Chemonics International announced this week that the USAID Global Health Supply Chain Program – Procurement and Supply Management (GHSC-PSM) project, has reached an on-time delivery rate of 71 percent for the month of October. Further, the project has delivered 97 percent of all deliveries in full. GHSC-PSM, launched in 2016, faced some critical challenges in early 2017, including with on-time and in-full delivery; Chemonics has worked closely with USAID to address these issues while laying the foundation for the project’s success.
To date, the GHSC-PSM project has procured and delivered health commodities to 59 countries worldwide to combat HIV/AIDS and malaria, promote maternal and child health, provide reproductive health supplies, and help countries respond to emerging threats such as Zika. The project also provides technical assistance to strengthen national health systems in more than 30 countries.
Chemonics Executive Vice President James Butcher, who also serves as GHSC-PSM’s acting director, said, “We are pleased with the progress the project has made in reaching an on-time delivery rate of 71 percent in October. We recognize that we have to continue to build on and sustain this level of performance as we move forward. The people in the communities we serve worldwide deserve a 21st century global supply chain that provides the health commodities they need when they need them.”
A centerpiece of GHSC-PSM is the creation of a modern supply chain that brings the best of commercial supply chains to low-resource settings to increase efficiency and save money. By competing products, shipping lanes, and warehousing at every opportunity, for instance, GHSC-PSM obtains the best value in capability and drives down costs. The project also drives greater efficiency by seeking the best possible pricing terms for the supplies it delivers. One key factor is leveraging GHSC-PSM’s market influence around the globe to understand market trends, and doing in-depth analyses of the market dynamics that go into manufacturing medicines to better understand price points. Using this production economics analysis as well as in-country optimization plans, the project is generating significant cost savings and will continue to do so in the coming months and years. These cost savings, achieved at every level, add up to allow the project to procure more health commodities for more people.
Chemonics President and CEO Susanna Mudge said, “We are honored to partner with USAID on GHSC-PSM. We see the project as a natural extension of our development mission, and we embrace the challenge to continually improve the global health supply chain, not just to save money, but to ensure more people receive the health commodities they need when and where they need them.”
For more information on this project and details from the quarter four report, read this story.