FATO /ISPO Seminar DakarJune 20 – 24, 2005 Stock Management Bernard Matagne
Definition The stock management is the management of what ever material the Centre uses to fulfil its mission
What does it include? • Management of material entering or going out of stock • Forecast of Needs • Management of Orders • Control mechanism
Material IN and OUT Tools used for the management of material IN and OUT include: • The Inventory • The Inventory Card • The Stock Card
Inventory • Is done once a year, at the end of fiscal year • Everything included in the stock must be counted • During inventory, no material should get in or go out of stock
Inventory • Before performing the stock inventory, make sure that all articles in stock are identified with a name, code and unit of measurement • The inventory is done with a preset list of all items. That list includes following information: • Pre-filled: Article Code, Description and Unit of Measure • To be filled during inventory: Article Quantity, Serial Number, and if appropriate Expiry Date
Example of Inventory Card
Inventory • During the Inventory, we start from one extremity of the stock and we count each item until the other extremity • When the Inventory is completed, we compare the recorded data with those of the inventory card. In case of differences: • One must re-count articles for which there is a difference; • If necessary, correct the inventory card
Stock Card • The Stock Card is the most detailed document which follows the item, it is its identity card and it is kept inside the store room, close to the item • Record material going out of stock in the column "OUT" • For each component taken out of stock, the patient's number should be recorded in order to control the use of components.
Stock Card • When receiving material, the stock card is updated in the column "IN" • Normally, stock cards are attached to a serial (an order) and should be changed at each new order's arrival • When stock cards are taken away from the stock, they should be filed for control purpose
Example of Stock Card
Inventory Card • The Inventory Card is less detailed than the stock card and is meant to show the total quantity in stock (compilation of several orders) • The Inventory Card is a summary for a specific item of the different times one of it was taken out of stock. This summary information is recorded once a week on the Inventory Card (and not daily as for the stock card)
Inventory Card • Subtract the material taken "OUT" from the one brought "IN" and it gives an indication on the stock level • Unlike stock cards, the inventory cards are not kept near the item but are rather kept in a separate file • Inventory cards can be replaced by a computer database
Example of Inventory Card
Forecast of Needs The forecast of needs insures: • That the Centre will not be in stock shortage • The forecast of budgetary needs to cover material needs
Forecast of Needs What is needed to forecast needs: • The annual consumption (previous year) • The stock status • The monthly consumption (will indicate how long will last the stock)
Forecast of Needs Factors to be taken into account to forecast needs: • The addition of new services in the centre • The increase of the geographical coverage • The employment of new staffing (increase of production's capacity) • The setup of a referral network
Management of Orders 1. Identify suppliers • Suppliers must be reliable • Try to get at least 2 or 3 suppliers per product in order to minimize risks • However, the number of suppliers must remain low (regroup orders) in order to: • Facilitate orders' • Increase your negotiation power
Management of Orders 2. Identification of needs in relation with timing • From the stock level and the monthly consumption, it is possible to determine when an order will have to be done • Do not forget to include delivery time (check with the previous order) including custom clearance time
Management of Orders 3. Orders' Preparation • Try grouping the orders to reduce transport costs • If more than one supplier, ask for a quotation • Take into account delivery time
Management of Orders 4. Orders' follow-up • Each order must be recorded in a "order pending" folder, indicating the order date, the name of the supplier, and the names of the items ordered • At reception, the reception date is recorded to determine the delivery time • In addition, we indicate if the order is complete (nothing missing)
Management of Orders 5. Reception of the orders • When receiving the order, verify that the quantity received corresponds to what has been ordered (nothing missing). Check also the condition of the material (nothing broken) • Enter the items received in the inventory cards and in stock cards
Control Mechanisms The use and the consumption of material must be controlled in order to prevent: • Theft • High consumption due to wasting • Shortage
Control Mechanisms Control Mechanisms includes: • Periodical control of stock level • Analysis of consumption from one year to the other
A … BAD … example
A … GOOD … example
Je vous remercie beaucoup I thank you very much
