Condom and NRT bulk distribution decision

Responders noted the additional touch points of the proposed supply chain model. They raised concerns about efficiency.

One responder proposed an alternative supply model, through community pharmacies via a mechanism similar to a Practitioner’s Supply Order (PSO) believing it would increase access and be less of an administrative burden to all parties.

We consider that this arrangement is preferable to a distributed supply network (e.g. pharmacies) for the volume of product that is distributed to these organisations.

Responders noted that the proposed changes to the distribution of condoms would make the distribution less flexible and agile by limiting orders to one per month.

Responders were concerned that the changes would also require organisations to hold more stock as well as increase administrative costs.

We consider that periodic ordering is a reasonable expectation, but note that more work may be required to fine-tune the system for some users. We will be working with the key stakeholders over the coming months to refine the ordering arrangements for them.

One responder was concerned about the impact to their users of the time between submitting an order for condoms and delivery.

We note the concern was based on the maximum delivery period of up to four weeks. We estimate that the likely delivery time for condoms is likely to be considerably shorter.

One responder requested the opportunity to obtain bulk supply of condoms from PHARMAC via the proposed distribution system.

We are happy to consider such requests and will be communicating directly with this responder.

One responder was supportive of a change but raised a concern that the proposal encourages ordering stock in bulk, which increases costs through expired stock and wastage.

We note that the ordering patterns and volumes for NZAF, NZPC and NRT Authorised providers have been established for many years, and we are not aware that they have led to significant product wastage.