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HOSPITALAND CLINICAL PHARMACY
SUPPLY CHAIN AND INVENTORY CONTROL
PART –I
D. Pharm 2nd year
E.R.20
PRESENTED BY
PRAGATI K. MAHAJAN
PREPARATION DATE
SEPTEMBER -2023
SUPPLY CHAIN AND INVENTORY
CONTROL
 WHAT IS SUPPLY CHAIN ?
Manufacturer Warehouses Wholesaler Retailer Customer
INTRODUCTION
Definition: Supply chain is the activities required by the organisation to deliver
goods or services to the consumer. Or
A supply chain contains a series of steps involved to get a service or product to the end
user.
 The steps involve in effective management of medicines supply are
1) Preparation Drug list
2) Procedure for drug purchases (Procurement), Storage, dispensing
3) Inventory control techniques
4) Inventory Management
Preparation Drug list
Drug
list
1)High risk medicine
1)The narcotic drugs
and psychotropic
substance
1)Emergency drugs
Reserved
antibiotics
Schedule H1 Drugs
High Risk Medicine Or High Alert Medication
 A high –alert medication is a drug that has a high risk of causing harm to patient when
misused.
The list include following drug
 Antimicrobials
 Potassium and other electrolytes, psychotropic medications
 Insulin
 Narcotics, opioids and sedatives
 Chemotherapeutic agents
 Heparin and other anticoagulants
High Risk Medicine Or High Alert Medication
Methods to reduce error include strategies
 Improving access to information about these drugs.
 Limiting access to high risk medications
 Using Tall Man Lettering to differentiate high risk medications
 Standardizing the prescription, storage, preparation, and administration of these
products
 Standardizing the ordering, storage, preparation, and administration of these
medications
Emergency Drugs
 The chemical compound used in patient during life threatening condition
so that the symptoms can be controlled and the life of patient can be
saved.
 Emergency drugs are usually available in those kinds of dosage form
which have short onset of action for rapid effects.
 Emergency drugs are important to manage patients in the intensive care
unit (ICUs).
Emergency Drugs
 Concept of Golden Hours : It refers to a time period lasting for one
hour or less following traumatic injury being, sustained by a
medical emergency during which there is the highest likelihood that
prompt medical treatment will prevent death.
 It has greatest chances of patient's survival if they receive care
within a short period of time after get injured
 Examples:- Amiodarone, Aspirin, Calcium chloride 10%,
Hydrocortisone ,Lignocaine IV, Potassium chloride
The Narcotic Drugs And Psychotropic
Substance (NDPS)
 Referred to the NDPS Act, that bans a person
manufacturing/cultivation/production, possession, purchasing sale
transport, storage, and/or consumption of any narcotic or psychotropic
substance.
 NDPS law concerning to narcotic drugs, to make stringent requirements
for the control and regulation of processes relating to narcotic and
psychotropic substances
 NDPS drugs are comes under schedule X.
 Examples Heroin, Codeine, Thebaine, Cocaine, Hashish, Clonazepam
Schedule H1 Drugs
 These are drugs which cannot purchased over the counter without
the prescription of qualified doctors.
 The manufacturer and sales of all the drugs are covered under the
Drugs and Cosmetics Act and Rules.
 Examples : Alprazolam, Doripenam, Nitrazepam, Buprenorphine,
Pentazocine, Erapenem, Capreoncin, Ethionamide, Diazepam,
Feropenem, Cefditoren, Zolpidem, cefepime, imipenem,
Reserved Antibiotics
 These antibiotics are reserved for the treatment of confirmed or
suspected infections due to multidrug resistant organisms.
 Reserve group of antibiotics should be used as "last resort" options.
 These antibiotics should be available, but their use should be in
highly specific patients or when all antibiotic options have failed or
are not suitable
 Example: aztreonam, polymyxins, linezolid, oxazolindinones,
Purchase Or Procurement Of Drug
 The basic purpose of purchase is to ensure continuous flow of raw
materials of right quality, right quantity, right price and from right sources.
