Implementing a Sourcing Strategy in Public Health Procurement: A Case Study Example

Context

This case study is based on practical guidance shared during Health Procurement Africa’s (HPA) Ask the Expert webinar on implementing sourcing strategies. The session was delivered by HPA procurement experts drawing on experience from Kenya and Nigeria, and explored how public-sector health procurement teams can move from strategy development to effective implementation in complex operational environments.

Watch the full Ask the Expert webinar recording here.

Introduction

Implementing a sourcing strategy is distinct from developing one. Once the analysis is complete and the strategic direction agreed, the challenge shifts to stakeholder engagement, change management, and operational execution. In public health procurement, where sourcing decisions affect medicine availability and patient outcomes, the quality of implementation determines whether a strategy delivers its intended value.

Implementation Framework

Several tools support effective implementation, used together to structure stakeholder engagement, change management, and accountability.

Tool	Purpose
Stakeholder analysis (Mendelow’s matrix)	Map stakeholders by power and interest to identify who must be actively managed, who should be kept informed, and where resistance is most likely to emerge.
Blockers and enablers analysis	Identify which stakeholders are likely to resist the change and which will support it. Use enablers — including sympathetic clinicians or finance leads — to help persuade blockers.
Business case	A one-to-two page document summarising the analytical basis for the strategy, the options considered, the chosen approach, the risks and mitigations, and a high-level implementation plan. Functions as a rational persuasion tool for stakeholders.
Force field analysis	Identify forces for and against the sourcing change. Use forces for as a marketing tool with resistant stakeholders; use forces against as a checklist of issues to mitigate.
Implementation plan (Gantt chart)	Map all activities required to implement the strategy, including parallel and sequential tasks, so stakeholders can see the full scope, timeline, and dependencies.
RACI chart	Assign accountability and responsibility for each activity, ensuring one person — typically the procurement manager — holds responsibility throughout the implementation process.

Influencing tactics should be tailored to the audience. Soft, influencee-focused tactics — inspirational appeal (connecting the strategy to organisational goals and patient outcomes), consultation (involving stakeholders in decisions), and personal appeal (drawing on the procurement professional’s credibility and integrity) — generate long-term commitment. Hard tactics such as pressure or legitimising through authority tend to produce only short-term compliance.

Case Application: Implementing a Sourcing Strategy in Kenya

Kakamega County Government faced persistent challenges: fragmented procurement practices, uncoordinated supplier management, market volatility, and emergency procurement requests that disrupted planned sourcing. The objective was to move towards a structured, compliance-driven approach aligned with the Public Procurement and Asset Disposal Act 2015.

Challenges and Responses

Challenge	Response
Lengthy approval processes causing implementation delays	Strengthening procurement planning and earlier budget preparation to reduce time pressure at approval stage
Supplier capacity gaps, particularly among SMEs and AGPO-designated groups	Supplier appraisal system development; recognition that appraisal in the public sector requires greater formalisation than in the private sector
Currency fluctuations affecting contract values	Closer monitoring of market conditions; contract provisions to manage exchange rate exposure
Frequent emergency procurement requests	Improved spend analysis and procurement planning to anticipate demand and reduce reactive purchasing
Fraud and conflict of interest risk	Stakeholder collaboration and internal governance controls; investment in digital procurement tools for accountability

Key best practices: strengthen procurement planning through earlier spend analysis; invest in supplier relationship management as a strategic priority; leverage technology for accountability; and build internal collaboration from the outset. Procurement was recognised not as a back-office function but as a strategic pillar in supply chain decision-making.

Case Application: Implementing a Sourcing Strategy in Yobe State, Nigeria

YODMA (Yobe Drug and Medical Consumables Management Agency) was established in 2020 in response to supply chain vulnerabilities exposed by COVID-19. Its mandate covers the selection, procurement, storage, and distribution of medicines and consumables to over 350 public health facilities. Six years in, it has achieved coverage of approximately 75% of those facilities.

Sourcing Strategy in Practice

YODMA operates a category-differentiated sourcing approach across approximately 600 SKUs. Sourcing decisions are based on commodity criticality, number and reliability of available suppliers, and demand stability.

Sourcing Approach	Application
Consolidated demand planning	Aggregated data across all facilities to quantify state-level need and inform sourcing decisions, replacing fragmented facility-level procurement
Market intelligence and analysis	Ongoing market monitoring to identify supplier availability, logistics reliability (including regional distribution hubs such as Kano), and alternative sources
Pre-qualification and mini-tenders	A pre-qualified supplier pool — including local manufacturers and state-based suppliers — from which request for quotation processes are run, enabling competitive pricing without full tender timelines
Framework agreements	Being developed for high-volume strategic commodities (key SKUs) to reduce procurement frequency and secure supply continuity
Dual sourcing	Applied to critical or time-sensitive commodities such as antivenom and antirabies vaccines, where two reliable suppliers are maintained for rapid 24–48 hour delivery
Buffer stock	Maintained for commodities vulnerable to sudden demand spikes (e.g. campaign medicines) or market scarcity

YODMA developed its own digital platform (YODMA IMT) to coordinate with downstream facilities, enabling medicine requests and supply notifications. Third-party logistics providers handle short-haul distribution to zonal hubs. KPIs are monitored at supplier, warehouse, and strategic levels to drive continuous improvement.

Lessons Learned

Stakeholder collaboration is the foundation of successful implementation. Sourcing strategy is an organisational activity, not a procurement department activity — buy-in from clinical, finance, and operational stakeholders must be secured before and during implementation.
A business case is a powerful tool for rational persuasion — a concise document setting out the analytical basis, options considered, chosen approach, risks, and implementation plan.
Sourcing strategies must reflect local market realities. Generic approaches that ignore supplier structure, logistics infrastructure, currency risk, or regulatory context will fail in execution.
Category differentiation improves outcomes. Applying different sourcing strategies to different commodity types — based on criticality, supply risk, and demand stability — is more effective than a one-size-fits-all approach.
Performance management sustains the strategy. KPIs at supplier, operational, and strategic levels ensure accountability and enable continuous improvement.

Conclusion

This case study demonstrates that implementing a sourcing strategy requires as much rigour as developing one. The experience of Kenya and Nigeria illustrates that structured stakeholder engagement, disciplined planning, and category-sensitive sourcing decisions are essential to translating strategy into supply chain performance. In public health procurement, the quality of implementation directly affects medicine availability and patient outcomes.

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