INDO-PACIFIC HEALTH & SUPPLY CHAIN DTAC

WAREHOUSES
STANDARD OPERATING PROCEDURES

2020

Prepared by the Indo-Pacific Health & Supply Chain Data & Technical Assistance Centre (DTAC)
in consultation with The mSupply Foundation and Beyond Essential Systems
CONTENTS

Introduction............................................................................................................................................................. 3

Standard Operating Procedures: Receiving Goods from Suppliers

Preparation for Goods Receipt ................................................................................................................. 5
Customs Clearance.......................................................................................................................................... 14
Goods Arrival .........................................................................................................................................................18
Goods Inspection .............................................................................................................................................. 22
Goods Receipt ..................................................................................................................................................... 28
Basic Payments .................................................................................................................................................. 34

Standard Operating Procedures: Processing & Distributing Customer Orders

Order Processing .............................................................................................................................................. 38
Picking & Assembling .................................................................................................................................... 47
Dispatch & Distribution ................................................................................................................................. 53

Standard Operating Procedures: Warehouse Maintenance

Warehouse Storage ....................................................................................................................................... 58
Storage Conditions ........................................................................................................................................... 71
Stocktakes............................................................................................................................................................... 78
Expiring Items ....................................................................................................................................................... 92
Supplementary Orders ............................................................................................................................... 96
Security ................................................................................................................................................................... 103

2
INTRODUCTION

Purpose

The Standard Operating Procedures (SOPs) for Warehouses are a step-by-step

guide to everyday practices undertaken by warehouse staff managing health
supplies in Pacific Island Countries (PICs).

The SOPs are targeted at PICs using the Electronic Logistics Management System
(eLMIS) mSupply to manage health supplies and aims to improve and standardise
warehouse practices across the region.

The SOPs are carefully designed to both reflect current practices and incorporate
procedures to improve, optimise and standardise health commodity management
across PICs.

Implementing the SOPs is a matter of both:

1. Ensuring that day-to-day activities are being done correctly all the time by all
staff
2. Introducing the new activities to improve accuracy and efficiency of the local
supply chain

Measuring Performance

As part of improving our systems, it is important to measure our performance. These

Performance Indicators should be publicly displayed in the National Medical
Warehouse and updated monthly.

1. Percentage (%) of stock stored on the ground (measured by value of stock on

ground/total stock value)
2. Average time from orders being received to dispatch
3. Accuracy of stock in mSupply (measured by monthly audit of 20 random
items)
4. Number of daily spot-check stocktakes performed each month
5. Percentage (%) availability of 100 critical items (measured by number of
critical items in stock/100)

We specify suggested Performance Indicators for monitoring performance against

each SOP in these guidelines.

3
Persons Responsible

The following chart shows the general structure of Procurement, Warehouse and
Distribution systems within a National Pharmacy Division. Of course, the actual
structure will vary from country to country, but this aims to provide a general
overview of the key staff in a well-structured and efficient system. To ensure
accountability, we specify which staff within the overall structure are responsible
for executing each Standard Operating Procedure (SOP) in these guidelines.

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central National Medical Stores (NMS)

Tender Board President

Finance &
Receipt Procurement Warehouse Distribution
Administration
and
Inspection
(R&I)
Committee Director Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Team Transportation Finance

Officer Leaders Chief Officer Officers
Members

(must
include 1 Inventory Cold Chain Accounts
NMS rep. Control Coordinator Officers
and 1 Officer
National
Pharmacy DDA Logistics
Dept rep.) Customs Coordinator Officers
Clearance (rotational)
Officer

Cytotoxics
Shipping Coordinator
Broker

Staff

Security Drivers

4
Standard Operating Procedure: Receiving Goods from Suppliers

PREPARATION FOR GOODS RECEIPT

Purpose

To ensure that stock receipt occurs in an organised, efficient manner with sufficient
time for planning for all stakeholders.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
Inventory Cold Chain Accounts
1 NMS rep.
Control Officer Coordinator Officers
and 1
National
Pharmacy Logistics
Department Customs DDA
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

5
Procedure

1. Supplier informs Contract Management Chief two weeks before a

consignment of goods is due to arrive at the wharf or airport (in writing).

