Purchasing and
Inventory
1
Learning Objectives
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.
What purchasing and inventory factors do
you need to consider in planning for
this process?
What problems might you encounter in
planning and implementation?
Purchasing and Inventory-Module 4 3
The Quality Management System
Organization Personnel Equipment
Purchasing Process Information
& Control Management
Inventory
Documents Occurrence
& Assessment
Management
Records
Process Customer Facilities
Improvement Service &
Safety
Purchasing and Inventory-Module 4 4
Benefits of an
Inventory Management Program
Minimize wastage
Supplies and
reagents always
Stay within budget
available
Quality
maintained
Purchasing and Inventory-Module 4 5
Inventory Management Challenges
Balance between stock availability
and expiration dates.
Life-span of laboratory Expiry
reagents varies: In-
stock
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
Vendor
Qualifications Assess
Inspect conditions
Test Maintain
Handle
Purchase
Contract
Delivery
Log book
Expiry date
USE Rotate stock
Laboratory
Other
laboratories
Post use
tracking
Purchasing and Inventory-Module 4 7
Establish a System to Qualify and
Select Vendors
define criteria for supplies and
services to be purchased
use information from other
laboratories
evaluate before purchase and after
receipt
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Purchasing Considerations
Understand government
requirements
Review
Contracts
Negotiate prices
Assure reliable
availability, delivery
Determine
payment
mechanisms
Purchasing and Inventory-Module 4 9
How to Implement Inventory Control
Assign
responsibility
Maintain
inventory system Analyze
in all storage needs
areas
INVENTORY
CONTROL
Establish Establish
system for minimum stock
receiving, storing needs
Develop
forms and logs
Purchasing and Inventory-Module 4 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, Usage/month
conditions (quantification)
Item
description
Order lead time/
Priority Level
delivery time
Purchasing and Inventory-Module 4 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?
as part of annual health care
planning
when implementing a new health
program
in preparation for a potential or
newly identified epidemic
Purchasing and Inventory-Module 4 14
Quantification: How?
consumption-based method
morbidity-based method
Purchasing and Inventory-Module 4 15
Quantification: Consumption-based
based on the actual usage
must take into account:
health supplies actually used
wastage–expired or spoiled supplies
supplies out of 90
stock for more
80
70
than 15 days
60 Slides
50
during any time 40
30
Immersion Oil
of the year 20
10
Collection
containers
0
1st 2nd 3rd 4th
Qtr Qtr Qtr Qtr
Purchasing and Inventory-Module 4 16
Quantification: Morbidity-based
based on the actual number of episodes
must take into account:
180
population size
160
disease incidence 140
accuracy of morbidity data 120
Influenza
100
treatment guidelines Diarrhea
80
TB
60
40
20
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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
verify contents
check integrity
record date each item received
record expiration date
store new shipment behind
existing shipment
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
Follow safety
precautions
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Shelf Organization
avoids “losing” a product
saves time
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
date expires
Purchasing and Inventory-Module 4 24
Continuous Monitoring of Inventory
Assign
responsibility
Update Inventory Maintain
inventory system
records Control
in all storage areas
Conduct weekly
physical counts
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Computerized Stock Management
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.
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.
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
Questions?
Comments?
Purchasing Process Information
& Control Management
Inventory
Documents Occurrence
& Assessment
Management
Records
Process Customer Facilities
Improvement Service &
Safety
Purchasing and Inventory-Module 4 29
