. Drug selection, which should be done by a national formulary or essential drugs list (EDL) committee.B. Quantification of drug requirements, which should have inputs from the medical stores and/or from district or health facility managers in decentralized systems.C. Product specifications, which should be prepared by a standing committee or an ad hoc technical committee.D. Pre-selection of suppliers, which should be done by a broad-based procurement committee composed of managers and technical staff, including quality assurance experts.E. Adjudication of tenders, which should be reserved for the procurement committee or tenders board.- Pharmaceutical procurement is a specialized professional activity that requires a combination of knowledge, skills and experience. The procurement office should have at least one pharmacist as part of its senior staff, in addition to having pharmacists’ expertise all along the pharmaceutical procurement chain.
2. Transparency of the Procurement procedures, by illustrating the criteria of selection to the vendors for them to acknowledge of how to win the contracts, also we should follow formal written procedure ( SOP) throughout the process. The well-known criteria should be used to take procurement decisions and for awarding of contracts. Information on the tendering result and process should be explicit and the issuing of the order should be done in the shortest period of time and shall include all needed information.
3. Monitoring and planning the Procurement process, the process should be planned properly and to monitor the performance regularly it shall include internal and external audit. For us to make sure that the raw materials are available in the needed time we must carefully plan for this process and to purchase the items at the right time without delays when attainment to the reorder point. Management information systems and ERP system nowadays has made the planning, managing and monitoring procurement easy as they are reliable. The system tracks the request, order placed, payments made and gather the required information for each supplier and it monitor their performance like the average lead time and service levels. Also they can provide us with information about the planned against actual items and quantities purchased, percentage of drugs in stock against the level of supply and report on stock out drugs. also we can use these systems in inventory management as they compare the actually purchased items with estimated .
4.procurement in the Public sector should be limited to an essential drugs list, in public sectors its different as the selection of the drugs are based on a national list that allows for concentrating on a limited number of products so larger quantities will reassure competition and lead to more competitive prices. Reducing number of items will increase specialty and simplify management activities and inventory carrying cost.
5. Competitive Procurement is a must in public sector we have four main methods for procurement: open tenders, restricted tenders, competitive negotiations and direct negotiation with a single supplier. The first three are considered competitive procurement. In order to obtain a favorable price supplier competition is a the primary key to obtain that, in the public sector we use competitive methods for all purchases except for the emergency or very small purchases for components will be available at multiple sources which will help us get them in a competitive price as their quality and reliability are assured. Competition will carry us to the point at which the prices are as low as possible. A rule of five in pharmaceutical pricing will generally reach the level where we have at least five beds per item and will lower the prices in the tendering system. In other situation where most of the products are single source the completion is reduced so we shall start sourcing for newer suppliers that can give similar quality to get better prices however doing that requires a drug committee to evaluate the quality of the similar product and not by the procurement officer alone.
6. ensuring reliable financing for procurement; to build a strong relationship with suppliers and to get good prices finance management should be followed to the use of financial resources, paying on time to suppliers, investing money in purchasing more components to reinvent drugs and in research and development, paying on time has a very positive effect on decreasing the stock out and reduce prices and increasing the supplier confidence in the procurement system.
7. Procurement procedures should assure that the items purchased are high quality and according to international standards, effective assurance system needs:A. as we defined earlier selecting reliable suppliers of quality items is important. B. implementing a product defect reporting program C. applying targeted control testing.selecting the suppliers that provides high quality product is the primary key to ensure the product quality, procurement department must be alert to the product quality issues and not only pricing issues. Some products differ in formulation from supplier to supplier so the purchasing officer should be watchful when sourcing new suppliers, even when products are equivalent they must pay attention to changes in dosage that can cause problems. But if selecting suppliers is managed effectively its not necessary to carry out quality control testing on each batch received. Many procurement agencies limit the testing to new suppliers.
All these principles should help us obtain the competitive advantage in the pharmaceuticals industry.