Best Practice Guidelines: Stock Management 28/06/2024 (In development): Introducing Roles and Responsibilities in Stock Management

Best Practice Guidelines: Stock Management 28/06/2024 (In development)

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◄ Previous: 1. Introduction to Critical Business Processes Next: 2. Understanding Stock Management ►

1. Introduction to Critical Business Processes

1.1. Introducing Roles and Responsibilities in Stock Management

To manage stock successfully, all roles in a healthcare practice or hospital who have an impact on stock must be properly trained and concerned with completing the necessary tasks involving stock. The following is a list of all the roles involved in the stock management process as well as a summary of their responsibilities. All users should understand the full stock management process, but users that perform one or more of these roles must make sure that they study the chapters applicable to their roles and complete all tasks associated with their roles.

Consider the following:

Make sure that all employees know what their roles are and what is expected of each role by documenting the roles. A lack of proper role division and work definition can result in needed tasks not being completed, which results in poor stock management.
If one role in the stock management process fails to complete needed tasks, all quantities and financial figures will be erroneous and unreliable.
Role division gives the practice the ability to:

divide work optimally between personnel;
implement a separation of duties;
implement access control.

This best practice guidelines book is designed to assist the practice / hospital to implement proper procedures per role so that all critical business processes are completed and can be audited with the internal controls as described in the GoodX Healthcare / Hospital Management Internal Controls book.

Roles in stock management

We suggest that the following roles be defined in the practice or hospital. Please note that you do not need to recruit each of these roles, but one person can cover more than one of these roles, depending on the size of your practice / hospital. When recruiting staff you can use these role descriptions to make sure that the persons have all the necessary skills to make your stock management a success and that all personnel know what their responsibilities are.

Financial Manager Stock Orders: The Financial Manager will approve stock orders and pay suppliers before delivery or at the end of the month. Purchases: Ensure the correct prices were invoiced when the stock was purchased from the supplier as per the contract or agreement. Pay the Supplier per invoice and on the correct time period as the agreement. Check the account of the Supplier against the system and reconcile the Suppliers account with the system. Maintenance: Ensures a record of the maintenance and service schedules of new stock acquisitions is kept. Management of warranties and support contracts to avoid overspending. Management of maintenance protocols. Usages: XXX Corrections: Sign off all corrections that were done. Capture Credit Notes that were received from suppliers for stock that was sent back or incorrectly invoiced. Ensure all Credit notes were received from suppliers as soon as possible. Correct any incorrect capturing of supplier invoices on the system by the Creditors Clerk by creating Credit notes. Stock Take: Ensure that if overtime must be paid that the overtime is approved. Consolidate the counting locations into the general bin. Draw the Variance report and Investigate the Variance report with the Stock controller. All variances must be explained and investigated with the Stock Controller. Correct any typing or counting errors that were made. Do some spot-checks. Post the Stock take. Reports & Internal Controls: Check the stock value. Ensure all transactions have been posted from all the departments. Draw the stock on hand report to ensure the correct figures are supplied to the top management, shareholders and auditors. Ensure no negative stock have been dealt with and corrected.

