Purchasing and Inventory 1 Learning Objectives n n

Purchasing and Inventory 1

Learning Objectives n n Describe the steps required to implement an inventory control program. Name factors to consider in procurement of supplies. Develop a monitoring plan for the inventory system. Discuss the importance of documentation related to purchasing and inventory. Purchasing and Inventory-Module 4 2

Scenario Your laboratory is asked to gear up for a potential flu epidemic. n What purchasing and inventory factors do you need to consider in planning for this process? n What problems might you encounter in planning and implementation? Purchasing and Inventory-Module 4 3

The Quality Management System Organization Personnel Equipment Purchasing & Inventory Process Control Information Management Documents & Records Occurrence Management Assessment Process Improvement Customer Service Purchasing and Inventory-Module 4 Facilities & Safety 4

Benefits of an Inventory Management Program Supplies and reagents always available Purchasing and Inventory-Module 4 Minimize wastage Quality maintained Stay within budget 5

Inventory Management Challenges n Balance between stock availability and expiration dates. n Life-span of laboratory reagents varies: ¨ ¨ ¨ Instock Expiry Date RIA reagents: 3 to 8 weeks API kits: 4 to 12 months Antisera: 1 to 4 years Antibiotic disks: 2 to 3 years Ready-to-use culture media: 1 to 2 months Dehydrated culture media: 3 to 5 years Purchasing and Inventory-Module 4 6

Key Components for Purchasing and Inventory Management Store üVendor Qualifications üPurchase Contract Assess conditions Inspect Test Handle Maintain Delivery Laboratory Other laboratories Purchasing and Inventory-Module 4 USE Log book Expiry date Rotate stock Post use tracking 7

Establish a System to Qualify and Select Vendors n define criteria for supplies and services to be purchased n use information from other laboratories n evaluate before purchase and after receipt Purchasing and Inventory-Module 4 8

Purchasing Considerations Understand government requirements üReview üNegotiate prices Contracts Determine payment mechanisms Purchasing and Inventory-Module 4 Assure reliable availability, delivery 9

How to Implement Inventory Control Maintain inventory system in all storage areas Assign responsibility Analyze needs INVENTORY CONTROL Establish system for receiving, storing Develop forms and logs Purchasing and Inventory-Module 4 Establish minimum stock needs 10

Analyze Needs Conduct analysis of supply and reagent needs by: § listing all tests in laboratory § identifying all supplies needed for each test § using available information to estimate usage Purchasing and Inventory-Module 4 11

Analysis of Needs: Information Required Unit of count Storage space, conditions Usage/month Item description Order lead time/ delivery time Purchasing and Inventory-Module 4 (quantification) Priority Level 12

What is Quantification? Quantification is a process for calculating how much is required of any particular item for a given period of time. Purchasing and Inventory-Module 4 13

Quantification: When? n as part of annual health care planning n when implementing a new health program n in preparation for a potential or newly identified epidemic Purchasing and Inventory-Module 4 14

Quantification: How? n consumption-based method n morbidity-based method Purchasing and Inventory-Module 4 15

Quantification: Consumption-based on the actual usage n must take into account: n ¨ health supplies actually used ¨ wastage–expired or spoiled supplies ¨ supplies out of stock for more than 15 days during any time of the year Purchasing and Inventory-Module 4 16

Quantification: Morbidity-based n n based on the actual number of episodes must take into account: ¨ population size disease incidence ¨ accuracy of morbidity data ¨ treatment guidelines ¨ Purchasing and Inventory-Module 4 17

Inventory Control: Documentation Maintain records: § date received § lot number § pass or fail acceptance criteria § date placed in service or disposition May be useful to keep records in stockroom. Purchasing and Inventory-Module 4 18

Stock Logbook Includes: § name and signature § date of receipt § quantity § date of expiry § minimum stock § stock balance Other information: shelf number ¨ destination ¨ Purchasing and Inventory-Module 4 19

Inspect new orders at time of delivery n verify contents n check integrity n record date each item received n record expiration date n store new shipment behind existing shipment n create or update records Purchasing and Inventory-Module 4 20

Storage of Inventory Storeroom § clean § organized § lockable § well-ventilated § no direct sunlight § good, sturdy shelving § items within reach § safety precautions available Purchasing and Inventory-Module 4 21

Shelving 1 2 3 Follow safety precautions Purchasing and Inventory-Module 4 22

Shelf Organization n avoids “losing” a product n saves time n systemizes storage space Number cold room or refrigerators and freezers and label shelves Purchasing and Inventory-Module 4 23

Use clearly visible dating labels date opened n date expires n Purchasing and Inventory-Module 4 24

Continuous Monitoring of Inventory Assign responsibility Update records Inventory Control Maintain inventory system in all storage areas Conduct weekly physical counts Purchasing and Inventory-Module 4 25

Computerized Stock Management n n Advantages: ¨ exact current state of stock, product classification ¨ management of expiration dates ¨ statistics planning purchase orders ¨ management of possible distribution ¨ makes inventory tasks easier Drawbacks: ¨ an on-site computer is needed ¨ requires trained staff Purchasing and Inventory-Module 4 26

Summary A well-managed laboratory will have a system for inventory maintenance and purchasing. n The system will require planning and monitoring: analyzing needs, developing forms and procedures, and maintaining an inventory. The laboratory will maintain an inventory system for all reagents and supplies used in the laboratory. n Purchasing and Inventory-Module 4 27

Key Messages Managing inventory results in: § increased laboratory efficiency and effectiveness § assurance that patient or clinical needs are met § products available when needed Purchasing and Inventory-Module 4 28

Organization Personnel Equipment Purchasing & Inventory Process Control Information Management Documents & Records Occurrence Management Assessment Process Improvement Customer Service Purchasing and Inventory-Module 4 Questions? Comments? Facilities & Safety 29