JSI RESOURCES: Publications

Financing the Health Commodity Supply Chain: The Role of Service Fees


Service fees are charges made by a supply chain organization (public or private) for providing supply chain services; the customer (or an agent) pays these fees after they receive the service. Supply chain services typically include procurement, storage and transportation, and can also include customs clearance or freight forwarding. Service fees are an important mechanism for sustaining supply chain operations, and they are the fundamental revenue stream for commercial supply chain service providers.

This paper provides health commodity supply chain leaders and managers in low- and middle-income countries (LMICs) with practical information on developing, applying, and justifying evidence-based service fees. The intended audience for this paper are technical personnel in ministries of health (MOHs), or medical stores agencies (MSAs), who are charged with ensuring access to health commodities for family planning, immunization, HIV, malaria, tuberculosis (TB), and others. JSI/DELIVER Project, 2014

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