9 • Monitoring and Evaluation of Supply Chains Objectives In this chapter, you will learn the following: • definitions of basic monitoring and evaluation M&E terms and concepts • program[r]
What Is Logistics?
The field of supply chain management has significantly evolved to adapt to the dynamic requirements of the global supply chain, as highlighted by the Council of Supply Chain Management Professionals (CSCMP).
Supply chain management involves the strategic planning and oversight of all activities related to sourcing, procurement, and logistics It emphasizes the importance of coordination and collaboration with various channel partners, including suppliers, intermediaries, third-party service providers, and customers Ultimately, effective supply chain management integrates supply and demand management both within individual companies and across the broader network of partners.
The CSCMP also defines logistics management as—
Supply chain management encompasses the planning, implementation, and control of the efficient and effective flow and storage of goods, services, and information This process operates both forwards and backwards, from the point of origin to the point of consumption, ensuring that customer requirements are met.
Logistics management serves as a crucial integrating function that coordinates and optimizes all logistics activities It also aligns these activities with other key business functions such as marketing, sales, manufacturing, finance, and information technology, ensuring seamless operations across the organization.
Logistics activities serve as the operational backbone of supply chain management, encompassing key functions such as procurement, inventory management, transportation, fleet management, and data collection While supply chain management integrates these logistics activities with the coordination and collaboration among various staff and functions, logistics primarily zeroes in on specific tasks within a given program health system The broader supply chain framework involves global manufacturers and the dynamics of supply and demand, but logistics emphasizes the execution of targeted operational tasks.
This handbook highlights key logistics activities within an integrated supply chain model, emphasizing collaboration and smooth connections among the various activities, levels, and personnel involved in supply chain management It is important to note that the terms logistics and supply chain are used interchangeably throughout the document.
Why Logistics Matters
Historically, logistics was viewed merely as a custodial function, with storekeepers managing supplies in small storerooms and large warehouses As a result, the significance of logistics and the professionals behind health logistics systems were often overlooked in critical areas such as family planning, HIV and AIDS, and vaccination programs However, over time, program managers have increasingly recognized the vital role logistics plays in ensuring the success of these initiatives.
A health logistics system aims to achieve more than just the transportation of products; its ultimate goal is to ensure commodity security for all individuals Commodity security is defined as the ability of every person to access and utilize quality essential health supplies whenever needed A well-functioning supply chain plays a crucial role in achieving this security, alongside the necessary support of financing, effective policies, and strong commitment.
Effective supply chains play a crucial role in ensuring commodity security and significantly influence the success of public health programs Decision-makers in both business and public sectors are increasingly focused on enhancing supply chains, as improvements in logistics yield measurable benefits A well-functioning supply chain is essential for the success of public health initiatives, providing vital support and resources.
• improving cost effectiveness and efficiency
A reliable logistics system that ensures a continuous supply of health commodities significantly boosts the utilization of health services When customers have consistent access to essential products, their confidence in health programs increases, motivating them to seek care Improved availability of contraceptive methods directly correlates with higher contraceptive prevalence rates (CPR) in the public sector Consequently, when women have access to a variety of contraceptive options, more choose to use them, leading to positive outcomes in public health indicators such as reduced maternal and infant mortality rates, and lower total fertility rates Ultimately, the success of health programs hinges on a dependable supply chain that delivers essential health commodities.
Logistics enhances quality of care
Well-supplied health programs deliver superior services, as adequate resources enable health workers to fully utilize their training and expertise, directly enhancing client care quality Furthermore, a robust logistics system ensures that health providers receive the necessary supplies, which boosts their professional satisfaction, motivation, and morale Motivated staff are more likely to offer higher quality services, benefiting both clients and the healthcare system as a whole.
Logistics improves cost efficiency and effectiveness
A well-optimized supply chain enhances cost efficiency across all program areas while maximizing limited resources Investing in a robust logistics system yields significant benefits, including a reduction in losses from overstock, waste, expiration, damage, theft, and operational inefficiencies.
(2) it protects other major program investments; and (3) it maximizes the potential for cost recovery Logistics matters
Figure.1-1:.Correlation.between.Contraceptive.Prevalence.Rate.and.Product.Availability
Logistics should matter to you!
