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Monitoring slow moving stock and rarely used medicines

Published
Topics: ProcurementTrusts

It is important to hold medicines in date and identify where usage of medicines has changed or are only required on an irregular basis.

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
  2. Slow moving stock
    1. Analysis of slow moving stock 
    2. Areas for quality improvement
  4. Rarely used medicines
    1. Analysis of rarely used medicines

Using our advice

Refer to the first article in this series, Managing medicines inventory (SPS page), if you have not done so already.

The actions discussed are viewed as best practice, but none are mandated by SPS regional pharmacy procurement leads

Slow moving stock

Slow moving stock can be a financial liability if the products’ shelf life is less than the number of days’ stock on hand. Slow moving stock can result in expired stock that can potentially impact on patient care, and needs to be accounted for in the pharmacy budget.

Several factors can impact on surplus stock, including pharmacy system configuration and manual ordering, resulting in inappropriate estimates on demand. Changes in clinical practice which result in a reduction in prescribing of a medicine can also lead to a surplus of stock.

Analysis of slow moving stock 

Stock analysis is typically reviewed against a set criterion, such as a turn rate in excess of 365 days. Inventory data can be extracted and sorted in financial order to identify the highest value financial liability. Procurement and store leads review the product stock accuracy and expiry dates to assess the potential for expired stock.

Following the stock analysis, consider potential actions to mitigate risk, in liaison with senior pharmacy managers, and the appropriate clinical lead. 

Trust pharmacy departments with a Wholesaler Dealers Authorisation (WDA) may consider reducing their financial liability by selling redundant stock to another NHS organisation. Systems such as RxInfo’s Vend (subscription required) may also be able to support this process. 

Trusts should consider the optimum approach for managing stock on their pharmacy system, and how the system will manage the transaction, avoiding where possible the potential re-ordering of stock issued. Refer to the SPS guidance Managing expired stock and decommissioned products (SPS page) for suggestions on how to best manage the process.

Areas for quality improvement

There are several ways to review inventory value and identify whether stock is moving too fast or too slow. For example, compare all stock versus all expenditure to determine a turnover rate, or at an individual product level.

Most trust pharmacy systems will support the analysis of slow-moving stock, by measuring stock on hand against a rate of issue. Stock opening and closing values should be produced as part of a month end reconciliation routine. It can be compared to a total expenditure value to develop a stock value, but this will only represent an average of all stock.

Trust procurement and stores leads may consider developing monthly routines to identify and assess surplus stock at a product level to help mitigate the financial liability of potential expired stock and reduce patient safety concerns. Pharmacy systems can produce reports to interrogate the system to support managed processes.

NHS colleagues with the relevant user capabilities are able to utilise the slow moving stock reports available in RxInfo. The reports below can identify slow moving stock and stock that is not expected to be issued by a defined period such as six months or one year. The user can detemine the length of time as part of the reporting parameters.

Rarely used medicines

There are a number of medicines held in secondary care pharmacies that are not routinely used. However sufficient quantities are held to treat a defined number of patients, or provide treatment for a fixed course. These are typically medicines used in emergency situations such as antidotes. 

Analysis of rarely used medicines

There are a number of considerations that need to be followed when reviewing adequate stock holding of rarely-used medicines, ensuring that medicines are in date and fit for purpose. Liaise with clinical leads to review the list of rarely used medicines.  

  • Do not change levels of medicines where you do not understand their use, check first.
  • Once a list is established you may consider working with a collection of trusts to reduce the stock holding of rarely used medicines. It is important to review the response time and ensure any logistics are in place to ensure the patient receives medication within the time parameters set.
  • Consider a flag on the pharmacy IT system to indicate the severity of holding the stock or hold a list of rarely used medicines that has been approved by the chief pharmacist or designated responsible person.
  • Develop regular stock checks of rarely used and emergency medicines to ensure that they are accurate, and expiry dates are monitored.

SPS have developed further guidance on how to review rarely used medicines on RxInfo (SPS page).