 Purchasing are of two types in hospital:
1) centralized purchasing 2) decentralized purchasing
 Centralized purchase for non-pharmacy items and decentralized purchase
for pharmacy items
Purchase Or Procurement Of Drug
 Centralized purchasing: in this type of system purchases are done for the
entire hospital.
 Purchases are done by purchase officer or purchase committee computer,
furniture, computerized scanner, operation theater equipment's
 Decentralized purchasing: in this type of system purchases are done by
individual department.
 Decentralized purchase either done by junior medical officer or
pharmacist. e.g. Nursing department, catering department, clinical
department.
Procurement Or Purchase Procedure
 Purchase procedure involve various steps for procurement of product
 1) purchase requisition- whenever the existing stock reach to minimum limit
or the reorder level.
 According to specification of products required requisition slip is prepared by
Incharge of departmental and send it to purchase department.
 The purchase requisition form includes type of material to be purchased, time
of requirement, available and required quantity
 Once requisition slip approved then send to purchasing officer & one copy
retained by pharmacist.
Procurement Or Purchase Procedure
 2) Selection of supplier/ Sources of suppliers:-
 The list of items to be purchased is sent to various suppliers or
tender is invited through leading newspapers.
 On receiving the quotations from different suppliers, the
comparative statement of all the quotations received is prepared.
The supplier which has quoted the lowest rate is generally selected
 However, price, quality, ability to deliver the goods as per schedule
and term of payment are considered at same time
Procurement Or Purchase Procedure
The PTC sets adequate standards for the purchase of quality drugs.
• By inviting tenders from wholesalers and manufacturers
• By direct purchase from wholesalers and manufacturers
• Emergency purchase from a local retail drug store
• By a contract purchase arrangement with the manufacturer
Procurement Or Purchase Procedure
 3) purchase order :- purchase officer or chief pharmacist prepare
purchase order.
 The purchase order is in written form evidence of agreement
between the buyer and supplier
 The purchase order gives detailed description, specifications,
quantity required and terms conditions of contract
 The seven copies of purchase order are prepared .
 First copy sends to supplier by post or hand delivering for supplier.
Procurement Or Purchase Procedure
 Second copy send to account department where it will be retained for
accounting
 Third copy retained by purchasing officer for his department (purchase
department).
 Forth copy send to department from where requisition slip is received
 Fifth copy is utilized if articles are received& send to account department
 sixth copy is utilized only when goods are back ordered.
 Seventh copy-it is history copy kept by purchase officer for other use.
Procurement Or Purchase Procedure
 4) Receipt of goods:
 When the ordered goods received in department. The quantities and prices are
checked.
 Invoice of supplier is compared to the purchase order.
 Received goods bill sent to the account section where bill is entered in
purchase record form.
 If part of order is returned to supplier, Good Returned Note (one copy to
supplier and another to the department) must be prepared.
 5) Release of payment to the supplier
Prepare purchase requisition
Selection of reliable supplier
Prepare purchase order (7
copies)
Receipt of goods
Release of payment to supplier
Maintain purchase
record form for each
item received
If received articles returned to the
supplier prepare goods returned note
TENDER
TENDER
Open Negotiated Selective Term Limited single global
Open Tender
 Both private as well as government sectors accept the procedure of open tender.
 This is considered to be the main form of tender in which the client or the
customer advertises the tender openly in a newspaper or on the e-tender platform
along with some important information about the proposed works to invite the
interested contractors and suppliers.
 The tenders are given in leading news papers. After receiving the tenders from
various suppliers, a comparative statement is prepared.
