PROCEDU

RE FOR
STOCK
MANAGEM
ENT
1. Background
The stores and inventory functon shall be centralized and will operate under the
jurisdicton of the Operatons. The Operatons Department must ensure proper stock
holding and control, and a high standard of service levels.

2. Scope

A stock management procedure is a document that sets out to answer the questons
why, what and how about the stock management is practced. It is a written statement
setting out guidelines for the requisiton, acquisiton, management and withdrawal of
stock items and is revised on a regular basis.

3. Objectves of the Stock Management Policy

The aims of this policy are:

1. To ensure contnued availability of the materials for rendering services at Mewar group
of Hospitals.

2. To ensure that the daily material needs are met at Mewar group of Hospitals.

3. To ensure that a minimum base stock is maintained for rendering services in case of any
emergency arises. (Refer To Annexure A )

4. Accountability

The accountability for the store material lies with the Supply Chain department.

However, supply chain management is the responsibility of Operatons department and their
team.

5. Goods and Materials

5.1. All goods and materials belonging to Mewar group of Hospitals and held for future
consumpton shall be retained in the stores unit of the Operatons Department
5.2. A stores record refectng full partculars of purchases and issues of goods and
materials and the balances of stock on hand in the Operatons Department shall be
maintained by the Operatons Officer.

5.3. An monthly stock-take must be undertaken at the last weekend of each month and
report will be submited to Operatons Head and CEO for approval of discrepancies by end
of the month. Regular stock- takes shall be conducted on all stores from time to tme and
the results forwarded to the CEO.

5.4. Requisitons for goods and materials shall be given in writng in the prescribed forms
by the relevant Business Unit Managers or their delegates.

5.5. Requisitons for uniforms or protectve clothing shall only be executed if they are in
accordance with the Organizaton’s approved schedule of issue.

5.6. Goods delivered to stores when no longer required must be returned to supplier
immediately. In the event of the Operatons Officer or the delegated person returning
goods or materials to the supplier, he/she shall ensure that the necessary goods returned
note is received. Under no circumstances may goods be returned to a supplier without the
supplier immediately issuing the goods returned note.

5.7. No surplus goods and materials, no matter what the value, may be taken by or sold to
any person (including employees and members of board) in a manner that is not in
accordance with the Company policy

6. Management of Inventory and Stores

Inventories consist of raw materials, work in progress, consumables and finished goods,
which are valued at the lower of costs, determined on the first in, first out (FIFO) basis.

6.1 The key functions of the stores are:

To provide an adequate storage facility.

To promote the culture of safeguarding Organizatons assets,

This means maintaining prescribed inventory records and to ensure prescribed procedures
followed in respect of requisiton, distributon, returns and management of inventory.
Storage of goods requiring special safety arrangements will be done only on written
authorizaton of Chief Executve officer (CEO)

6.2 Principles of inventory management

 Consolidation of stock items to avoid duplication and redundancy

 Minimizing theft and avoidable losses.

 Stock items are kept in clearly marked bins located in the store /warehouses to
enable ease of identification at all times;
 Store must be kept in a clean, safe, tidy and systematc conditon that
complies with the health and safety standards

The following is also important

Check all deliveries to ensure correct goods supplied correct quanttes and goods are in
order.
Namely:-
 Goods delivery note number
 Quantty and quality of items received
 Value of items received
 Immediately record any shortages and defects, and promptly advise supplier.
 Ensure all goods delivered to site are correct, complete and in order.
 Ensure all goods procured and to be held in storage are delivered, receipted and
recorded.

A stock register, reflectng the under mentoned detail must be kept and updated daily;
 Opening Stock
 Receipt Number
 Supplier Name
 Supply Date
  Quantty Received
 Cost of the Item
 Quantty Issued
 Closing Stock

Goods to be issued using a proper requisiton book with the following details:
 Requisiton number, Department Name, Item Name and Qty required.
 Requisiton Form should be filed and maintained for audit purposes.

Determine maximum levels of inventory holdings and minimum levels for items not readily
procurable.

Minimum and maximum stock levels, reordering procedures; turnover rate of stock items
must be reviewed ANNUALLY to ensure the uninterrupted availability of goods.

Ensure that no goods procured to be held in stores will be bought through direct purchasing
as this affects the determinaton of both minimum and maximum levels.

7. Slow movement

The stock in store shall be systematcally reviewed in order to identify areas of stock that
are heavily used and therefore need supplementng, areas where there is a perceived gap
in provision, and areas, which are less heavily used and where provision could be reduced.
This is conducted every six months and preferably immediately after the year-end.

8. Repair of Damaged goods

Operatons Officer will identfy all damaged items to assess whether they are to be repaired
or discarded and these items will be presented to the Operatons Head for final
examinaton before they are either discarded or repaired. Repairing a stock item can be a
much cheaper opton than replacement.

9. Disposals

Used materials and materials that are no longer required by the Organizaton will be
disposed in appropriate manner on Monthly basis for materials other than radioactve
 material. Radioactve materials will be disposed of in accordance with AERB Guidelines and
under the guidance of Radiological Safety Officer.

10. Re-ordering of Stock

Each surgical goods will have a stock re-order level mark-up. The re-ordering of any surgical
goods will happen when the stock level for the surgical goods reaches the re-order mark.
The stocks re-order level for any surgical goods is derived and decided on their average
monthly consumpton, their delivery turnaround tme, expiry dates and market availability.

The products are categorized into 3 categories.

1. Fast moving surgical goods
2. Slow moving surgical goods
3. Frequently less used surgical goods

Time guidelines and quantty for re-ordering of goods for the above categories are
mentoned below.
The quantty for re-ordering the stock for any surgical goods should be equal to the
difference of the stock required to maintain the minimum base stock.
1. Fast Moving Surgical Goods:
Fast Moving Surgical goods should be re-ordered every Friday so as to receive the
stock in warehouse on following Saturday.
For, Films the stock should be re-ordered every Tuesday and Friday.
2. Slow Moving Surgical Goods:
Slow Moving Surgical goods should be re-ordered every 2nd and 4th Saturday, so as to
receive the stock in warehouse on following Monday.
3. Frequently less used surgical goods.
These should be re-ordered every 4th Thursday of the month, so as to receive the
stock in warehouse on following Friday.
The Operatons Officer will be submit a list of the top moving, slow moving and frequently
less used surgical goods list to Operatons Head for reviewing every month.
The Re-ordering request will be sending to the vendor via mail and confirmed by the
Operatons officer with a copy marked to the Operatons Head.