The challenge is that purchases in these areas are often made by the departments themselves and the procurement department is included in the procurement process either too late or not at all, and inadequate procurement resources make things even more difficult. International acquisitions meant new requirements for logistics and supplier management. Before we can develop a ‘roadmap’ for performance optimization and cost reduction, we first identify and prioritise existing potential. At the same time, the significant financial resources and the number of players involved in pharmaceutical procurement makes the process susceptible to corrupt practices. By implementing new processes and working with procurement staff, the achieved savings enhance sustainability and will result in a more profitable organization.“, Erwan Quemener, Purchasing Director, Chassis Brakes International, „INVERTO helped us in raising undreamed-of sources of savings in both direct material and indirect material areas. Furthermore, this centralization led to a huge additional revenue from our waste paper business. On average, we have achieved 15% savings for our pharmaceutical industry clients. Jan Christoph KischkewitzManaging Director, +49 221 485 687-0 contact@inverto.com View my LinkedIn profile View my XING profile, +49 221 485 687 0 frank.albrecht@inverto.com View my XING profile, Project: Pharma manufacturer Patheon cuts packaging costs despite rising raw material prices. A co-operation between the World Intellectual Property Organization (WIPO) and the International Federation of Pharmaceutical Manufacturers and Associations (IFMPA), the global trade association representing the research-based pharmaceutical industry, was launched on the 25 th of September 2018. Countries may provide a fast-track registration process for certain types of drugs (life-saving drugs, unique drugs for which no alternatives exist, or well-established generics). The results of our projects are contracts with suppliers, which permanently secure your target savings and optimum quality standards. 1.1 All the processes involved in the procurement of Pharmaceutical products shall be under the direct control of the Chief Pharmacist (or nominated deputy), who shall ensure that all statutory and professional requirements are complied with. The agreement should make provision for liability and remedies in case of breach of contract. Production or contract manufacturing often dominate procurement in pharmaceutical companies. Procurement of Pharmaceutical Preparations 2019 - 2022 Feb, 05 2019 Scope: The National Health Fund, an agency of the Ministry of Health, Jamaica, now invites bids from eligible bidders for the periodic supply of pharmaceutical preparations, as listed in the Schedule of Requirements of the tender documents, for a 36-month contract period, for use in the Government health facilities. We help you to reduce your purchasing costs for the long term and act as an interface to aid cooperation between procurement and other departments. procurement of medicines and pharmaceutical products and services in the UK. Specifically, individuals involved in pharmaceutical procurement must determine, accredit, and monitor appropriate supply sources; evaluate suppliers’ performance; choose a buying strategy or approach; monitor drug deliver y; assess clinical and use outcomes; … It includes an overview of arrangements for NHS England, NHS Scotland, NHS Wales and HSC Northern Ireland. 13 December 2007 Stop TB workshop on Global Fund grant negotiation and implementation They have the ability to talk the clinicians language, optimise the procurement process and deliver a result the trust could not have achieved itself.“, Bart Stubbe, Vice President of Purchasing LINPAC Group, „INVERTO are assisting LINPAC since early 2008 in transitioning from a decentralised to a category purchasing structure, bringing sourcing expertise, skilled resources, technology and methodology to recognise, create and release value to the company.“, +49 221 485 687 0 +49 221 485 687 140 contact@inverto.com All locations Approach, https://www.inverto.com/en/expertise/pharmaceutical-industry/. Discuss factors influencing drug prices & total costs briefly 3. This was achieved through the clear separation of quantitative (e.g. However, in our experience as a successful supply chain management consultancy, the most significant improvements are achieved through intensive cooperation between respective partners. Discuss How to Organize & Manage The Procurement System 6. On this basis, we make clear recommendations for your business. Spending on items that are not directly incorporated into the value creation process is often neglected. Creating your own standardizations and specifications for products to be purchased and technical facilities is a significant way for your procurement to achieve strong positioning and reduce your dependence on suppliers. The Food and Agriculture Organization of the United Nations (FAO) invites you to submit an offer for the procurement of Drugs and Pharmaceutical Products to be delivered to various destinations in Sudan. Through tendering total demand across all sites, standardization and the implementation of specialized suppliers, the procurement conditions for folding boxes, labels and instructions were considerably improved. At the same time, the significant financial resources and the number of players involved in pharmaceutical procurement makes the process susceptible to corrupt practices. In our experience, the greatest savings potential lies in marketing, logistics, facility management and IT. Who We Are. The project work with INVERTO was very professional and made this great result possible.