Supply Chain Services

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USAID marked carton of commodities in warehouse
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Photo Credit: USAID Kenya
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Overview
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The USAID Global Health Supply Chain Program-Procurement and Supply Management (GHSC-PSM) project is a streamlined global health supply chain. It consolidates procurement and supply mechanisms from different health areas, providing USAID greater leverage to negotiate competitive prices.

GHSC-PSM is also a catalyst and conduit for government agencies and other actors in our partner countries throughout Africa, Asia, Central America, and the Caribbean to strengthen their national supply chains and ensure that an uninterrupted supply of health commodities reaches even the most marginalized communities.

We build strong supplier relationships and robust systems to reduce lead times and stockouts of critical medical supplies. Our teams optimize health supply chains down to the last mile and strengthen health systems ranging from workforce development to waste management to ensure best value for taxpayers and care recipients while helping to foster competitive, healthy markets.

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Supply Chain & Health Systems Strengthening
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GHSC-PSM provides technical assistance in such areas as procurement, supply planning, logistics, and quality assurance to strengthen country supply chains and health systems. We define country supply chains as those run by public, private, nonprofit, and nongovernmental entities. Our efforts center on systems thinking and inclusion of all stakeholders. GHSC-PSM will build on and move from traditional models to participatory approaches that empower stakeholders to lead, along with methodologies and tools that enable them to evolve their systems.

With the economies of many low‐ and middle‐income countries growing, countries are assuming increased leadership, responsibility, and accountability for global and national health initiatives. Countries’ technical needs are varied. GHSC-PSM staff create actionable guidance for implementation that can be tailored to individual country contexts. Our technical assistance:

 

  • includes and builds on USAID’s and others’ investments;
  • starts with stakeholder priorities, capabilities, and context; and
  • enables stakeholders to holistically view and systematically optimize supply chain performance.
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Global Procurement
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In sourcing health commodities, we strive for the best value, which does not always equate to the lowest price. We take a holistic view of proposals, considering not only the price but also factors like quality (shelf life and stability), service (lead time), regulatory compliance (registration and adherence to U.S. Federal Drug Administration specifications), and assurance of supply (quantity in stock and capacity to meet request). See How to Work With Us for more details.

The result is cost savings for the U.S. government and more people reached with high-quality health supplies.

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Competitive, Healthy Markets
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GHSC-PSM is committed to fair and open competition and healthy markets. We provide insightful global and country-level data analysis and policy review to assure supply stability, product quality, and overall market health. This business intelligence shapes action for improved efficiencies, such as switching to high-quality generics.

Globally, we use market intelligence to improve the health of the commodity markets we buy products from. USAID spending comprises a significant percentage of the market for many health commodities. By tracking new technologies, following public health trends, analyzing production costs, and monitoring the supplier base, GHSC-PSM is able to negotiate from a point of knowledge, determine sustainable pricing levels, and help shape markets with adequate competition and supply.

Our teams also work with country governments and partners to determine when local procurement is advantageous for the project and market.