Design of Inventory Structure and Staffing (advanced)

Welcome to the user guide for implementing and running an effective purchasing and stock management system. Setting up the right structure is crucial for success, and this guide aims to simplify the process for you.

The key to a successful system lies in finding the right balance – not too complex to overwhelm staff, yet not too simple to compromise efficiency. This guide breaks down the process into essential components, considering product characteristics, physical locations, day-to-day monitoring, and staffing.

Understanding your inventory starts with categorizing items based on importance and usage. We've classified products into three types:

Primary Stock Items:

• Crucial for daily operations, these items are closely monitored.

• Secondary Stock Items: Lower cost and usage, suitable for monthly buying cycles.
• Overhead Items: Non-operational items, ordered well in advance due to infrequent use.

Primary Stock Items

These vital items, including NHS reimbursable products like Depo-provera, Hydroxocobalamin, sutures, and skin closure strips, along with commonly used clinical supplies, are regularly procured for ongoing operations. Given their crucial role and reimbursement eligibility, strict monitoring prevents stock shortages and ensures accurate FP34 claims.

Secondary Stock Items

These encompass all remaining clinical items, typically characterized by lower costs and usage rates. Maintaining an ample supply for a monthly buying cycle is relatively straightforward due to their lower cost and usage. Close usage monitoring is unnecessary, as a monthly stock review is generally adequate to prevent understocking issues.

Overhead Items

These items, such as stationery, cleaning supplies, and IT cartridges, have no immediate operational impact. Given their limited quantity, they can be ordered well in advance of use, minimizing the risk of significant funds being tied up in storage.

Consider your organization's physical layout to optimize purchasing and stock control.

Site Configuration:

• Is your organization concentrated in one place, or is it spread across multiple locations?
• If multiple sites, can orders be directly delivered to each?

Centralized Ordering:

• Explore the option of centrally ordering goods and then redistributing them to various sites.

Proximity of Stock Area:

• Evaluate the location of a central stock area concerning its accessibility to where it's needed. Ideally, it should be close to clinical rooms to avoid unnecessary movement.

Space Utilization:

• Assess space availability, keeping in mind the nature of items:
• High-value medicines could be stored securely in a treatment room cupboard.
• Bulky, low-value items like loo rolls may require a larger storage area not found in a treatment room.
• Check for spare rooms or cupboards that can serve as overhead storage.

To help develop a structure we define two types of storage areas for stock items: Central Store and Template Store areas.

Central Store

This area serves as the primary stock holding space for receiving, unpacking, and storing goods. Ideally, it's a single room containing both Primary and Secondary items, organized by type of usage. While it can be divided into multiple rooms or storage areas, the key is maintaining organization by class or type.

For instance, a fridge is part of the Central Store, even if located separately, and cupboards may be considered part of it even outside the main stock room. The crucial aspect is ensuring each storage area houses a specific class of item to facilitate tracking, monitoring, and quick location by clinicians.

Emphasizing the significance of Primary Stock, we recommend consolidating all Primary Stock in one cupboard or shelf area for streamlined management.

Template Store

This spot serves as an additional stock storage area, strategically placed closer to where it's needed, like a treatment room or a doctor's office. This setup enables clinicians to access stock conveniently without the need to visit a central stock room. Moreover, it minimizes the number of staff accessing the central store, promoting organization and efficient management by the stock manager.

Typically, a Template Store isn't necessary for smaller operations. It's more prevalent in larger buildings or operations with small branch locations that don't require a central store.

Organizing stock based on the above structure facilitates effective day-to-day management:

• Close Usage Monitoring: Focus on closely monitoring primary items due to their critical nature.
• Non-priority Usage Monitoring: Less critical secondary items can be reviewed less frequently, typically on a monthly basis.

Close Usage Monitoring

Typically, clinicians access the Central Store for stock. Considering the daily pressures in a surgery, expecting clinicians to scan every item during stock retrieval can be challenging. Even achieving a success rate of 9 out of 10 scans can impact operations significantly, especially if a critical medicine or surgical consumable goes unrecorded, leading to unmet follow-up demands.