Logistics plays a crucial role in managing and enhancing public health systems, making it essential for those involved in this field To maintain commodity security and improve the effectiveness, quality, and cost-efficiency of health programs, it is vital to persuade policymakers that investing in logistics will lead to better overall program outcomes A strong logistics system is necessary for any public health initiative to provide high-quality services and ensure the secure management of health commodities Therefore, it is imperative to emphasize the significance of logistics in achieving these goals.
Logistics System
Throughout your life, you will experience numerous logistics systems in various settings such as restaurants, stores, and warehouses This handbook focuses on logistics systems specifically for health programs, but grasping a basic example of a logistics system will enable you to comprehend almost any health logistics system.
A restaurant is one example of a simple logistics system
• The kitchen is a storage facility; the food is held there until it is delivered to the customer
• Waiters provide the transportation; they carry the food from the kitchen to the customer
• The tables are the service delivery points, where customers sit to order and eat the food
For diners, a restaurant serves primarily as a dining destination rather than a logistics operation While the concept of a restaurant may not typically evoke thoughts of logistics, the overall dining experience is significantly influenced by the efficiency of its logistical processes.
What expectations do you have when you go out to a restaurant for a meal?
The.Six.Rights of.Logistics
The RIGHT goods in the RIGHT.quantities in the RIGHT condition delivered… to the RIGHT place at the RIGHT time for the RIGHT cost
You may expect that the—
• restaurant will be attractive and pleasing
• server will provide excellent customer service
• food you order will be available
• food will be served promptly
• correct order will be delivered to your table
• food will be of acceptable quality
• food will be of acceptable quantity
• cost of the meal will correspond to the value
Customer expectations shape the core function of a logistics system, which is to deliver the correct goods in the appropriate quantities and condition, to the right location, at the right time, and at an acceptable cost This framework is commonly referred to as the six rights of logistics.
Whether the system supplies soft drinks, vehicles, or pens; or manages contraceptives, essential drugs, or other commodities, these six rights always apply
What.is.the.right.cost.of.a.donated.good?
In health programs where commodities are donated by international partners or charitable organizations, the principle of the sixth right—ensuring the right product is provided at the right cost—still applies Despite the donation of products, programs remain accountable for associated logistics costs, including clearing, storing, and transporting the items, as well as data collection and reporting on their usage.
Logistics Cycle: Organizing Logistics System Activities
Logistics management encompasses various activities that uphold the six rights of logistics Over time, logisticians have created a model known as the logistics cycle, which visually represents the interconnections among these activities within a logistics system.
The circular design of the cycle emphasizes its repetitive nature, highlighting how each activity—serving customers, product selection, quantification and procurement, and inventory management—is interconnected and influences one another.
Product selection must prioritize customer needs, particularly in medical contexts If we choose an unauthorized or unregistered product for a country program, it necessitates reevaluating our decision and sourcing a compliant product This adjustment impacts procurement and storage processes, highlighting the interconnectedness of logistics activities.
The activities in the center of the logistics cycle represent the management support functions that inform and impact the other elements around the logistics cycle
In the next few sections, you will look briefly at all the elements shown in the logistics cycle, including the—
• major activities in the cycle
• heart of the logistics cycle
• quality monitoring of the activities
• logistics environment—policies and adaptability of the system
Major activities in the logistics cycle
The logistics cycle in health services is centered around serving customers by selecting, procuring, storing, and distributing essential health commodities Storekeepers play a crucial role in ensuring commodity security, enabling customers to access necessary health products when needed Each step in the logistics process, from issuing medicines at health facilities to distributing commodities from central medical stores, contributes to excellent customer service and fulfills the six rights of logistics Product selection is guided by national formularies and essential medicine lists, which must consider logistics requirements to ensure effective supply chains Following product selection, quantification estimates the required quantity and cost for health programs, determining procurement timelines to maintain an uninterrupted supply Procurement should adhere to transparent procedures, whether sourcing products internationally, regionally, or locally Finally, once procured, products must be efficiently managed through inventory practices, ensuring proper storage and timely distribution to meet customer demands.
Heart of the logistics system
Information is the engine that drives the logistics cycle; without information, the logistics system would not run smoothly
At the start of the cycle, managers collect and analyze data on various activities within the system to inform their decisions and coordinate future actions For instance, they need to gather information on product consumption and inventory levels to determine the appropriate quantity of products to procure.
