Laboratory name
Location
Head/Responsible person / Standard Operating Procedure (SOP)
Procurement and stock management / Code:
Version: no.
Date: of release
Page: 1of 5
1. Procurement and Stock Management
2. Objectives and scope
The objective of procurement and stock management is to describe how supplies are ordered and stock is maintained.
This SOP is applicable to all employees of the laboratory.
3. Abbreviations, definitions and terms
•N.A.Not applicable
•SOP Standard Operating Procedure
•RFQRequest for a Quotation
•LPO Local Purchase Order
•SRVSupplies Requisition Voucher
•PRFProcurement Requisition Form
•AA Administrative Assistance
Procurement: Procurement is the acquisition of appropriate goods and/or services at the best possible total cost of ownership to meet the needs of the purchaser in terms of quality and quantity, time and location.
At laboratory a Procurement requisition form for general supplies/services/works to be done or procured is filled out by a specific requesting unit/section.
Once the procurement requisition form is approved by the procurement unit, it is processed.
Procurement unit: The Procurement unit is responsible for acquisition, coordination and overseeing the sourcing strategy, selection and contract execution for supplies, services or works.
Supplier: A firm that owns, operates or maintains stores, warehouses or other
establishments in which materials or supplies are bought, kept in stock and regularly sold to
the public in the usual course of business; and engages as its principal business, and in its
own name, in the purchase and sale of goods.
Quotation: An offer by prospective suppliers of goods or services which is not submitted in
the form of a tender document but is subject to a specification, conditions of purchase and
any schedules and/or annexes such as drawings or plans.
4. Tasks, responsibilities and accountabilities
Request for laboratory supplies / All Staff / Lab Admin. Ass.
Request of a quotation from supplier / Admin. Ass / Director
Proforma invoice analysis / Admin Ass / Director
Signing of LPO / 3 authorized laboratory personnel / Director
Verifying Quality and Quantity of supplies / Admin Ass / Technical personnel
Payment of supplies / Situation specific / Lab Admin. Ass
5. Safety and environment
With regard to the handling chemicals, consider safety issues and issues relating to the stability of the items and the need to ensure that there is no cross contamination between items. Refer to SOP “Hazardous Chemical Precautions”
6. Procedure
A procurement requisition form (PRF) is a request from the laboratory staff to laboratory administration or procurement unit to have the requested supplies/services/works procured for a specific unit or laboratory in general.
A request for a quotation (RFQ) is a request from laboratory to a number of suppliers to send their proforma invoice/quotation for the items that were requested to be bought by a section or the store in case of minimum stock or order point.
Terms and conditions of the RFQ:
•It is not a purchase order.
•Issuance of the Purchase order is based on terms of proforma invoice.
•Not all items quoted by supplier will be ordered for.
•The RFQ is valid for 8 working days from the day of signing.
•It is only issued to a company prequalified as per procurement requirements of laboratory.
•At least 3 suppliers have to submit proforma invoices before proforma invoice analysis is done.
Proforma invoice analysis
In this analysis 3 or more suppliers are compared with variables, not limited to:
•Cost on quotation
•Quality on inspection especially of laboratory consumables and reagents.
•Delivery response
•Services
Cost performance measures relate to the direct financial impact of a supplier’s performance and can include price, payment terms, shipping charges, savings from process improvements, and so forth.
Delivery performance measures relate to a supplier’s ability to support your scheduling requirements and can include on-time delivery of goods, on-time completion of services, stock availability, or anything related to the cycle time between order and receipt.
Service performance measures relate to the personal and electronic interaction between the buyer and seller and can include responsiveness, resolution of problems, technology used to provide customer service, and so forth.
Quality performance measures relate to the conformance of a product or service to requirements and can include rejection rates, warranty claims, technology used to improve products and services, and other metrics related to the durability, reliability, and consistency of a product or service.
Each performance measure selected is specific and measurable. For example, on-time delivery is specific (a delivery is either made by a certain date or not) and it is measurable.From this process, a supplier is chosen to supply in reference to the RFQ and proforma invoice.
