Guide to Drug Financing Mechanisms
(1998; 64 pages) [French] [Spanish]
Índice de contenido
Ver el documentoForeword
Ver el documentoAcknowledgements
Abrir esta carpeta y ver su contenidoIntroduction
Abrir esta carpeta y ver su contenidoChapter 1. Selection
Cerrar esta carpetaChapter 2. Procurement
Abrir esta carpeta y ver su contenidoObjective of procurement
Cerrar esta carpetaProcurement strategies
Ver el documentoBlind confidence
Ver el documentoSystematic distrust
Ver el documentoCooperation
Ver el documentoConstraints on procurement strategies
Abrir esta carpeta y ver su contenidoOrganization and structures
Ver el documentoProcurement: important points
Abrir esta carpeta y ver su contenidoChapter 3. Distribution
Abrir esta carpeta y ver su contenidoChapter 4. Prescribing
Abrir esta carpeta y ver su contenidoSummary: contributions and limitations of the economic approach
Ver el documentoReferences
Ver el documentoSelected WHO publications of related interest
Ver el documentoBack cover
 

Blind confidence

Buying from a catalogue on invoice (direct purchasing) can be described as a strategy of blind confidence. A buyer puts confidence in a producer because the producer has a monopoly on a product, or because it is not possible to verify the quality or the level of prices, or because earlier purchases were satisfactory, or because the producer has a good reputation. There may not even be a choice of suppliers, and the nearest, most straightforward or habitual suppliers are retained without question. Relations between suppliers and buyers are very stable.

Blind confidence can obtain drugs that are acceptable in terms of quality, price and conditions of payment and delivery. However, blind confidence does not guarantee that acceptable drugs can be obtained from sources other than national producers whose quality and prices are controlled by other means. This strategy can be used for procurement from international supply agencies such as the International Dispensary Association (IDA) and the UNICEF Supply Division who one can be confident will supply quality products at low prices.

The advantage of this strategy is its flexibility, speed and low transaction costs. The drawback is that suppliers can abuse buyers who do not try to understand the market in order to make better use of it.

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Última actualización: le 3 mayo 2013