Procurement Methods – PST05101 Medicines and Medical Supplies Management
NTA Level 5 • Semester 1 • PST05101 Procurement Methods Medicines and Medical Supplies Management • Source Session/Topic 10 Full source-text version: all educational wording from the extracted learning source is retained; only presenter/tutor metadata and web-layout noise are removed, while formatting is improved for readability. Session 10: Procurement Methods Total Session Time: 120 minutes Prerequisites • None Learning Tasks By the end of this session students are expected to be able to: • List methods for procurement of medicines and medical supplies • Identify criteria for selecting a procurement methods • Identify procurement models Resources Needed: • Flip charts, marker pens, and masking tape • Black/white board and chalk/whiteboard markers SESSION OVERVIEW |Step |Time |Activity/ |Content | | | |Method | | |1 |05 minutes |Presentation |Introduction, Learning Tasks | |2 |40 minutes |Presentation |Methods for Procurement of Medicines and| | | |Buzzing |medical supplies | |3 | |Presentation |Criteria for Selecting a Procurement | | |35 minutes |Small Group |Methods | | | |Discussion | | |4 |15 minutes |Presentation |Identify Procurement Models | | | |Buzzing | | |5 |15 minutes |Presentation |Key Points | |6 |10 minutes |Presentation |Evaluation | SESSION CONTENTS STEP 1: Presentation of Session Title and Learning Tasks (5 minutes) READ or ASK students to read the learning tasks and clarify ASK students if they have any questions before continuing. STEP 2: Methods for Procurement of Medicines and Medical Supplies (55 minutes) |Activity: Buzzing (5 minutes) | | | |ASK students to pair up and buzz on the following question for 3 | |minutes | | | |What are the methods for procurement of medicines and medical supplies?| | | |ALLOW few pairs to respond on the question and let other pairs add on | |points not mentioned WRITE their response on the flip chart/board | | | |CLARIFY and SUMMARIZE by using the content below | The following are the methods for procurement of medicines and medical supplies; Open tender • Open tendering is a formal procedure by which quotes are invited from any supplier’s representative on a local or worldwide basis, subject to the terms and conditions specified in the tender invitation. For example, International competitive bidding, as specified in World Bank (2000; 2004b) guidelines, is a tender open to all interested international manufacturers from World Bank member countries. Restricted tender • In a restricted tender, interested suppliers must be approved in advance, often through a formal prequalification process that considers adherence to good manufacturing practices, past supply performance, financial viability, and related factors. The prequalification process is often open to any supplier that wishes to apply. E-procurement and reverse auction • E-procurement is Internet-based tendering. In the reverse auction approach (which is a variation of restricted tenders), qualified bidders submit an initial offer; the lowest offer received is posted publicly without naming the bidder after the first round; and then qualified bidders are invited to offer lower prices than that posted low price. The process continues round-by-round until no more prices are submitted; then the lowest posted bid wins the contract. This approach has rarely been used for pharmaceutical procurement (with most experience in Latin America); however, it may gain traction as global Internet capacity and use increase. Pharmaceutical quality assurance requirements and related factors may limit the use of this model, at least in its current form. Competitive negotiation • In competitive negotiation, the buyer approaches a limited number of selected suppliers (typically at least three) for price quotations. Buyers may also bargain with these suppliers to achieve specific price or service arrangements. This procurement method is used primarily in the private sector, because public-sector procurement organizations are generally forbidden from negotiating or bargaining with suppliers. For example, global organizations such as UNICEF, the Clinton Foundation, and SCMS have successfully negotiated reduced prices of antiretroviral (ARV) medicines with manufacturers. International or local shopping • As with competitive negotiation, in international or local shopping, the buyer obtains at least three quotes from suppliers; however, bargaining or negotiation of any kind are generally not permitted. Direct procurement • The simplest, but usually most expensive, method of procurement is direct purchase from a single supplier, either at the quoted list price or at a negotiated standard discount off the list price. For single-source medicines (generally those under patent with no licensing agreements that allow other firms to manufacture the medicine), the buyer basically has three choices—negotiated procurement, direct procurement, or selection of an alternative drug product. STEP 3: Criteria for Selecting Procurement Methods (35 minutes) |Activity: Small Group Discussion ( 15 minutes) | | | |DIVIDE students into manageable groups | | | |ASK students to discuss in groups on the following question: | | | |What are the criteria for selecting a procurement methods? | | | |ALLOW students to discuss for 15 minutes | | | |ALLOW each groups to present | | | |CLARIFY and SUMMARIZE by using the contents below | The following are criteria for selecting procurement methods: • Funding sources(government and donors) • Reorder frequency models • Annual review • Scheduled review • Perpetual review • Cost of prized tender • Assured quality, efficacy and safety of the items STEP 4: Identification of Procurement Models (15 minutes) |Activity: Small Group Discussion ( 15 minutes) | | | |DIVIDE students into manageable groups | | | |ASK students to discuss in groups on the following question: | | | |What are the criteria for selecting a procurement methods? | | | |ALLOW students to discuss for 15 minutes | | | |ALLOW each groups to present | | | |CLARIFY and SUMMARIZE by using the contents below | The Procurement model commonly practices or used:- • Scheduled purchasing • Perpetual purchasing o Example : Impress system ▪ : Two bin system • Annual purchasing : Purchase once a year • Modified optional Replenishment: it is a combination of the above STEP 4: Key Points (15 minutes) • There are numerous mechanisms by which governments, non-governmental organizations