CENTRAL MEDICAL STORES Merapelo Baruti CMS Deputy Manager

Topics covered CMS overview Drug Supply Chain Management Product Sourcing Contract Management Challenges

CENTRAL MEDICAL STORES (CMS)  CMS is public sector entity which is responsible for Procurement, storage and distribution of Pharmaceuticals and other health commodities in public sector  4 departments – Procurement, Warehouse (Technical Operation), Quality Assurance and Corporate services.  Staffing-166 staff,   700 customers (public facilities, Mission and Mine Hospitals)  Process approx. 10,000 items per month (Schedule Orders & Emergency Orders)  ISO 9001 certification with Botswana Bureau of Standards (BOBS) in November  Fully automated warehouse using WMS (Pulse) in inventory processing, from receipt, to the service delivery point (SDP).

CMS Conti > 1,500 products on the CMS catalogue + Special Orders (Non- Stockable) Budgets – BWP700m (  USD 95m)  P408million for Essential Meds and Dressings  P 238 million for ARVs and Lab commodities (NACA) + Merck Donation  P17 million for ARVs (PEPFAR) & Training

Drug Supply Management in Botswana

Product Sourcing Procurement Plan  All products (642 product lines) planned to be on a 2 years framework contracts  10 drugs tenders planed for 2012/2013 financial year (450 products on framework)  Remaining 350 will be covered 2013/14 financial (including non stockable with high demand but no decision to declassify them)

Product Sourcing  Product sourcing is by generic description  Commonly used methods of procurement – Open domestic tender- default method of procurement – Restricted – Direct procurement – Quotations proposal method – Micro-procurement method  ARVs - Restricted method of tendering is preferred from Manufacturers who are o WHO or US-FDA prequalified o CHAI (price benchmarking)

Contract Management Contract agreement for purchases above 50,000 pula 1.Supply Relationship Management (SRM) Product availability and consumption data Product visibility and pipeline information Supplier relationship management on the key suppliers Monitor over due orders (stock safety levels at 6 months)

Contract Management 2.End of Activity Reports for all the procurement performed 3.Payment Letter of credit 30day payment (EFT)

Challenges High cost of drugs Lack of manufacturers Products in the list not DRU registered Which products in the essential list are protected by valid patent? Access to patent data base??

Ke a Leboga Thank you