 The order is place to the firm with the lowest quotation these method is costly
and time consuming
Negotiated Tender, Selective Tender
 Negotiated tender :- It is used largely in the engineering and construction
industry this is because these industries are subject to pre-contract and post-
contract
 Cost reimbursement contract is variation of this which can be used when
completion of time is more important than cost
 Selective tender :- only allows suppliers to submit tenders by invitation
 The aim of this tender is to increase the quality bids received while also ensuring
that the contractors with the requisite expertise are given the right opportunities
to submit the required bids on time.
 However it can exclude smaller suppliers for those trying to establish themselves
in a new market
Term Tender
 Term tendering is practiced mostly on projects that need high maintenance.
 The project has to completed within the predefined schedules
 Term tendering usually refers to the process whereby government and private
firms invite bids for large projects that must be submitted within a definite
deadline.
 Through this tender, the contractor is asked to cover specific building or
construction in various locations.
 Term tender is limited to a fixed time and can demand certain criterion which
is to be met by the supplier adhering to the needs of the client.
Limited Tender, Single Tender
 Limited tenders:
 This system is used only in those cases where the value of tender is
moderate.
 The tenders are invited only from those firms which are on the approved list
of supplier.
 Single tenders:
 When the items to be purchased are proprietary in nature or the order is to
be repeated within a short period, the tender is send only to a single supplier
who is dealing with the items of specific specification
Global Tender
 The tenders are invited from all parts of the world. These are for is required in the
proposed project. Large contracts for supplies from foreign countries or when foreign
collaboration interested suppliers will then prepare a tender
 The documents that outline the offer that they are making, and will include pricing,
schedules as well as their eligibility for the project or procurement.
 They will outline their advantage over competitors, provide information on qualifications,
competencies and experience. Further they have to demonstrate how their bid offers the
best value for money.
 The submitted tenders are then evaluated with regard to defined criteria.
Quotations
 It is written offer by supplier to supply material at a specified
fixed price within a given period and under specified
condition.
 After receiving quotation from different supplier, we select
the quotation of supplier who quoted less price with best
quality.
 We can used for small business up to large for example
library, construction of buildings e.t.c
Thank you
TO BE CONTINUE WITH PART -2

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Supply Chain And Inventory Part 1.pptx

  • 1. HOSPITALAND CLINICAL PHARMACY SUPPLY CHAIN AND INVENTORY CONTROL PART –I D. Pharm 2nd year E.R.20 PRESENTED BY PRAGATI K. MAHAJAN PREPARATION DATE SEPTEMBER -2023
  • 2. SUPPLY CHAIN AND INVENTORY CONTROL  WHAT IS SUPPLY CHAIN ? Manufacturer Warehouses Wholesaler Retailer Customer
  • 3. INTRODUCTION Definition: Supply chain is the activities required by the organisation to deliver goods or services to the consumer. Or A supply chain contains a series of steps involved to get a service or product to the end user.  The steps involve in effective management of medicines supply are 1) Preparation Drug list 2) Procedure for drug purchases (Procurement), Storage, dispensing 3) Inventory control techniques 4) Inventory Management
  • 4. Preparation Drug list Drug list 1)High risk medicine 1)The narcotic drugs and psychotropic substance 1)Emergency drugs Reserved antibiotics Schedule H1 Drugs
  • 5. High Risk Medicine Or High Alert Medication  A high –alert medication is a drug that has a high risk of causing harm to patient when misused. The list include following drug  Antimicrobials  Potassium and other electrolytes, psychotropic medications  Insulin  Narcotics, opioids and sedatives  Chemotherapeutic agents  Heparin and other anticoagulants
  • 6. High Risk Medicine Or High Alert Medication Methods to reduce error include strategies  Improving access to information about these drugs.  Limiting access to high risk medications  Using Tall Man Lettering to differentiate high risk medications  Standardizing the prescription, storage, preparation, and administration of these products  Standardizing the ordering, storage, preparation, and administration of these medications
  • 7. Emergency Drugs  The chemical compound used in patient during life threatening condition so that the symptoms can be controlled and the life of patient can be saved.  Emergency drugs are usually available in those kinds of dosage form which have short onset of action for rapid effects.  Emergency drugs are important to manage patients in the intensive care unit (ICUs).
