Operational Principles for Good Pharmaceutical Procurement
(1999; 32 pages) [French] [Spanish] View the PDF document
Table of Contents
View the documentAuthors and editors
View the documentAcknowledgements
View the documentAcronyms and abbreviations
View the documentIntroduction
View the document1. Problem statement
Close this folder2. Strategic objectives for good pharmaceutical procurement
View the document1. Procure the most cost-effective drugs in the right quantities
View the document2. Select reliable suppliers of high-quality products
View the document3. Ensure timely delivery
View the document4. Achieve the lowest possible total cost
Open this folder and view contents3. Operational principles for good pharmaceutical procurement
View the document4. Practical implementation issues
View the documentBibliography and further reading
View the documentOther documents in the Interagency Guidelines Series
View the documentBack Cover
 

4. Achieve the lowest possible total cost

The fourth objective is that the procurement and distribution systems must achieve the lowest possible total cost, considering four main components:

• the actual purchase price of drugs;

• hidden costs due to poor product quality, poor supplier performance or short shelf-life;

• inventory holding costs at various levels of the supply system; and

• operating costs and capital loss by management and administration of the procurement and distribution system.

 

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Last updated: May 3, 2013