LESSON 12

MATERIALS MANAGEMENT SYSTEM

BOOC, DIAMOS, ESPELLARGA, GULAR, LAMELA,

MANTO, PUERTO, OSAYAN, VERONA
 MATERIALS MANAGEMENT SYSTEM
• Management function of hospital materials
ensure that services are rendered successfully
from one source to an end user.
• Executing this function in a manner that lessens
expenses and ensures adequate cash flow
require effective management of large amounts
of information from many sources.
• Management Information System (MMIS) can
be used to manage functions like purchasing,
accounting, inventory management, and
patient supply charges
Purchase Purchase Purchase
Request Order TEXT
Delivery
HERE

PURCHASING
 INVENTORY CONTROL
Inventory is one of the biggest expenses for
most medical institutions. It plays an
important part in refining the quality of
health care services.

STRATEGIES IN IMPROVING INVENTORY

CONTROL
1. Ensuring Shipment Accuracy
2. Aligning with Sales Projections
3. Complying with Regulations
4. Establishing Buying Cyles
 ITEM MASTER MAINTENANCE
• The upper portion contains master information. Additional options appear after
the selection of an existing item.
• If the balance and order activity is zero, items can be deleted using this option.
• Most of the inventory reports are based on a certain product type.
• The “Item Availability” form specifies inventory levels across all warehouse.

ITEM INDENTS AND ISSUES

• Some suppliers allow return of goods that have indents , with a guarantee of
replacement without any additional payments.
• This applies to distribution and retail industries where the goods for sale are
fast-moving.
REORDER LEVEL AND MINIMUM AND MAXIMUM INVENTORY
ORDERING
A minimum quantity of an item that a company has in stock.

MIN/MAX INVENTORY ORDERING METHOD

-basic recording method

“MIN” “MAX”
The value is representative of a The value is representative of a
stock level that promps a new targeted stock level that
follows the reorder
ENQUIRIES
• Beginning of purchasing process ENQUIRIES AND
• Establish the relationship between entity and right
supplier
QUOTATIONS FOR
DRUGS,
QUOTATIONS CONSUMABLES,
• Contain vital information
• Ex: companies usually review two to three quotations ASSETS, AND
before selecting the supplier
GENERAL ITEMS
ORDERS
• Buyer shows the intention to purchase the required item
by issuing a purchase order
 PURCHASE ORDER
ENQUIRIES AND
• Placed intention to signify intention to engage in
commercial operations for a specific product QUOTATIONS FOR
DRUGS,
INVOICES CONSUMABLES,
• Also called a “bill”
• Commercial document that indicates the product, ASSETS, AND
ordered quantity, and agreed price GENERAL ITEMS
DOCUMENTS
• Statutory requirements used during purchase and sales
transactions
• Ensure smooth transition and completion of the process
 COMPARISON OF QUOTATIONS AND
PREFERRED VENDORS
PURCHASE QUOTATIONS
- a document for requesting prices and
delivery information from a vendor before
the purchase order.
-it can be created then sent to a vendor -it
helps in lessening expenses, improving the
quality of the product or service, and
increasing on-time delivery
-A purchase quotation report allows the
comparison of offers in order to pick the
appropriate vendor for the purchase
scenario.
 COMPARISON OF QUOTATIONS AND
PREFERRED VENDORS
PREFERRED VENDORS
• on-time performance
• offers reasonable costs
• provides high quality products and services
• offers fully licensed
• insured product and services
• good business practices
 PURCHASE REQUEST, ORDERS, AND APPROVAL

PURCHASE REQUEST PURCHASE ORDERS

-a document that notifies the -a legally binding contract which
purchasing department that certain shows that the seller has already
items or services need to be accepted the order issued by the
replenished buyer
-the document stipulates timeframe -It should contain information about
and required quantities for the the buyer and the seller
requested items.
PURCHASE REQUEST, ORDERS, AND APPROVAL
 1. SIGNING FOR
DELIVERIES
The person who recieves the delivery should
inspect the delivered items befofe signing.