  • 8. Emergency Drugs  Concept of Golden Hours : It refers to a time period lasting for one hour or less following traumatic injury being, sustained by a medical emergency during which there is the highest likelihood that prompt medical treatment will prevent death.  It has greatest chances of patient's survival if they receive care within a short period of time after get injured  Examples:- Amiodarone, Aspirin, Calcium chloride 10%, Hydrocortisone ,Lignocaine IV, Potassium chloride
  • 9. The Narcotic Drugs And Psychotropic Substance (NDPS)  Referred to the NDPS Act, that bans a person manufacturing/cultivation/production, possession, purchasing sale transport, storage, and/or consumption of any narcotic or psychotropic substance.  NDPS law concerning to narcotic drugs, to make stringent requirements for the control and regulation of processes relating to narcotic and psychotropic substances  NDPS drugs are comes under schedule X.  Examples Heroin, Codeine, Thebaine, Cocaine, Hashish, Clonazepam
  • 10. Schedule H1 Drugs  These are drugs which cannot purchased over the counter without the prescription of qualified doctors.  The manufacturer and sales of all the drugs are covered under the Drugs and Cosmetics Act and Rules.  Examples : Alprazolam, Doripenam, Nitrazepam, Buprenorphine, Pentazocine, Erapenem, Capreoncin, Ethionamide, Diazepam, Feropenem, Cefditoren, Zolpidem, cefepime, imipenem,
  • 11. Reserved Antibiotics  These antibiotics are reserved for the treatment of confirmed or suspected infections due to multidrug resistant organisms.  Reserve group of antibiotics should be used as "last resort" options.  These antibiotics should be available, but their use should be in highly specific patients or when all antibiotic options have failed or are not suitable  Example: aztreonam, polymyxins, linezolid, oxazolindinones,
  • 12. Purchase Or Procurement Of Drug  The basic purpose of purchase is to ensure continuous flow of raw materials of right quality, right quantity, right price and from right sources.  Purchasing are of two types in hospital: 1) centralized purchasing 2) decentralized purchasing  Centralized purchase for non-pharmacy items and decentralized purchase for pharmacy items
  • 13. Purchase Or Procurement Of Drug  Centralized purchasing: in this type of system purchases are done for the entire hospital.  Purchases are done by purchase officer or purchase committee computer, furniture, computerized scanner, operation theater equipment's  Decentralized purchasing: in this type of system purchases are done by individual department.  Decentralized purchase either done by junior medical officer or pharmacist. e.g. Nursing department, catering department, clinical department.
  • 14. Procurement Or Purchase Procedure  Purchase procedure involve various steps for procurement of product  1) purchase requisition- whenever the existing stock reach to minimum limit or the reorder level.  According to specification of products required requisition slip is prepared by Incharge of departmental and send it to purchase department.  The purchase requisition form includes type of material to be purchased, time of requirement, available and required quantity  Once requisition slip approved then send to purchasing officer & one copy retained by pharmacist.
  • 15. Procurement Or Purchase Procedure  2) Selection of supplier/ Sources of suppliers:-  The list of items to be purchased is sent to various suppliers or tender is invited through leading newspapers.  On receiving the quotations from different suppliers, the comparative statement of all the quotations received is prepared. The supplier which has quoted the lowest rate is generally selected  However, price, quality, ability to deliver the goods as per schedule and term of payment are considered at same time
  • 16. Procurement Or Purchase Procedure The PTC sets adequate standards for the purchase of quality drugs. • By inviting tenders from wholesalers and manufacturers • By direct purchase from wholesalers and manufacturers • Emergency purchase from a local retail drug store • By a contract purchase arrangement with the manufacturer
  • 17. Procurement Or Purchase Procedure  3) purchase order :- purchase officer or chief pharmacist prepare purchase order.  The purchase order is in written form evidence of agreement between the buyer and supplier  The purchase order gives detailed description, specifications, quantity required and terms conditions of contract  The seven copies of purchase order are prepared .  First copy sends to supplier by post or hand delivering for supplier.
