L12

• Hospital materials management function


  Making sure that services go successfully from one source to an end user
• Hospital materials management function could drastically affect medical institution expenses
• Executing hospital materials management function

  Requires effective management of a large amount of information from several sources
• Purchase request


  A document used internally to identify a need for an item, specifying quantities and timeframe

  
• Types of purchase requests

  • Emergency purchase request
  • Routine purchase request

  
• Inventory control


  • Inventory is one of the biggest expenses for most medical institutions
  • Inventory control plays an important part in refining the quality of healthcare services since the lives of the people are on the line, as well as because medical costs are increasing
• Strategies to improve inventory control

  1. Making sure shippers are accurate

  2. Alignment with sales projections

  3. Compliance with regulations

  4. Establishing buying cycles
• Item master maintenance


  Used for maintenance of the attributes of an inventory item, such as product type, item class, item type, etc.
• Item indents and issues

  Instances where items are damaged either upon receiving them from the supplier or during the move from the source to another location
• Re-order level


  The minimum quantity of an item that a company has in stock, so when the stock reaches the minimum quantity stated, the item must then be re-ordered
• Min/Max inventory ordering method

  The "Min" value is representative of a stock level that prompts a re-order, and the "Max" value is representative of a new targeted stock level that follows the re-order
• Documentation needed in material management system

  • Enquiries
  • Quotations
  • Orders
  • Invoices or bill

  
• Purchase quotation


  A document for requesting prices and delivery information from a vendor before the purchase order

  
• Preferred vendors


  • On-time performance
  • Reasonable costs
  • High quality of products and services
  • Fully licensed, bonded, and insured
  • Good business practices
• Purchase order creation and approval process

  1. Buyer and seller information

  2. Order number

  3. Item description

  4. Shipping address and date

  5. Billing address

  6. Signatures

  7. Order date

  
• Approval process


  1. Originator creates document

  2. System checks for approval requirements

  3. Approval request sent to first approval stage

  4. Approver can access and approve/reject document

  5. Originator notified of rejection to amend document
• Inspecting a shipment


  1. Verify product conformance to purchase order

  2. Verify quantity ordered vs delivered

  3. Check for damage or breakage

  4. Verify unit of measurement

  5. Check delivery documentation

  6. Check perishable item condition and expiration
• Partial deliveries


  Departments should contact purchasing agent when a purchase is received as a partial delivery without acknowledgment or notification from the supplier

  
• Tracking of goods


  Goods can be easily tracked/traced when they are managed by serial or batch, and aging of products can be done if the items are slow-moving/stay longer in the warehouse
• Expired stock/inventory


  Upon reaching expiration dates, some goods can no longer be utilized and their reduced value must be reflected in financial records
• Quarantine stock/inventory


  Inventory is put into quarantine if initially rejected during production, inbound inspection, or outbound inspection
• Inventory handling methods


  • First In, First Out (FIFO)
  • Last In, First Out (LIFO)
  • First Expired, First Out (FEFO)
• Periodic physical stock-taking and adjustments with tracking

  1. Inventory count to place accurate value on inventory

  2. Inventory services to quickly count inventory and minimize shutdown time

  3. Inventory control system software to speed up physical inventory process

  4. Cycle counting as alternative to physical inventory