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Dear Readers,
Welcome to this issue of SiteNews! We hope you have found the resources on the site to be helpful.
In a hospital, materials management has become a distinct function. Depending on the size of the hospital it could be a separate department or in a smaller set up it could be under the care of the Manager. Materials in a hospital range from consumables, stationery to even equipments besides the pharmaceuticals and optical goods.
This issue of Sitenews focuses on Materials Management. It provides an introductory set of materials which is related to defining the concepts. The first broad section inventory management which is delineated into the following parts: Purchasing, Storage, Issue, and Inventory Control.
Materials management is an area where good monitoring systems are required. This issue also provides resources to Cost Control Strategies. Polices and procedures for smooth operationalising are also detailed. The roles and responsibilities of the materials management are also outlined. Information technology can also be leveraged for materials management and this is provided in the resources.
The featured organization in this issue of Sitenews is the Indian Institute of Materials Management.
Hope this issue will impart the resources which are worth to be read. Looking forward to come up with more resources in future.
We wish you an experience of learning that is very practical. Your feedback will let us know how we can improve. Please write in your feedback at eyesite@aravind.org. We look forward to your feedback.
We wish our readers an informative reading!

Happy reading!
Regards,
Vision 2020 e-resource team
The Issue Features...
Materials Management in Hospitals
Vol. 5 No. 1 January 2008
•   Introduction
Inventory
•   Purchasing
•   Storage
•   Issue
•   Inventory Control
•   Cost Control Strategies
•   Policies and Procedures
•   Roles and Responsibilities
•   Information Technology
•   Featured Organization

"Hospitals need to actively manage what is bought, when it is bought, how much, as well as for what price, including discounts and rebates,"

- Chris Holt,
Vice president, UPS
Supply Chain Solutions

Introduction
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Materials Management is an essential part of any organization. Especially in a Hospital, Materials Management Department plays a vital role in the smooth and efficient function of it. It means the management of materials likes planning, Purchasing, Store & Inventory Control, Care and Preservation, Issue of materials, Accounting and Disposal of scrap. It is in direct touch with the user department in its day-to-day activities. The most important purpose served by stores is to provide an uninterrupted service to the various user departments. In the case of a Hospital we can say the Operation Theatre, Wards, Specialty Clinics, Units, Refraction Departments, Registration, Admission Departments etc. are the user departments. The successful and efficient functioning of a department depends mainly upon how best the materials are supplied by stores department to them. Further stores often equated directly with money, as materials have money value.
  • MATERIALS MANAGEMENT IN VOLUNTARY HOSPITALS

    • Abstract:
    The purpose of this article is to describe the materials management and its uses to bring about control over the acquisition, storage, irretrievability, distribution, use and disposal of supplies and equipment in order to carry out the primary responsibilities of the organization in an efficient, effective and economical manner. It also describes about the Organization and the process of the materials management.

  • MATERIALS MANAGEMENT CRUCIAL TO OVERALL EFFICIENCY

    • Abstract
    This article tells in detail about the study conducted in the various hospitals to analyze how the materials management facilitates the in house hospital services. It also tells in detail about the requirements of the planning and the Leadership in the field of the Materials management.

  • INVENTORY MANAGEMENT

    • Abstract
    This presentation tells about the Inventory Management and its types. It also tells in detail about the need for the inventory and different analysis strategies that could be followed in monitoring and maintaining the inventory.

  • LEGAL ASPECTS IN MATERIALS MANAGEMENT

    • Abstract
    This presentation tells about the purchase and the payments legal aspects that could be followed in the efficient materials management.
Purchasing
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Purchasing means to buy various materials by paying money or its equivalent from suppliers / vendors. In this process, the materials are bought and acquired using some standardized specification. The act of purchasing is a fundamental function in the supply cycle. Purchasing is a store responsibility for the needed materials of the right quality, at the right price, for the right source, at the right time and at the right place in the most economical manner. This also includes selection of sources of supply, finalization of terms of purchase, placement of purchase order, follow up, maintenance of smooth relation with suppliers, approval of payments of suppliers, evaluating and rating suppliers.
  • VENDOR SELECTION

    • Abstract:
    This presentation gives a brief overview of the vendor selection criterias and the classification of the materials according to the vendor needs and other logistics that could be followed while dealing with them for the supply of the materials.

  • CONTRACT MANAGEMENT STRATEGIES: PROS OFFER MORE THAN 100 USEFUL TIPS TO HELP YOU MAKE A DIFFERENCE

    • Abstract
    This article gives some useful tips that could be followed by the materials management personnel in the healthcare sector. These tips were given by well experienced professionals in the field of Materials Management.

  • SMART NEGOTIATORS THINK LONG-TERM

    • Abstract
    This interview deals with the successful strategies that could be followed while purchasing department that were followed by well experienced health care personnel.

