1. Jan Komrska & Alison Fleet
Home fortification, using Multiple Micronutrient Powders Products, Procurement and Supply
Jan Komrska & Alison Fleet
UNICEF Supply Division
Medicines and Nutrition Center,
Nutrition Unit

2. Outline Key product characteristics
How MNP products could be purchased/ordered?
Product Price
Manufacturing Process

3. Objective of the Supply
To deliver right quantities of right product, to the right locations and at the right time.
To minimize costs and to satisfy quality requirements.
We want to avoid
Disruption in supply of product to the beneficiaries
Inferior quality of the product (no effect, adverse effect)
Layouts in non-understandable language
Waste of resources (Doubts about procurement process transparency)

4. Supply Process Plan Procure Produce Deliver
Expression of need for a product
Product arrives to the port of entry

5. Definition of requirements
Plan
Definition of requirements
What?
How many?
Where?
When?
How much?
Specification
Quantity
Delivery address
Delivery date
Available budget

6. Vitamin and Mineral Powder
Plan
Product
Vitamin and Mineral Powder
(MNP)

7. Specifications (HF TAG)
Plan
Specifications (HF TAG)
Name of the product
VITAMIN and MINERAL POWDER
Composition
15 components
Label language
English x local language
Instructions for use
Text x Pictograms

8. Plan
Standard Product(1)

9. Plan
Standard Product(2)

10. Standard Product(3) Plan Available through UNICEF Supply Division
Suitable for pilot projects or small orders

11. Plan
Customised Products
Yemen
Haiti
Nepal
Rwanda
Kyrgyzstan

12. Product characteristics
Plan
Product characteristics
Product shelf life – 2 years
Under storage conditions indicated by the manufacturer
The surface area of MNPs powder compared to tablets is much larger - degradation

13. Quantification of needs
Plan
Quantification of needs
Good forecast and higher volumes result in:
Cost saving (obtaining better price from the supplier)
Better lead time
Less stock in warehouse
Uninterrupted supply

14. Timelines Plan Standard product Customised product TOTAL 10 – 12 weeks
Confirmation of Layouts
3 – 4 weeks
Warehouse Processing
4 weeks
Production
8 – 12 weeks
Shipment by Sea
4 – 6 weeks
Clearance at the port
2 weeks
TOTAL
10 – 12 weeks
17 – 24 weeks

15. Plan
Lessons Learnt
Product specification - refer to HF TAG Programmatic Note
Customisation of the product layouts possible but allow enough time
Product shelf life is short – plan for continuous orders to avoid long storage time
Storage conditions need to be adhered to keep the product fresh
Forecasting product quantities is very important

16. Regulatory environment(1)
Procure
Regulatory environment(1)
Principles of public procurement:
Fairness
Transparency
Equal treatment
Registration of the product:
Law on medicinal product for human use
Import/VAT regulations

17. Regulatory environment(2)
Procure
Regulatory environment(2)
Why MNP should not be registered as medicine?
Product does not claim to treat a specific disease
Product is not usually manufactured by pharmaceutical companies
Premix components comply with the Food Chemical Code (FCC) not Pharmacopoeias
Product is not distributed exclusively through pharmacies
MNP should be registered as food supplement however country specific constrains may require other registration avenues

18. Supplies of MNP Procure 2011: 4 million monthly doses purchased

19. MNP Prices Procure 0.025 USD/sachet ~ 0.75 USD/PAC-30
Additional costs:
Shipping cost
Clearance
Customs duties
Programming costs

20. Procure
HF Products Prices

21. How could home-fortification products be ordered/ procured?
Through Agencies (UNICEF country programme / WFP / NGOs)
Through Procurement Agents (UNICEF Procurement Services or GAIN Premix Facility)
Direct procurement by the governments from manufactures or appointed traders

22. Procurement through UN Agencies
UNICEF country programme / WFP / NGOs
Advantage:
Funding is secured outside government (initial phases)
Good product quality and good price
Disadvantage:
Product is imported, cleared under Agencies' name
Capacity of the government is not built
Capacity of the local industry is not built
Suitable for initial stages of programs/pilots and in emergency response phase

23. Through Procurement Agents
Through UNICEF Procurement services (PS) or GAIN Premix Facility (GPF)
Advantage:
Government is securing funds (through own resources or donors)
Good product quality and good price
GAIN provides credit arrangement
Product is imported, cleared under Governments' name
Disadvantage:
Advance payment is required by UNICEF
Capacity of the government is not built
Capacity of the local industry is not built
Often conditioned by Donors
Suitable for nationwide distribution

24. Government direct procurement
From the manufacturer or appointed traders
Advantage:
Government is securing funds
Ownership
Capacity building for local industry
Disadvantage:
Prone to irregularities during the procurement process
Technical capacity to evaluate product quality might be a challenge
Product quality may become less important in selection process
Challenge when no local suppliers/agents available
Suitable for nationwide distribution

25. Lessons Learnt Procure International purchase:
Results in better price compared to local purchase
Quality of product is easier to assure
Conducting open international bidding might be difficult to implement for national authorities
Challenges in technical evaluation:
Limited data on product provided by supplier
Stability study to confirm product shelf life is not available

26. Manufacturing process(1)
Produce
Manufacturing process(1)
Requirements for food manufacturers:
Licence for food manufacturing
Hazard Analysis and Critical Control Points (HACCP)
Recommended International Code of Practice - General Principles of Food Hygiene of Codex Alimentarius
ISO 22000:2005 (Food Safety Management System)

27. Manufacturing process(2)
Produce
Manufacturing process(2)
Requirements for the product:
Safety, Efficacy, Quality
Stability Data
Certificates of Analysis (CoA)
Premix
Finished
product  
Raw materials
CoA 
CoA
CoA

28. Manufacturing process(3)
Produce
Manufacturing process(3)
Blending
Packaging
Premix
Finished
product
Raw materials

29. Manufacturing process(4)
Produce
Manufacturing process(4)
“Local” production of MNP requires
Investment in 1 gram sachet filling machine
Compliance to strict hygiene and quality rules
Import of pre-mix and foil
It is not cheaper compared to international procurement

30. Produce
Packaging of sachets

31. Produce
Finished product

32. UNICEF Approved Suppliers
Produce
UNICEF Approved Suppliers
DSM France/Bulgaria
DSM South Africa
DSM/Fortitech Malaysia
Renata, Bangladesh
Piramal Healthcare, India
Potential suppliers:
Stern Vitamins, Germany
Glanbia, Germany
Consult HF TAG website

33. Lessons learnt Produce Limiting points in manufacturing process
Capacity of the blender
Capacity of the packaging machine
Customized foil production time
Manufacturers understanding of quality requirements varies
Finished product analysis are not carried out systematically

34. About 100,000 packs in one 20’’ container
Deliver
Product Receipt
About 100,000 packs in one 20’’ container

35. Deliver
Product Storage
Product must be stored as per product label (dry, clean storage below 25 C)
Good distribution practice (batch management and tractability
Product expiry date

36. Deliver
Complaints
Color
Odor
Layouts
Not possible to open sachets

37. Deliver
Lessons learnt
Respect supplier’s instruction on how to store HF products (even though these products are not classified as pharmaceuticals)
Allow sufficient time for stock replenishment/reordering to avoid stock outs
Provide feedback to purchaser/person who drafted specification to implement improvements

38. Plan
Procure
Produce
Deliver
Thank you !