BAAF Distribution Optimisation project

Novo Nordisk is working with distributors across different countries in Africa to optimise the supply chain and reduce the price to patients of its full diabetes portfolio.

Summary  

  • What: In 2015, Novo Nordisk Business Area Africa (BAAF) initiated the BAAF Distribution Optimisation project
  • Objective: The project aims to work with distributors to reduce the price to patients of its full diabetes portfolio and to optimise the supply chain.
  • Impact: The impact has not yet been measured.
  • Scope: Novo Nordisk’s full diabetes portfolio across all of Africa. Major countries in scope are Nigeria, Ghana, Kenya, Tanzania and Botswana.

Looking closer

In 2015, Novo Nordisk Business Area Africa (BAAF) initiated the BAAF Distribution Optimisation project to reduce the price to patients of its full diabetes portfolio and to work with distributors to optimise the supply chain. This is an important step as, even with Novo Nordisk’s price cap for Least Developed Countries, there are other barriers along the distribution chain that can increase the cost of insulin.

The first phase of the project was an analysis of the value chain until the wholesaler purchasing price, across all of Africa. In Nigeria, Ghana, Kenya, Tanzania and Botswana, Novo Nordisk has mapped the price all the way up until patient level. This phase has recently concluded and as a result, certain fixes have already been implemented in some markets, such as reduced distributor margins in selected tenders and the avoidance of in-market price increases through discussions with distributors. As part of this project, Novo Nordisk made on-the-ground visits to a selection of sub-Saharan African countries to meet with current and potential distributors as well as with pharmacists, patients and other relevant parties. Novo Nordisk is starting an external vendor selection process to ensure distribution chain optimisation.

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