Purchasing presentation in a Lab Management course

1. The University of Dammam
School of Applied medical Sciences
Department of Medical Laboratory Technology
Lab Management Course

2. Lab. PurchasingLab. Purchasing
Presenter:Presenter:
Dr/ Magdy KorashyDr/ Magdy Korashy

3. IntroductionIntroduction
Purchasing is not only buying something,Purchasing is not only buying something,
but also involve:but also involve:
 Determine the needDetermine the need
 Evaluate product according our needEvaluate product according our need
 Buying the productBuying the product

4. Categories of PurchasingCategories of Purchasing
orderorder
 Capital suppliesCapital supplies
 OperationalOperational
 servicesservices

5. It is either:It is either:
 Common itemsCommon items
 Items Unique to the labItems Unique to the lab
Operational supplyOperational supply

6.  Usually purchased by the centralUsually purchased by the central
purchase room.purchase room.
 This maximize:This maximize:
inventory controlinventory control
Stock rotationStock rotation
Buying powerBuying power i.e. products are boughti.e. products are bought
cheapercheaper
Common itemsCommon items

7. ExampleExample
 Copier/ printer paperCopier/ printer paper
Bought cheaper if your purchase isBought cheaper if your purchase is
considered as a guaranteed sale orconsidered as a guaranteed sale or
 If you buy in bulkIf you buy in bulk

8. Items Unique to the labItems Unique to the lab
 This also could be purchased cheaper ifThis also could be purchased cheaper if
you able to provide your annual needyou able to provide your annual need
 place a biding to suppliers for yourplace a biding to suppliers for your
needsneeds
 Knowledge is power i.e. manufacturingKnowledge is power i.e. manufacturing
variantsvariants

9. ExampleExample
 Manager of clinical chemistry lab canManager of clinical chemistry lab can
decide on which manufacturer to buydecide on which manufacturer to buy
according to your report with regarding theaccording to your report with regarding the
itemitem performanceperformance,, technical supporttechnical support
provided.provided.
 Then, the manager negotiate with theThen, the manager negotiate with the
supplier to get the best offer for thissupplier to get the best offer for this
product i.e. cheaper price, continuousproduct i.e. cheaper price, continuous
technical support, product replacement,….technical support, product replacement,….

10.  Any itemAny item >> value of money and has avalue of money and has a
useful time expectency.useful time expectency.
 Capital item (Asset) depreciation:Capital item (Asset) depreciation:
Measure the loss in value over time.Measure the loss in value over time.
Capital suppliesCapital supplies

11. Evaluation of a capital itemEvaluation of a capital item
This is done according to:This is done according to:
 ApplicabilityApplicability i.e. make decision based oni.e. make decision based on
need not want.need not want.
 QualityQuality (you get what you paid for) EX.(you get what you paid for) EX.
Microtome knivesMicrotome knives
 ValueValue (How much you get for that price) i.e.(How much you get for that price) i.e.
length of use, warranty, services availability,length of use, warranty, services availability,
services costs, manufacturer co-operation,….services costs, manufacturer co-operation,….

12. Offer Varieties for capital purchaseOffer Varieties for capital purchase
 Cash purchaseCash purchase: equipment > 5 yrs: equipment > 5 yrs
i.e. microscope, refrigerators, slide stainersi.e. microscope, refrigerators, slide stainers
 Equipment leaseEquipment lease: open system with several: open system with several
reagent manufacturerreagent manufacturer
 Reagent rentalReagent rental: the cost of equipment use is: the cost of equipment use is
calculated into the reagent costcalculated into the reagent cost

13.  Nothing is freeNothing is free
 Services account for many purchases.Services account for many purchases.
 Purchased services are those servicesPurchased services are those services
provided to our business by others forprovided to our business by others for
which we pay fees. EX. Maintenance,which we pay fees. EX. Maintenance,
repairs, consultationsrepairs, consultations
Services PurchaseServices Purchase

14. Types of Services purchaseTypes of Services purchase
It is either:It is either:
 Contractual AgreementContractual Agreement
 Time and MaterialTime and Material

15. Contractual AgreementContractual Agreement
 Services needed on a regular basisServices needed on a regular basis
 Advantages:Advantages:
Frequent services may be less expensiveFrequent services may be less expensive
Peace of mind i.e. the burden on the vendor notPeace of mind i.e. the burden on the vendor not
the ownerthe owner
 Example: any complex equipment on whichExample: any complex equipment on which
you depend on day-to-dayyou depend on day-to-day

16. Time and materialTime and material
 Applied for any job you call the vendor toApplied for any job you call the vendor to
perform, and then you pay for his travel,perform, and then you pay for his travel,
labor, spare parts he used in the repair orlabor, spare parts he used in the repair or
preventive maintenance.preventive maintenance.
 Advantage: Services on infrequent basis isAdvantage: Services on infrequent basis is
less expensiveless expensive
 It is not only applied on equipment, but alsoIt is not only applied on equipment, but also
consultation, lab referencing,..consultation, lab referencing,..