2. Contract Management Chief collates the following documents in

preparation for delivery receipt and checks them against the original
Purchase Order (this should have been created in mSupply when the
order was made) :
• Invoice
• Bill of Lading (sea freight) or Airway Bill (air freight)
• Packing List
• Supporting documentation (such as Certificates of Analysis,
Dangerous Goods Declarations)
• Contract

3. Contract Management Chief emails the following people the above

documents and informs them about the expected delivery date, time
and nature of the delivery:
• Warehouse Director
• Warehouse Manager
• Customs Clearance Officer
• Receipt and Inspection (R&I) Committee
• Cold chain: Also notify Cold Chain Coordinator
• Controlled substances: Also notify DDA Coordinator
• Cytotoxic or hazardous: Also notify Cytotoxics Coordinator

4. Warehouse Director ensures there will be enough staff available that

day to assist with unloading and preparation for inspection.

5. Warehouse Manager prints the Goods Receipt from mSupply and

coordinates clearance of warehouse space in preparation for the
incoming stock.

Performance Indicators

1. Time taken or goods receiving.

6
Process Summary: Preparation for Goods Receipt

Supplier notifies Contract

Management Chief 2 weeks prior to
delivery (in writing)

Documents:
1. Invoice
Contract Management Chief prepares 2. Bill of Lading/AWB
documents and checks against 3. Packing List
original Purchase Order in mSupply 4. Supporting Documents
5. Contract

Contract Management Chief informs

the following people about expected Additional people to notify
delivery date, time and contents for special items

Ensures sufficient
Warehouse Cold Chain
staffing for
Director Coordinator
delivery receipt

Makes space in
Warehouse warehouse, prints DDA
Manager Goods Receipt Coordinator

Customs Prepares for SOP:

Cytotoxics
Clearance Customs
Coordinator
Officer Clearance

R&I Prepares for SOP:

Committee Delivery Inspection

7
mSupply Procedure: Finding a Purchase Order

1. Navigate to the Suppliers tab.

2. Click the Purchase Orders List button.

3. Find the relevant Purchase Order and

double click on the line to open it.

4. Compare the Purchase Order details to

the documents sent by the supplier.

8
mSupply Procedure: Adding a Purchase Order (if not previously entered)

1. Navigate to the Suppliers tab.

2. Click the New Blank Purchase Order

button.

3. Enter the Supplier. You can:

• Type the first few letters and press
tab
OR
• Type the supplier code and press tab
OR
• Type @ and press tab to choose from
a list of ALL suppliers

4. Enter the Requested Delivery date.

5. Click New Line to start items to the

order.

6. Enter the Item to order. You can:

• Type the first few letters and press
tab
OR
• Type the item code and press tab
OR
• Type @ and press tab to choose from
a list of ALL items

7. Enter Number of Packs and Pack Size to

order (the Total Quantity will be
automatically calculated). When
entering quantities, pay close attention
to the Units.

8. Click OK & Next to keep ordering more

items. When you are finished adding
items, click OK to return to the main
Purchase Order screen.

9
9. When your order is complete, click
Confirm. When prompted, click Yes à
Confirm.

10. Click OK to close the window.

Do NOT finalise the Purchase Order.

Once finalised, you can no longer connect a Goods Receipt to the Purchase Order
(i.e. you cannot receive any more items from that order in mSupply).
You will be prompted with an alert if you try to finalise the Purchase Order!

10
mSupply Procedure: New Goods Receipt

1. Navigate to the Suppliers tab.

2. Click the New Goods Receiving button.

3. Enter the Supplier. You can:

• Type the first few letters and press
tab
OR
• Type the supplier code and press tab
OR
• Type @ and press tab to choose from
a list of ALL suppliers

4. Select the correct purchase order (Our

PO ID) by cross-checking against the
local purchase order code (PO
Reference) which should have been
entered when the order was placed. This
is also on the invoice, attached to the
Goods Receipt Form.

5. Enter the supplier’s invoice number in

the Supplier Reference box. This is also
on the invoice, attached to the Goods
Receipt Form.

6. Click Add from Purchase Order to show

a list of items from the purchase order
you selected.

7. Select the items you wish to receive,

then click Use. You can receive multiple
items at once (and change the quantity
received later).

Items are added individually as

orders can be split, arrive
separately or be different from
the original order. mSupply can
monitor all of this for you.

11
8. For each item, a detailed window
appears allowing you to update the
received Quantity, Pack Size, Batch,
Expiry and the Location where you
will keep the stock.

If you are splitting the delivery into

separate locations or multiple
batches have arrived, you can enter
the details in this screen.
• If an item has multiple batch
numbers or expiries, click Add
Line and enter the details of each If you have ordered 1 million amoxicillin
item received. tablets and only 200,000 have arrived in this
• If an item will be stored in delivery, mSupply will record how many have
different locations or if you arrived and remember how many are still on
already have some stock of the the way.
same batch, highlight the line and
click Duplicate Line to copy the
information to a new line, then edit
as required.

