Supply Chain Management Pharmacy & Store

SOP No:
SOP Title: Inventory Management

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Supply Chain Management Pharmacy & Store
SOP No:
SOP Title: Inventory Management

1. PURPOSE
To provide the uniform guidelines for the pharmacy and store team on inventory
management, this SOP will be guiding the person for all inventory management
related activities viz. Item master creation, Purchase request, Purchase orders,
receipt of goods, material in entry in HIS, Stock Request, stock issue, stock receipt
and return, storage of goods, Near-expiry/ expired items checking and physical
verification of material, record keeping etc.

2. INTRODUCTION
It is the duty and responsibility of the EFH Supply Management function and the
Pharmacy Store Manager to closely ensure adequate and safe storing conditions,
efficient Pharmacy/store operations and complete and accurate recording of all
inventory movements.

3. SCOPE
The scope of this SOP covers complete purchase, store, pharmacy operations
related to EFH.

4. DEFINITIONS

5. RESPONSIBILITIES
A summary of the roles listed in the procedure and the responsibilities of each role
holder for the procedures detailed in the SOP is as follows:

Head of supply chain:

Manager Pharmacy:
Pharmacists:
Purchase Executive:
Store Executive:

6. SPECIFIC PROCEDURE

6.1 Central Store

This will be working as the warehouse for terminal stores and pharmacies.

6.1.a Item master management

Material Master Data: This data is basic requirement to manage inventory in HIS.
This is to be created centrally and will be applicable and valid for all the users.
Basis the need or request from the user department, the process shall be initiated.
Following shall be basis structure of any item description:
Supply Chain Management Pharmacy & Store
SOP No:
SOP Title: Inventory Management

Drugs-
Brand Name, Strength, Formulation, Pack size
Medical Consumables-
Common name, Size, Ref. Code (If any), specifications, Brand/Company, Pack Size
General Items-
Common Name, Specifications, Brand/Company, Pack Size

In case, the desired item is not available in HIS, user can initiate the new item master
creation request. A standard format, as given in the forms and format, shall be
available for specific users who can initiate the item master creation request. Every
item master request should be authorized by the facility head/ Head of the SCM.

Vendor Master Data: Basis the need and requirement, Head of the supply chain shall
be authorizing the primary request of Vendor Master Creation. Same request shall be
approved further as per the defined process, before vendor master creation in HIS.

6.1.b Aggregation of Demand

Central store is the primary contact for any requirement to the sub stores. Following
process shall be followed throughout the group:
 A re-order level system shall be followed to assess the requirement of any
routine material at every sub location including at central store.
 Sub store shall submit the material request to central store through HIS, duly
approved by the unit head. Requests can be submitted via emails/other
authorised electronic/physical means, in case it is a new facility or emergency
requirement.
 Central store shall collect and aggregate the requirement from different
location.
Central store shall issue the material through HIS, basis availability of the required
material in central store.

6.1.c Purchase Request

Central Store shall raise a purchase request to central purchase department basis the
ROL system and any demand remains unfulfilled, due to non-availability of material in
inventory.
Purchase request shall be raised from central store location only.

6.1.d Purchase Order

Purchase department shall convert the purchase request to purchase order. In case
of a new item or change of supplier rates, purchase process to get the approval shall
be followed before issuing the purchase order to supplier.
Purchase order copy shall be shared with the supplier on email and a confirmation of
the delivery should be given by the second party.
Supply Chain Management Pharmacy & Store
SOP No:
SOP Title: Inventory Management

