Inventory Management And Control In A Pharmaceutical Company

The pharmaceutical industry is a very important onefinancial constraint of the organization).
in the industrial world because of its major role inWAYBILL: This is a store document that
sustaining a healthy nation. Within the industry, thereaccompanies stocks being moved out of the
are various firms or companies engaging in one formorganization which must be presented when stopped
of trade or the other. While some specialize onon the way either by the organization's security men
research and development in respect to drugs oror force on the way to the customer's warehouse or
medicine for curing one existing or new infection orstore.
disease, some are into manufacturing drugs andBIN CARD: This is a document showing daily incoming
others are into prescribing drugs, marketing drugs andand outgoing of stocks in and out of the store or
the likes. This scene, as if it were stage drama, iswarehouse. It must show the consignee's name and
been watched, assessed and controlled by reputationaddress, batch number, expiry date, quantity,
organizations, associations, bodies, commissions andsignature and the balance (on continuous basis). FIFO
special committee to ensure that things do not goshould be strictly applied so as to avoid loss due to
beyond normal.expiration of drugs.
As an experienced store/warehouse manager andINVENTORY SOFTWARE: Inventory management
later as logistics and warehouse manager, I haveand control software could be installed on the office
always desired to put some things together forsystem for daily posting and accurate report as
future individual who may eventual find themselvesgenerated by the tested and tried program. Good
working in such firm as pharmaceutical company.ones include inflow inventory program, Chronos
Many find it difficult to work as one and those whoeStock Card, Inventoria Manager Stock etc.
had actually worked as one had lots of difficultyIn managing stock or inventory in a pharmaceutical
times such as lost which could not be accountable forcompany, the following must be put into
and they have to pay for, lots of query to answerconsideration:
on why drugs expired without knowing, damages,1. The stocks expiry date must be checked and
supplying wrong strength or SKU for another, lost indocumented. It must be written on the bin card.
transit if saddled with a bit of logistics responsibilitiesMANAGEMENT ACTION: Ensure that there is proper
and so on.surveillance on the expiry date of each drug to avoid
As soon as I got on the job, I rolled out what I wantloss due to expiration.
to achieve which every store manager is expected2. The Batch number must be noted and document
to do if he must achieve success on the job. Take aas their may be many batches of the same class of
look at mine.drug
The store/warehouse is committed to:i. serving youMANAGEMENT ACTION: FEFO (First Expiry, First Out)
better via prompt delivery or dispatch of stocks,ii.should be used here. The first expiring batch should
enhancing effective communication,iii. handling yourgo out first.
complaints with courtesy, absolute care and prompt3. The temperature must be well noted and likewise
response,iv. proper and accurate documentation(s)the storage conditions. Some of such instructions are:
for effectiveness and efficiency, andv. due processstore between 2oC and 5oC, store between 15oC
for in-coming, out-going and out-sourcing of stocks.and 25oC, protect from sunlight, keep in deep
This is mine and you need something similar to this,freezer, etc. Adhere to these instructions.
not exactly. It all depends on your organization andMANAGEMENT ACTION: The temperature should be
what you want to do or achieve. Inventoryproperly monitored to avoid damaged due to over
management and control thus is a very vitalunder temperature.
knowledge at a store or warehouse manager mustOthers include:
have in order to perform well on the job.4. Stocks should not be jam-packed in the stock.
Practically, inventory management is all about ensuringThere should be enough space and the store should
that everything about your stock is well planned andbe well organized to allow for easily location and free
organized such that there is easy flow of stockmovement.
within and outside the firm. This means that you5. Computer data should exist for all stocks in the
must have enough stocks to satisfy all orders andstore which will be updated daily or almost
ensure that customers continue to have stocks at allimmediately as the stocks are going out or coming in
time. It is a complex things and quite challenging.to enable the manager to know quantity left for
However, some programs have helped in reducingeach stock at a glance on the system in case of
the stress of using varieties of formulas in gettingurgent demand.
reorder level, maximum and minimum stock level,6. Cleanliness is part of proper management of the
warning level, annual demand, etc. This is aboutwarehouse.
INVENTORY OR STOCK CONTROL.7. Proper documentation and record updating is also
In managing you stocks in a pharmaceutical company,necessary here from source document to Bin Card.
you must learn first how to keep proper records.The stock control strategy is also necessary for
You must be very versatile in this and like figureseffective and efficient management of the
especially when you handle over 100 different typeswarehouse. Lots of software now exists to remove
of drugs and some have different strengths e.g.difficulties in this area. In controlling the warehouse
10mg, 25mg, 50mg, 100mg, 500mg, 1g, 4000iu,stocks, the control measure/software/program
10000iu, 20000iu, etc. Some of the documents youshould be able to determine the following upon which
must have and make use of are:right decision should/could be taken:
DELIVERY NOTE (DN): This records all drugs and1. MAXIMUM STOCK LEVEL
materials leaving the store to the customers, REPs,2. MINIMUM STOCK LEVEL
office workers and donations to institutions. It must3. RE0RDER LEVEL OF STOCK
have Date, Particular (for drug name, expiry date,4. REORDER QUANTITY
batch number and strength), packaging details (e.g.5. WARNING LEVEL FOR STOCKS
bottles, vial, PC, etc), Name and Address of the6. NORMAL CONSUMPTION
consignee, serial number, signature space for the7. NORMAL REORDER PERIOD
store manager and the receiver. It could be8. ANNUAL DEMAND OR QUANTITY
duplicated in pink or be in triplicate.The manual method of stock control is fast fading
GOODS RETURN FORM (GRF): It records all goodsout though some organizations still make use of it.
return and in good condition.However, daily check is needed to ensure efficiency.
GOOD RECEIVE NOTE (GRN): It records all importedComputers these days have helped to save such
stocks as they enter the store i.e. stocks importedtime because alert props up when stocks need to be
from manufacturer and being received into the storereorder, below minimum level, when over stock, etc.
or stocks received from the production departmentIn all, stock management and control is an important
into the store and ready to be issued out.aspect of warehouse manager's responsibility which
PRODUCT REQUSITION NOTE (PRN): It records allmust handled effectively and efficient if he/she must
requests for order placement forwarded to thestay on the job since all what is demanded from him
purchasing manager or procurement departmentor her is this function. Therefore, the warehouse
when stocks reach reorder level. It should specifymanager must endeavour to keep abreast of
which stock needs to be replenished and the quantitydevelopment via training and development in the
to be ordered (though the procurement managerform of further schooling, workshops, seminars,
may know the right quantity to procure within theinternet research, etc.