Discussed the Basic Rationale for medicine supplies management; Overview of the medicines & supplies' management cycle • Why manage medicines & supplies(Financial objectives, Operational objectives, Customer service objectives, Health objectives • Benefits of efficient medicines & supplies management system to patients and facility • Implications of inefficient medicine supply management system • Components of a medicine supply management system, (Selection, Procurement, Distribution, Use, Policy or legal framework, Management support)

1. STORES AND INVENTORY
MANAGEMENT
Dr. Muwanguzi Daniel
(B. Pharm, D. Pharm, DBA, MPS)
Department of Pharmacy
Lubega School of Health Professionals
8/14/2021 Daniel MPS 1
Topic 1. Management Cycle

2. Outline
1. Rationale for medicines & supplies management
(basic)
2. Overview of the medicines management cycle
3. Components of a medicine supply management
system, (Selection, Procurement, Distribution, Use,
Policy or legal framework, Management support)
4. Why manage medicines supply (Financial objectives,
Operational objectives, Customer service objectives, Health
objectives)
5. Benefits of efficient medicine supply management
system to patients and facility
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3. Medicines, Medical supplies &
Medicines Management
• Medical commodities – collectively all medicines and other
hospital supplies used in the management of patients.
• Medical supplies - health care related items that are
disposable or cannot withstand repeated use by more than
one individual and are required to manage a patients’
condition. Examples - diapers, syringes, gauze, bandages
• Medicines management is the set of practices aimed at
ensuring the timely Availability and appropriate use of Safe,
Effective, Quality medicines and related products and
services in any health-care setting.
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4. Medical commodities
• They include:
– Medicines.
– Medical equipment.
– Supplies like gloves masks, stethoscopes, gauze,
cotton wool and surgical equipment.
– Laboratory supplies and equipments such as
diagnostic kits, reagents.
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5. Rationale for medicines & supplies
Management
It is to ensure:
– Right Commodity/medicine
– Right Condition
– Right Quantity
– Right Place
– Right Time
– Right Cost
to the Right Person (Patient)
“Referred to as the Six Rights of Logistics”
C3P2Q1T
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6. Basic Principles of
medicines & supplies management
1) Determining which medicines are
needed and in which quantities
2) Purchasing medicines
3) Receiving and checking medicines
4) Storage of medicines
5) Record-keeping
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7. Basic Medicines Management Cycle
Medicine management involves four main
elements/components:
1) Selection,
2) Procurement,
3) Distribution, and
4) Use
– OTHERS:
Management support and
Policy and legal framework
• It is a real cycle, as each element is based on the
previous element and is followed by the next.
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8. Policy and Legal Framework
The Medicine Management Cycle
Procurement
Distribution
Use
Selection
Management support
Human resources
Organization Financing
Information management
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9. Selection
• Involves reviewing prevalent health problems,
identifying treatments of choice, choosing
medicines and dosage forms and deciding which
medicines to be available at which level of care.
Public Sector
Selection is done nationally to determine which items
should be available at each level of care.
Private Sector
Sometimes are left out of national process and selection
is left to each facility or organization.
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10. Procurement
• Defn: Procurement is the process of acquiring
appropriate quantities of the needed items.
• Procurement can be through purchase or
donations.
• This is done at various levels:
– National level.
– Regional level (In some countries regional
procurement does not occur).
– Facility level.
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11. Procurement includes
1. Quantifying medicine requirements,
2. Selecting procurement methods,
3. Contracting - Establishing contract
terms and
4. Compliance - Ensuring adherence to
them, and
5. Quality Assurance - medicine quality.
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12. Distribution
• Distribution is a complex process that
involves transferring/transporting
medicines and other health commodities
from one point to another
• It includes clearing customs, stock control,
stores management, and delivery of
medicines to depots and facilities.
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13. Use
• Medicine use/utilisation can be rational or
irrational.
• Stages of use;
1. Diagnosing,
2. Prescribing,
3. Dispensing, and
4. Consumption by the patient.
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14. Rational use
Rational Medicines Use (RMU) - requires that:
Patients receive medications
1. Appropriate to their clinical needs.
2. In doses tailored to their personal requirements.
3. For an adequate period of time.
4. At the lowest cost to them and their community.
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15. Irrational Use
Opposite of irrational
Irrational use of medicines occurs when;
1. Wrong medicines are used.
2. Right but Ineffective or unsafe medications
are used.
3. Effective medicines but incorrectly used.
4. Effective but not needed.
5. Polypharmacy - Too many medicines are
used to treat the same illness.
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16. Management Support
• It is at the centre of the cycle.
• Its functions hold the cycle together.
They are:
1. Financing operations.
2. Management and coordination.
3. Quality assurance of medicines.
4. Information management, monitoring and
evaluation.
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17. Management Support
17
STAFF
INCLUSIVE
ORGANISATION
PLAN
FINANCING
RECORDS
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Good record keeping to
provide information
competent staff,
adequately trained and
supervised
Adequate Funds
A well planned program With
Community involvement

