Pharmaceutical Management Diploma in Pharmacy Rajan Manandhar

PROCUREMENT AND PROCUREMENT PROCEDURE

Purchasing is a process: a business or an organization attempting to acquire goods and services

to performs organizational job efficiently to achieve organizational goals.
An effective procurement of purchasing ensures
- Right drug in right condition
- Reasonable price
- Recognized standard of drugs quality
The drug may be required through purchase, donation or manufacture.

Procurement Cycle:

1. Review drug selection

2. Determine quantity needed
3. Reconcile needs and funds
4. Choose procurement method
5. Locate and select supplier
6. Specify contract terms
7. Monitor order status
8. Receive and Check drugs
9. Collect consumption information

Methods/Technique of Procurement/Purchasing

1. Open Tender
2. Restricted Tender
3. Competitive negotiation
4. Direct purchase

1. Open Tender

The bidding is open for all the interested suppliers.

-Usually the price is low
-Procurement lead time is usually moderate or long
-Work load for office is high, Need to evaluate suppliers

It is favored when many reputable supplier and when pre-qualification is not feaseable or not
allowed by regulation or donor’s provision

2. Restricted tender
Bidding is open for suppliers who have registered with government or who are pre-qualified
- Usually the price is favorable
- Procurement lead time is usually moderate to long
- Workload for procurement office is high.
- Need for evaluation of suppliers
- It is favored when list of registered suppliers are developed or when capacity exist to manage
pre-qualification and supplier monitoring.
Pharmaceutical Management Diploma in Pharmacy Rajan Manandhar
3. Competitive negotiation
The buyer approaches a small number of potential suppliers and bargains specific price or
service arrangements
- Price can be favorable
- Procurement lead time is usually short to moderate
- Need for evaluation the supplier
It is favored when:
- Procurement office is experienced with food access to market intelligence
- Low price of small volume items
- When special terms and specification are required by the buyer for items that are not
widely available
- Emergency purchase to supplement tender

4. Direct Procurement
The buyer purchase directly from the suitable supplier at the quoted price
- Price is usually highest
- Procurement lead time is usually short to moderate
- Workload for office is low
- Need for evaluation of supplier is high
It is favored when
- Emergency purchase when negotiation is not possible
- Purchase of single sources of drugs
- Low Price drugs or small volume drugs

Good Pharmaceutical Procurement Practices

 Procurement by generic name
 Procurement in bulk
 Procurement limited to Essential Drug List and Formulary List
 Formal supplier qualification and monitoring
 Competitive procurement
 Sole-source commitment
 Order quantities based on reliable estimate of actual needs
 Transparency and written procedure
 Product quality assurance programmed
 Regular reporting on procurement procedure