9. To specify a Location, you can:

• Type the first few letters and press tab
OR
• Type the location code and press tab
OR
• Type @ and press tab to choose from
a list of ALL locations

If the location is not listed, you can

add a New Location.

10. To move to the next item, click OK &

Next or press Enter on the
keyboard.

12
11. When you are finished specifying
details of all received items, you will
return to the main goods receiving
window.

If the supplier has sent an item that is

not on the Purchase Order, click Add
an Un-Ordered Item and enter all
details.

When you are finished, review the

goods receipt carefully, then click
OK and Confirm when prompted.

Do NOT finalise the Goods Receipt until the items have physically arrived and have
been inspected, accepted and brought into the warehouse.

13
Standard Operating Procedure: Receiving Goods from Suppliers

CUSTOMS CLEARANCE
Purpose

To ensure that all incoming stock is cleared from the receiving facility (wharf or
airport) efficiently and in accordance with all legal requirements and
manufacturer instructions on item handling.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
Inventory Cold Chain Accounts
1 NMS rep.
Control Officer Coordinator Officers
and 1
National
Pharmacy Logistics
Department Customs DDA
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

14
Procedure: Customs Clearance

1. Following SOP: Preparation for Delivery, the Customs Clearance Officer

receives delivery documents from Contract Management Chief (2 weeks
before a consignment of goods is due to arrive at the wharf or airport).

2. Customs Clearance Officer:

a. Checks the estimated delivery date with the Shipping Agency.
b. Sends the documents to the Shipping Broker.

3. Shipping Broker:
a. Records details in the Customs computer system.
b. Calculates the taxes and fees payable.
c. Returns the assessment to the Customs Clearance Officer.

4. Customs Clearance Officer:

a. Confirms that calculated amounts (Tax Declaration) are correct. If there
are any discrepancies or questions, these are clarified with the Contract
Management Chief.
b. Notifies the Shipping Broker to go ahead.

5. Shipping Broker submits the documents to Customs:

a. Customs confirms the amounts, stamps the documents and issues a
Declarant Reference Number and Assessment Notice for NMS to pay.
b. Shipping Broker forwards the Assessment Notice to the Contract
Management Chief.

6. Contract Management Chief attaches an explanatory cover letter to the

Assessment Notice and gives it to the Procurement Director:
a. Procurement Director signs and forwards to the NMS
President
b. NMS President signs and forwards to a Finance Officer to
issue a payment, as per local protocols.

7. Finance Officer pays Customs for the Assessment Notice.

8. Customs issues a payment receipt and relevant local paperwork, such as a

release form indicating whether goods will be released with no inspection, X-
ray scanning or full inspection (which may require NMS to provide daily labour
hire to assist).

15
 9. Customs Clearance Officer takes the payment receipt and
relevant local paperwork to the airport or ports, clears the item
and collects it. For large orders, Shipping Broker arranges
transportation to the warehouse.

10. Additional fees:

a. Storage and handling (particularly if the process takes too long).
Usually, clearance and transport are expected to take only two days.
b. Transportation to the warehouse.

Performance Indicators: Customs Clearance

1. Proportion of inward goods cleared customs within 7 days.

16
Process Summary: Customs Clearance

Customs Clearance Officer receives Documents:

documents from Contract 1. Invoice
Management Chief (2 weeks prior to 2. Bill of Lading/AWB
delivery) 3. Packing List
4. Supporting Documents
5. Contract
Customs Clearance Officer gives
documents to Shipping Broker, who
calculates Tax and Fees payable

Shipping Broker submits documents to

Customs, who issue a Declarant
Reference Number and Assessment
Notice for payment

Shipping Broker sends Assessment

Notice to Contract Management Chief
à Procurement Director à NMS
President à Finance Officer

Other possible payments:

Finance Officer pays Customs for the
Assessment Notice 1. Handling and storage
2. Daily labour
3. Transport to warehouse

Customs issues payment receipt and

other documents, including release
forms à Customs Clearance Officer
takes these to port/airport for release

Customs Clearance Officer collects

items or, for larger deliveries, Shipping
Broker arranges transport to
warehouse

17
Standard Operating Procedure: Receiving Goods from Suppliers

GOODS ARRIVAL
Purpose

To ensure that all incoming stock is intended for the warehouse and prepared
efficiently for inspection.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy
Customs DDA Logistics
Department
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

18
Procedure: Goods Arrival

1. Following SOP: Customs Clearance, the delivery arrives at the

warehouse. Security performs a preliminary inspection of the delivery
documentation to confirm:
• NMS is the correct customer
• The number of containers matches the Clearance Document and
Invoice
• The items are not obviously damaged

2. If the stock has arrived by a returnable shipping container: A standard

form is completed to track the shipping container while it is at the
warehouse, recording the Container Number, Owner, Date of Arrival,
Estimated Date of Pick-Up and Penalty Rates.

