|Operational principles for good pharmaceutical procurement (UNICEF - UNFPA - WB - WHO/EDM, 1999, 32 p.)|
|2. Strategic objectives for good pharmaceutical procurement|
The fourth objective is that the procurement and distribution systems must achieve the lowest possible total cost, considering four main components:
· the actual purchase price of drugs;
· hidden costs due to poor product quality, poor supplier performance or short shelf-life;
· inventory holding costs at various levels of the supply system; and
· operating costs and capital loss by management and administration of the procurement and distribution system.