IMFIN brief 12: Pooled procurement

What is pooled procurement? What options do countries have for participating in pooled procurement arrangements?

Key points

• Countries can cooperate on vaccine procurement in several ways, ranging from information sharing to pooling of demand, joint tendering, and joint contracting with suppliers. Pooled procurement is usually done through an external agent.
• Pooled procurement can help participating countries bargain for lower prices and can ensure more secure supplies by offering suppliers larger and more predictable orders. Gains from pooled procurement are typically greatest for small countries and can vary by vaccine.
• UNICEF Supply Division and PAHO’s Revolving Fund do pooled procurement on a large scale. The Revolving Fund procures a broad range of vaccines on behalf of countries in the Americas, while UNICEF procures on behalf of Gavi as well as many middle-income countries.
• For pooled procurement to work well, participating countries need to have reliable demand forecasts and secure, long-term financing; they must also work to harmonize regulatory requirements and product preferences. Regional cooperation in procurement outside the Americas has proven challenging, but efforts continue.