ability to pay. The primary indicator of ability to pay is income. An individual pays for health care (health-related goods or services) based on how much they can pay with regard to their income levels. An individual with a higher income would be charged more for a good or service because of their ability to pay more than an individual with a lower income.
bilateral donor funding. When donors typically use commodity forecasts and quantifications from the Ministry of Health; outside technical agencies then conduct procurements through internal mechanisms .
branded product. The version of a medicinal product that was developed and patented by a pharmaceutical company; the company has the rights to market the product in a particular area.
central contracting. A pooled procurement option whereby member countries jointly conduct tenders and award contracts through an organization that acts on their behalf. A central buying unit manages the purchase on behalf of member countries.
commodity security. The ability of every person to choose, obtain, and use quality essential reproductive health products whenever she or he needs them.
contraceptive forecasting. This method determines the short term (1–5 years) contraceptive commodity needs. The accuracy of forecasting depends on the availability of good quality data and the number and accuracy of the associated assumptions. Data sources can include primarily logistics data (the actual amount dispensed to end users) of contraceptives; service statistics (data on clients and visits); demographic data; and distribution capacity of the program. Forecasting often requires the application of two or more methods.
contraceptive prevalence rate (CPR). The percentage of women 15–49 years who are practicing, or whose sexual partners are practicing, any form of contraception. The indicator is useful in tracking progress toward health, awareness, and use of family planning methods; and poverty goals. CPR can be used as a proxy measure of access to reproductive health services.
coordinated informed buying ( CIB). A pooled procurement option whereby member countries undertake joint marketing research, share supplier performance information, and monitor process. Countries procure individually.
cost, insurance, freight (CIF). The cost of a commodity, including the cost of insurance and transport to the port of destination or entry.
cost recovery. A health sector reform initiative to recover costs; users pay for a percentage of the health care goods or services they receive. Goods are marked up with a slight margin. A percentage of recovered costs can be used to pay administrative fees, recurrent costs, or for the purchase of additional health commodities, such as contraceptives.
couple-years of protection (CYP). The estimated protection provided by contraceptive methods for one couple during a one-year period. The CYP is calculated by multiplying the quantity of each method distributed to clients by a conversion factor, which yields an estimated duration of contraceptive protection provided per unit for that method.
cross-cutting issues. Issues that affect all areas of concern within their context. For example, in the context of commodity security, the policy environment of a country is an issue that affects all areas of strategy and work (areas like donor coordination and logistics) that strengthen commodity security.
customer. Individual who may want or require the goods and services provided by a specific program.
customer service. In logistics, it is a set of values, attitudes, and procedures that make the customer the focal point for all supply chain operations.
decentralization. Pushes the responsibility for decision making about health services management to intermediate and district levels rather than to a central or national level.
deconcentration. The most limited and most common level of decentralization, under which authority, functions, and/or resources are transferred to regional and local field offices of the central government.
delegation. T ransfers authority, functions, and/or resources to an autonomous private, semipublic, or public institution.
demand fulfillment. Designing strategies and implementing activities to meet the unmet demand for commodities.
devolution. Cedes autonomy and authority to autonomous local governments (usually municipalities), which to some degree, take responsibility for service delivery, administration, and financing of the health system.
direct procurement. A procurement method based on comparing price quotations, usually from one or up to three suppliers.
donor coordination. A process to improve coordination, communication, and efficiencies between donors to best meet the needs of country governments; the aim is to avoid duplication and identify gaps.
essential drugs list. A list of the minimum medicines needed for a basic health care system; it lists the most efficacious, safe, and cost-effective medicines for priority conditions. Priority conditions are based on current/future public health relevance and the potential for safe and cost-effective treatment.
financial diversification. A risk management technique that is used to minimize financial risk by spreading investments over a wide range of sources. To apply this concept to family planning, several funding sources would be used to reduce the risk of funding gaps and ensure adequate financial coverage and sustainability for family planning commodities.
forecast accuracy. The absolute percentage difference between projected and actual quantities of a contraceptive distributed in a specific year for a client or program.
group contracting. A pooled procurement option whereby member countries jointly negotiate and select suppliers; member countries agree to purchase from selected suppliers. Countries purchase individually.
harmonization. A process whereby member countries jointly negotiate and select suppliers; member countries agree to purchase from selected supplies. Countries purchase individually.