3. If the stock is delivered directly to Procurement (e.g. for very small

orders or where goods have been collected directly from the airport or
wharf): A standard form is completed when handing over stock to the
warehouse to create a paper trail of product custody.

4. If a major contamination, infestation or breakage has occurred during

transit: A Team Leader must contact the Warehouse Director before
unloading begins.

5. Warehouse Staff offload the consignment and move stock to the Goods
Receipt area for inspection. Goods should be placed onto suitably sized
pallets in a configuration consistent with local inspection requirements
and good practice.
• Separate goods according to item, then batch number.
• Batch numbers and expiries (where possible) should face
outwards for easy reference.
• Handle all goods with care to prevent damage.

6. If special items have arrived, the Team Leader receiving the delivery must
prioritise these items and immediately notify the relevant people:
• Controlled substances: Inform the DDA Coordinator and ensure
the items are never left unattended. The DDA Coordinator must
take the items to the warehouse safe without delay.

19
 • Cytotoxic or hazardous: Inform the Cytotoxics Coordinator, who
uses safe handling procedures to move stock to the designated
hazardous drugs area.

• Cold chain: Inform the Cold Chain Coordinator, who must

immediately:
o Check the temperature monitor inside each box, and the
quantity and condition of stock against the invoice.
o Move the stock to the cool room.
o For vaccines:
§ Complete a Vaccines Arrival Report (VAR) and email
it to the supplier within 36 hours of receipt.
§ If a temperature monitor in any carton is too low
(below 2o°C), the entire carton must be subject to a
Shake Test.
§ If the temperature monitor in any carton is too high,
each individual Vaccine Vial Monitor (VVM) must be
checked.
§ If the secondary test also fails (too high or too low),
that carton must be rejected and a thorough
inspection of all remaining cartons must be carried
out.

7. When the items are ready for inspection, the relevant Team Leader (or,
where relevant, Coordinator) notifies the Warehouse Manager, who
then contacts the R&I Committee.

Performance Indicators

1. Time taken for goods receiving.

20
Process Summary: Goods Arrival

Delivery arrives at warehouse

Major contamination,
Security performs preliminary infestation or breakage –
inspection Team Leader notifies
Warehouse Director

Warehouse Staff offload consignment

and move stock to Goods Receipt area DDA Coordinator – moves
stock to safe immediately

Cytotoxics Coordinator –
If special stock has arrived, Team uses safe handling
Leader notifies relevant person. procedures to move stock
to hazardous drugs area

When stock is ready for inspection, Cold Chain Coordinator –

Team Leader (or relevant Coordinator checks temperature
for special stock) notifies Warehouse monitor and moves stock
Manager to fridge

Warehouse Manager notifies

R&I Committee that stock is ready for
inspection

21
Standard Operating Procedure: Receiving Goods from Suppliers

GOODS INSPECTION
Purpose

To ensure that all incoming stock is inspected consistently and comprehensively

to support quality assurance of national medical supplies.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy
Customs DDA Logistics
Department
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

22
Procedure: Goods Inspection

1. Following SOP: Goods Arrival, the Warehouse Manager notifies the R&I
Committee that goods are ready for inspection.

2. The R&I Committee inspects all received stock against the invoice. This
includes:
a. Ensuring the correct quantities and items have been supplied.
b. Verifying the received products are approved for procurement.
c. Verifying the descriptions in the product packaging and supplier
documents are identical.

3. The R&I Committee chooses a random sample of each batch being received
and uses a standard form to check:
a. Item matches invoice
b. Invoice matches original order
c. Drugs are BP/USP formulation (or equivalent), as appropriate
d. Packaging clearly labelled in English and easy to understand
e. All items labelled using INN nomenclature
f. Expiry dates meet the specifications in the contract terms
g. Condition
h. Colour
i. Damage
j. Packaging of sufficient strength, quality and still intact
k. Cold chain items: evidence provided that items have been kept at
an appropriate temperature for the entire journey

4. The outcome of the inspection – product approval or rejection – must be

recorded on a standard form (including details of any problems). Each report
must be signed by 2 people: the R&I Committee President and another
committee member.

Inspection: Product Approval

5. If the item satisfies all criteria, the R&I Committee notifies the Warehouse
Manager, who proceeds with the next SOP: Goods Receipt.

6. Controlled substances: Immediately after R&I Committee approval, the

DDA Coordinator enters stock into the DDA Register and this is counter-
signed by another staff member.