“, Marc Lamure, Director, Montagu Private Equity Associates LLP, „INVERTO has helped D.O.R.C. public procurement rules, these products are treated like any other goods. We will support you to implement your new processes and/or transition to new suppliers. Manila, Philippines: World Health Organization. The close involvement of employees in this structured tender process is an additional bonus, and something which will benefit us in years to come.“, Siniša Mitrović, mag.oec., Managing director, Styria Tiskara Zagreb, „Due to the flexibility of the team, we managed to receive additional offers from suppliers and hence increase competition between existing suppliers. lead times, complaint rates) and an implementation plan and implemented them using workshops. procurement conditions of the agency) and qualitative (e.g. With our supply chain performance check, you will know where you stand in virtually no time. From supplier-side inventory planning and management to cooperative planning, INVERTO communicates with your employees and suppliers to ensure the successful implementation of optimization concepts. Pharmaceutical Products Sourcing through UNICEF Supply Division. with the professionalization of the procurement organization and accompanied the supplier negotiations for various products and services. Although the operational principles presented here are in many respects applicable to all procurement settings and for most types of procurement situations, their primary target is pharmaceutical procurement for public sector health systems. Spending on items that are not directly incorporated into the value creation process is often neglected. Global data and statistics, research and publications, and topics in poverty and development. Case study: Packaging optimization for a medium-sized company The strategic orientation of packaging procurement significantly lowered production costs at a traditional pharmaceutical company. 1 Directive 2004/17/EC of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors, O.J. From early involvement in development projects to outsourcing entire production stages, INVERTO designs models of integration, which cope with your company’s challenges and turn your suppliers into active value creation partners. We determine your current supply chain performance based on a set of criteria, placing particular focus on supply chain integration, using IT solutions to analyse your overarching strategy and the interlinking of the planning process, quality of cooperation and process support. Practical guidelines on pharmaceutical procurement for countries with small procurement agencies. falsified pharmaceutical products and reduce the risk of subsequent deterioration, thereby potentially reducing the incidence of product complaints and recalls, financial losses, and most important, the risk of harming patients’ health. There are products that must be shipped at controlled room temperature (15-25°C), body temperature (≈37°C), cold temperatures (≈ -20°C) and even as low as at cryogenic temperatures (-150°C). We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. INVERTO’s orientation towards precise customer requirements and benchmarks as well as professional negotiations has contributed significantly to the success of this project. We support our clients, national pharmaceutical companies and international pharmaceutical groups, in their global procurement, achieving transparency across the entire supply chain. Pharmacological Review 37-43. Procurement of pharmaceuticals in World Bank projects Toggle navigation. It … , L 134, 30 April 2004, as lastly modified by Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. IHRPP, the International Procurement Platform. PDF | On Jan 1, 2017, Joy Muhia and others published Factors Affecting the Procurement of Pharmaceutical Drugs: A Case Study of Narok County Referral Hospital, Kenya | … The pharmaceutical industry has been experiencing profound changes for years, with mergers and acquisitions dominating the industry. This conceals indirect spend costs amounting to approximately 16% of turnover. Other Elements of UNDP’s Procurement Architecture. Case study: Media procurement by a manufacturer of generic drugs We made savings of around 18% on the media procurement of a German generic drug manufacturer,while increasing the quality of service. Our experts Jan-Christoph Kischkewitz and Frank Albrecht are at your disposal for any questions regarding cost-reductions and performance improvements in the pharmaceutical sector. We then defined quantitative supply chain targets (e.g. In the last years, transport of sensitive pharmaceuticals has moved away from the more simplistic notion of cold chain, with the conventional meaning of a temperature interval between 2-8°C, to the wider aspect of temperature-controlled transport, which include a range of different temperature intervals. WHO recommends that