SCMS Donated Goods
Publication date: 2007
Donated Goods Matching the needs and interests of corporate donors and HIV/AIDS programs People with HIV/AIDS around the world benefit from high-quality donated medicines and medical supplies. Working with our in-country partners, the Supply Chain Management System (SCMS) facilitates donations that help address the AIDS pandemic. By matching the needs and interests of corporate donors and local programs, we increase access to essential medicines and supplies for HIV/AIDS prevention, care and treatment. The Challenge Despite donors’ best intentions, donated goods can pose several challenges for health care programs, including products that • Are not what patients need • Are in inappropriate dosage forms • Have instructions in a language that patients cannot understand • Have a limited shelf life • Have been improperly handled in distribution, thereby calling into question their efficacy • Do not meet country laboratory equipment stan- dardization guidelines • Are not supported by local or regional personnel for maintenance, quality assurance, or operator training Also, the process for requesting donated products from vendors can be cumbersome and time-consuming. Donors experience challenges too. They may not know whether the items they have donated actually reach— and benefit—their intended recipients. Meeting the Need SCMS is committed to maximizing the potential of donated products as part of our overall procurement strategy. We seek to supplement US government resources and expand the reach of programs so that more people living with HIV/AIDS can receive the support they need. SCMS team member MAP International, a faith-based nonprofit organization founded in 1954, serves as the lead procurement services agent for donated commodi- ties. In 2006, MAP distributed over $238 million worth of donated medicines and medical supplies to more than 130 countries for their other programs beyond SCMS. “Produce to give” programs ensure that suppliers will produce commodities specifically for the needs of health care programs. In our approach to donated goods, SCMS includes the following key aspects: Align donations with country needs. SCMS solicits donated products from corporate partners to meet a specific client request or an anticipated demand that is based on program forecasts. We have established strong relationships with many product manufacturers, and we coordinate closely with them to share our 18- to 24- month aggregated demand forecasts. As a result, corpo- May 2007 rate donors can better align their giving plans with the specific needs of countries’ HIV/AIDS programs. SCMS can optimize the delivery of the commodities and customize donations to suit recipients’ needs, from ensuring correct products and quantities to appropriate packaging and language instructions. We pursue “pro- duce to give” programs so that suppliers will produce commodities specifically for the needs of the health care programs we serve. Ensure process continuity in donated and pur- chased goods. The SCMS procurement process for donated goods is the same as for purchased goods. Clients input their orders, specifying their required commodities and quantities, the requested delivery dates and the delivery location. When fulfilling requisitions, we consider both purchased and donated stock equally, evaluating appropriateness, registration and shelf life. Provide rigorous quality assurance. We adhere to the World Health Organization (WHO) Guidelines for Drug Donations1 and good drug donation practices. Donated commodities are subjected to the same strin- gent quality assurance measures as the commodities purchased through SCMS. All donations must be regis- tered in the destination country and must comply with local regulations, including shelf-life requirements. Ensure visibility in the supply chain. The SCMS lo- gistics management information system (LMIS) ensures complete visibility and transparency of donated and purchased products, from order placement to pick- up and delivery for internal management purposes. This “track and trace” capability enables SCMS to provide in-country recipients with real-time information on when they will receive their supplies. The LMIS also enables corporate donors to better understand how their prod- ucts were used. Sustained Benefits SCMS facilitates the donation process for donors and recipients by serving as a communications conduit. Con- sequently, health care programs have one access point to receive purchased and donated products. The donated 1 To view the WHO Guidelines for Drug Donations: http://whqlibdoc.who.int/hq/1999/WHO_EDM_PAR_99.4.pdf goods are part of the same procurement process, arriv- ing in the same channel and in the same form as purchased products. As a result, HIV/AIDS programs can stretch their limited budgets and can treat more patients. At the same time, donors know that their contributions are based on a spe- cific need and will reach their intended beneficiaries. Donors can work with one intermediary, rather than re- ceiving numerous requests from health care programs. A well-planned and well-managed donation program can also foster goodwill by improving the lives of people liv- ing with and affected by HIV/AIDS. ABOUT SCMS The Supply Chain Management System (SCMS) was established to collaborate with in-country and global partners to ensure a reliable, cost-effective and secure supply of high-quality medicines and health products for HIV/AIDS prevention, care and treatment. SCMS is funded as part of the US President’s Emergency Plan for AIDS Relief through the US Agency for Interna- tional Development. Visit www.scms.pfscm.org or write to scmsinfo@pfscm.org for more information. 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