  • ONLINE CATALOG EASES HOSPITAL'S PURCHASING - WHAT WORKS

    • Abstract
    This article deals with the case study followed by the materials management of Jackson Health Systems. It mainly deals with the inefficient purchasing strategies that have been followed by the healthcare provider and how it has been evaluated as an eminent one.
Storage
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Storage and Preservation are an important part of the storekeeping function. When materials remain idle in the store these materials should be taken care of and looked after properly. Otherwise these materials may get perished due to natural chemical reaction like rusting by moisture, melting by heat etc and also may get affected by insets, rats etc.
    In order to protect the materials from various adverse effects the stores manager should take various actions. We have provided you with resources which help you in effective storage.
Issue
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The main role of the Stores of a hospital is to ensure an uninterrupted supply of materials to the various departments so that smooth and efficient functioning of the hospital is not affected. In order to ensure a smooth issue of materials, a systematic procedure should be followed. Good stores systems can greatly help the Stores Manager in smooth issue, accurate stock status reports, timely detection of discrepancies, prompt clearance of goods inward notes to expedite bill payment, reduction in losses etc. For this purpose we have various resources on supply here.
  • SUPPLY MANAGEMENT IS CENTRAL TO TOP 100 ICUS

    • Abstract:
    This article describes about the medicinal supplies that have been followed by the Top 100 Hospitals. It speaks about the change of medicine supplies in boxes to packs and also other purchasing and the distributing policies followed by the Purchasing personnel of Lehigh Valley Hospital.

  • THE IMPORTANCE OF SUPPLY CHAIN DATA CONDITIONING: AS THE FOUNDATION OF PURCHASING OPERATIONS, THE ITEM FILE SHOULD BE KEPT CLEAN

    • Abstract:
    This article describes in detail about the monitoring procedures that could procedures that could have the full control over the Inventories and thereby help in Financial Control.It also describes about the purchasing policies and the procedures followed by the supply chain professionals with a means to control the items that are purchased by the organization.

  • COMPLEMENTS TO SUPPLY CHAIN MANAGEMENT

    • Abstract:
    This article tells in detail about the supply chain management process that includes both Clinical Value Analysis and Materials Management in order for the process to function effectively and efficiently. It also describes how these analysis procedures could be followed by the work and dedication of Clinical Value Analysis and Materials Management individuals that make the supply chain management process successful and brings many rewards to health care management.
Inventory Control
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Inventory control is concerned with minimizing the total cost of inventory. This involves physical control of materials, preservation of materials, minimization of obsolescence and damage through timely disposal and efficient handling, maintenance of stores records, proper location, and stocking. Store is also responsible for the physical verification of stocks and reconciliation them with book figures. The inventory ordering quantities, setting stock level, lead time analysis and reporting.
Cost Control Strategies
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Inventory is a concept in finance, which indicates goods including raw materials, work in process, finished goods and so on in industrial enterprises. In order to ensure that producing and operating procedures will be carried out smoothly, enterprises must hold reasonable inventory. Inventory is a potential factor of producing because it needs to occupy certain funds. Meanwhile, it is also a kind of necessary goods reservation for normal production. Therefore, the main task of decision on inventory is how to weigh the two aspects so as to make the inventory neither excessive to form overstocked funds nor insufficient to result in shortage of raw materials to produce or shortage of goods to sell. Under the prerequisite of producing and selling smoothly, we should choose a best scheme that makes the cost lowest and the efficiency highest.
Policies and Procedures
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In view of the complex nature of the materials management function and its important contributions to the over all organizational objectives, it is desirable to compile a policy manual covering all aspects of materials management. The manual is generally prepared with a note from the Chairman of the organization emphasing its importance. Such a policy manual will be circulated to all divisions up to the middle management level so as to ensure that policies and procedures are consistently followed leading to the achievement of the corporate objectives. The policy manual familiarizes the materials management department with the procedure and guide lines to be observed. Periodical revision of the manual needs to be undertaken to keep it realistic and responsive.
  • STORE MANAGEMENT

    • Abstract:
    This presentation describes in detail about the standard policies and the procedures that could be performed in smooth functioning of the stores and also about the purchase, stocking and the auditing procedures in detail.

  • MATERIALS MANAGEMENT PROCESS AND FUNCTION

    • Abstract:
    This article speaks in detail about the scope of the material management. It also tells in detail about the material planning and control, purchasing policies and other procedures for the efficient management of the materials.

