Description
|
Procurement through a pre‐qualified international supplier, accredited by either UNICEF supply division, WFP, or a GAIN premix facility with international CoA and inspections built in
|
|
|
Advantages
|
Cost efficient due to scale, generally lower price per unit
International companies have more resources to meet complex specification and quality requirements
Consistent product quality (international standards as well as pre‐qualification of suppliers by UNICEF, WFP, GAIN)
Comprehensive standardized quality control systems via internationally recognized laboratories and certificate of analysis (CoA) systems
Large international suppliers may be better able to absorb fluctuations in demand (accurate forecasting challenges)
|
Flexible to tailor package design and marketing needs (local language, BMS code regulations in country)
Local supplier may be better able to respond to program changes, providing uninterrupted, continuous supplies (Afsana et al., 2014; GAIN, 2015)
Compared to local mixing option, premix supplier provides CoA, so quality control is limited to weight control and monitoring the seal/appearance
May support local economic development
No add‐on time from shipping and clearing
|
Flexible to tailor package design & marketing, as well as formulation
Lower import barriers for raw material than pre‐packaged MNP or premix may reduce final price
Simple equipment required for mixing
May be more profitable than importing & packing premix for local companies (Guatemala)
May support local economic development
No add‐on time from shipping & clearing providing raw & packaging material stocks are correctly managed
|
Disadvantages
|
Time (6 months for production, shipping, clearing typical for re‐orders). First time procurement, registration and clearing, or non‐standard composition, packing or packaging add more time
Can require large minimum orders
High costs related to shipping and taxes, among other import barriers (regulations, logistics, and customs clearance at port of entry)
|
Required manufacturing standards and infrastructure may be hard to meet (HACCP, ISO)
Local companies may not want to sell to government (often the main buyer) since they perceive government payment to be not very reliable.
|
In addition to the disadvantages of locally packaged MNP, also requires laboratories (internal or external) with the capacity to analyze premixes for all the relevant micronutrients and internal capacity to analyze final produce for key micronutrients on a routine basis. Introduces more complex and expensive quality control requirements and requires highly skilled laboratory personnel.
Sudden significant changes in demand can only be handled by holding large stocks of raw and packing materials
|
Comparative advantage
|
|
|
|
Example countries
|
|
Bangladesh (RENATA), Kenya, Bolivia (Laboratorios Drogueria INTI, Laboratorios Farmaceúticos LAFAR, and SIGMA Nutraceuticos)
|
|