Inventory Overview

A smooth and integrated purchasing and inventory structure is essential for controlling costs and effective decision-making. Key benefits include automatic warnings of understocking and upcoming expiry dates, automatic stock valuation and Proforma FP34 reports for script checking.

In this guide we outline the main aspects of setting up and operating your real-time stock system, with links to more detailed guides.

1. Design of an Inventory Structure

The inventory system can be operated in a simple, one location format, or it can be expanded to operate as a more complex structure that involves a central store with a dedicated purchasing champion looking after purchasing and stock across multiple locations. 

The more complex structure is more of interest to a large multi-location surgery, or possibly a PCN group, with financial delegation and profit centre reporting by individual location. Many options are available. However, we recommend starting with a single-location solution and later expanding to the multiple location option if it is needed. 

For the first step, the Inventory Setup Guide explains how to activate your inventory.

For more complex structures you will need to consider the inclusion of different types of goods, creation of Primary and Secondary stock items, stock locations, and staff involvement.  Please refer to your guides on Multi-Site Hub Management and Design-of-structure-and-staffing

2. The App

The system has the capability to work in real-time with the use of QR codes and an App that handles QR code reading for real-time functionality. This enables you to handle stock receipts, usage, transfers, and counts efficiently. You can view stock levels at any past point in time and operate on a single-location or consolidated basis for multi-location setups.

There are individual guides for using the App for each of these functions. Begin with the guide on Opening the App on a mobile device and then the guide on using the app to Record Goods Received. 

3. Setting Stock Item Characteristics and Activation

Stock codes, minimum stock levels and reorder levels will need to be set and QR codes generated. While the system provides a default structure for stock code numbering and QR Codes, adjusting minimum stock levels and reorder levels based on your usage will be helpful in managing your purchasing and stock levels. 

For more information please refer to the Stock Item Characteristics and the Inventory Set-Up Guide.

4. Preparing Stock Areas and the First Stock Count

It is important to have a well organised and clearly labelled stock area. This will allow for quick and accurate access by all those using the stock area for recording receipts, usage and stock counts. 

You will need to assign physical stock areas and ideally, attach QR codes to storage shelves and boxes. Your first stock count can also take more time as everything needs to be counted and at the same time it will identify unknown stock, hidden items, and obsolete stock.

For more information please refer to the guide on Setting up and Organising Stock Areas.

5. Day-to-Day Working Procedures

With the groundwork complete, you can begin working with your stock system to record goods received, view stock levels, record usage and carry out stock counts.

Recording of goods received takes place as part of the normal purchasing cycle and updates inventory automatically. Expiry Dates and Batch numbers can be recorded at the same time. This is normally done with your App. For details please refer to your guide on Receiving Goods.

Recording of goods used is done one of two ways: either by clicking the Use button in your App, or by regular mini stock counts with the system calculating usage for you. The difficulty with clicking the Use button is that if someone forgets to click the Use button, results can become unreliable.  The most reliable method is to carry out mini stock counts. If storage areas are organised they do not take long and give very reliable results. 

A suggestion: a mini stock count can also be a series or counts such as when when recording an item received - every item need not be counted at the same time.

For more details please refer to the guide on Recording Goods Used.

6. Inventory Stock Checks

Stock counts are vital for financial reporting and maintaining accuracy. Conduct these counts annually or use mini stock counts throughout the year, especially in situations where usage recording reliability is questionable.  If the inventory system is used for managing and checking the FP34 reporting process then stock counts should be done monthly. Some surgeries even carry our weekly stock checks.

Please refer to the guides on Performing a Stock Count using the App and Performing a Stock Count using the Stock Count Report (non-App).

7. Activity and Stock Reports

Once your inventory management is functioning effectively, you can easily access and utilize the Activity and Stock Usage reports.

The Activity Report provides insights into both purchasing and usage within a specified time frame. It presents information gathered from purchasing activities, usage recorded within the app, and any special adjustments made.

Similarly, the Stock Usage report mirrors the Activity report but focuses specifically on calculating usage based on physical activities. It determines usage by considering the stock changes between two dates and incorporates actual purchases during that period.

This report aids in establishing real usage through physical activities, confirming transactions in the Activity report, and highlighting any missing activities or usage. Additionally, it interfaces with the Stock Count report, used for recording stock counts.

Moreover, the Stock Usage report can be employed to prepare a proforma FP34 report. By detailing all activities during a period and calculating actual usage for script agreements, it provides specific details such as date, time, and location if the app is used for recording usage.

This makes reconciliation and identification of missing scripts more convenient.

For more information on these reports, review the following guides: Activity Report, Stock Count Report, and Stock Usage Report.