scope:

General

Acquiring supplies and controlling the inventory may be an operations function that occurs totally within the clinical laboratory. However, external departments are always involved, at least to the extent of receiving incoming shipments, transferring goods to the laboratory, and in payment through accounts payable. Staff members within the clinical laboratory must recognize their finite roles and establish clearly defined procedures to be implemented by well-trained personnel. Careful attention to the entire process is essential so that the system works smoothly and does not burden the laboratory or external departments.

Generally, the laboratory is responsible for specifications, as well as storage and use of products. Most often, communication with the vendor is required, especially concerning product improvements, method changes, and similar information that affects the test procedure or quality control. The clinical laboratory must accept the responsibility for these functions and provide accurate records to allow traceability for overall audit purposes.

As a first step, each department head/supervisor should prepare a rough draft listing the products used and how frequently they need to be ordered (see Appendix A). Specific information should include the name of the product, catalog number, package configuration, average monthly usage (AMU), unit of measure (U/M), normal lead time for delivery, and storage area or single site use. Shipping frequency should be listed or minimum inventory should be stated to serve as a cue for delivery authorizations. It is useful to know shipping costs, as well.

Unless the supply system is thoroughly understood and operating smoothly, panic situations occur because of shortage or overstocking. Obsolescence is also a strong possibility if expiration dates are imminent or if improved technology changes the needs of the laboratory.

Routine orders and standing orders should be reviewed every 6 months, at a minimum, to ensure the requirements, vendors, and pricing are acceptable and correct. Vendor representatives should be able to assist the laboratory in determining what standing order levels can and should be, and they may be able to help in monitoring the process. This is a good way to ensure that the vendor's representative is not contributing to any overstock.

An inflation factor for budgeting appears warranted. It is important that managers and supervisors verify that pricing changes are factored into the laboratory budget. Involving major vendors in the process will help determine the likelihood of pricing changes in the upcoming fiscal year.

Objectives

The following basic objectives serve to plan a course of action.

(1) Simplify paperwork. Avoid duplication of effort in requisitioning and preparing purchase orders.

(2) Reduce costly inventory. Develop timely ordering and standardization.

(3) Improve communications. Use systems to facilitate rapid and clear interactions among, purchasing, receiving, accounts payable, material suppliers, and the laboratory.

(4) Avoid costly emergency deliveries.

(5) Improve methods of budget preparation.

(6) Reduce prices paid for laboratory products and services.

(7) Educate laboratory personnel in inventory control (materials management) procedures to enhance their management skills.

(8) To reduce labor of inventory management, centralize control and automate. (Consider computers, bar coding, stockless and consignment systems, and group purchases.)