Stock Controller Stock Orders: Creating Minimum and Maximum stock levels and maintaining the levels. Checking the Minimum levels on a daily basis against the actual stock levels. Order new stock and follow up with Financial Manager on the budget and payment of stock orders. Ensure the correct stock levels. Follow up on Backorders. Follow up on Supplier invoices and Credit notes. Send back stock that is not in the correct condition. Item Management: Activate new items on the system, inactivate stock items that are not used anymore. Link items to the correct locations on the system. Link item to the correct SubClass. Discontinued stock must be sent back or transferred to the new Nappi code. Ensure the Medprax/IQest updates are done. Update items that were created by the practice. Ensure the correct Nappi codes are used. Check negative stock levels and implement the correct procedure to make sure that negative stock levels are corrected and decide on correct procedures in future to avoid any negative stock. Purchases: Follow up on the supplier invoice if not received with the delivery of the stock. Ensure the correct information is sent to the Creditors Clerk to capture the invoice and arrange the payment with the Financial Manager. Check if the correct quantity were captured correctly by the Creditor clerk. Maintenance: Ensures a record of the maintenance and service schedules of new stock acquisitions is kept. Management of warranties and support contracts to avoid overspending. Management of maintenance protocols. Tracks the usage of medical equipment by monitoring the number of tests performed (for example), for timely alerts for services or recalibrations. Usages: Records the usage of non-sold medical stock items, for example, disposable instruments and consumables used but not charged to the patient. Captures all items used for testing but not sold to patients. Provides data on consumption patterns to improve stock availability and prevent waste. Tracks the consumption, shelf life and storage conditions of reagents, ensuring they remain effective when needed. Sales: XXX Internal Orders and Transfer: Checks the transfers daily to ensure that the stock requested, is permitted for transfer. Captures the stock returned to the Main Warehouse and records the reasons why the stock was returned. Corrections: Do Stock adjustments on the system for Broken, Expired and Lost Stock items. Ensure the correct procedures have been followed to dispose of items. Double-check the adjustments at the end of the week to ensure all the corrections have been explained and investigated. Stock Take: Make all the arrangements for the stock takes, when and how many personnel will be needed. Ensure that all items have been transferred to the correct locations. Ensure that no movement takes place on items while personnel are busy with the counting of items. Indicate which cycle counts must be done and when. Ensure the correct stationery is available for personnel that have to count. Complete cycle counts on a daily/weekly basis. Create a Snapshot per warehouse that must be counted. Manage the counting sheets that are given to the personnel and receive them back from personnel that counted the stock. Manage the capturing of the counting sheets. The Stock controller can check the quantity that was captured from the counting sheets. Reports and Internal Controls: Check the reports to ensure the correct stock on hand. Sent the necessary reports to Management staff at month-end. Check the corrections that were done and discuss any losses. Ensure all the negative stock have been sorted out. All Purchase transactions and corrections are up to date. Investigate any differences with the correct reports.

Stock Clerk Stock Orders: Receiving newly delivered stock. Printing and Barcoding stock items. Unloading and unpacking newly received stock items. Check the quality of new stock items. Ensure the correct items were received against the stock order and the Delivery note / Supplier invoices. Item Management: Check expiry dates and quality of items on a regular basis. Take items that have expired to the Stock Controller. When items are moved, ensure the Stock controller has the necessary information to change the linking on the system. Sales: Receive the transfer request from the other sites/warehouses. Preparing the stock request and taking the stock to the sites / warehouses. Can also capture the transfer request on the system. Corrections: Check for expired or broken stock. Take stock items to the stock controller to do adjustments on the system and dispose of items through the correct procedures. Stock Take: Check counting sheets to ensure the correct items are linked to the correct locations before the stock take. Ensure that all expired and broken stock has been removed from the shelves before the stock take. Ensure all items have been packed out onto the correct places before the stock take.

Accounts Payable Clerk Stock Purchases: Captures the Supplier invoice into the system. Sent through to the Financial Manager to make the payment. Communicate with the Stock Controller that the stock was received.

Practitioner Sales: Must indicate all the stock items that were used on the patient. Ensure all stock items are indicated correctly with the correct size, strength, manufacturer and quantity. If the practitioner does the billing, ensure the same procedure as under Billing Expert is followed. Corrections: When Stock items break while used on patients, the practitioner must communicate with the Stock Controller to make adjustments on the system and ensure the correct disposal of items and a correct cleaning process when there is a chemical spill. Stock Take: Can join up with admin personnel to count the stock in teams of two at each location. Normally the nurses must team up with admin personnel or billing expert to count the stock and complete the quantity on the counting sheets.