23
 Inspection: Product Rejection

7. If the item fails any point on the checklist, the product is rejected.

8. R&I Committee immediately moves the item to the quarantine area.

Each carton must be clearly marked ‘Not For Use –Quarantined’.

9. R&I Committee immediately notifies the Warehouse Manager, who

removes the rejected product from the Goods Receipt in mSupply.
This means it will not appear on the Supplier Invoice but it will still be
on the Purchase Order. A comment can be added to the item on the
Purchase Order to explain why it has not been received into stock
yet.

10. R&I Committee immediately notifies the Contract Management

Chief, who notifies the company of the problem (including a copy of
the R&I inspection report).
a. If minor, the issue can be resolved and the company simply
notified. The item is released into the system.
b. If significant and the item needs to be replaced, the Contract
Management Chief liaises with the company. The item may
either be destroyed or returned; all costs are to be borne by
the supplier.
c. Replacement stock is ordered at no additional charge. If the
original supplier cannot satisfactorily replace the stock, they
must refund any money already paid on the contract, giving
a credit to NMS. They may also forfeit a percentage of their
performance security, depending on the terms of the
contract. In general:
i. Companies are given 30 days to remove the rejected
stock and replace it. If removed before 30 days, no
further warehousing fees should be charged.
ii. Penalties may be payable, depending on the specific
contract conditions.
iii. If the company refuses to replace the product, the
Warehouse Manager should also remove the
product from the Purchase Order in mSupply.
Procurement and Finance commence dispute
processes according to the specific contract
conditions.
iv. In those circumstances, the stock is then sourced
elsewhere by the Contract Management Chief.

24
 11. R&I Committee sends the report to the NMS President, who
endorses it. Alternatively, if procurement was carried out by the
Ministry of Health, the report is sent to the Minister of Health for
endorsement.

12. R&I Committee enters the forms into a Quality Assurance database
and files all hard copies. If a manufacturer has supplied defective
products, this is recorded for later use in the tender assessment
process.

13. R&I Committee send copies of the forms to:

a. Warehouse Manager, who commences SOP: Goods Receipt.
b. Contract Management Chief, who liaises with Finance to
arrange payment per local procedures.

Performance Indicators

1. Time taken for goods receiving.

2. Proportion of items received that fail quality standards.

25
Process Summary: Goods Inspection

Warehouse Manager notifies

R&I Committee when stock is ready for
inspection

R&I Committee inspects ALL stock for

key factors – correct quantities
supplied, approved for procurement,
product descriptions accurate

R&I Committee inspects a random ITEM REJECTED –

SAMPLE of stock for detailed factors R&I Committee moves stock
using a standard form – signed by 2 to quarantine area, notifies
members including President Warehouse Manager &
Contract Management Chief

ITEM APPROVED –
R&I Committee notifies Warehouse
Warehouse Manager (or
Manager to proceed with Goods
delegated Team Leader)
Receipt
removes rejected product
from Goods Receipt in
mSupply

R&I Committee sends forms to NMS

President for endorsement
Contract Management
Chief notifies company of
problem and arranges
replacement or credit as
R&I Committee records form details in appropriate
Quality Assurance database and files
hard copies
If company refuses,
Procurement and Finance
commence dispute
R&I Committee gives a copy of the processes per contract
forms to Warehouse Manager and
Contract Management Chief

26
mSupply Procedure: Editing a Goods Receipt

1. Navigate to the Suppliers tab.

2. Click the Goods Receiving List button.

3. If known, enter the Goods Receiving ID,

otherwise just press OK to show a list of
all Goods Receipts. Double click on the
relevant line to open the Goods Receipt.

4. To remove an item completely, highlight

the line then click Delete Line. For
example, if an entire batch is damaged
on receipt.

5. To edit an item, double click the line to

open the item details. For example, if
you need to edit the quantity being
received due to damage of some stock.

Click OK to return to the main Goods

Receiving screen.

6. When you are finished editing, click OK.

Do NOT finalise the Goods Receipt until the items have physically arrived
and have been inspected, accepted and brought into the warehouse. 27
Standard Operating Procedure: Receiving Goods from Suppliers

GOODS RECEIPT
Purpose

To ensure that all incoming stock is stored in the warehouse efficiently and that
item details are recorded accurately.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy
Customs DDA Logistics
Department
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

28
Procedure: Goods Receipt

1. Following SOP: Goods Inspection, R&I Committee notify Warehouse

Manager when inspection is complete.

2. Warehouse Manager communicates results of inspection with Team

Leaders and coordinates goods receipt activities.

