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The Inventory Control, Storage Facilities and Distribution at Pharmaceutical Industry in Supporting
Drugs Availability of JKN Era
ABSTRACT
Drug availability is still a problem in the health system in Indonesia. The increasing number of National
Health Insurance (JKN) participants has directly increased the need for generic drugs so that drug
manufacturers continue to strive to gain market share for JKN drugs. The pharmaceutical industry plays a role
in producing quality and affordable medicines by implementing good supply chain management. The purpose
of this research is to identify the role of inventory control, storage and distribution facilities in the pharmaceutical
industry in supporting drug availability in the JKN era. This research is a qualitative descriptive study. The
qualitative method in this study was to conduct in-depth interviews with employees from the Production
Planning, Inventory Control and Supply Chain divisions in the four pharmaceutical industries and
Pharmaceutical Wholesalers who work with BPJS Kesehatan and become drug providers in the e-Catalogue
tender. The sampling technique used purposive sampling. Data analysis consisted of making interview
transcripts, data interpretation and checking the validity of the data by triangulation. The results of the analysis
show that inventory control has an influence on the pharmaceutical industry in supporting the availability of
drugs due to a mismatch between demand and demand, which increases the occurrence of overstock or
stock out. Storage facilities have an impact on the pharmaceutical industry in supporting drug availability
because overloaded storage facilities cause storage methods to work not optimally and have to incur other
costs to rent a warehouse.
Distribution has an impact on the pharmaceutical industry in supporting the availability of drugs because
distribution costs must reach a minimum order so that drugs can be distributed and the choice of transportation
mode results in longer distribution lead times , thereby increasing drug vacancies.
ABSTRACT
The drugs availability is still a problem in the health system in Indonesia. The number of National
Health Insurance (JKN) participants increasing the need for generic drugs. Pharmaceutical industry has a role
to produce affordable and good quality medicines by implementing good supply chain. The purpose of this
study was to identify the role of inventory control, storage and distribution facilities in the pharmaceutical
industry in supporting drugs availability in the JKN era. This is a descriptive research with qualitative method
and uses purposive sampling. Data was collected in depth interview with employees from the Production
Planning Inventory Control (PPIC) and Supply Chain Management (SCM) in pharmaceutical industries that
collaborated with BPJS Kesehatan and become drug providers in e catalogue tender. Data analysis consisted
of making interview transcripts, interpreting data, and triangulation. The results of the analysis showed that
inventory control has an influence in the pharmaceutical industry in supporting the drugs availability due to a
mismatch between demand and need, thereby increasing the occurrence of overstock or stock out. Facilities
of storage has an influence in the pharmaceutical industry in supporting the drugs availability due to overload
storage facilities so that the storage method was not optimal and has to pay other costs to rent warehouses.
Distribution has an influence in the pharmaceutical industry in supporting the drugs availability because the
costs for
distribution must reach a minimum order to be distributed and the choice of transportation modes for
distribution may be increased the lead time that caused the drug vacancies.
Keywords: availability, industry, e-catalogue, JKN, supply chain management
Satibi, et al
sick8,14,15 with the results of interviews showing namely PT A, PT B, PT C and PT D along with
that the problem of public drug shortages is due their distributors who became public drug
to the slow process of drug delivery and long providers in the 2018 e-Catalogue tender in
waiting times from drug providers and distributors. Jakarta. The informants in the study were
However, research on the role of the employees of Supply Chain Management,
pharmaceutical industry and distributors (PBF) Production Planning Inventory Control (PPIC)
has not been widely carried out. The and Pharmacists in charge of PBF.
pharmaceutical industry and PBF as important The inclusion criteria in this study were permanent
actors in ensuring the availability of public drugs employees and had worked for at least 2 years
must be able to maintain the commitments in their field. Exclusion criteria in this study were
agreed upon between the government and health interns and employees who withdrew during the
facilities to ensure the availability of public drugs research process. Interviews were conducted
in the JKN era. Therefore, this study is focused with key informants PT A (AS, Assistant PPIC
on analyzing inventory control factors, storage Manager; K, Assistant Manager PPIC 2, ASP,
and distribution facilities in the pharmaceutical Assistant Warehouse Manager; NN, APJ PBF;
industry and PBF in supporting the availability of YU, APJ Transportation), PT B (MDP, Production
public drugs in the JKN Era to address complaints Director), PT C ( VLK, Warehouse Manager and
of public drug shortages in health facilities and SY, PPIC Manager) and PT D (TS, Senior
with the hope of being able to complement General Manager Supply Chain). Data analysis
previous research. In this study, factor analysis techniques include making interview transcripts,
of inventory control, storage and distribution data reduction, data analysis and data
facilities in the pharmaceutical industry and PBF interpretation then checking the validity of the
was carried out to support the availability of data by triangulating methods and data sources.
public drugs in the JKN era.