To address this, we've categorized the stock into Primary and Secondary items, focusing close monitoring efforts exclusively on Primary items. This approach significantly reduces time requirements and enhances the success levels of usage monitoring.

Non-priority Usage Monitoring

Secondary items, being of lower value and less critical to operations, necessitate less frequent review of stock levels and restocking needs. Typically, these items are maintained at levels sufficient for six weeks of usage. A monthly review is conducted to capture usage during the previous month, providing ample time for reordering and replenishing stock levels.

The characteristics outlined above are summarized in the following table, facilitating the identification of the structure that best suits your operation.

Some examples of how the structure might be applied include:

A Single Location Small Operation

For a single-location small operation, create a central store accessible to all clinicians, preferably outside treatment rooms to ensure uninterrupted access. If space is limited, divide the central store into smaller storage areas like cupboards in various clinical rooms. Keep similar-use items together and label clearly for quick identification.

Consider creative storage solutions in spaces like hallway cabinets, lunch rooms, and GP rooms if storage remains a challenge. Utilize inventive options like storing Secondary Stock under couches, using empty GP room cupboards, or employing cubby hole bookcases in hallways.

For less frequently accessed Secondary and Overhead Stock, explore remote locations like basements or utility rooms. This strategic approach ensures efficient storage even in limited spaces.

A Medium to Large Operation

For a medium to large operation, where the main building is expansive with treatment rooms and GP offices scattered across multiple floors, it's impractical for clinicians to leave their rooms to access a distant stock area. 

To address this, besides the central storage area, various Template Stores are established within clinical rooms. These stores contain commonly used Primary and Secondary items, guided by pre-agreed templates outlining required stock quantities until the next replenishment.

Clinicians' input is sought to finalize these templates, ensuring each room is adequately stocked without the need for clinicians to leave their spaces. This systematic approach, often carried out daily, involves an assigned staff member moving from room to room with a trolley, reviewing stock lists, and topping up items as needed. This method saves time, reduces disruptions to the central store, and ensures 

A Multi Location with Branch Operations

For multiple sites of varying sizes, a flexible approach can be employed, combining Central Store and Template Store solutions based on operational scale.

For instance, a sizable branch site with direct supplier deliveries may warrant a dedicated Central Store, implementing independent ordering and stock control procedures.

Conversely, smaller sites can efficiently manage stocking needs through a Template structure, coordinating organized top-ups from a Central Store at the main site.

The purchasing and stock control areas can involve many different people. The following sets out some of the main roles involving staff:

Buying and Stock Control Expert / Champion

A dedicated Buying Champion oversees the end-to-end processing of purchase orders with a focus on informed decision-making. Utilizing feedback from the system, clinical staff, Location Coordinators, and mini stock counts, this role ensures efficient stock management. In smaller operations, like single-location setups, a regular physical review aids in determining necessary orders.

For larger operations with diverse storage areas and a substantial inventory, reliance shifts towards an integrated purchasing and stock control system, streamlining communication for the Buying Champion.

The Buying Champion maintains consistent product quality as per clinician agreements, managing supplier relationships and delivery processes. This role also addresses audit reports and oversees the accurate procurement of reimbursable items.

Location Coordinators

Location Coordinators play a vital role in the operational flow. Their responsibilities include recording goods receipts through the Remote Manager app, handling requests for special products from the clinical team, and conducting regular mini stock counts using the same app. In smaller operations, these duties may merge with those of the Buying Champion. In larger setups, an HCA often assumes the role of Location Coordinator, efficiently managing these crucial tasks.

FP34 Coordinator

The FP34 coordinator is responsible for auditing, preparing and filing the FP34 report. To support this function, the inventory Activity Report is used for verifying completeness of script claims and identifying missing scripts. Purchasing tools also allow for auditing non-claimable items and identifying possible claimable alternatives.

Finance Team

The finance team is responsible for recording and processing supplier invoices by verifying their accuracy with the system My Purchase History report.

Management

The management team follows feedback reports and procedures that cover buying, stock management and prescription reimbursements. This is detailed in a separate manual.