| Pharmaceutical Supply Chain | 1 Manufacturing
2 Wholesale Distributors
3 Pharmacies
4 Patient |
| Complete process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment.
Also called sourcing | Procurement |
| Procurement / sourcing involves | (1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(7) price negotiation,
(8) making the purchase,
(9) supply contract administration,
(10) inventory control |
| Four strategic objectives (Procurement) | 1 PROCURE the most COST-EFFECTIVE drugs in the right quantities
2 SELECT RELIABLE SUPPLIERS of high-quality products
3 ensure TIMELY DELIVERY
4 ACHIEVE the LOWEST POSSIBLE TOTAL COST. |
| is the lifeblood of procurement and is needed at every stage if the procurement process is to be optimal. | Information |
| Pharmaceutical Supply Chain | 1 Manufacturing
2 Wholesale Distributors
3 Pharmacies
4 Patient |
| 3 ways in which merchandise may be purchased at a discount or savings: | 1 Volume contracts
2 Deals
3 Discounts |
| Offered by a majority of manufacturers
Contracts to cover total purchase of parenteral solutions, ampules, tablets or even gallon goods. | Volume Contracts |
| Transaction that involves the purchase of a specified volume and receiving certain merchandise at no additional cost. | Deals |
| May accrue to the institution for the prompt payment of its bills.
Large volume of drug consumption, these discounts amount to a sizeable sum of money at the end of the year. | Discounts |
| Control on purchase
1 Low turnover indicates:
2 High turnover indicates: | 1)
Duplication of stock
Large purchase of slow moving items
Dead inventory
2) Due to small volume purchasing which is indicative of a failure to take advantage of max qtty discounts |
| One means of sound inventory control
Infos:
First line: month and year (date received)
Second line: cost price of particular unit (code)
Third line: retail price to the patient | Marking of Merchandise |
| Pricing of drugs (Components:) | Direct personnel cost
Drug costs
Other direct supply cost
Fixed overhead cost
Direct cost
Revenue deduction
Profit margin |
| Pharmacy pricing methods | 1 The PERCENTAGE MARK-UP METHOD
2 The DISPENSING FEE METHOD - most commonly used pricing method, adding a fixed fee to the acquisition cost of the unit of product dispense
3 The PER DIEM CHARGE METHOD - per day charges when the patient is in the hospital. |
