Purchasing and Procurement in Pharmacy Management

Study Notes

The main aim of purchasing is to maintain a continuous flow of material at the right price, quantity, and quality from the right source at the right time.
Purchasing and inventory control are important aspects of managing pharmacy products.
Centralized purchase by medical stores procures drugs on behalf of all departments, helping in getting quality drugs at cheaper rates.
The process of purchasing starts with framing of buying policies and ends with receiving, stocking, and payment.

Effective and efficient agency to handle procurement, storage, and distribution.
Adequate budgetary allocation.
Essential drug list (EDL) or a priority drug list and its periodic review for addition and/or deletion.
Effective and transparent tender/purchase system.
Scientifically designed warehouses with facilities for proper storage.
Effective logistics and management information system (MIS).
Efficient quality assurance setup.
Effective outsourcing-MIS, transport, communication, and information.
Verification of business appropriateness of each transaction done for purchasing.
Confirmation that all purchases were allowable and within budget and spending limits.
Maximizing purchasing power by focusing on strategic sourcing and obtaining the best value.
Ensuring proper reporting of payments to suppliers.
Ensuring the use of appropriate buying methods.

Right Quality in terms of grades, brands, or trade names, physicochemical characteristics, as per national standards.
Right Quantity ensured by following calculation techniques to avoid shortages.
Right Price includes consistency of price with the quality of the drug.
Right Source includes the capability of supplying material as per requirements from time to time.
Right Time includes purchase after calculating lead time information for all products and considering emergencies.

The most fundamental type of purchase is a direct purchase.
Purchases made directly from manufacturers are both cost-effective and secure.
The quality, packaging, and so on of the same items from different manufacturers may change.
Two or more parties should be selected to purchase each item to ensure supply during emergencies.
Producers will either supply hospitals directly or through their depots, or their local distributors will handle the supply.