1 AccessRH Presentation to the RHSC London, June 5, 2009

2 Background  Studies by various consultants, including Mercer (2005) and McKinsey (2006) under the guidance of the Reproductive Health Supplies Coalition  Decision made to proceed with the “MVG”  High-level concept prepared by Dalberg in November 2008.

3 From MVG to … Key features of MVG:  Minimum Volume contracts to secure better pricing and/or delivery terms  Contract prices and terms available to independent buyers without using UNFPA procurement services  Online ordering

4 AccessRH Vision AccessRH offers: Affordable, high quality public sector RH commodities, improved delivery times to meet client needs, and provides contraceptive order and shipment information for a range of users

5 AccessRH Concept Objectives:  Increase access to favorable pricing and delivery terms and better lead-time  Improve the availability of quality product  Strengthen responsiveness through procurement planning  Strengthen local capacity  Improve cost benefit ratio for procurement of RH commodities

6 AccessRH model Key Features:  IT platform (”mini-Amazon.com for RHC)  Managed inventory of select standard product(s), stocked by manufacturer on UNFPA’s behalf  Demand planning and inventory management functions added to UNFPA PSB portfolio  Continued emphasis on information sharing and use for decision making

7 AccessRH Model order fulfillment: current proposed addition of managed inventory

8 AccessRH Model Results:  Reduced lead times for products in inventory  Improved information visibility for clients (Countries, NGOs etc), UNFPA PSB and suppliers  Reduced supply chain volatility

9 AccessRH Model Benefits:  Preserves MVG goal of addressing procurement-related obstacle(s) to contraceptive supplies availability, but mitigates financial risk  Strengthens client focus  Easy to use  Improved lead-time

10 Implementation Requirements:  Donor funding for startup operations and a commodity for start-up of managed inventory  Building/improving demand planning systems and inventory management.  IT platform (build a “mini amazon.com” for RHC)  Supplier interest, ability

11 AccessRH  UNFPA believes we have a strong concept and design.  We are counting on your support to help us:  serve a range of clients more efficiently  offer improved lead times for standard products  provide increased visibility into information for decision making

12 AccessRH  Panel discussion  Questions