What are the key features of good vaccine procurement?
Lowest prices possible
Price, is an important factor in any purchasing arrangement. Price is also important to suppliers who wish to maximise the financial viability, sales and profitability of their products. Some factors which influence the price can be influenced by the purchaser others can not. A separate section dedicated to vaccine pricing is discussed in (LINK TO GO HERE)
Price is largely determined by the individual supplier strategy for that product in the country in which it is being sold. These strategies are not always transparent to the purchaser and there is little opportunity for the purchaser to have any influence over the strategy adopted by the supplier.
The lowest price possible, in any given procurement system, is based on a number of criteria. The lowest price possible assumes that quality is not forsaken for a lower price as quality should be the primary concern of the procurement process.
Key determinants of price which may be influenced by the purchaser include:
- The presence of competition through the prequalification of suppliers and vaccines.
- The quantities required.
- The contractual terms.
- The payment terms of any resultant contract including currency.
- The delivery schedule and timing.
- The method of transport and delivery, i.e. to port or to central stores.
- The agreed INCOTERMS.
- Additional or other contracted services (training of staff, access to particular services).
Many other pricing factors are not and can not be influenced by the purchaser so care should be taken on those factors where influence is greatest.