procurement agencies enter into an agreement or contract with the manufacturer before purchasing any products. World Health Organization (2002) Practical Guidelines on Pharmaceutical Procurement for Countries with Small Procurement Agencies. We analyse which specification limits of materials can be used by your facilities and how these can be purchased both efficiently and cost effectively throughout the procurement process. Pharmaceutical procurement occurs in many contexts. P ublic procurement of medicines has proven to be a tricky business. Do you want to be prepared for dynamic and new market conditions in the pharmaceutical sector, achieve sustainable savings and secure competitive advantages? INVERTO succeeded in getting the most out of the media budget by implementing a multi-stage process with clients’ employees from the marketing and procurement departments. They did not only identify these potentials but they supported us in the implementation phase with a great professionalism.“, Nick Gerrard, CFO, MID Essex Hospital Services NHS Trust, „INVERTO’s market and product knowledge have been invaluable in helping the Trust deliver substantial cost savings in a short space of time. Give Overview of Procurement Methods 4. It includes an overview of arrangements for NHS England, NHS Scotland, NHS Wales and HSC Northern Ireland. Supply chain optimization is usually driven by improving internal processes. We will show you where this potential is in your procurement organization. Our detailed analysis achieved transparency in terms of the strengths and weaknesses of the existing operational and organizational structure. Consequently, suppliers of pharmaceutical products should always be required to demonstrate compliance with national registration requirements as a condition for contract effectiveness. Procurement Transformation – What really matters: A precise understanding of future success factors. Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.. Procurement generally involves making buying decisions under conditions of scarcity. The mechanism of pharmaceutical products public procurement was discussed today in the course of the meeting with the President Фото: president.gospmr.org The goal is to discuss relationship between the state and business in the procurement of pharmaceuticals and equipment. Our many years of experience mean that we not only know the technical and product-specific challenges you face, we also know the solutions. Pharmaceutical Products Lesson Name: Course Introduction Page 1 Welcome to this course on Procurement and Supply Management, or PSM, of Pharmaceutical Products. Having your own standards and specifications can considerably increase the procurement volume of individual materials, resulting in significant cost savings. I thoroughly recommend working with INVERTO.“, Dr. Jürgen Wickl, Managing Director of Styria Media IT, „By preparing a functional specification, we managed to advertise requirements in a tailored way. Public procurement of medicinal products and medical devices by the Ministry of Health of Ukraine faced a number of issues for many years. The World Bank Group works in every major area of development. Production or contract manufacturing often dominate procurement in pharmaceutical companies. As our fees vary depending on the savings we achieve, making savings ensures budget-friendly financing. World Health Organization. We take these results as a benchmark, so you know where you stand within the industry and where there is potential for optimization. The cost of procuring pharmaceutical products – especially medicines – represents a major share of public health spending. When preparing a new procurement of antibiotics, suppliers that can document good environmental efforts during the manufacturing process will, for the first time, be rewarded in the procurement process. Give Detailed Account of Good Pharmaceutical Procurement Practices 5. Government regulations to reduce costs in the health care sector affect businesses of all sizes, from corporate groups to medium-sized businesses. It is intended as a resource document for those individuals working in the NHS who do not have a background in medicines and pharmaceutical products and services INVERTO oversaw the analysis of the procurement organization, concept development and implementation, right up to monitoring the quantitative targets. As a result, companies are set up for dynamic, new market situations for the long term and can achieve sustainable savings and secure competitive advantages. Regional Office for the Western Pacific. Case study: Supply chain performance optimization in a pharmaceutical firm We restructured the supply chain of a global pharmaceutical company. media strategy consulting) decision criteria. Working with the customer services teams from the production, quality assurance and procurement departments, we achieved savings of over 20% while simultaneously improving quality. In addition to the options describe in previous sections of the Manual, that enable procurement of pharmaceuticals and other health products to meet the needs of Global Fund grants implemented by UNDP, UNDP has developed a number of complementary bespoke supply systems of interest to requesting units. 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