3. Delegated Team Leader opens the Goods Receipt in mSupply and

enters the proposed location of each item. Batches and expiry dates
should have already been entered when the shipment notice arrived
and the Goods Receipt was created (approx. 2 weeks ago). These must
be double checked now and edited/added if required.

4. Team Leader prints the completed Goods Receipt and gives it to the
Warehouse Manager.

5. Warehouse Manager walks through the warehouse to ensure the

proposed locations have sufficient space for the incoming products.

6. When the Warehouse Manager is satisfied everything is correct, they

finalise the Goods Receipt in mSupply – this will generate a Supplier
Invoice.

7. Warehouse Staff physically bring the items into the warehouse in

preparation for storage. Bulk items are placed on pallets.
a. Items are methodically placed in their correct locations
according to the printed mSupply Goods Receipt form.
b. If changes to location are necessary, Warehouse Staff note this
on the Goods Receipt form.
c. When a batch must be stored in different locations due to
insufficient space in any single location, the quantities must be
counted and noted accurately.
d. Team Leader updates changes in the mSupply Goods Receipt.

8. When all stock has been placed in their correct locations in the
warehouse, Team Leader informs the Warehouse Manager.

9. Warehouse Manager confirms the Supplier Invoice in mSupply – this

brings the items into stock, allowing them to be issued later.

29
 10. Warehouse Manager prints the confirmed Supplier Invoice and
sends it to the Warehouse Director who finalises it in mSupply. This
prevents further editing and completes the goods receipt process.

11. Warehouse Director prints and sends finalised Supplier Invoice to

Contract Management Chief for payment per next SOP: Basic
Payments.

Performance Indicators

1. Time taken for goods receiving.

2. Proportion of items correct on physical stocktake.

Process Summary: Goods Receipt

R&I Committee notify Warehouse

Manager when inspection is complete;
Warehouse Manager communicates
result with Team Leaders

Team Leader enters/updates all

details in Goods Receipt in mSupply,
prints it, then gives it to the
Warehouse Manager

Warehouse Manager physically

inspects warehouse locations to
ensure there is sufficient space for
allocated stock

Warehouse Manager finalises the Warehouse Staff physically

Goods Receipt in mSupply, which move the new items to their
generates a Supplier Invoice locations according to the
printed Goods Receipt form

Warehouse Manager forwards Team Leader notifies

Supplier Invoice to Warehouse Warehouse Manager when
Director, who finalises it and forwards stock placement is
to Contract Management Chief for complete
payment

30
mSupply Procedure: Editing, Printing and Finalising a Goods Receipt

1. Navigate to the Suppliers tab.

2. Click the Goods Receiving List button.

3. If known, enter the Goods Receiving ID,

otherwise just press OK to show a list of
all Goods Receipts. Double click on the
relevant line to open the Goods Receipt.

4. To edit an item’s batch, expiry date or

location, double click the line to open the
item details.

5. Click OK & Next to move to the next

item, or click OK to return to the main
Goods Receiving screen.

31
6. To print, click Print Goods Receipt.

7. When prompted, select your preferred

printing option then click OK.

8. When you are sure no further changes

will be made, check the Finalise box and
click OK.

9. When prompted, click the Finalise

button.

10. This will generate a Supplier Invoice

(continued in next procedure).

32
mSupply Procedure: Editing, Printing and Finalising a Supplier Invoice

1. When you finalise a Goods Receipt (see

previous procedure), a Supplier Invoice
is automatically generated and opened.

The Supplier Invoice is automatically

placed on Hold.

2. Double click on a line to edit details,

make any changes and then click OK.

3. To confirm the Supplier Invoice,

uncheck the Hold box and click OK.
Then click Confirm when prompted.
This is performed by the Warehouse
Manager, who then forwards the
Supplier Invoice to the Warehouse
Director.

4. To block further editing, check the

Finalise box and click OK. This is
performed by the Warehouse Director
as the final step in goods receipt.

5. At any stage, the Supplier Invoice can be

printed by checking the Print box before
clicking OK.

33
Standard Operating Procedure: Receiving Goods from Suppliers

BASIC PAYMENTS

Purpose

To ensure payments are made in a transparent manner and in a timely fashion.

This helps to ensure that suppliers have confidence in our ability to pay them.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy Logistics
Customs DDA
Department Officers
Clearance Coordinator
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

34
Procedure: Basic Payments

1. Following SOP: Goods Receipt, Contract Management Chief receives

finalised Supplier Invoice from Warehouse Director, which initiates the
payment process.

2. Contract Management Chief double checks payment amount on Supplier

Invoice with information recorded in other local systems.