  • 18. Procurement Or Purchase Procedure  Second copy send to account department where it will be retained for accounting  Third copy retained by purchasing officer for his department (purchase department).  Forth copy send to department from where requisition slip is received  Fifth copy is utilized if articles are received& send to account department  sixth copy is utilized only when goods are back ordered.  Seventh copy-it is history copy kept by purchase officer for other use.
  • 19. Procurement Or Purchase Procedure  4) Receipt of goods:  When the ordered goods received in department. The quantities and prices are checked.  Invoice of supplier is compared to the purchase order.  Received goods bill sent to the account section where bill is entered in purchase record form.  If part of order is returned to supplier, Good Returned Note (one copy to supplier and another to the department) must be prepared.  5) Release of payment to the supplier
  • 20. Prepare purchase requisition Selection of reliable supplier Prepare purchase order (7 copies) Receipt of goods Release of payment to supplier Maintain purchase record form for each item received If received articles returned to the supplier prepare goods returned note
  • 21. TENDER TENDER Open Negotiated Selective Term Limited single global
  • 22. Open Tender  Both private as well as government sectors accept the procedure of open tender.  This is considered to be the main form of tender in which the client or the customer advertises the tender openly in a newspaper or on the e-tender platform along with some important information about the proposed works to invite the interested contractors and suppliers.  The tenders are given in leading news papers. After receiving the tenders from various suppliers, a comparative statement is prepared.  The order is place to the firm with the lowest quotation these method is costly and time consuming
  • 23. Negotiated Tender, Selective Tender  Negotiated tender :- It is used largely in the engineering and construction industry this is because these industries are subject to pre-contract and post- contract  Cost reimbursement contract is variation of this which can be used when completion of time is more important than cost  Selective tender :- only allows suppliers to submit tenders by invitation  The aim of this tender is to increase the quality bids received while also ensuring that the contractors with the requisite expertise are given the right opportunities to submit the required bids on time.  However it can exclude smaller suppliers for those trying to establish themselves in a new market
  • 24. Term Tender  Term tendering is practiced mostly on projects that need high maintenance.  The project has to completed within the predefined schedules  Term tendering usually refers to the process whereby government and private firms invite bids for large projects that must be submitted within a definite deadline.  Through this tender, the contractor is asked to cover specific building or construction in various locations.  Term tender is limited to a fixed time and can demand certain criterion which is to be met by the supplier adhering to the needs of the client.
  • 25. Limited Tender, Single Tender  Limited tenders:  This system is used only in those cases where the value of tender is moderate.  The tenders are invited only from those firms which are on the approved list of supplier.  Single tenders:  When the items to be purchased are proprietary in nature or the order is to be repeated within a short period, the tender is send only to a single supplier who is dealing with the items of specific specification
  • 26. Global Tender  The tenders are invited from all parts of the world. These are for is required in the proposed project. Large contracts for supplies from foreign countries or when foreign collaboration interested suppliers will then prepare a tender  The documents that outline the offer that they are making, and will include pricing, schedules as well as their eligibility for the project or procurement.  They will outline their advantage over competitors, provide information on qualifications, competencies and experience. Further they have to demonstrate how their bid offers the best value for money.  The submitted tenders are then evaluated with regard to defined criteria.
  • 27. Quotations  It is written offer by supplier to supply material at a specified fixed price within a given period and under specified condition.  After receiving quotation from different supplier, we select the quotation of supplier who quoted less price with best quality.  We can used for small business up to large for example library, construction of buildings e.t.c
  • 28. Thank you TO BE CONTINUE WITH PART -2