Logistics management information systems (LMIS) are distinct from health management information systems (HMIS) as they focus specifically on collecting data related to logistics activities, such as managing commodity supplies for health facilities While LMIS data is frequently utilized for routine supply orders, HMIS data, which tracks patient diagnoses and visits, is typically collected less often and serves different purposes, such as evaluating program impact Logisticians stress the importance of using logistics data to inform decision-making within the logistics cycle.
Other.activities.at.the.heart.of.the.logistics.cycle
A well-functioning logistics system relies on key activities such as organization, staffing, budgeting, supervision, and monitoring Efficient and well-trained staff are essential for managing stock levels, placing orders, and delivering products to clients Health programs must allocate appropriate resources, including supervision authority and technical expertise, to facilitate effective logistics activities Many countries have established national logistics management units to analyze data and provide feedback, underscoring the importance of organization and staffing Additionally, effective budget allocation directly influences the logistics cycle, impacting procurement quantities, storage capacity, vehicle maintenance, and staffing levels Securing a dedicated budget for health commodities is crucial for ensuring product availability and operational efficiency Supply chain managers must assess expected costs, including storage, transportation, and management, while determining the financial contributions from various stakeholders like the Ministry of Health and NGOs Routine supervision and on-the-job training are vital for maintaining smooth logistics operations and addressing potential challenges Finally, regular monitoring and evaluation of logistics activities are essential for assessing system performance, identifying areas for improvement, and understanding the impact on service provision.
In Zambia, the National Logistics Management Unit (LMU) sits at the national Medical
Stores Limited warehouse in Lusaka This team of six, all employed by the Medical Stores
Every day, dedicated efforts are made to input logistics data into management information databases, ensuring accurate tracking of antiretrovirals, HIV test kits, and laboratory supplies Additionally, monthly feedback reports are generated to enhance the efficiency of logistics systems.
Quality monitoring plays a crucial role in maintaining an efficient and effective logistics system Throughout the logistics cycle, it is essential to recognize how quality monitoring is integrated between each activity This process encompasses not only the quality of the products being handled but also the quality of the work performed within the logistics framework.
Quality monitoring appears four times in the logistics cycle:
Quality monitoring is crucial in the processes of quantifying and procuring the right products, ensuring that selections are based on appropriate criteria It is essential that the products identified for procurement align with the national essential medicines list to guarantee their effectiveness and safety.
For effective implementation, essential medicines (EML) must receive approval and registration for use within the country, and they should be integrated into relevant standard treatment guidelines (STGs) Additionally, it is crucial that service providers undergo proper training to ensure the correct utilization of these products prior to their procurement and distribution to healthcare facilities.
Effective procurement decisions rely on the supply plan established during the quantification process To maintain product quality, procurement documentation must clearly outline detailed specifications for both the product and its packaging, along with quality expectations upon receipt Following procurement, program managers are responsible for verifying the quality of health commodities prior to their entry into the distribution system Additionally, procured products should be promptly cleared through customs and other inspections to ensure timely distribution to facilities.
Between Inventory Management and Serving Customers While products are received, stored, and distributed
Monitoring the quality of products upon delivery is crucial, alongside ensuring optimal storage conditions and transportation methods An effective inventory control system should be implemented to guarantee that customers receive the necessary products precisely when they need them.
Effective customer service and product selection are crucial for ensuring satisfaction and quality Continuous monitoring of product quality and customer satisfaction is essential, even after delivery Health workers must follow standard treatment guidelines and engage in pharmacovigilance to maintain high service standards Quality assessments help promote the appropriate use of products, ensuring customers are satisfied with both the products and the service provided Insights gained from customer satisfaction monitoring can guide decision-makers in refining product selection for future procurement cycles Ultimately, prioritizing customer service is vital in the logistics cycle to ensure that the right products reach the customers effectively.
This handbook provides an in-depth discussion on quality monitoring, emphasizing the importance of implementing quality assurance mechanisms across the supply chain By doing so, you can ensure the delivery of the right goods in the right condition to customers, thereby meeting the six rights of supply chain management.
Key Logistics Terms
This handbook contains key logistics terms that may differ from standard dictionary definitions Important terms include supplies, commodities, goods, materials, products, and stock, all of which flow through a logistics system and are used interchangeably Additionally, users, clients, patients, and customers refer to individuals who receive or utilize these supplies, with these terms also being used interchangeably throughout the handbook.
In the context of family planning programs, "users" refers to individuals gathering data on new or ongoing participants Additionally, the term encompasses those who utilize products intended for others, such as HIV test kits or laboratory reagents, where the counselor or lab technician serves as the product's user.