No Unit price
Medicine name Number of RKOs
Provider Smallest Medicine (Rp)
PT A Generic: Vitamin B Complex tablets 841.428.190 117
Generic combination: blood supplement tablets 665.352.190 354
dominate the market as a provider of public drugs as many is the accuracy of information about goods held between
as 82 types of drugs seen from the list of public drug inventory systems and physically. By carrying out proper
providers. PT B and PT C supplied as many as 33 and 34 inventory control, PPIC can carry out production, operational
types of drugs while PT D became a public drug provider control planning and decision making in an appropriate
with 16 types of drugs. Following are some of the public manner17 .
Satibi, et al
Indicator PT A PT B PT C PT D
Demand Booking Systematic There is a production Planning
raw material automatically with plan at the beginning of order for
done when the QAD program each month materials
announcement MFG/PRO (closing is usually the default done
winner 30th or 31st of after the 7th of
each month, after every month
the 7th
Order planning
for raw materials
and raw materials, lead time for the arrival of raw PT A, PT B, PT C and PT D serve requests
materials and packaging materials needed based on for public and non- e catalog/ regular medicines. In
marketing targets/orders inventory control , stock out and stock over often
(routine needs or e-catalogue), with the help of occur . Overstock occurs due to low demand but
software to improve data protection and improve excess supply. Stock out
inventory control processes. Inventory keeps
management operational This occurs because the demand is high but the
supply is limited. On the quality of medicinal products
consistently throughout the season and can avoid produced by PT A, PT B, PT C and PT D running and
fluctuating production costs. Provision of inventory implementing GMP guidelines. Actions to improve the
aims to deal with conditions of uncertainty. quality of drug products have been carried out
correctly and on time by the PPIC department.
Demand for goods cannot be known with certainty, Companies must be able to meet market demands by
therefore it is necessary to forecast to minimize losses considering quality and production efficiency. Raw
due to overstock or requests that exceed forecasts, materials, semi-finished goods, and finished goods
inventory calculations must be carried out carefully are forms of inventory where each unit represents
and thoroughly19 . Following are the results of money tied up until the inventory leaves the company
interviews with informants PT A, PT B, PT C and PT as goods sold.
D regarding buffer stock, lead time and stock taking
(Table III).
Satibi, et al
Indicator PT A PT B PT C PT D
Capacity 4,800 pallets, 1,450 pallets, with CPOB 14,700 pallets, no 2,000 pallets,
overload overload overload. once
overloaded
HR In accordance with According to According to In accordance with
CPOB, there is an CPOB, there is recruitment CPOB, there is recruitment CPOB, there is an
SOP for recruitment SOP SOP SOP for recruitment
Method No No
Does Does
storage distinguish distinguish
not distinguish not distinguish between
between between
between public and public and non-
public public
non-public drugs public drugs
and non-public drugs and non-public drugs
Information Manual and by By system, stock By system, ada stock By system,
system, there opname, dan cycle opname, cycle count ada stock
is a stock option count opname, cycle
count
The factory warehouses of the four pharmaceutical when the packaging preparations have not been used,
industries comply with GMP requirements. there is a delay in the use of materials, while orders
The factory warehouse, which is commonly referred to arrive more quickly27 .
as the transit warehouse owned by PT A, will distribute Warehouse at PT A is being overloaded due to
finished products directly to a large, centralized imbalance between production and sales so it is
warehouse at the National Distribution Center (NDC). necessary to make improvements in marketing to
NDC PT A is the central warehouse of 5 manufactures improve the circulation of goods and accelerate sales.
(Bandung, Medan, Watudakon, Jakarta and Semarang) PT B often experiences overload events when the
which is located next to the Jakarta manufacturing factory is declared the winner of the tender. There was
building before being distributed to branches. also an overload at PT D's warehouse but only
temporarily and the excess was immediately distributed
Warehouses in the four pharmaceutical to the official PBF.
industries can be said to be safe because access is
restricted to certain employees and equipped with
adequate security, lighting and HVAC systems. PT B Human Resources (HR)
has a warehouse in manufacturing (factory) and in is an important variable in warehouse management. In
distribution. Considerations in choosing a warehouse selecting human resources for warehouses, the four
in a factory, namely close to production facilities while pharmaceutical industries already have Standard
warehouses are in distributors Operating Procedures (SOP) for qualifications
closer to the customer. The factor that affects the required employees. Held
functioning of a warehouse is the capacity of the regular training, especially in manufacturing ie
warehouse itself. conduct GMP training so that it can be ensured that
Determination of warehouse capacity must consider employees in the four industries are competent in their
maximum conditions26 . respective fields. PT A often
Warehouse reaches maximum state
there is SOP for CPOB, there is recruitment CPOB, there is recruitment CPOB, there is recruitment
recruitment SOP SOP SOP
Method
According to CPOB According to GMP According to CPOB According to CPOB
distribution
Time 2 – 40 days (to Java Island no later At most 4 days Maximum 4
delivery Papua) than 1 week, ke – 1 month (to days – 1 month
Papua 3 months Papua) (to Papua)
transfer knowledge between old and new employees monitored regularly. The difference is the recording
in order to solve problems related to storage. The of drug products in the warehouse. PT A and PT B
human resources of PT B are also strictly controlled use a combination of by system and manual
so that they are always in accordance with recording which backs up each other. The four
operational standards. HR must understand GMP pharmaceutical industries have carried out stock
because the pharmaceutical industry must store taking
products in accordance with GMP guidelines, so periodically to match products so they are easy to
regular training must be carried out. There will trace.