  • STORES POLICY & PROCEDURES

    • Abstract:
    This presentation lists about the general policies that have to be followed in the stores for maintaining the materials. It also give the standard list valiant materials required according to the Hospital needs and a set of procedures that were followed in stocking and the distribution of the materials to the appropriate departments in the hospitals.
Roles and Responsibilities
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The inter-related functions of the materials management are normally looked after by individuals. As the activities expand, the functions of each individual become more and more specialized. The integrated materials management concept requires central co-ordination of all these inter related activities. Therefore the internal structuring of the various functions as well as the relationship of the materials management divisions with the other divisions, technical, financial and marketing in the over all organization becomes critical. Material management function ought to be headed by a competent professional who must be a member of the top management team as managing materials is a critical function. We have provided you with resources which explain the roles and responsibilities of those working in the department.
Information Technology
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This section of newsletter gives an informed but independent review of all the latest developments in materials management. We have positioned the latest trends into 2 main categories Information technology in material management and Stockless stores.
  • INVENTORY TO GO: CAN STOCKLESS DELIVER EFFICIENCY? - MATERIALS MANAGEMENT TECHNIQUE TO BRING DOWN OPERATING COSTS

    • Abstract:
    To improve inventory management performance, hospitals have tried several tactics, including consignment and prime vendor order entry programs, each with some degree of success. But hospitals seeking greater results have pursued more creative approaches with their suppliers. One such is stockless inventory have a look at this article to know more.

  • MANUFACTURERS CAN TAKE A ROLE IN STOCKLESS - QUICK RESPONSE INVENTORY SYSTEMS

    • Abstract:
    This article highlights what manufacturers can do to help make a stockless program successful. These include forming a partnership relationship with the distributor and hospital, making consistent, scheduled deliveries to the distributor, working with hospital administration and materials management to determine the facility's needs and developing a "stockless policy."

  • MORE DISTRIBUTORS MAY OFFER STOCKLESS DELIVERY

    • Abstract:
    This article highlights about the importance of more distributors in stockless delivery and their active participation on the same. This article also highlights the views of various material management professions on stockless delivery.

  • WIRELESS TECHNOLOGY TRANSMITS CHANGE INTO MATERIALS MANAGEMENT - SURGICAL BUSINESS

    • Abstract:
    Wireless technology offers materials managers a fascinating range of options for locating, identifying, updating and ordering inventory. However, many hospitals lack the hardware or software to implement these devices, and there are several issues concerning wireless technology that hospitals should consider before making the move to wireless. Here are some tips for you on wireless technology.

  • LINKING THE RIGHT SYSTEM - TECHNOLOGY INFORMATION

    • Abstract:
    Even the most efficient materials management system is ultimately useless if the people who need to use it can't. Here is an example of how the right materials management solution was implemented and then linked between buildings, various campuses and people, bringing the benefits of the system to everyone who needed them.

  • INTERNET IS HOOKING MORE MATERIAL MANAGERS

    • Abstract:
    The Internet clearly has changed the landscape of purchasing in the healthcare industry. Many are not going online buying things, but just the ability to go online and see these prices creates a new dynamic for pricing. There will be more accessible information to competitive prices, which puts pressure on all manufacturers. It will all come down to paying more for better service.

  • ONLINE ORDERING HELPS HOSPITAL CUT $1.4 MILLION IN COSTS - WHAT WORKS

    • Abstract:
    Wyoming Medical Center was considered a high-cost hospital, and just kept having a steady rise in patient charges. How and where the institution could save money became the prime focus and they changed hospital purchasing policy online purchasing system by the Neoforma technology that allows users to order supplies, track price and contract information, and research available pricing and contracts. Look further to see how they reduced the cost.
Featured Organization
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Indian Institute of Materials Management

MISSION:
To promote excellence in Material Management towards national prosperity through sustainable development.

"Indian Institute of Materials Management (IIMM)" with its Headquarters at Mumbai, is the National Apex body representing a wide spectrum of professionals engaged in various facets of Material Management, responsible for planning, sourcing, Logistics & Supply Chain Management.

Through its wide network of 36 branches and 18 chapters having over 5500 members drawn form public and private sectors,( IIMM is dedicated to the promotion of the profession of Materials Management) and with its multifarious activities, including EDP, seminars, workshops, in-house training programs and consultancy assignment & Advance Materials Management Programs & Research Programs,

To have more effective global interaction , Institute is a chartered member of International Federation of Purchasing and Supply Management (IFPSM), Atlanta (USA) Incorporated in Switzerland, which has its members in over 44 countries.

The association also conducts Certified Purchase Manager (CPM) and Accredited Purchasing Practitioner (APP), courses of National Association of Purchasing Management (NAPM), USA.

In furtherance to its objectives, the Institute is conducting a Graduate Diploma Course in Materials Management (GDMM) recognized by Govt. of India for appointment of superior posts and services under the Central Government and also accredited by IFPSM. It also conducts a three-year Post Graduate Diploma Course in Materials Management (PGDMM) by correspondence which is recognized by AICTE. Diploma in Logistics Management a high profile one year distance education program has been launched from July 2000.

The Institute has its Centre for Advanced Management Studies at Mumbai and Centre for Research in Materials Management (CRIMM) at Kolkatta, which are engaged to promote research in Materials Management & also collaborate with industry for furthering the professional advancement of Materials Management & its applications.

Visit our website : www.iimm.org

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