Clients are individuals who receive various treatments or services, such as family planning clients obtaining contraceptives or patients undergoing tests for malaria or tuberculosis.
Patients is a term often associated with clinic patients receiving treatment for an illness, such as those in an antiretroviral therapy (ART) program
In public health, the term "customers" encompasses all users, clients, and patients, similar to how businesses view their customers, emphasizing the importance of customer service in health programs This concept extends to logistics, where regional warehouses act as customers to central warehouses Key data, such as the quantity of goods dispensed to users, is crucial for understanding service delivery Service Delivery Points (SDPs) are facilities, including hospitals, health centers, mobile units, and community distributors, where health-related supplies are provided The supply pipeline refers to the entire network of storage and transportation that moves supplies from manufacturers to users, involving various facilities and distribution channels.
Like a water pipeline, the logistics system has tanks and physical pipes (the warehouses and means of transportation) that store and move water (the product) to the home (the SDP)
In contrast to a continuous water pipeline, a health logistics pipeline necessitates periodic transportation of supplies between warehouses In countries with diverse geography, various methods such as small boats, buses, and bicycles are employed to facilitate this movement The lead time refers to the duration between placing an order for new stock and the moment it becomes available for use.
Logistics managers assess the effectiveness of their logistics systems by measuring and aiming to reduce lead time, ensuring that goods are available to customers before they request them Lead time can be calculated across the entire domestic system, from the moment products arrive at the port to their delivery to the end user, as well as between specific levels of the logistics hierarchy or from the point of order placement with the manufacturer until the products reach the port.
Calculating lead time requires accounting for the entire duration until stock is ready for use Stock that has been received but remains uninspected, unrecorded, and not shelved is not yet available for issuance To meet customer demands effectively, it is crucial that stock is accessible when needed.
Figure.1-3:.Typical.Public.Sector.In-Country.Supply.Pipeline
What.is.in-country.lead.time?
The in-country lead time includes the following activities:
1 The ordering facility (lower-level) manager determines that more stock is needed
2 An order form is completed and sent to the upper level
3 The upper level receives the order and a manager approves the order (usually by signing the form)
4 The manager sends the form to the storekeeper
5 The storekeeper picks and packs the order and gives it to a driver
6 The driver takes the order and transports it to the ordering facility
7 The ordering facility receives the order, conducts a visual inspection, places the order on the shelf, and records the receipt on a stock card
The product is then ready for distribution, or to be dispensed to users, and the lead time clock stops
Lead time can range from a few hours to several months, influenced by the logistics system in use Key factors affecting lead time include delivery speed, transportation availability, communication conditions, and occasionally, weather It is essential to take these variables into account when calculating lead time.
More Logistics Terms
Logistics terminology often involves contrasting pairs, such as allocation versus requisition, resupply against dispensed, and vertical compared to integrated systems This article will explore these essential comparisons, which form the foundation of our logistics handbook and will be referenced throughout While additional concepts exist, these fundamental distinctions are crucial for understanding the logistics field.
Allocation (push) versus requisition (pull)?
In logistics, placing orders is a standard practice, typically occurring monthly or quarterly from a Supply Distribution Point (SDP) to a higher level There are two primary systems for determining order quantities: the requisition (or pull) system, where the ordering individual calculates the needed supplies, and the allocation (or push) system, where the fulfillment personnel decide the resupply amounts.
• In a requisition system, the person who receives the supplies calculates the quantities of supplies required
• In an allocation system, the person who issues the supplies calculates the quantities of supplies required
Push.and.pull.in.the.commercial.world you will notice that, in this handbook, we refer to allocation (push) and requisition
(pull) We included the terms push and pull in parentheses because different sectors or organizations may use different terminology when referring to similar concepts
In a push-based supply chain, manufacturers drive production based on historical data and anticipated demand, sending products to retailers Conversely, a pull-based system relies on consumer demand, where production, procurement, and distribution are guided by actual purchases rather than forecasts.
In public health logistics, the distinction between allocation and requisition systems is crucial for effective supply chain management An allocation system involves higher-level facilities determining the distribution and timing of commodities, while a requisition system allows lower-level facilities to order supplies based on their immediate needs The key difference lies in which level makes the resupply decisions, although the data guiding those decisions should ideally remain consistent across all levels.