18. Policy and Legal Framework
• The entire cycle rests on a policy and legal
framework that establishes the
mechanisms for each function and
supports the commodity management
system
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19. Policy and Legal Framework
• It is important to be familiar with policies and
legislation relevant to medical commodities
– National policies.
– Quality requirements.
– Product registration.
– Patent legislation.
– Importation requirements and taxes, which control
the entry of products into individual countries and
can have a significant effect on costs.
– Health rights and access to treatment.
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20. The Medicine Management Cycle
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Provides a limited list of
needed items that are safe,
effective and affordable
Obtains the needed
Items of good quality
at an affordable price
Patients receive
commodities
Appropriate for their
Clinical needs, in the right
doses for & adequate
period of time
Needed items are
made available to
the users
Management
Support

21. Summary
• Wise selection of medicines commodities
underlies all other improvements.
• Effective management saves money and
improves performance of system.
• Management support is important for the
process to be successful.
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22. Objectives of Managing Medicines &
Supplies
• Objectives are categorised into 4
– Health obj.
– Financial obj.
– Operational obj.
– Customer service obj.
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23. Health Objectives
• The primary objective of running a health
institution is the improvement of the health of the
population.
• Health outcomes will be low if needed medicines
are not available.
• Additionally treatment guidelines are also
developed within the management cycle which
will lead to improved health outcomes through
rational use of medicines.
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24. Financial Objectives
• It has been shown that good medicines
management can save resources which is
crucial in settings where resources are scarce.
This includes lower prices through different
procurement methods and planned orders
(instead of emergency orders), improved
distribution systems, and limitation to
essential medicines among others.
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25. Operational Objectives
• The medicine management cycle
demonstrates that each function builds on
the previous function and leads logically to
the next.
• This implies that proper management of the
different functions will improve operations
of the next function and therefore of the
cycle as a whole.
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26. Customer Service Objectives
• Customer services in a hospital are to a large
extent assessed by availability of medicines.
• With good medicine management it is possible
to reduce stock outs and improve availability
of quality medicines at affordable costs.
• This will improve customer satisfaction and
hence increased patients’ turn-up.
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27. Benefits of efficient medicine
management to patients
1. Patients will receive
– The Right medicines.
– Right Dosage of medicines.
– Medicines of acceptable Quality.
– Sufficient Quantities of medicines.
– Consistent supply (Available) of medicines.
– In a Timely manner.
– At affordable Costs.
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Tip: Rationale of MHS & RMU Objs.

28. 2. Managing medicines leads to improved
treatment outcomes and health indicators
of the population.
3. Patients do not lose working hours due
to illness.
4. Patients will consistently seek healthcare
and reduce morbidity and mortality.
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29. 5. The population will have trust in the facility
which will increase patient numbers.
6. Improved management of medicines will save
financial resources.
7. The facility will enjoy smooth running of
operations.
8. The facility can attract donor funding through
efficient running of operations.
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30. Implications of Inefficient Medicine
Supply Management
Dangers/risks/challenges associated with Inefficient medicine
supply will lead to
1. Waste of resources: This can be in form of availing
inappropriate medicines which are of no use to the
patients and facility.
2. Unavailability of medicines: This will be due to delayed
sourcing of medicines and inadequate amounts being
requested.
3. Poor medicine handling/storage: Available medicines may
be stored inappropriately leading to damages and theft.
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31. 4. Irrational medicine use; Patients might not be treated
with the right medicines, might not receive the right
dosage.
5. Poor response to treatment; Patients do not get cured of
their illnesses.
6. Loss of trust in the health facility which will lead to
decreasing patient numbers.
7. Lack of motivation for facility staff.
If every time patients turn up to collect their medicines the staff
do not have them, this will lead to decreased job satisfaction
and lack of motivation.
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32. 8/14/2021 Daniel MPS 32
PROCUREMENT
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