIDS, providing universal malaria coverage, and helping women meet their family planning and reproductive health needs. By bringing together advanced technical solutions, a team of highly qualified experts, and proven commercial processes and principles, USAID Global Health Supply Chain works to reduce costs and increase efficiencies in global and national supply chains. In addition to optimizing supply chains, the project is strengthening national supply chain systems and fostering collaboration among supply chain stakeholders worldwide.
Supply Chain Operations Reference model: The USAID Global Health Supply Chain adheres to the Supply Chain Operations Reference (SCOR) model, the world’s leading supply chain framework, linking business processes, performance metrics, practices, and people into a unified structure. Major elements of this framework are already in place, and the project is placing orders and contracts for products and services.
Data visibility: Accurate real-time data is at the heart of the USAID Global Health Supply Chain. Instant availability of the status of any commodity delivery, combined with a range of metrics related to market dynamics, logistics performance, and other factors, will enable USAID and other stakeholders to ensure that greater health impact is delivered per dollar. To this end, we are building an integrated, state-of-the-art management information system that combines three proven information technology solutions into a single portal. These solutions are IBM’s e-commerce suite, which is used by some of the world’s top supply chain operators, Kuehne+Nagel’s logistics management information system, which is used to manage freight-forwarding operations, and Chemonics’ financial information management system, which is used globally to manage government contracts and ensure compliance.
Commercial best practices: Chemonics and its partners are adapting proven commercial methods and tools to optimize supply chain performance and build capacity. Going beyond traditional transactional buying, we have formed commodity councils — teams of complementary experts in health commodities, planning, sourcing, logistics, and quality assurance — to develop sourcing strategies and help shape markets. In addition, we follow the fourth-party logistics model to secure the best value in capability and cost. We employ Lean Six Sigma principles to eliminate waste across the supply chain. And, we help national supply chains to develop quality management systems to facilitate ISO 9001 certification, where appropriate to the local context.
Strong local systems: Our holistic and participatory approach to strengthening local supply chain systems is designed to achieve lasting impact. Using a four-step framework — engage, empower, enable, and evolve — we help local stakeholders introduce, enhance, and/or institutionalize systems thinking-based approaches and tools to improve their supply chains for health commodities. On July 1, 2016, the project launched 12 country programs: Ghana, Haiti, Lesotho, Liberia, Madagascar, Malawi, Mozambique, Nigeria, Pakistan, Rwanda, Zambia, and Zimbabwe. Fifteen additional country programs will start up operations in September 2016.
Robust global engagement: Tracking, analyzing, and sharing information on market dynamics worldwide is crucial to optimizing price and quality while ensuring a sustainable supply of products. The USAID Global Health Supply Chain project reports market intelligence information and data for strategic decision-making to global stakeholders and works with them to prioritize commodity security on development agendas worldwide.
Strong partnerships: Led by Chemonics, the USAID Global Health Supply Chain - Procurement and Supply Management consortium brings together industry-leading partners and expertise from both international development and commercial firms. Our consortium members operate or support some of the largest health commodity supply chain systems in the world. Guided by the project leadership team, consortium members work together as a single team to design innovative approaches and solutions and ultimately deliver greater impact in the field.
Two-Day ARV Vendor Exchange Explores New Procurement Strategy with Pre-Selected Vendors – September 13-14, 2016
On September 13-14, more than 45 representatives from the Office of the U.S. Global AIDS Coordinator, USAID, and key antiretroviral (ARV) vendors joined staff from the USAID Global Health Supply Chain Program-Procurement and Supply Management project to explore how to strengthen the reliable supply of quality products and achieve best value selection within a healthy, competitive market. The two-day vendor exchange discussed issues ranging from new product development and approvals to GS1 bar code standards and other innovations that improve services and supplies for ARV clients worldwide.
Launched in January 2016, the USAID Global Health Supply Chain - Procurement and Supply Management project is a single-award indefinite delivery/indefinite quantity (IDIQ) contract for health commodities and technical assistance, designed to make health commodities for HIV/AIDS, malaria, family planning, and reproductive health more readily available.