1. This teaching material has been made freely available by the KEMRI-Wellcome Trust (Kilifi, Kenya). You can freely download, adapt, and distribute this presentation under the conditions that: the Global Health Laboratories and The Global Health Network are referenced; the work is not used for commercial purposes, and any altered forms of this document are distributed freely under the same conditions. www.GlobalHealthLaboratories.org

2. PROCUREMENT & INVENTORY MANAGEMENT KEMRI-Wellcome Trust Research Programme

3. Learning Objectives Describe the steps in Vendor identification and qualification. Name factors to consider in procurement of supplies. Describe the steps required to implement an inventory control program. Develop a monitoring plan for the inventory system. Discuss the importance of documentation related to purchasing and inventory. 3GCLP Training Course Module 8

4. Procurement & Inventory Management The acquisition of supplies and the proper maintenance of adequate stocks to ensure uninterrupted service in the Laboratory. 4GCLP Training Course Module 8

5. System for Selecting Suppliers/Vendors define criteria for supplies and services to be purchased. Evaluate the suppliers before purchase and after receipt. 5 GCLP Training Course 8

6. Purchasing Considerations Determine payment mechanisms Negotiate prices Review Contracts Understand government requirements Assure reliable availability, delivery 6GCLP Training Course Module 8

7. Components of Purchasing & Inventory Inspect Test Handle Log book Expiry date Rotate stock Laboratory Other laboratories Vendor Qualifications Purchase Contract Delivery Post use tracking Store Assess conditions Maintain USER 7GCLP Training Course Module 8

8. Inventory Management Challenges Balance between stock availability and expiration dates. Life-span of laboratory reagents varies: – Blood for media: 2-4 weeks – API kits: 4 to 12 months – Antiserum: 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 In- stock Expiry Date 8GCLP Training Course Module 8

9. Inventory Management 9 Procedure in Supplies Reception and Supplies use Maintain inventory system in all storage areas. Storage Minimum stock & Full inventory levels. Inventory Management GCLP Training Course Module 8

10. Inventory Control Implement INVENTORY CONTROL Assign responsibility Analyze needs Establish minimum stock needs Develop forms and logs Establish system for receiving, storing Maintain inventory system in all storage areas 10GCLP Training Course Module 8

11. 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. 11GCLP Training Course Module 8

12. Analysis of Needs: Information Required Storage space, conditions Order lead time/ delivery time Priority Level Usage/month (quantification) Unit of count Item description 12GCLP Training Course Module 8

13. Stock Logbook Includes:  name and signature  date of receipt  quantity  date of expiry  minimum stock  stock balance Other information: – shelf number – destination 13GCLP Training Course Module 8

14. 14 Stock Re-order Minimum stock - Amount of stock required to support testing operations until additional supplies are received Lead time – Time between placing an order and receiving it Maximum usage – number/quantity used in a given time period Re-order when inventory reaches minimum stock level GCLP Training Course Module 8

15. Documentation of Inventory Control Maintain records:  date received  lot number  pass or fail acceptance criteria  date placed in use  expiry date 15GCLP Training Course Module 8

16. Inspection of delivered supplies verify contents check integrity record date each item received record expiration date store new shipment behind existing shipment create or update records 16GCLP Training Course Module 8

17. 17 Storage of Laboratory Supplies Keep in a Clean, organized, and locked storeroom Store according to manufacturer’s instructions Place in well ventilated room Store away from direct sunlight Place items on shelves New shipments placed behind existing items First in, first out GCLP Training Course Module 8

18. Continuous Monitoring of Inventory Assign responsibility Conduct weekly physical counts Update records Maintain inventory system in all storage areas Inventory Control 18GCLP Training Course Module 8

19. Benefits of Procurement and Inventory Management Supplies and reagents always available Minimize wastage Stay within budget Quality maintained 19GCLP Training Course Module 8

20. 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. 20GCLP Training Course Module 8

21. Key Messages Managing inventory results in:  increased laboratory efficiency and effectiveness.  assurance that patient and study needs are met.  products available when needed: makes your life easier! 21GCLP Training Course Module 8