Table 2 Different sources of covering the pooled procurement organizational expenses

Service fees paid by buyers

The service fee, often a fixed percentage added to each order, is paid by the buyer.

The Organisation of the Eastern Caribbean States financed their organizational expenses through a 15% service fee on top of each order (Huff-Rousselle & Burnett, 1996).

Service fees paid by suppliers

The service fee is paid by the supplier.

The Gulf Cooperation Council (GCC) covered organizational expenses through country membership fees (see below) and supplier fees (e.g., sale of tender documents, supplier registration fees) [11].

Membership fees paid by buyers

A membership fee to participate in the mechanism is paid by the buyer.

The PAHO Revolving Fund (RF) covered organizational expenses through PAHO’s general budget paid by buyer countries [11].

Membership fees paid by suppliers

A membership fee to participate in the mechanism is paid by the supplier.

Some Vaccine Purchasing Groups (VPGs) in the United States covered organizational expenses through membership fees, paid by the suppliers. VPGs reached agreements with vaccine suppliers, who in turn provided buyers with price discounts if buyers met the requirements of the supplier’s loyalty program. Suppliers assessed buyer-loyalty by monitoring sales data [49].

Donor funding

The organizational expenses are covered by an external funder (i.e., donor).

The Global Drug Facility covers their operational expenses mainly through external donor funding [35]. Donor funding is only sustainable if the procurement organization manages to limit their reliance on a single donor or manages to establish long-term partnerships with the donor.