6.1.e Receiving of supplies

Supplier shall supply the material as per the terms and conditions mentioned in the
purchase order.
Supplier coming for material supply shall report to main gate security, where security
does the primary inspection and makes the material in entry to allow the in
movement.
Receiving sections checks the security check and purchase order to ensure the
receipt of supplies only against the purchase order issued by the purchase
department.
Following shall be the process of material receiving:
 Visual inspection of the consignment to ensure no physical demage to the
consignment being delivered.
 In case of temp. sensitive material, temp. check is must to ensure the proper
delivery conditions.
 Invoice/ delivery challan should be addressed to the party as mentioned in out
purchase order.
 Individual material shall be checked in respect to the details mentioned in the
invoice and on the physical product.
 Receiver shall ensure the checking of Batch No., Expiry date, MRP and
quantity delivered on invoice and physical.
 In case of any disconnect/ deviation in the details checked, purchase
department shall be intimated over email.
 Material checked and found OK, shall be stacked properly as per policy on
storage.
 Material not found as per the request or standard, shall be stored separately
in a designated place and process of return to vendor shall be initiated.
 An entry of each receipt shall be maintained in material in register, maintained
in receiving section and entry series should be mentioned on invoice/dc for
easy reference check in future, in case required.
 Receiver shall sign and stamp the invoice copies and also put self sign. In
material in register entry.

6.1.f Goods Receipt Note

Each material received shall be entered in HIS within 24hrs. To create GRN,
individual shall use the defined module in HIS and entry shall be done only against
the particular purchase order.
Required detail shall be filled in designated columns before finally saving and
approving the GRN.
As soon as the GRN is approved, item stock is updated in particular store.
Supply Chain Management Pharmacy & Store
SOP No:
SOP Title: Inventory Management

6.1.g Bill submission and record keeping

Individual invoice with copy of GRN shall be submitted within 48hrs. to the accounts
department for payment processing as per terms agreed. A chronological record of all
the GRNs created shall be maintained for quick future reference.

6.1.h Storage of Inventory

Storage of material shall follow following symmetry:
 Complete storage shall follow the alphabetical symmetry based on item
description/Brand.
 Material shall be identified as bulk or Non-bulk.
 Drugs, Medical consumables and General material shall be stored separate
designated places.
 Bulk storage should be done in such a manner that every material should be
easily accessible. Proper palates shall be used to avoid any damage due to
moisture, heat or pests.
 Material requiring cold chain shall all the time be stored in refrigerators and
strict temp. monitoring shall be done to ensure the cold chain.
 Drugs should be subcategorized such as Injections, Syrups, Drops, Tablets
and Capsules, and should be stored separate designated places in
alphabetical order of brand. This will help in easily tracing the material when
needed.
 Medical consumables shall be sub categorised as Consumables-Lab, Critical
care consumables etc and stored separately in an alphabetical manner.

6.1.i Issue/Return of material to Sub Store/ Pharmacies

Central store shall issue the material to sub stores in a planned way. A roster shall be
shared with all the sub stores in this regard.
Material requests received via HIS stock request shall be issued by Inter Branch
Issue. In case material request received manually, Direct inter branch transfer shall
be done and issue document be attached with the manual request and filed in record.

In both the cases, sub store incharge shall acknowledge the receipt of material and till
that time transaction shall be considered open.

6.1.j Periodic Inventory Audit

6.1.k Near Expiry/ Expired Items

6.1.l Non-Moving Items

Supply Chain Management Pharmacy & Store
SOP No:
SOP Title: Inventory Management

6.1.m Vendor Returns

6.1.n Emergency Purchase

6.2 Pharmacy Store

6.2.a Stock Request

6.2.b Receiving of supplies

6.2.c Storage of Inventory

6.2.d Issue/Return of material to Patients

6.2.e Near Expiry/ Non-moving Analysis

6.2.f Periodic Inventory Audit

7. FORMS/TEMPLATES TO BE USED

7.1 Item master creation format

8. INTERNAL AND EXTERNAL REFERENCES

8.1 Internal References

8.2 External References

9. CHANGE HISTORY

Effective Previous
SOP no. Significant Changes
Date SOP no.
01 Jan’2022 Initial Version NA
Supply Chain Management Pharmacy & Store
SOP No:
SOP Title: Inventory Management

Effective Previous
SOP no. Significant Changes
Date SOP no.