Handout on Supply Chain Management (SCM 311) for Nursing Students

Introduction to Supply Chain Management in Health

Supply Chain Management (SCM) plays a critical role in healthcare by ensuring the continuous flow of essential medicines, equipment, and commodities to where they are needed, when they are needed. It involves the coordinated effort of various individuals and systems to meet the demands of healthcare providers and patients efficiently. Nurses play a vital role in this chain, particularly in ensuring that health commodities are stored, managed, and distributed effectively.

This handout aligns with the Ghana Nurses and Midwifery Council (NMC) Curriculum and equips student nurses with the knowledge and skills necessary to understand and manage health supply chains, focusing on logistics systems, inventory control, and the role of the nurse in SCM.

1. Introduction to Health Supply Chain Management (SCM)

Health Supply Chain Management ensures that health commodities (e.g., medicines, vaccines, diagnostic equipment) are available, accessible, and of good quality at all times in healthcare settings. It is essential for maintaining commodity security, which refers to the continuous availability of health products in sufficient quantities.

a. Concept of Commodity Security

Commodity security refers to the guaranteed availability of essential health commodities whenever they are needed. This requires proper planning, procurement, storage, and distribution to avoid shortages or stockouts that can negatively affect patient care.

b. Purpose of the Health Supply Chain Management System

The primary purpose of SCM in healthcare is to:

• Ensure that the right products are available at the right time.
• Ensure cost-effective procurement and distribution.
• Prevent waste and overstocking of products.
• Protect product quality throughout storage and transportation.

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c. Components of a Health Supply Chain Management System

A health supply chain management system typically includes the following components:

• Procurement: The process of acquiring health commodities from suppliers.
• Storage: Proper management and care of commodities to prevent damage or spoilage.
• Distribution: The delivery of products to healthcare facilities and end users.
• Inventory Management: Maintaining appropriate levels of stock at all times.
• Logistics Management Information System (LMIS): The system used to track and monitor supply chain activities.

d. Definition of Key Supply Chain Terms

• Pipeline: The complete process from procurement to the delivery of commodities to the end user.
• Lead Time: The time it takes for an order to be placed, processed, and delivered to the facility.
• Push System: The central authority decides what commodities to supply based on projected demand.
• Pull System: Health facilities request commodities based on actual consumption data.
• Issues Data: The amount of stock dispensed or issued from the store.
• Dispensed-to-User Data: The actual quantity of products given to patients or end users.
• Physical Inventory: A manual count of the stock available in a warehouse or facility.

2. Facilities and Staff Roles in Supply Chain Management

Facilities and staff have specific roles to ensure that the supply chain functions effectively. Each role must work in coordination with others to ensure the uninterrupted flow of health commodities.

a. Roles in Managing SCM

• Procurement Officers: Responsible for sourcing and purchasing health commodities.
• Storekeepers: Manage the storage and inventory of health commodities, ensuring products are stored correctly and available when needed.
• Distributors: Ensure that health commodities are transported and delivered to the appropriate facilities.
• Healthcare Providers (e.g., Nurses): Use health commodities to provide care and report on usage to inform future orders.

b. Relationships Between Roles

The success of SCM depends on collaboration between the different roles. Procurement officers rely on storekeepers for accurate stock data, and distributors depend on healthcare providers for consumption reports. Effective communication ensures that there are no breakdowns in the supply chain.

c. The Role of the Nurse in Supply Chain Management

Nurses are directly involved in dispensing commodities (e.g., medications) to patients, documenting usage, and ensuring that the facility’s stock levels are maintained. They must also communicate with storekeepers and logistics managers to ensure timely resupply of commodities.

Nursing Responsibilities:

• Reporting stock levels and usage data to ensure that supplies are replenished.
• Ensuring that health commodities are stored according to guidelines (e.g., temperature control for vaccines).
• Managing patient records and ensuring that dispensed-to-user data is accurate.

3. Logistics Management Information System (LMIS)

A Logistics Management Information System (LMIS) is used to collect, process, and report data on the management of health commodities. It is essential for monitoring stock levels, tracking the flow of commodities, and making informed decisions about procurement and distribution.

a. Purpose of LMIS

The LMIS ensures that all stakeholders in the supply chain have the data they need to make decisions about product procurement, distribution, and storage. It helps maintain transparency and accountability across the entire supply chain.

b. Essential Data for Logistics Management

• Stock on Hand: The amount of stock currently available in the facility.
• Consumption Data: The rate at which health commodities are used (dispensed-to-user data).
• Stockouts: Instances where commodities run out, which need to be tracked and addressed.
• Losses and Adjustments: Instances where products are lost due to damage or expiration, and adjustments made to account for them.

c. Types of Logistics Records

• Bin Cards: Used to track the quantity of stock in storage, recording when stock is received, issued, and the balance remaining.
• Report, Requisition, Issues and Receiving Voucher (RRIRV): A form used to request and receive stock, as well as to record issued commodities.

d. Purpose of Reporting

Reporting ensures accountability and helps facilities forecast future needs. Accurate reporting is critical for preventing stockouts, overstocking, or wastage of health commodities.

e. SCM Forms Used in Ghana

• Bin Cards: Nurses and storekeepers complete these cards to maintain accurate records of stock on hand.
• RRIRV Forms: Used to record the request, issue, and receipt of commodities in health facilities.