Billing Expert Sales: Bill all the correct items that the practitioner used on the patient or that is given to the patient. The correct size, strength, manufacturer and quantity is used. Stock Take: Assist in counting the stock and capturing the counting locations on the system after the stock was counted.

Kitchen Manager Stock Orders: Needs to check stock levels and order new stock. Ensure correct stock levels for all patients’ correct orders. Follow up with Financial Manager on the budget and payment of stock orders. Planning meals and the quantity that will be needed for the next week. Follow up on Supplier invoices and Credit notes. Send back stock that is not in the correct condition. Item Management: Ensure correct grocery items are used and remember allergies of patients. Ensure item expiry dates are not yet reached and the correct quality is used. Ensure that there is enough stock items, and food is prepared in the correct manager. Items must be stored correctly.

Financial Manager

Stock Orders: The Financial Manager will approve stock orders and pay suppliers before delivery or at the end of the month.

Purchases: Ensure the correct prices were invoiced when the stock was purchased from the supplier as per the contract or agreement. Pay the Supplier per invoice and on the correct time period as the agreement. Check the account of the Supplier against the system and reconcile the Suppliers account with the system.

Maintenance: Ensures a record of the maintenance and service schedules of new stock acquisitions is kept. Management of warranties and support contracts to avoid overspending. Management of maintenance protocols.

Usages: XXX

Corrections: Sign off all corrections that were done. Capture Credit Notes that were received from suppliers for stock that was sent back or incorrectly invoiced. Ensure all Credit notes were received from suppliers as soon as possible. Correct any incorrect capturing of supplier invoices on the system by the Creditors Clerk by creating Credit notes.

Stock Take: Ensure that if overtime must be paid that the overtime is approved. Consolidate the counting locations into the general bin. Draw the Variance report and Investigate the Variance report with the Stock controller. All variances must be explained and investigated with the Stock Controller. Correct any typing or counting errors that were made. Do some spot-checks. Post the Stock take.

Reports & Internal Controls: Check the stock value. Ensure all transactions have been posted from all the departments. Draw the stock on hand report to ensure the correct figures are supplied to the top management, shareholders and auditors. Ensure no negative stock have been dealt with and corrected.

Stock Controller

Stock Orders: Creating Minimum and Maximum stock levels and maintaining the levels. Checking the Minimum levels on a daily basis against the actual stock levels. Order new stock and follow up with Financial Manager on the budget and payment of stock orders. Ensure the correct stock levels. Follow up on Backorders. Follow up on Supplier invoices and Credit notes. Send back stock that is not in the correct condition.

Item Management: Activate new items on the system, inactivate stock items that are not used anymore. Link items to the correct locations on the system. Link item to the correct SubClass. Discontinued stock must be sent back or transferred to the new Nappi code. Ensure the Medprax/IQest updates are done. Update items that were created by the practice. Ensure the correct Nappi codes are used. Check negative stock levels and implement the correct procedure to make sure that negative stock levels are corrected and decide on correct procedures in future to avoid any negative stock.

Purchases: Follow up on the supplier invoice if not received with the delivery of the stock. Ensure the correct information is sent to the Creditors Clerk to capture the invoice and arrange the payment with the Financial Manager. Check if the correct quantity were captured correctly by the Creditor clerk.

Maintenance: Ensures a record of the maintenance and service schedules of new stock acquisitions is kept. Management of warranties and support contracts to avoid overspending. Management of maintenance protocols. Tracks the usage of medical equipment by monitoring the number of tests performed (for example), for timely alerts for services or recalibrations.

Usages: Records the usage of non-sold medical stock items, for example, disposable instruments and consumables used but not charged to the patient. Captures all items used for testing but not sold to patients. Provides data on consumption patterns to improve stock availability and prevent waste. Tracks the consumption, shelf life and storage conditions of reagents, ensuring they remain effective when needed.

