Hidden cost
Most buyers of healthcare and medicinal products will be aware of the usual implicit hidden costs such as freight costs. Experience will urge them to ask for a quotation of these costs to be included with the goods to be purchased. These basic costs should be included as part of budgeting and forecasting of need.
One ambivalent hidden cost is that of purchasing poor quality medicinal products. Suppliers offering the lowest prices often win the tender, particularly where the country is self-financing, or is directly controlling donated funds. Although there is always a desire to stretch the funds to cover as wide a need as possible, this should not compel buyers to forego the important issue of product quality. Poor performance of procured drugs is not just costly in financial terms, but in the number of patients who may be affected by consuming poor quality or ineffective products. It is important that buyers are aware of the wider implications of their function: that of saving human lives and not just saving money. If goods are purchased from suppliers and manufacturers with a validated track record, this would guarantee safeguards which low-cost suppliers are unable to provide.