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planning policy

  1. STATEMENT OF PURPOSE

This document made to provide cycle count process to maintain accurate inventory data in all stores within the clinics that will improve planning processes of materials and observe their expiry, usage and availability.

 

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  1. DEFINITIONS/ABBREVIATIONS

ABC classification method: inventory classification method where class A means 80 % of the inventory value which will be 5 % of the items stored in designated area, B means 15 % of the inventory value which will be 15 % of the items stored in designated area, C means 5 % of the inventory value which will be 80 % of the items stored in designated area.

Item code: unique number assigned to define item (Medical, pharmaceutical, general & services) entered in the ERP system

Item description:

UOM: is a unit ion which the items is counted purchased and entered in the system (EA,box,tablet,PACK& …etc)

Expiry Date: Refers to the date (month and year) indicated by the manufacturer on the items after which is no longer safe for use.

Shelf life: Is the length of time that an item may be stored without becoming unfit for use, consumption, or sale. Shelf life is printed on the product label by the manufacturer

Near-Expired:  Refers to an item which the efficacy of its use is about to elapse within three (3) months or less from their shelf-life, or as determined by the manufacturer.

FEFO: Is an acronym for First Expiry – First Out. It refers to stock rotation practice adopted during stocking and supply distribution preparation activities whereby the first item nearing expiry date are in the front position so they are pulled first before the others to optimize utilization of resources and reduce waste.

 

 

 

 

 

  1. POLICY
  • It is the responsibility of supply chain section (planning and inventory control unit) to practice this policy and procedures.
  • Unit supervisor shall schedule and arrange for cycle count process for all stores with in Clinic

– assigned store custodian should arrange their store properly as per the following:

  • keep the store area clean and clear the passage way from obstruction.
  • use the proper locator naming process as per Clinic standard
  • Assign the item to one locator physically and in the system, in case if extra space needed custodian should refer to the other location in the main locator.
  • stack the item properly as per manufacturer standards and write the information of it in the locator that include item code and item description
  • follow FEFO standard in issuance and item receiving transactions to reduce expired incidences.
  • Financial affairs shall set up the appropriate acceptable discrepancy rate
  • Financial affairs should supervise any inventory value adjustments to make sure no financial lose will be occur due to wrong inventory transaction update
  • IT to provide the reports (consumption/ quantity on hand and any other related report that helps in performing the cycle count as per requested by planning and inventory control supervisor

 

  1. PROCEDURES

planning and inventory control supervisor will communicate with stores custodian to schedule time and date for the cycle count process.

-Planning and inventory control supervisor will arrange with IT and financial affairs to have the accurate ABC classification report then to count the items as per the following:

  • 3 times per year for class A
  • 2 times per year for class B
  • 1 times per year for class C

-inventory control staff should do the following while counting:

  • match item information in the system with the item located in the shelve
  • check UOM
  • check the expiry date and the packaging condition
  • list down all nearly expired items
  • all rejected/expired items should be located in assigned area to prevent mixing it with active items.
  • check the lot number of the item and match it with system lot number.
  • Count the shelve QTY and match it with system QTY,

-if item physical count not matching system QTY mark the item to review it after counting all items in the count sheet then perform recounting process for it and transactions inspection before reporting the discrepancy and calculating the lost value.

-Once all steps are done, supervisor of planning and inventory control will provide report of the findings with discrepancy rate and causes to higher management for their approval and guidance

Responsibilities:

  • Supply chain section (planning and inventory control)
  • All clinical area.
  • IT
  • Financial affairs