definitely be human error but with control
Distribution
can be minimized. There is special access for Distribution facilities are facilities used to
warehouse employees because there are hard drugs distribute or distribute pharmaceutical preparations,
and injection drugs that need special supervision in namely pharmaceutical wholesalers and
pharmaceutical preparation installations28 .
storage so that not everyone is allowed to enter.
Several factors affect drug availability, apart from
delays in ordering, drug vacancies can also be
The storage methods for public drugs in
these four pharmaceutical industries are almost the caused by vacancies from the pharmaceutical
same, regardless of storage location industry through PBF7
. The
between public drugs and non-public drugs, but the
process for ordering services is definitely different following are the results of the factor distribution
because the prices for public and non-public drugs interviews that were conducted with informants PT
are not the same. There is a separation between A, PT B, PT C and PT D (Table V).
receiving, storage, quarantine and shipping areas The problem that occurs in the distribution
and several areas facilitated by temperature control factor is to make coverage and costs into
as well consideration in
Satibi, et al
drug distribution. PT B requires a minimum delivery to the area. At the time PBF PT A
order and refuses excess drugs and has the needed medicine in an emergency
longest delivery time due to cost and or have a certain time limit then
transportation constraints. NDC is the PBF can be shipped directly from the manufacture.
warehouse of PT A Pusat. Of all manufactures, During the distribution process, these four
it will enter the NDC. For distribution, PBF PT pharmaceutical industries do not include
A has 47 locations. For PT A's PBF location in supervisors during the distribution trip, but the
Jakarta, it is adjacent to manufacturing, while selected expedition parties have provided
for the other four manufactures it is still sent guarantees regarding safe drugs during the
to the Center after transit at the factory trip (controlled environmental temperature,
warehouse. PBF PT B is the main distributor safe from insects, pests, rodents and
which is still in the same group as PT B. For contamination) so that they are suitable for
Java Island, PBF PT B appoints sub-districts administration to health facilities. What is
and has three distributor branches, namely in detrimental in supply chain management is
Yogyakarta, Semarang and Surabaya. Delivery the emergence of damage to goods due to
of goods is carried out based on orders, mishandling , both in the form of damage due
purchase orders to the process of moving between means of
transportation and between warehouses, as
from the health facility to the branch so that well as due to errors in the management of
delivery will be made only when there is an storage space (warehouse). Not infrequently,
order and there is no minimum order or the process of shrinking the supply chain is
minimum cost. also exacerbated by the vulnerability of
Delivery of drugs such as vaccines and distribution channels, especially in remote
narcotics has a higher tariff compared to other areas. Events of drugs
drugs because it uses the air route29. Even being exchanged / lacking can occur, thus
so, distribution costs are not a problem for increasing the waiting time. Drug distribution
PBF PT A, PT C and PT D. Meanwhile, costs to remote corners of the country has been
are a bit of an obstacle for distribution at PBF carried out by these four pharmaceutical
PT B because there is a minimum order. industries. The delivery time for each industry
varies depending on the means of transportation
Recruitment of HR from the four pharmaceutical used.
industries above is the same as in the
CONCLUSION
warehouse and other parts. There are
Inventory control, storage and distribution
specifications written in the SOP and regular
facilities have an impact on the pharmaceutical
training is held with the hope that the
industry in supporting the availability of drugs
distribution process can be carried out correctly
in the JKN era because distribution costs have
so that problems related to distribution can be overcome30 .
to wait for orders to reach the minimum order
The number of human resources in PBF
so that drugs can be distributed, mismatches
is sufficient. So that with good distribution of
between demand and needs, storage facilities
human resources, it can support the availability
are overloaded and the choice of transportation
of public drugs in the JKN era.
mode results in lead times distribution becomes
The distribution method of the fourth
longer thereby increasing the occurrence of
the industry is pretty much the same with slight
drug vacancies.
differences based on who is placing the order.
In the four pharmaceutical industries, the
distribution flow starts from ordering from THANK YOU
branch health facilities, ordering from branches Thank you to DIKTI for the financial
to the Center, the Center prepares goods, then assistance provided.
Satibi, et al
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