Sales: XXX

Internal Orders and Transfer: Checks the transfers daily to ensure that the stock requested, is permitted for transfer. Captures the stock returned to the Main Warehouse and records the reasons why the stock was returned.

Corrections: Do Stock adjustments on the system for Broken, Expired and Lost Stock items. Ensure the correct procedures have been followed to dispose of items. Double-check the adjustments at the end of the week to ensure all the corrections have been explained and investigated.

Stock Take: Make all the arrangements for the stock takes, when and how many personnel will be needed. Ensure that all items have been transferred to the correct locations. Ensure that no movement takes place on items while personnel are busy with the counting of items. Indicate which cycle counts must be done and when. Ensure the correct stationery is available for personnel that have to count. Complete cycle counts on a daily/weekly basis. Create a Snapshot per warehouse that must be counted. Manage the counting sheets that are given to the personnel and receive them back from personnel that counted the stock. Manage the capturing of the counting sheets. The Stock controller can check the quantity that was captured from the counting sheets.

Reports and Internal Controls: Check the reports to ensure the correct stock on hand. Sent the necessary reports to Management staff at month-end. Check the corrections that were done and discuss any losses. Ensure all the negative stock have been sorted out. All Purchase transactions and corrections are up to date. Investigate any differences with the correct reports.

Stock Clerk

Stock Orders: Receiving newly delivered stock. Printing and Barcoding stock items. Unloading and unpacking newly received stock items. Check the quality of new stock items. Ensure the correct items were received against the stock order and the Delivery note / Supplier invoices.

Item Management: Check expiry dates and quality of items on a regular basis. Take items that have expired to the Stock Controller. When items are moved, ensure the Stock controller has the necessary information to change the linking on the system.

Sales: Receive the transfer request from the other sites/warehouses. Preparing the stock request and taking the stock to the sites / warehouses. Can also capture the transfer request on the system.

Corrections: Check for expired or broken stock. Take stock items to the stock controller to do adjustments on the system and dispose of items through the correct procedures.

Stock Take: Check counting sheets to ensure the correct items are linked to the correct locations before the stock take. Ensure that all expired and broken stock has been removed from the shelves before the stock take. Ensure all items have been packed out onto the correct places before the stock take.

Accounts Payable Clerk

Stock Purchases: Captures the Supplier invoice into the system. Sent through to the Financial Manager to make the payment. Communicate with the Stock Controller that the stock was received.

Practitioner

Sales: Must indicate all the stock items that were used on the patient. Ensure all stock items are indicated correctly with the correct size, strength, manufacturer and quantity. If the practitioner does the billing, ensure the same procedure as under Billing Expert is followed.

Corrections: When Stock items break while used on patients, the practitioner must communicate with the Stock Controller to make adjustments on the system and ensure the correct disposal of items and a correct cleaning process when there is a chemical spill.

Stock Take: Can join up with admin personnel to count the stock in teams of two at each location. Normally the nurses must team up with admin personnel or billing expert to count the stock and complete the quantity on the counting sheets.

Billing Expert

Sales: Bill all the correct items that the practitioner used on the patient or that is given to the patient. The correct size, strength, manufacturer and quantity is used.

Stock Take: Assist in counting the stock and capturing the counting locations on the system after the stock was counted.

Kitchen Manager

Stock Orders: Needs to check stock levels and order new stock. Ensure correct stock levels for all patients’ correct orders. Follow up with Financial Manager on the budget and payment of stock orders. Planning meals and the quantity that will be needed for the next week. Follow up on Supplier invoices and Credit notes. Send back stock that is not in the correct condition.

Item Management: Ensure correct grocery items are used and remember allergies of patients. Ensure item expiry dates are not yet reached and the correct quality is used. Ensure that there is enough stock items, and food is prepared in the correct manager. Items must be stored correctly.

◄ Previous: 1. Introduction to Critical Business Processes Next: 2. Understanding Stock Management ►