Health Product Procurement and Supply Chain Management (PSCM) Section of the Progress Update

Reporting requirements are different for each of the portfolio categories:

• Focused countries are required to submit an annual PU/DR.
• Core and high-impact countries must submit two progress updates per year: one mid-year PU and one yearly full PU/DR.

All portfolios that include the procurement and supply chain management of health products are required to complete the PSCM Section of the Progress Update.

There are six sub-sections in this worksheet. Three sub-sections are mandatory for all portfolio categories, and three additional sub-sections are mandatory for core- and high-impact portfolios. The additional sub-sections became mandatory at the start of 2024. For more details, please see the resources from the Global Fund Information Session on PU/DRs: Health Product Procurement & Supply Chain Management.

1. Up-date on completeness of entries in PQR compared to the confirmed orders for health products associated with the 10 required Product Categories.

   Please refer to the Health Product Management section of this manual for detailed information on what should be reported in PQR.

2. Analysis of stock status to determine the risks of stock outs and/or expiries in the upcoming reporting period.

   There are six product categories against which the PR must report – anti-malarial medicines, anti-tuberculosis medicines (main first, and second line formulations), antiretroviral medicines (for core/main ARV products used to treat 70% of the people on treatment), In-Vitro Diagnostic Products (core/main products only), Condoms (male & female), Lab supplies (e.g., CD4, Viral Load, Cartridges…), and Other.

   The category ‘Other’ includes other products that are procured which either represent a significant expenditure for the grant and/or are critical for achieving the program goals and objectives as determined by the Global Fund (e.g., needles and syringes, methadone in programs for opioid substitution therapy; insecticides for IRS, etc.). The product description is specified in the comment section.

   If any risks are identified, the PR must provide additional contextual information on specific items at risk of stock-out and/or expiry and briefly outline the mitigation measures in place or to be implemented in the ‘PR comments’ column. Any scale-up or programme acceleration planned in the future period must be considered when estimating these risks.

   The specific products within each product category should be agreed through dialogue between the Global Fund and the PR.

   Stock status monitoring is an ongoing activity which is essential for the proper inventory management across the supply chain. For this analysis, the PR is required to use the most up-to-date stock status data. Stock status data generally includes the following information:

   • Stock on Hand (SoH) report: This is the aggregate quantity of usable stock available at the central level (at a minimum) covering all funding sources.
   • Average Monthly Consumption (AMC): This is the average quantity of a health product consumed per month calculated based on the analysis of the reported total consumption in the past (normally calculated for a period of six to twelve months) appropriately adjusted to reflect future demand levels.
   • Quantity on Order (and expected delivery dates) / Pipeline data: This is the aggregate quantity of stock with confirmed purchase orders issued to suppliers(s) by one or more funding sources.
   • Months of Stock (MoS): This is the stock on hand, with useable shelf-life, plus the quantity on order which is expressed in the estimated number of months of service coverage based on the AMC.
   • Expiry date: Expiry date for each batch of a product in stock is shown.

   These different sets of data are usually collated into a single stock status report.

3. Additional information

The PR is required to comment on any additional issue(s) or information that could impact program implementation, in the coming reporting period and highlight any mitigation measure already in place or to be implemented. This could include data triangulation across key performance indicators and consumption data, any challenges impacting on proper management of health products, (e.g., any programmatic delays, regimen changes, human resources) or any delays in health products management activities that could impact on program performance.

The following sub-sections are applicable to core- and high-impact portfolios. Tracer product categories and targets are grant-specific and are agreed with the Global Fund Country Team before the start of the annual reporting cycle.

4 Quantification and Forecasting

Timely quantification and preparation of a comprehensive forecast enables timely initiation of the procurement process, order placement and arrival of required products into the country.

This metric measures two dimensions, timeliness and comprehensiveness, of the country’s (or grant’s) quantification and forecasting cycle.

A target date for completion of the forecasting exercise is set for each product category.

Timeliness looks at whether the forecasting exercise was completed according to the agreed timelines, and comprehensive looks at which product categories were covered during the reporting period.

The PR is required to submit evidence to support the data reported. This may include quantification reports that also reflect a completion date.

5 Grant Procurement Planning Performance

Timely and effective procurement of health products requires proper planning. PRs are required to develop a procurement plan with details of health products, quantities, budgeted reference prices, order placement dates and procurement channels. The grant procurement/supply plan is ideally derived from a national plan that is the result of the national quantification and forecast exercise.

This metric compares whether orders for selected product categories are placed in accordance with the approved grant procurement plans and taking into consideration relevant lead times.

The PR is required to submit evidence to support the data reported. Usually, this evidence would include the signed price quotations / cost estimates or the purchase orders; however, as per UNDP policy and internal UNDP regulations, procurement documents may not be shared by UNDP with the Global Fund. Similar to the PQR approach, the PR should summarise all confirmed orders that were placed during the reporting period and this file should be signed by PMU’s Procurement and Supply Management (PSM) Specialist or the Programme Manager before it is shared with the Global Fund. The PR may submit e-mail communication on agreed changes to the HPMT and/or the up-dated HPMT as evidence.

6 Central Stock (Stocked According to Plan - SATP)

Effective inventory management is a key process in health products supply chain management. PRs are required to maintain optimum health product stock levels as per the national guidelines for supply chain management and logistics.

This metric measures PR’s effective management of inventory at the central level by looking at proportion of products maintained within minimum and maximum stock levels.

The PR is required to submit evidence to support the data reported. This may include the same information submitted as part of the stock status analysis (e.g., SoH, AMC, and MoS).

Additional guidance to support this area of work are also available through a number of resources listed below:

• Resources from the Global Fund Information Session on PU/DRs: Health Product Procurement & Supply Chain Management