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Managing medicines inventory

Published
Topics: ProcurementTrusts

Approaches to maintain accurate medicines inventory and investigate incorrect stock levels by secondary care pharmacy procurement teams.

This article forms part of a series
  1. Managing medicines inventory
    1. Understanding principles of medicines inventory management
    2. Completing regular and annual stock checks
    3. Reconciling stock in automated storage systems
    4. Monitoring slow moving stock and rarely used medicines
    5. Managing high value medicines
    6. Managing stock of critical medicines
    7. Managing high frequency order lines
    8. Managing expired stock and decommissioned products

Contents

  1. Using our advice
    1. Using articles in this series
  3. Investigating incorrect stock levels
    1. Incorrect quantity
    2. Open store
    3. Incorrect use of automation
    4. Incorrect use of labelling systems
    5. Stock adjustments
    6. Diversion of product
    7. Expired stock
    8. Short-dated stock
  5. Update history

Using our advice

To support the continued supply of medicines, hospital pharmacy procurement and store leads need to maintain an accurate inventory.

We encourage you to work with senior leadership, internal and external auditors to establish what the Trust policy requirements are and apply appropriate processes.

Using articles in this series

We discuss different actions procurement leads can undertake to maintain their inventory, some of which can be measured for quality improvement. Many approaches might be viewed as best practice, but none are mandated by regional pharmacy procurement leads.

Optimum medicines inventory processes for individual trusts rely on the accuracy of medicine stock levels. Medicines stock levels are in a constant state of change due to activities such as dispensing, issuing, receipting, it is important to review potential incorrect stock levels in a timely way to prevent further inaccuracies and maintain patient safety.

Investigating incorrect stock levels

Inventory can be incorrect for many reasons, and trusts are urged to undertake reasonable root cause analysis to identify the potential cause for inaccuracies. Procurement and stores leads need to balance the appropriate resources committed to investigate a discrepancy against the value, volume, criticality (controlled drugs) and frequency of occurrence.

It is important to understand charging a medicine discrepancy to a cost centre on the pharmacy system might impact on the product usage profile and ordering of replacement stock. Discrepancies should be be addressed appropriately.

The stock correction processes built into some pharmacy systems will attribute the financial loss or gain of a product to the pharmacy budget. Identifying the cause of a stock discrepancy and applying the appropriate IT processes to resolve the problem is essential.

Hospital procurement leads may want to consider the following list of causes when reviewing stock inaccuracies.

Incorrect quantity

Receipted

An order is receipted and only part of it has been delivered. This can be an issue with standing orders where deliveries are made over a set period of time.

Picked

These can occur in any location, but typically where a dispensing label is not applied, for example picking for ward stock, or requisitioning between locations.

Dispensed

A mix up between boxes of medicines and individual units. For example, a box of 10 ampoules is booked out as 1 individual unit.

Open store

When stock is moved between stores and dispensary locations but stock transfers on IT systems are not used. A closed store generally has processes in place to restrict staff moving stock and ensures better accuracy. Correcting stock discrepancies typically involves counting stock at all locations to identify the cause.

Incorrect use of automation

Most automated storage systems will allow for a manual override to remove a product from storage. If used inappropriately, these systems will generate a reconciliation issue between the automated system and pharmacy IT system.

Incorrect use of labelling systems

Some pharmacy systems allow for relabelling of a dispensed medicine without deducting stock as a registered issue transaction. These systems are sometimes used when stock is inaccurate but can further contribute to stock inaccuracies if not identified and resolved.

Stock adjustments

Adjusting stock without fully investigating its cause can contribute to broader stock discrepancies. This is particularly an issue when stock is regularly moved across multiple storage locations without the correct use of pharmacy systems.

Diversion of product

The term used to describe stock theft.

Expired stock

Disposed stock not booked off the pharmacy IT system.

Short-dated stock

Stock on the pharmacy system but not suitable for use. Robust expiry checking is essential for patient safety.

Update history

  1. Republished
  1. Republished
  1. Published