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Developments in UNICEF Vaccine Procurement
Global Immunization Meeting 17 19 February
2009 Rob Matthews UNICEF Supply Division
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UNICEF procures immunization supplies in support
of GIVS and the achievement of MDG 4 On behalf
of 80 100 countries, using a pooled procurement
mechanism

• Country Benefits
• Access to WHO Pre-Qualified Vaccines
• Supporting a Vaccine Security Supply Strategy
• Benefiting from Economies of scale

• Manufacturers Benefits
• Reduced transaction costs
• Assurance of timely payment of invoices
• A calming effect on variances in demand
• Improved forecast accuracy

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Considerable growth anticipated in vaccine
procurement through UNICEF Procurement profile
highlights the importance and value of
Partnerships
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Focusing on 2 areas to enhance the supply
functionRequiring involvement of all stakeholders
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Market Shaping Established EPI
VaccinesAssessing progress towards Vaccine
Security

• Vaccine Security Strategy remains valid
• Focus is required on different elements of the
  Vaccine Security strategy within the different
  vaccine markets
• Implemented within procurement and tender
  strategies

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Market Shaping - Recently Introduced
vaccinesThe growth in demand in DTP-HepB/Hib,
supported by GAVI funding, has now created the
sustainable market required to attract
manufacturers, create competition and lower
prices
Good supply base (2 new WHO PQ products in 2008,
more in pipeline) Demand increases from 61m
(2008) to 130m (2009) Increased focus on
affordability in tender for 2010 2012
period Tender results expected in June/July
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Market Shaping - New Vaccine Introduction with
new vaccine introduction come new challenges

• Global Launch competition for capacity with
  high price markets with large scale market demand
• Creation of New funding mechanisms and new
  contracts covering 10-15 years duration (AMC
  pilot) established to support the new vaccine
  introduction
• With different formulations available is real
  competition achievable? Are we creating multiple
  monopoly markets? How can this be effectively
  managed?
• PCV procurement through the AMC pre-determined
  pricing, irrespective of formulation, scale of
  introduction

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Supply Chain Performance EnhancementProviding
support to Countries and Supply components

• Forecasting - Expanded range of products
• Vaccines, Devices, Vitamin A, De-worming Tablets
  ITNs
• Transferring tools, lessons learnt
• Increased feedback to countries following the
  forecast (Provisional Plans)
• Vaccines and Devices
• Schedule of planned deliveries
• Costs and Cash flow requirements
• Cold Chain requirements for scheduled deliveries
• Survey undertaken following the 2009 Forecast

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Supply Chain Performance EnhancementIn country
logistics - perhaps the most complex element of
ensuring children are immunized

• Capacity building on Vaccine forecasting
  procurement
• Vaccine Security missions
• Regional Workshops
• Support to countries on CC assessments
• Increasing the capacity of Supply Logistics
  Staff
• Recruitment of Supply chain specialists
  Logisticians
• Training
• Data Capture, Reporting and Monitoring
• Procurement, Forecast accuracy, VAR and Stock out
  Data
• Posted on the UNICEF Intranet Country Pages

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Cold Chain a pre-requisite for new vaccine
introduction

• New vaccine introduction requires a significantly
  larger Cold Chain storage capacity
• NV introduction plans progress, yet we have only
  seen marginal increases in Cold Chain commodity
  procurement
• There is an increased global awareness of the
  need for a solid cold chain at country level, yet
  it appears to still remain a second priority

Cold Chain Procurement through UNICEF
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Opportunities

• Increased collaboration, communication and
  sharing of information, lessons learnt,
  particularly downstream
• Consultation with all stakeholders (including
  supply specialists) in early program planning
• Global and National levels
• Greater integration of health programs
• Survey Integrated forecasting - 80 in favour,
  60 identified inter-program co-operation as the
  principle challenge
• Expanding the country base within pooled
  procurement mechanisms
• Addressing the Middle Income Country new vaccine
  introduction

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UNICEF VACCINES
Thank You!
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Additional Information

• Historical annual procurement values and volumes
  are available on the UNICEF website at
  http//www.unicef.org/supply/index_38554.html
• Weighted Average Prices are available on the
  UNICEF website at http//www.unicef.org/supply/ind
  ex_7991.html
• Country Specific Immunization Data posted on the
  UNICEF Intranet under the Supply Section (Country
  specific pages)

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Market Shaping - New Vaccine IntroductionSpecific
product updates

• PCV7
• First vaccines to be supplied in March
• PCVs
• Unprecedented high demand established for
  introduction - 24M doses to be procured through
  UNICEF for introduction in 2010
• It took 5 years for pentavalent supply and demand
  to ramp up to this level
• Introduction of an additional vaccine into the
  schedule and distribution network
• Rotavirus vaccines
• Funding available but no demand from countries
  procuring through UNICEF based on current SAGE
  recommendation.
• Anticipate sufficient supply capacity to meet
  short term demand