XVIII International AIDS Conference


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As budget increases level off, saving lives by reducing HIV commodity costs

J. Erie

SCMS, Arlington, United States

Issues: Many public health programs are facing a leveling off or reduction of available resources. To support patients on treatment and add more in need, programs must find ways to do more with existing funds. Without robust supply chain systems, developing countries pay unnecessarily high prices for medicines and other health commodities.
Description: Under PEPFAR, SCMS saves costs for programs in 16 developing countries through:
? National, regional and global pooled procurement.
? Strategic freight management.
? Efficient, coordinated and regular distribution of commodities.
Strengthening of national supply chains?including forecasting and demand planning, procurement services, logistics information systems, warehousing and distribution.
Lessons learned: An integrated supply chain that links multiple procurement functions and coordinates across stakeholders can lower costs for commodities, shipping, warehousing and distribution. Forecasting future need is key to achieving cost savings:
? By shifting appropriate shipments from air freight to sea and land, SCMS has saved clients $22.5 million for sea shipments (86 percent less than air freight) and $1.8 million for land shipments (66 percent less).
? Relative stability in Zimbabwe makes possible road shipments of ARVs from SCMS´s regional distribution center in South Africa. Switching from air freight to road is saving around 60 percent - or potentially $130,000 per year - on transportation costs. Initial savings were used to purchase HIV test kits to make up for a shortage.
Recent cost analysis of ART regimens currently used in Guyana versus newly available options will save 50 percent for one regimen and 35 percent on another.
Next steps: PEPFAR-supported countries are consistently forecasting need for ARVs and HIV test kits. SCMS is currently working to achieve similar results for laboratory commodities.

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