Local purchase order(LPO)
This document is a confirmation that supplies quoted in the purchase order are supposed to be supplied to laboratory. This has to be prepared by, reviewed and authorized bythree different individuals according to the segregation of duties at laboratory. The LPO is then issued to the supplier.
Terms and conditions of LPO:
•It is a purchase contract between laboratory and supplier and is not transferable.
•No changes can be made on this form once signed by signatories.
•Once there is a mistake, it is crossed with two diagonal lines and labeled “cancelled”.
•Prices quoted in the proforma invoice are used in issuing a local purchase order.
•Not valid before 3 signatories have signed.
Once goods are delivered by the supplier:
- A delivery note is attached to the goods being supplied and signed by the supplier.
- The items being supplied are verified in quality and quantity.
- With all verifications done and items are affirmed delivered in the right quantities and quality as originally agreed in the LPO, in case lesser quantity only the delivered items are recorded as received and in case of damages they have to be returned to the supplier.
- A “goods received note” is issued.
- This has to be procured by, reviewed and verified by three different individuals according to the segregation of duties at laboratory.
- That is whenan invoice demanding payment for service by the supplier is issued.
Payment terms
Requisition for payment is written with the monetary value of items supplied. The requisitioner indicates a mode of payment and payee.The details for payment budget code and two laboratory authorizing signatories according to the approval have to sign. All documentation from the procurement process has to be attached for payment to be effected:
- RFQ
- Proforma Invoice
- Invoice
- LPO
- Delivery Note
- Goods Received Note
- Proforma Invoice Analysis
- Copies of other Suppliers’ proforma invoices.
According to the mode of payment requested by the requisitioner, a payment is issued.This payment is issued to the supplier who in turn is supposed to issue a receipt to laboratory.
Storage
Once goods are delivered and verified, they are sent to the laboratory store.The store creates a stock card for the item (if it was not in the storage) before specifying the folio number in the storage name, quantity, size/strength, issue unit minimum and maximum stocks, batch no. and expiry date.The date of entry is very important as well as which supplier the items were received from, vouchers, quantity and then the balance is established accordingly. That is when the item is declared part of the inventory system of laboratory and therefore has to be monitored closely by use of an inventory control worksheet.
Inventory system
Once items are in a stock card, their consumption by the laboratory has to be monitored.A supplies requisition voucher/form(SRV) is used to request from the store by the requesting unit or section in the lab.
The requisitioning section indicates the item particulars and quantity being requested.The personnel in the store indicate the balance on hand, last issue, authorized quantities (which may vary from the requested quantities) and then approving the issuing of these items to the requester.A copy of the SRV is filed in the store file at the stores.
Stock card
The stock card is updated weekly according to the supplies issued in the week using the SRV.The store carries out a fortnightly/monthly physical count of all, or specified items in the store to ensure that items purchased before are ahead of the lead time or are not at minimum stock. This helps in forecasting for the procurement unit.
Petty cash
This is cash used for daily or emergency activity needs at laboratory of less than $xx,xx. Once payment is made a cash valid receipt is issued by the supplier or service provider.
The payee then signs in the Payment voucher (PV) or the personnel in charge of the petty cash account, including all details for the payment that has been made.
Budgeting and plans
Every financial year, a master budget is created that entails all funds coming into thelaboratory.In this master budget, a funding grid is generated and the laboratory can make expenditures according to the budgetary lines awarded to each activity in laboratory.
The budgets are followed and every quarter, a follow up on expenditure is given to the management team at the laboratory to note the movement of all these activities during the previous quarters work plan made.
Forms:
PRF (Procurement Requisition Form)
RFQ (Request for Quation)
Proforma Invoice
Invoice
LPO (Local Purchase Order)
Delivery Note
Goods Received Note
Proforma Invoice Analysis
Copies of other Suppliers’ proforma invoices
SRV (Supplies requisition voucher)
PV (Payment Voucher)
Inventory control worksheet
Completed and uncompleted forms above are filed by the Administrative Assistant.
The records are maintained indefinitely.
7. Related documents
N.A.
8. Related forms
N.A.
9. References
N.A.
10. Attachments / Annexes
N.A.
Source: GLI Stepwise Process towards TB Laboratory Accreditation