In an all-you-can-eat buffet, customers have the freedom to choose their food and portion sizes based on their hunger levels, highlighting a requisition system where individual choice prevails Conversely, at home, the cook typically determines the meals and quantities served, relying on family preferences and available ingredients, which exemplifies an allocation system.
The advantages and disadvantages of allocation and requisition systems are shown in table 1-1
Table 1-1 illustrates the typical work environment characterized by manual calculations, information sharing delays, and challenges in data completeness and accuracy It assumes that the receiving facility has access to more current data than the issuing facility However, in efficient and automated information systems—common in many private sector scenarios—different levels can access the same information simultaneously and perform calculations, diminishing the differences between allocation and requisition systems Key considerations include data visibility (the availability and timing of data), human resource capabilities (whether existing staff can perform necessary calculations), and budget authority (whether individual health facilities manage their own funds or rely on district control, necessitating an allocation system).
Table.1-1:.Advantages.and.Disadvantages.of.Allocation.and.Requisition.Systems
SySTEM ACTIVITIES ALLOCATION (PUSH) SySTEM REQUISITION (PULL) SySTEM
Computing calculations offer the advantage of increased confidence at higher levels, as they rely on precise data However, this also presents a disadvantage, as those at lower levels must trust their own calculations while the upper levels may still need to verify the results they produce.
Disadvantage:The higher level must calculate all orders
In a manual system, the higher level relies on potentially outdated information for calculations, while the lower level has access to the most current data.
For effective decision-making, it is crucial that all levels of an organization access the same data; however, the most current information may not always be available to everyone simultaneously.
While a higher-level system may struggle with rapid responsiveness to changes, a lower-level system benefits from having the most current information, enabling it to anticipate future needs effectively.
Training needs Advantage: fewer people need to be trained to calculate resupply quantities Disadvantage: Lower levels may not have the skills needed to calculate resupply quantities
Empowering staff with a sense of ownership leads to significant advantages for managers, as it enhances their perception of control over the system When lower-level employees take ownership of their decisions regarding orders, they feel more accountable and engaged, resulting in improved overall system management.
Staff workload Disadvantage: In large systems, the higher level may need to make large numbers of calculations; it must calculate all the
Disadvantage:The lower level must allocate time to make calculations, instead of serving customers orders for lower-level facilities
Combining allocation and requisition approaches within the same level of a system is often inefficient For instance, while a requisition system may operate effectively from the central to the regional level, an allocation system should be employed from the regional level to the service delivery points (SDPs) Utilizing both systems simultaneously at any given level can lead to confusion and frustration, particularly in regional warehouses where some health facilities requisition supplies while others rely on allocations To ensure an efficient supply chain, it is crucial to order and ship the correct quantities promptly, as employing two systems at one level only complicates the process and causes delays.
When designing a logistics system, it's crucial for both higher-level and lower-level staff to understand the decision-making process regarding order quantities Miscommunication can arise if upper management views the system as an allocation process while lower-level employees see it as a requisition system This disconnect can lead to confusion when the quantities received differ from those ordered, potentially causing lower-level staff to lose trust in the system and cease placing orders altogether.
In many situations, health commodities are insufficient to meet the demands of the population, leading to a state of limited supply within a country To address this challenge, it is essential to implement a fair distribution system known as rationing, which is necessary when commodities are scarce While allocation and requisition systems function effectively under conditions of full supply, it falls upon higher authorities to determine equitable distribution methods when resources are limited.
When a requisition system is in place and stock shortages occur, personnel may discover that the quantities delivered do not match their requests, leading to a loss of confidence in the system It is crucial for all levels of the supply chain to effectively communicate any discrepancies between requested and delivered quantities If stock shortages are anticipated to persist, it may be necessary to redesign the requisition system to better address these challenges.
Logistics Management Information Systems
Information is the key driver of the logistics cycle, as highlighted in chapter 1 The quality of our decisions is directly linked to the information we gather A logistics management information system (LMIS) serves as a comprehensive tool for collecting, organizing, and presenting logistics data from all system levels Crucially, an LMIS empowers logisticians to gather essential data that facilitates informed decision-making, ultimately enhancing customer service.
A logistics management information system collects, organizes, and reports data that enables people to make logistics system decisions
If you are not going to use information and data to make decisions, do not collect it in the LMIS
Collecting data for logistics management is distinct from gathering information on patients and health services, which is the primary focus of a Health Management Information System (HMIS) While both systems serve essential roles, they have key differences that set them apart.
