The USAID Global Health Supply Chain Program-Procurement and Supply Management (GHSC-PSM) project successfully averted stockouts in all USAID-supported countries thanks to a strategy of utilizing its long-term agreement with the supplier and optimizing warehouse capacity to keep sufficient buffer stocks in country. However, the situation was not sustainable and the risk of relying on a single manufacturer remained.
To address potential shortages in the future, GHSC-PSM collaborated with the Global Health Supply Chain Program-Quality Assurance (GHSC-QA) project to develop an innovative quality assurance approach to identify and validate the addition of a second manufacturer. In March 2019, GHSC-PSM added a new pharmaceutical manufacturer to the list of approved suppliers. Diversification of the supply base is always beneficial for market competition and supply security but is particularly beneficial for the contraceptives market.