4. Storage of Health Commodities

Proper storage of health commodities is essential to ensure that products remain effective until they are used.

a. Purpose of Storage

The primary purpose of storage is to maintain the quality, safety, and integrity of health commodities. Proper storage prevents spoilage, contamination, and theft, ensuring that commodities are available when needed.

b. Guidelines for Proper Storage

• Temperature Control: Vaccines, medications, and other temperature-sensitive products must be stored at appropriate temperatures to prevent degradation.
• Pest Control: Facilities must ensure that pests do not damage stored commodities.
• Security: Health commodities must be stored in secure areas to prevent theft or unauthorized access.
• Shelving and Organization: Proper organization allows for easy access and monitoring of stock levels, minimizing the risk of expired or damaged goods.

c. Conducting Physical and Visual Inspections of a Warehouse

Regular inspections ensure that storage facilities comply with guidelines. Inspections include:

• Checking that products are stored at the correct temperature.
• Ensuring that stock is not expired or damaged.
• Verifying that bin cards are up to date.

d. Receiving and Issuing Commodities

When receiving commodities:

• Verify the quantity and condition of goods.
• Update stock records to reflect new deliveries. When issuing commodities:
• Use a first-expiry, first-out (FEFO) system to prevent wastage.
• Record the issue on bin cards and update stock levels.

5. Assessment of Stock

Stock assessment is the process of evaluating how much stock is available, how much has been used, and how much needs to be ordered. It helps ensure that health commodities are available in sufficient quantities without overstocking.

a. Explanation of Stock Assessment

Stock assessment involves counting physical stock and comparing it with records to ensure accuracy. It also involves analyzing usage patterns to forecast future needs.

b. Reasons to Assess Stock

• To prevent stockouts that can interrupt healthcare services.
• To avoid overstocking, which can lead to product expiration and wastage.
• To identify any discrepancies between physical stock and records.

c. When to Assess Stock

Stock should be assessed:

• At regular intervals (e.g., monthly or quarterly).
• Before placing new orders.
• After receiving new stock to verify quantities.

d. Assessing Stock Using Dispensed-to-User Data

Dispensed-to-user data refers to the actual quantity of commodities given to patients. This data is essential for understanding how quickly stock is being used and for planning future orders.

6. Maximum-Minimum Inventory Control Procedures

The maximum-minimum inventory control system is used to determine how much stock to order and when to reorder. This system helps maintain optimal stock levels, ensuring that commodities are available without overstocking.

a. Key Terms

• Maximum Stock Level: The highest quantity of stock that should be kept in storage to avoid overstocking.
• Minimum Stock Level: The lowest quantity of stock that should be available to prevent stockouts.
• Review Period: The time interval between stock assessments.
• Lead Time: The time it takes for an order to be processed and delivered.
• Safety Stock: Extra stock kept on hand to avoid stockouts due to unexpected demand or delays in delivery.
• Emergency Order Point: The stock level at which an emergency order must be placed to avoid running out of stock.

b. The Storekeeper’s Decision Rule

Storekeepers use the maximum-minimum system to decide when to order new stock. If the stock level falls below the minimum, a new order is placed to bring the stock level back up to the maximum.

c. Determining the Quantity Needed

The quantity to be ordered is calculated based on usage rates, lead times, and safety stock levels. Storekeepers use units of issue to determine how much stock to request.

7. Monitoring and Supervision

Effective monitoring and supervision ensure that the supply chain operates smoothly and that staff comply with SCM procedures.

a. Difference Between Monitoring and Evaluation

• Monitoring: The ongoing process of tracking the performance of the supply chain to ensure it operates efficiently.
• Evaluation: A periodic assessment of the overall effectiveness of the supply chain, identifying areas for improvement.

b. Monitoring Indicators

Common indicators used in SCM include:

• Stockout rates.
• Average lead time for orders.
• Accuracy of stock records.

c. Conducting a Supervisory Visit

Supervisory visits are conducted to ensure that supply chain activities are being carried out correctly. This includes:

• Reviewing stock records and physical stock levels.
• Observing how commodities are stored and handled.
• Providing feedback and training to staff.

d. Characteristics of a Good Supervisory Visit

• Clear objectives and goals.
• Constructive feedback to staff.
• Thorough review of stock records, storage conditions, and inventory control practices.

This Supply Chain Management (SCM 311) Handout provides a comprehensive overview of the essential components of health supply chain management, including the roles of nurses, inventory control procedures, and logistics systems. Nurses play a crucial role in ensuring the continuous flow of health commodities, making accurate stock assessments, and maintaining proper storage conditions.

This handout is aligned with the Ghana Nurses and Midwifery Council (NMC) Curriculum and optimized for search engines to ensure easy access to relevant study materials. For more study materials and previous lessons, visit asonyagh.com.