2. REFUSING DELIVERY
The receiving department should refuse to accept any
shipment if the packaging appears to be damaged or if
there is any item that does not have a corresponding
purchase order.

3. RECORD RETENTION
The packing list should be provided to the receiving department.
 4. INSPECTING
A SHIPMENT
FOLLOW MINIMUM CONDITIONS:
• The received items match the requirements
stated in the purchase order.
• The quantity is correct
• The item has in damage, discoloration and
issues
• The quantity per unit of measurement is
accurate
• Packaging list, certifications, and other
delivery documentation are completely
provided.
• Perishable items should be in good
condition
• The items are functioning properly.
 5. PARTIAL DELIVERIES
The receiving personnel should advise the
purchasing department for approval and
further instructions when items are
delivered partially

6. TRACKING OF GOODS
Goods can be easily tracked/traced when they are
managed by a serial number.
 PURCHASE RETURNS ALONG WITH RETURNABLE/ NON-
RETURNABLE GATE PASS
• Defective or SUBSTANDARD quality goods, incorrect
order delivery and deteriorated purchased and sold items
are usually common in business. This lead to purchase or
sales returns. When purchased goods are returned the
materials management system UPDATES INVENTORY
LEVELS to reflect the decrease in quantity.
• Movement of inventory is not limited to purchase
returns. Supplies and equipment are also sometimes
required to be taken out of the department for repairs
and consignment. For temporary movement, a returnable
gate pass is issued, whereas Permanent movement, a non
returnable gate pass is given. The system can be
configured to track returnable and non returnable items
or equipment.
 CONSIGNMENT GIANTTEMPLATE.COM
STOCK RECEIPT, CONSUMPTION,
LOREM IPSUM DOLOR SIT AMET, ANIMAL CONCEPTAM TE HIS
AND REGULARIZATION
• In the process of consignment, the consignor issues materials to the
consignee and these materials are stored in the consignee’s premises.
• Consignor maintains legal ownership until materials are removed from
consignment stores.
• The invoice is due at predetermined intervals
• Customers can also arrange to take over ownership of the remaining
consignment material after a certain period
EXPIRED STOCK/ QUARANTINE
INVENTORY STOCK/INVENTORY
 DRUGS AND CONSUMABLE ISSUES
AND RETURNS TO PATIENTS

• For both hospitals and patients, drugs and consumables take up the bulk
expenditure
• Some hospitals have functional inventory databases, but the lack of
integration does not give them holistic information, and this affects decision
making.
• Some drugs are misplaced and misappropriated, or shortages and surpluses
may occur as a result of improper inventory controls in a traditional system.
 GENERIC TAX FORMULA
ISSUE METHODS
CONFIGURATIONS

Common inventory handling methods Tax Configurations are usually

include: accounted on a per country basis. The
following taxes that can be processed
• FIRST IN, FIRST OUT (FIFO) - Items are while posting documents are:
sold based on the order they are
purchased. • Tax on sales and purchases

• LAST IN, FIRST OUT (LIFO)- Last item • Additional taxes like Vat (Value
to enter the system are sold first. Added Tax)

• FIRST EXPIRED, FIRST OUT (FEFO) -
Items are sold based on the dates they
should be consumed
• Sales and use tax in USA
• Withholding tax like income tax in
India.
Automatic calculation of the tax dues
during the purchasing process makes
the process less susceptible to electrical
PERIODIC PHYSICAL STOCK TAKING AND
ADJUSTMENTS WITH TRACKING

- a document for requesting prices and

delivery information from a vendor before
the purchase order.
-it can be created then sent to a vendor -it
helps in lessening expenses, improving the
quality of the product or service, and
increasing on-time delivery
-A purchase quotation report allows the
comparison of offers in order to pick the
appropriate vendor for the purchase
scenario.
PERPETUAL INVENTORY SYSTEM
 CYCLE
COUNTING
THANKS FOR LISTENING