Factsheets

What does the National Blood Authority do to ensure supply security?

The National Blood Authority (NBA) reviews and manages the blood sector to ensure supply security through a number of avenues including: demand planning; risk assessment; risk reduction strategies; and contingency measures.

Demand Planning
The NBA consults relevant health authorities in Australia and estimates how much of each blood product is likely to be needed annually in Australia. These estimates are then agreed to by all governments. Service providers and manufacturers are then consulted to establish whether they are able to produce the required product quantities.

If they cannot supply the required amounts, alternative suppliers and products are sourced to fill the supply shortfall. If an alternative product is not available the NBA works with a range of stakeholders to use the available products most effectively.

Risk Assessment
The NBA assesses the likelihood and potential impact of events that could affect the supply of, and demand for, blood and blood products. As part of this, the NBA analyses possible scenarios, alternative product arrangements and the effectiveness of a range of strategies which help to reduce risk.

Risk Reduction Strategies
As part of the risk assessment, strategies are identified that help to reduce the possibility of there being a gap between supply and demand. These strategies include:

Second Suppliers
Established relationships with second suppliers mean that Australia has access to product if the primary supplier is unable to supply stock. For example, Australia now has two suppliers for recombinant factor VIII i.e. Baxter and Wyeth. These relationships can identify Australia as a preferred customer, or market, which makes Australia a priority for supply even in the event of global shortages.
Reserves, Safety Stocks and Inventory
The NBA often requires manufacturers to hold certain levels of products both in their warehouse and also in specially designated National Reserves. These reserves help to meet minor supply shortfalls and have been effectively utilised in the past. The reserves can also provide time to source alternative supplies if required.
Standing Offers
A Standing Offer is a contractual arrangement with a second supplier to provide products during times of shortage. The NBA has standing offers in place with many suppliers for products such as IVIg which is commonly used to treat immune deficiencies. This means that patients that were previously subjected to supply shortages can get safe and effective products when needed.
Multiple site storage
Blood and blood products are stored and manufactured at more than one location. This means that if an adverse event such as a fire, a storm or an earthquake destroys a storage site then product can be sourced from
elsewhere in Australia.
Managing inventory
Often shortages can be in one geographical area. Good inventory management systems, that tell you where product is, can allow you to move products from areas where there is a surplus, to areas which need them. The NBA has commenced work on a project to improve inventory management of blood products.
Reducing demand temporarily
If products are in short supply, clinicians can help to reduce demand by using alternative products, if suitable, or minimising the need for products. Minimising the need could include delaying non urgent surgery until stocks
become available.

Contingency Measures
The NBA establishes contingency measures to manage the national supply of blood products and services.

A National Blood Supply Contingency Plan (NBSCP) is currently under development for Australia. The NBSCP will help to ensure an adequate, safe, secure and affordable supply of blood products and related services. The plan will also be linked to other health related contingency plans such as the Australian Management Plan for Pandemic Influenza, where relevant.

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