As a substantial part of the health budget in many countries is used to purchase pharmaceutical products, procurement of drugs is obviously a crucial function. Various types of tender mechanisms as well as direct procurement are described and discussed. A good way for small procurement agencies to ensure product quality is to conduct restricted tenders to which only pre-qualified suppliers are invited. The pre-qualification and tender procedures are described. Model questionnaires for pre-qualification of suppliers, a model tender invitation and an inspection checklist for drug receipts are enclosed. These can be modified to suit local conditions and legal requirements.