health management information system. (HMIS). A system that integrates data collection, processing, reporting, and use of information necessary for improved decision making, management, and health service effectiveness. An HMIS gathers data on vital registration (birth and death records), service statistics (facility utilization rates, types and numbers of health problems treated), surveillance data, and financial and management data.
health sector reform. Policies and strategies designed t o improve access to quality health care services and to ensure sustained health financing toward the improvement of specified health goals.
informed buying. A pooled procurement option whereby member countries share information about process and suppliers. Countries procure individually.
integration. Integrating previously separate vertical logistics and health service delivery systems to gain efficiencies and reduce costs.
integrated logistics system. A system where, as much as possible, the separate steps of the logistics cycle are carried out for all products within one system; procurement, storage, and transportation are coordinated through a single office.
international competitive bidding. A method for procuring goods and services that requires notification to the international community. Bidders from eligible countries, as defined by the contracting agency or country, are given an equal opportunity to bid.
limited international competitive bidding. Essentially the same as international competitive bidding but by direct invitation without open advertisement. This method of bidding is traditionally used when the contract values are small, the number of suppliers is limited, and/or if there are special circumstances.
local manufacture. Any processing that takes place in the region, whether by a local national organization or a multinational enterprise (MNE). Pharmaceutical manufacturing can be classified by ownership; it can be a locally owned company, or the local subsidiary of a multinational enterprise and wholly owned by the parent organization, or partially owned by local managers or shareholders.
logistics management. T he coordination of various organizations and functions to source, procure, and deliver goods to the client.
logistics management information system (LMIS). Combines the forms and procedures required for gathering and organizing logistics information. The LMIS gathers information—quantities of product dispensed to users, stock levels, and stock losses—and moves this data required for supply chain management through the system. For example, the LMIS provides the basis for forecasting, determining purchase quantities, adjusting stock positions, and monitoring loss rates.
Logistics Indicators Assessment Tool (LIAT). A quantitative tool that is used to monitor and evaluate logistics system performance.
Logistic System Assessment Tool (LSAT). A qualitative-based assessment tool that is used to monitor and evaluate performance of a logistics system.
market segmentation analysis. T he process of using survey data and statistical analysis to divide the reproductive health market into sub-populations whose reproductive health needs, characteristics (including ability to pay), or practices might require distinct service delivery or marketing strategies.
Millennium Development Goals ( MDG). Eight development goals set out by U.N. member nations to reduce poverty and improve health by 2015.
NEWVERN. A contraceptive procurement system designed to manage aspects of contraceptive shipments for USAID, including financing, production, shipping, and inventory management.
parastatal organization. A company or agency owned or controlled wholly or partly by the government.
pharmaceutical manufacturing. All operations, including the purchase of material, processing, production, packaging, quality control, release, and storage of drugs.
pipeline. The entire chain of storage facilities and transportation links that move supplies from the manufacturer to the consumer (including port facilities, central warehouses, regional warehouses, district and sub-district stores, service delivery points, and transport vehicles).
Pipeline Monitoring and Procurement Planning System (PipeLine). A software tool developed by the JSI/DELIVER project that helps program managers gather critical forecasting information, ensures that products arrive on time, maintains consistent stock levels at the program or national level, and prevents stockouts.
policy mapping. A tool that can be used to analyze the political environment that surrounds and affects the formation of public policy.
PolicyMaker. Computer software tool that helps the user understand the politics behind public health policy.
pooled procurement. An approach to ensure a consistent and sustainable supply of essential medicines. It involves purchasing done by one procurement office on behalf of a group of facilities, health systems, or countries. In return, members agree to purchase certain drugs exclusively through this mechanism. Successful pooled procurement schemes can lead to reductions in unit prices for medicines, and improvements in procurement and quality assurance systems and capacity levels in individual countries.
power of buyers. A market in which one buyer seeks the product or services of several sellers.
pricing studies. Conducting empirical-based studies on the price rationale of health commodities as they relate to equity, access, and availability.
private sector. Includes the true commercial sector, social marketing, and nongovernmental organization (NGO) sector. The true commercial sector for reproductive health services are for-profit retailers, private medical providers and facilities, and health insurance organizations that provide or finance reproductive health products and/or services. Social marketing projects provide products and services that are subsidized by government and donors.
privatization. Increasing private-sector involvement in health service delivery, which may include giving a greater role to private or other non-public providers of health and family planning services or support services, contracting out key functions to private-sector companies, or privatizing specific operations.
process mapping. A tool for conducting a work flow analysis and improvement; a diagram that describes the chronological sequence of work steps used to achieve a particular desired outcome or result; it can also be called a flow chart.
procurement. The process of obtaining services, supplies, and equipment that conform to applicable laws and regulations.
product availability. Programs have achieved product availability when they are able to forecast, finance, procure, and deliver commodities.