How frequently is data collected?
How frequently is data used to make decisions?
Data about patients’ health conditions or health services rendered
Data is collected and recorded daily, and usually compiled and reported monthly or quarterly
Data collected may be analyzed monthly or quarterly to determine disease patterns; data may be used annually, or every few years, to track disease patterns or health service usage
Data about commodities, i.e., quantities issued, dispensed, used, received, lost/stolen/damaged, ordered, etc
Data is collected and recorded daily, and usually compiled and reported monthly or quarterly
Data is analyzed daily to evaluate stock status, while monthly or quarterly analyses inform resupply and order quantities Additionally, annual assessments are conducted to carry out quantification exercises.
What.are.the.differences.between.a.health.management.information system.(HMIS).and.a.logistics.management.information.system.(LMIS)?
Essential Data for Decisionmaking
To effectively collect data for decision-making, it's essential to identify the specific data needed and the frequency of its collection Start by considering the decisions that will be made and the questions logistics managers may pose Determine the information required to address these inquiries and enable informed decision-making.
The questions might include the following:
• � How long will current supplies last? When do we need to order more supplies?
• � Where are our supplies in the pipeline? Do we need to move supplies from higher to lower levels?
• � Where is consumption the highest? Do those facilities need more resources?
• � Are we losing products from the system that require us to take action?
• � Are supplies flowing smoothly through the pipeline? Do we need to adjust our pipeline to account for bottlenecks in the distribution system?
• � Are any products about to expire? Should we take them out of the pipeline? Can we redistribute them; can they be used before they expire?
To make logistics decisions, a logistics manager needs three essential data items: (1) stock on hand,
To effectively manage a logistics system, it is essential to focus on three key data elements: consumption, losses, and adjustments While other data can be beneficial, these core items are crucial for optimizing logistics operations.
LMIS to record and report them (See table 2-1.)
Table.2-1:.Three.Essential.Logistics.Data.Items
The quantities of usable stock available
(Items that are unusable are not considered part of stock on hand; they are considered losses to the system.)
The health center has 300 bottles of paracetamol in the store on the last day of the month
At a national level, 780,000 bottles of paracetamol are on hand, based on stock- on-hand data from the health centers, districts, and national warehouse
The quantity of stock dispensed to users or used during a particular time period In the last month, the health center used
120 Determine HIV tests In the last month, the health center dispensed 1,045 condoms to clients
Losses refer to the amount of stock taken out of the supply chain for reasons other than customer consumption or service delivery, such as expiration, theft, or damage.
Adjustments refer to the quantities of stock issued to or received from other facilities within the same pipeline level They can also include administrative corrections to stockkeeping records, such as discrepancies found during physical inventory counts compared to the amounts recorded on bin cards Consequently, adjustments can result in either positive or negative changes to stock levels.
In the past month, the district hospital had—
• Loaned another health facility 12 packages of oral rehydration salts (negative adjustment)
• Received 20 treated malaria nets from another health facility (positive adjustment).
Three Types of Logistics Records
In logistics, supplies in a pipeline can either be stored, moved, or consumed To effectively monitor products throughout the pipeline, it is essential to maintain three distinct types of logistics records, each serving a specific purpose in tracking the flow of goods.
• Stockkeeping records Holds information about products in storage
• Transaction records Holds information about products being moved
• Consumption records Holds information about products being consumed or used
What is the most important reason for having stockkeeping records?
They are used to record information about products in storage
What essential data items do stockkeeping records contain?
They must contain the quantity of stock on hand; the quantity of losses; and the quantity of adjustments, by individual product
What about the third essential data item, consumption?
Products are typically not dispensed directly from the storeroom to customers, resulting in a lack of actual consumption data on stockkeeping records In cases where consumption data is unavailable, such as transfers from a facility store to a dispensary, issues data recorded at the lowest-level stockkeeping record can serve as a viable substitute.
Who completes the stockkeeping record?
Stockkeeping records are essential for anyone involved in the receipt or issuance of stock from storage, including warehouse managers, staff, and service delivery point personnel In pharmacies, it is crucial for all staff, particularly pharmacists, to maintain accurate stockkeeping records to ensure proper inventory management.
When are entries made to stockkeeping records?
Stockkeeping records are updated each time products are received or issued, as well as during physical inventory counts or upon noticing any losses When a stockkeeping record reaches its capacity, a new record is initiated, carrying forward the ending balance from the previous one.