3. Contract Management Chief creates a payment request according to

local procedures, and attaches the Supplier Invoice, Purchase Order,
contract and other relevant local documents. These documents are sent
to the NMS President for endorsement.

4. After endorsement by the NMS President (usually in the form of a signed

cover letter), documents are returned to the Contract Management Chief
who forwards them to a Finance Officer.

5. Finance Officer arranges payment according to local procedures,

including obtaining relevant approvals from the Finance Director and
others. Thorough documentation is required.

6. When payment is made, Finance Officer informs Contract Management

Chief (including a copy of receipts).

7. Contract Management Chief records the payment in mSupply.

Performance Indicators

1. % Annual budget executed

2. Total value of invoices received
3. Total value of invoices paid

35
Process Summary: Basic Payments

Contract Management Chief receives

finalised Supplier Invoice from
Warehouse Director

Contract Management Chief cross-

checks the amount, completes a
Payment Request and collates
relevant paperwork

Contract Management Chief gives

documents to the NMS President for
endorsement (usually a signed cover
letter)

NMS President returns endorsed

documents to Contract Management
Chief, who forwards them to Finance
Officer

Finance Officer arranges payment per

local procedures

Finance Officer informs Contract

Management Chief when payment is
completed (and provides receipts)

Contract Management Chief records

payments in mSupply

36
mSupply Procedure: Supplier Payments

1. Navigate to the Suppliers tab.

2. Click the New Payment button.

3. Enter the Name of the supplier you

are paying.

4. View the outstanding invoice

payments in the table and the Total
Outstanding below. An alert will
appear if there are no outstanding
payments due.

5. Choose the Payment Currency from

the dropdown list, if applicable.

6. Enter the Payment amount and press

tab on the keyboard.

7. Click Distribute. This will automatically

distribute the payment to each
outstanding invoice. If necessary, you
can redistribute the payment amounts
manually.

8. Click OK to finalise the payment. To

print, check the Print box before
clicking OK.

37
Standard Operating Procedure: Processing & Distributing Customer Orders

ORDER PROCESSING
Purpose

To ensure that customers are ordering stock in a standardised manner and

that orders are received and managed efficiently.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy
Customs DDA Logistics
Department
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

38
Procedure

1. Facilities place their orders in mSupply according to published

schedules:
a. mSupply Desktop = Internal Order
b. mSupply Mobile = Supplier Requisition
c. Not using mSupply = paper order

2. Authorisation by specific people may be required before orders are sent

according to local policy (e.g. National Director of Pharmacy, NMS
President).
a. An authorisation request may be approved or denied, either
remotely or by logging into mSupply.
b. If an authorisation request is not attended to within a
predetermined period (e.g. 4 days), the request is automatically
authorised.

3. Internal Orders appear as Requisitions in mSupply at NMS.

a. Team Leaders monitor incoming Requisitions for their allocated
facilities or programs.
b. If a facility is not using mSupply, the relevant Team Leader must
manually enter the paper order as a Requisition in mSupply.

4. Relevant Team Leader creates a Customer Invoice and uses mSupply to

automatically allocate stock according to FEFO (“First Expiry, First Out”).
a. If items are available, they are supplied at the discretion of NMS.
b. If items are not available, they cannot be supplied.

5. Team Leader prints the unconfirmed Customer Invoice – this is used as

the Picking Slip.

6. Team Leader annotates and signs the Picking Slip with the following
note: “Ready for assembly – given to [Warehouse Staff Name]
DD/MMM/YY”.

7. Team Leader gives the Picking Slip to the Warehouse Staff member
responsible for assembling the order. Other staff may help, but ONE staff
member takes responsibility for assembling the order as efficiently and
accurately as possible as per SOP: Picking & Assembling Orders.

39
Performance Indicators

1. Average time from order receipt to picking.

2. Average time from order receipt to dispatch.
3. Total number of orders filled and dispatched.

Process Summary: Order Processing

Facility places Internal Order in

mSupply, which appears as a
Requisition in mSupply at NMS

If required, order is sequentially

authorised by relevant people in
mSupply

Relevant Team Leader reviews Team Leaders are

Requisition, prepares Customer responsible for monitoring
Invoice in mSupply and prints Picking and processing incoming
Slip Requisitions for their
facilities and programs

Team Leader gives Picking Slip to

responsible Warehouse Staff member
who prepares the order per SOP:
Picking & Assembling Orders

40
mSupply Procedure: Creating an Internal Order (Procedure for NMS Customers)

1. Navigate to the Suppliers tab.

2. Click Internal Orders.

3. Click New Internal Order.

4. If your store uses programs, choose whether to create a Program or General order.
(If your store does not use programs, a General order will automatically be created).