Poverty Reduction Strategy Papers (PRSP). Drafted by the World Bank’s Highly Indebted Poor Countries ( HIPC) initiative as part of their commitment to poverty reduction, as agreed to with international lending institutions.
reproductive health commodity security (RHCS). The ability of every person to choose, obtain, and use quality contraceptives and other essential reproductive health commodities whenever she or he needs them.
Reproductive Health Supplies Coalition (RHSC). Established in 2004, the RHSC members represent more than 20 multilateral organizations, bilateral donors, private foundations, representatives of developing country governments and nongovernmental organizations (NGOs), technical agencies, and civil society. They hold regular meetings and have three working groups:
Resource Mobilization and Awareness Raising Working Group (strengthens advocacy by country, regional, and global levels to increase political and financial commitments to reproductive health supplies and supply systems)
Systems Strengthening Working Group (develops more data-driven financing, procurement, and distribution systems)
Market Development Approaches Working Group (expands commercial markets for reproductive health supplies among low- and moderate-income consumers, and promotes policies and regulatory environments that support better allocation and use of public subsidies and expanded provision of reproductive health supplies by the private sector).
resource mobilization. Mobilizing human and financial resources for systems, strategies, and financing support for health commodities.
RHInterchange (RHI). Part of the Reproductive Health Supplies Coalition’s (RHSC) advocacy, global-level donor coordination, and information needs strategies—created by John Snow, Inc. This web-based tool of the RHSC collects order and shipment information from the central procurement departments of USAID, UNFPA, and IPPF. It also helps capture the total donations made to a particular country by different donors to help ensure that commodity needs are being met.
social marketing. The application of marketing principles to influence human behavior on a large scale to benefit society rather than to make a commercial profit.
stock survey. A survey of usable stock in inventory at a particular point in time.
standard treatment guidelines (STGs). A list of the preferred drug and non-drug treatment regimens for common health problems experienced by people in a specific health system. For each health problem, the drug treatment often includes the name of the drug, dosage form, strength, average dose, number of doses per day, and the number of days of treatment. Can also include information on diagnosis.
Strategic Pathway to Reproductive Health Commodity Security (SPARHCS). A multi-sectoral framework and assessment tool designed to identify reproductive health commodity security issues.
Supply Initiative. A collaborative effort among four leading reproductive health organizations that have joined forces to enlist global support and commitment from major reproductive health supply donors and buyers, public sector providers, multilateral and bilateral agencies, nongovernmental organizations, and governments. Its mission is to ensure that every man and woman, regardless of age, can exercise his/her right to choose, obtain, and use quality affordable reproductive health supplies.
supply chain management. The set of activities that control how materials and products move from the initial source to the end user.
sector wide approach (SWAp). A process in which funding (internal or from donors) for the sector supports a single policy and expenditure program. Common approaches are adopted across the sector and should involve broad stakeholder consultation. The SWAp mechanism allows for government control and ownership in allocating and setting policies for how the funds are used and can also indicate government political and financial commitment.
targeting. Focusing public resources on those who need them most—categories or groups of people or individuals.
total fertility rate (TFR). The average number of children that would be born to a woman over her lifetime if she were to experience the exact current age-specific fertility rates throughout her lifetime.
total market approach. A coordinated approach that responds to the health needs of a country to ensure that the entire client market is covered; it accounts for differences in populations regarding willingness or ability to pay for health-related services and goods. The approach recognizes the contributions made by different public, nongovernmental organizations (NGOs), and private suppliers in meeting client needs; it attempts to avoid duplicative efforts, inefficient use of resources, and undefined goals.
unmet need. For family planning, refers to women who would like to postpone (spacers) the next birth or not have additional children (limiters), but who are not using a contraceptive method. A pregnancy that was untimed or unwanted is also considered having an unmet need for spacing or limiting.
vertical logistics system. A system in which the steps of the logistics system are carried out separately for each service program; this often entails independent operating and procurement systems for each health program.
willingness to pay. The amount an individual is willing to pay for goods or services. This approach is a type of cost-benefit analysis that can be used to measure benefits in monetary terms. In terms of health care, it is the maximum amount of goods (measured in monetary units) an individual would be willing to sacrifice to receive the benefits from health care goods or services.