How are the data on a stockkeeping record organized?
Transactions are systematically organized by date and a unique transaction reference number, which identifies each receipt or issue, along with the facility name from which products are received or issued These records document all receipts, issues, losses, adjustments, and the current balance on hand Additionally, they capture the outcomes of physical inventories conducted to verify the quantities stored.
What are some examples of formats of stockkeeping records?
The most common formats for stockkeeping records are individual stock cards and stores ledgers Types of stockkeeping records include stock cards, inventory control cards, and bin cards
A bin card is a detailed stockkeeping record for a specific product identified by its lot or batch number, containing essential information such as the stock on hand, expiration date, and any losses or adjustments related to that lot For instance, a bin card for a single lot of paracetamol at a storage facility would track only that lot's inventory Typically, these cards are placed at the corresponding bins, shelves, or pallet positions to facilitate easy access and management of inventory.
What is an inventory control card?
It is an individual stockkeeping record that holds information about all the lots of a single product
For effective inventory management, maintain one inventory control card for each product, summarizing data from multiple bin cards For instance, a single inventory control card can track all paracetamol stock in a facility, detailing total stock on hand, losses, and adjustments without considering lot numbers or specific locations In larger warehouses with multiple lots, it is recommended to use both inventory control cards and bin cards to ensure accurate lot management Conversely, smaller storerooms can operate efficiently with a single stockkeeping record, like a stock card or inventory control card.
A stores ledger is a bound stockkeeping record that contains the same information as individual inventory control cards, often mandated by government policy in certain countries While the binding may enhance accountability by making missing pages evident, the ledger format has drawbacks, such as limited space for individual products and challenges in adding new items Unlike individual cards that can be easily alphabetized, pages in a bound book cannot be rearranged In many nations, the Ministry of Finance dictates the format of these records, ensuring that commodities, viewed as government assets, are meticulously accounted for.
Should.losses.be.tracked.separately.from.adjustments?
To optimize inventory management, it's essential to track and report losses separately from adjustments Since losses stem from distinct causes like expiry or theft, while adjustments arise from administrative stock movements, monitoring these separately provides valuable insights into system performance For instance, evaluating the impact of enhanced security protocols can be effectively done by analyzing changes in the loss rate.
Collecting and segregating losses and adjustment data on a stock card can be challenging, yet it is essential to track losses at a minimum This decision should be made by a system designer after evaluating the staff's capabilities and available resources for data collection.
Figure.2-4:.Stores.Ledger.(cover,.table.of.contents,.product.page)
What information, other than essential logistics data, can you include on an inventory control card or stores ledger?
Inventory control cards and store ledgers play a crucial role in tracking stock movements by recording shipment dates, quantities received, and issues made To enhance accuracy in inventory management, these records should also incorporate a reference number for each shipment or shipping document.
In Bangladesh, the Department of Livestock Services (DLS) utilizes an automated inventory management system in its central warehouse to efficiently monitor the receipts, issues, and balance of avian influenza control commodities This advanced system enhances accuracy, saves time for warehouse staff, and strengthens the DLS's capacity to coordinate effective emergency responses during outbreaks.
To record the reason for a loss or adjustment, the stockkeeping record should also include a column for remarks or notes
In facilities with multiple storekeepers, incorporating a column for the initials of individuals involved in receiving, issuing, or counting stock enhances tracking efficiency Furthermore, inventory control cards or store ledgers should include essential product details such as descriptions, strengths, formulations, brand names, identification codes, and stock location information for effective inventory management.
How and where do stockkeeping records move?
Stockkeeping records do not usually move; they stay where products are stored (e.g., the warehouse, pharmacy, or storeroom)
What is the primary purpose of a transaction record?
Transaction records document the transfer of stock between storage facilities and serve as evidence of requisition, issuance, and delivery.
What essential logistics data items are included on a transaction record?
Transaction records play a crucial role in tracking stock movements, but they do not necessarily need to incorporate all key data items In some cases, these records may be integrated with specific reports, providing information such as the current stock on hand, as well as data on losses and consumption, depending on the design of the system.
Who completes the transaction records?
Warehouse personnel at both issuing and receiving facilities complete transaction records In pharmacies or SDPs, storekeepers, pharmacy personnel, or nurses may complete the transaction records
When are transaction records completed?