AMINU DABO COLLEGE OF HEALTH SCEINCES AND

TECHNOLOGY

DEPARTMENT: PHARMACY TECHNICIAN

LEVEL :200
COURSE: LOGISTICS AND SUPPLYCHAIN MANAGEMENT.
LECTURER: PHARM. IBRAHIM ISAH ADAM

INTRODUCTION:
Logistics is the branch of science relating to procuring, maintaining and
transporting material, personnel and facilities. The term logistics comes from the
Greek logos, originally used to describe the science of movement, supplying and
maintenance of military forces in the field. Logistics involves the integration of
information, transportation, inventory, warehousing, material handling and
packaging along with security. Logistics is that part of the supply chain which
plans, implements and controls the efficient, effective forward and reverse flow
and storage of goods, services and related information between the point of origin
and the point of consumption in order to meet customer and legal requirements.
Currently supply chain of products is built around flexibility, responsiveness and
reliability shifting the supply paradigm from a stock-based model to an order-based
model. The main task of distribution Logistics is delivery of the finished products
to the customer.

A supply chain is the set of entities that are involved in the design of new products
and services, procuring raw materials, transforming them into semifinished and
finished products and delivering them to the end customers (Swaminathan 2001).
Supply chain management is efficient management of the end-to-end process
starting from the design of the product or service to the time when it has been sold,
consumed, and finally disposed of by the consumer. This complete process
includes product design, procurement, planning and forecasting, production,

distribution, fulfillment, and after-sales support.

OBJECTIVES OF SUPPLY CHAIN MANAGEMENT

The objectives of supply chain management can be listed below:

• enhancing customer service ‚

• expanding sales revenue ‚

• reducing inventory cost ‚

• improving on-time delivery ‚

• reducing order to delivery cycle time ‚

• reducing lead time ‚

• reducing transportation cost ‚

• reducing warehouse cost ‚

• reducing supplier base ‚

• expanding depth of distribution

IMPORTANCE OF SUPPLY CHAIN MANAGEMENT

• Improves Customer Services

✓ Customers expect to receive the correct product mix and quantity to be

delivered on time

✓ Products need to be on hand in the right location

✓ Follow up support after a sale must be done quickly

• Reduce Operating Costs

✓ Decreases Purchasing Cost

✓ Decrease Production Cost

✓ Decrease Total Supply Chain Cost

• Improves Financial Position

ADVANTAGES OF SUPPLY CHAIN MANAGEMENT

• Develops better customer relationship and service.

• Creates better delivery mechanisms for products and services in demand with
minimum delay.

• Improvises productivity and business functions.

• Minimizes warehouse and transportation costs.

• Minimizes direct and indirect costs.

• Assists in achieving shipping of right products to the right place at the right time.

• Enhances inventory management, supporting the successful execution of just-in-

time stock models.
• Assists companies in adapting to the challenges of globalization, economic
upheaval, expanding consumer expectations, and related differences.

• Assists companies in minimizing waste, driving out costs, and achieving

efficiencies throughout the supply chain process.

Supply Chain Management – Goals

Every firm strives to match supply with demand in a timely fashion with the most
efficient use of resources. Here are some of the important goals of supply chain
management:

 Supply chain partners work collaboratively at different levels to maximize

resource productivity, construct standardized processes, remove duplicate efforts
and minimize inventory levels.

 Minimization of supply chain expenses is very essential, especially when there

are economic uncertainties in companies regarding their wish to conserve capital.

 Cost efficient and cheap products are necessary, but supply chain managers need
to concentrate on value creation for their customers.

 Exceeding the customers’ expectations on a regular basis is the best way to

satisfy them.

 Increased expectations of clients for higher product variety, customized goods,

off-season availability of inventory and rapid fulfillment at a cost comparable to
in-store offerings should be matched.

 To meet consumer expectations, merchants need to leverage inventory as a

shared resource and utilize the distributed order management technology to
complete orders from the optimal node in the supply chain.
INVENTORY MANAGEMENT/ RECORD KEEPING IN THE PHARMACY

The importance of documentation of the movement of drugs in and out of the

drug store and dispensary cannot be over emphasized. Record keeping in the
pharmacy is a tool for feedback that enhances performance assessment, aids report
writing. Records speak on behalf of operators even in their absence. For proper
documentation and inventory management the following books and register among
others must be maintained in the pharmacy.

 Store receipt voucher

 Store ledger

 Bin card

 Store issue voucher register

 Requisition from pharmaceutical store book

 Loss register

 Dispensary register

 Stock evaluation form

1. STORE RECEIPT VOUCHER

This is a very important record book in the pharmacy which is used to receive
items from the central store…

Date :……………….. ……………. Number: …………….…………….

Description Quantity Unit Rate per Total cost Ledger

unit page no
 To be completed by Officer in charge of stores

Sign: ……………. Designation: ……………. Date: …………….

To be completed by receiving store keeper

Sign: ……………. Designation: ……………. Date: …………….

2. STORE LEDGER

It is a book that is used to record both quantities of items and their amount during
receipt or issues. Receipts are recorded in Red ink while issues are recorded in
blue/black ink.

Folio no:……..

Description of SDSS item: Unit of issue:

Date Ref.. Receive Quantity Quantity Quantit Sales Value

from or received issued y per of
issue to balance unit balance

3. BIN CARD also referred to as Tally card or Stock card is used in pharmacies
with a large number of stock items. Each type of stock (drug or medical
consumable) has an associated card on which the receipt or issue of items is
recorded. Simply put it is used to record quantity of items during receipt or issue.

Location:
Description: Folio:
Unit Issue: Stock levels; (Max……) (Min……)
Cost per unit: (Re order level……..)
Price per unit:
Date Ref.. From Receits Issue Balance Initials
who Quantity Quantity Quantity
received
or whom
issued

4. REQUISITION FROM PHARMACEUTICAL STORE BOOK: It is used

different units or dispensaries to make request from the store. In some facilities it
also doubles as the store issue voucher since it comes in triplicates.

Unit:…………… Date:…………… SIV No:……………

Serial no. Description Unit Quantity Quantity Remarks

of items requested supplied

Requested by:…………………… Rank:…………………………

Supplied by:………………… … Rank:…………………………
Supply authorized by:………………………………………
Collected by:………………………… Receipt no:…………………………
Date:………………………………………
5. STORE ISSUE VOUCHER REGISTER (SIVR): This book is used to
document all issues made from the store It helps at a glance to know to whom
drugs or other consumables have been issued to without having to go through the
bulk of SIVs.

Date S.I.V No: To whom Date action Signature

issued completed
(Store
regulation)

6. STOCK VALUATION FORM: This is used for recording quantities, cost and
values of drugs, consumables and other items at stock taking/count at the end of
every month in the pharmacy unit/dispensary.

Hospital:…………… Month Ending:…………… Date:……………

S/N Descriptio Sales No. Value Ledge Difference Cost Total

n price counted of r No. price cost
per stocks per of
unit at unit stock
sales
price
Pharmacist in charge signature……………………………………
Store keepers signature……………………………………………
Hospital accountant signature ……………………………………

7. LOSS LEDGER: This is used to record all damages, breakages, losses and
expiries.

Date SRIV Description Quantity Total Cause Date Signature

No. of item value of loss returned
at to the
sales CMS
price office

8. DISPENSARY REGISTER: This is used to capture the consumption pattern of

each drugs or medical consumable that is dispensed at the dispensary.

S/N Date Patien Presc. Total

t name Sheet quantity
No. of drugs

DRUG SUPPLY MANAGEMENT