MANAGEMENT

DRUG SUPPLY
(Procurement)
 Hello!

I am Nani Kartinah, M.Sc, Apt

You can find me at nanikartinah@unlam.ac.id
Objective
 Understand the drug
procurement process

 Be able to calculate the

quantities to be ordered in a given
situation
 1
Management Drug
Cycle
Let’s start with the first set of slides
Management
Drug Cycle
 2
What is
Procurement?
 “
Procurement is a major
determinant of drug availability
and total health cost
 What is
procurement?
A complex process to :
▹ Select the most cost-effective
essential drugs to treat commonly
encountered disease
▹ Quantify the needs
▹ Pre-select potential suppliers
▹ Ensure good product quality
▹ Monitor the performance of
suppliers and procurement system
 Key Point in
Procurement
▹ Procure the most cost-
effective drugs in the right
quantities
▹ Select reliable suppliers of
high-quality product
▹ Ensure timely delivery
▹ Achieve the lowest possible
total cost
 Review Drug
Selection
Consumption
The Procurement Information Quantification
Cycle

Distribution Need − Funds

Choice
Warehouse
Storage
Procurement
Method

Reception + Locate + Select

Inspection Suppliers

Monitor Order Fix Contract

Status Terms
Review Drug
Selection
▹ Deciding the health problems
that treated at the type of
facilities
▹ The drugs to be provided will
depend on the health
problems
▹ These decision are also the
starting point for preparation of
the average standard drug
 List The Drugs
List The Major Choose The Drugs
Selected
To Be Used For Add Pack Size and
Spesific Health The Health
Alphabetically and
Price per Pack
Problems By Therapeutics
Problems
Group

Procedure of Review Drug

Selection
Quantification

The estimate of the drug and

dosage forms required for a
given period :
▹ To avoid shortages (out of
stock) and ensure credible
health care service
▹ To prevent excess stock and
avoid waste
Quantification
Method
The The Morbidity Adjusted
Consumption Method Consumption
Method Method
Estimates need
Uses records of for spesific drugs
past consumption based on the
of individual drugs expected number
to project future of attendance
need incidences of
common disease
Quantification Method Recommended

 When adequate funds are available

 When prescribing patterns are acceptable
 When health facilities have adequate and
uninterrupted drug supply
Consumption Method  When health facilities have reasonably good
stock management, complete and accurate
consumption data
 When health facilities have low level of wastages
and losses
 When available data on consumption are
incomplete or unreliable
 When prescribing practices are expensive and
irrational because it provides a systematic basis
Morbidity Method for improvement
 When the drug budget is unlikely to be sufficient
to meet estimated requirement
 For new or rapidly changing services are being
substantially reorganized
Reconcile
needs and
funds Yes No

Purchase √

Donate √

Manufacture √

etc

When funds are not available to purchase all

the drug listed, used Pareto and VEN analysis
 Choice
Procurement
Method ▹ Open Tender
▹ Restricted Tender
▹ Competitive Negotiation
▹ Direct Procurement
▹ E-procurement
 Choice of
Procurement
Method Open Tender Restricted Tender
Is a formal procedure by Interested suppliers
which quotes are invited must be approved at
from any supplier’s prequalification process
representative (manufacturing process,
supply performance,
financial viability)
Cont..

Competitive E-procurement
Negotiation Is internet based
The buyer approaches a tendering
limited number of
selected suppliers
forprice quotation.
Buyers may also bargain
with these suppliers to
achieve spesific price
and service aggrement
 Select
Suppliers
 Thanks!

Any questions?