If you create a Program order, enter the

Supplier and select the Program,
Requisition Type and Period, then click OK.
If you create a General order, just click OK.

41
5. This will create a Supplier Requisition.

A supplier requisition is a
request to the supplier to give
you some items. It is up to the
supplier to decide whether to
give you the items and, if so, to
create a stock transfer.

6. Enter the name of the Name of the store

you wish to order from. Your regular
supplier is prefilled but can be changed
if necessary.

7. To add items one-by-one, click New

Line. To add items from a master list,
click Add from Master List.

If you created a Program order, all the

items in that program will automatically
be added to your order and you will not
be able to add other items.

8. Search for the item to order. Remember,

you can:
• Type the first few letters and press
tab
OR
• Type the item code and press tab
OR
• Type @ and press tab to choose
from a list of ALL items

You obviously do not have to

select batch or expiry.
Remember, you are just
requesting these items. The
supplying store will choose
which stock to supply.

42
9. mSupply will automatically calculate your order for you.

The Calculated Quantity is what the system recommends you should order based on
your average usage, current stock on hand and maximum months of stock (MOS) you
wish to keep. The calculated quantity will change if you adjust the Max MOS field.
You can also set a rule to not order an item if you already have more than a certain
amount in stock. For example, if you don’t want to order any items that already have at
least 2 months’ worth of stock, you can set this rule by entering 2 into the Threshold
MOS field.
The User Requested Quantity is what you actually want to order. Usually, this will be
the same as the Calculated Quantity but you can change it if necessary (e.g. a recent
disease outbreak).
10. Review your order carefully.

11. When you are ready to send your order, check

the Finalise box and click OK. This will send your
requisition to your supply store and block any
further editing.

OR

If your facility requires authorisation

before orders can be sent, click the
Authorisation tab then click Request
Authorisation. This will send an alert to
the authoriser to review the order You
can check the status of authorisation
requests by returning to this screen at
any time. Once all the relevant people
have given approval, the Finalise box will
be available – check the Finalise box
and click OK to send the order.

43
mSupply Procedure: Authorisation Request Responses (Process for Authorisers)

1. When an authorisation request is made,

authorisers receive an email containing a link to
the web app.

2. Authorisers log in using their mSupply username

and password.

3. Once logged in, the authoriser can see all

pending (and previous) authorisation requests.
• To view a transaction, click the Download icon. A PDF will open in a new tab.
• To comment on a transaction, click the icon in the Comment column. The comment
you enter will be shown on the Authorisation tab in mSupply.
• To approve transactions, check the box(es) in the Selected column then click
Approve Selected.
• To deny transactions, check the box(es) in the Selected column then click Deny
Selected. You must enter a comment explaining why the transaction has been denied.

4. If you will be unable to authorise transactions

(e.g. going on leave), click the Active
Authoriser button to change yourself to
an Inactive Authoriser. Click again to change
yourself back to an active authoriser when you
resume your regular duties.

44
mSupply Procedure: Processing a Requisition (Creating a Customer Invoice)

1. Navigate to the Customer tab.

2. Click Requisitions.

3. Requisitions that have been sent by

customers will automatically
appear in this list.

All requisitions that have not

been processed will have a
suggested (sg) status.

If your customer has sent a paper

order, you must manually enter it by
clicking New Customer Requisition.
4. Double click the requisition you
wish to process.

5. Review the customer’s order. For each item, you can see:
• Our Stock on Hand: the stock in your store
• Customer Current Stock on Hand: the customer’s stock
• Customer Monthly Usage: the customer’s average monthly consumption
• Our Suggested Quantity: the quantity mSupply thinks they should be ordering
• Customer Requested: the actual quantity requested
• Already Issued: how much stock has already been issued from this requisition
on previous customer invoices
• Remaining to Supply: how much stock still needs to be supplied to fulfil this
requisition
• Comments: if ordering a different quantity to what mSupply has suggested,
the customer may leave a comment explaining why

45
6. Enter the quantities you will supply in the Supply this Invoice column. If required,
you can also edit the Comments section.

7. When you have entered all quantities to supply, click Create Customer Invoice.

8. A customer invoice will be created based on the quantities you entered in the
requisition screen.

All items will appear in red.

These are placeholder lines: you now need to allocate specific stock to be issued.

9. To allocate specific stock to issue, you have 2 choices:

• Double click each

line and choose
stock manually; or

• Use the
Magic Button to
automatically
allocate stock to all
item lines according
to FEFO (First to
Expire, First Out)!

Click the Magic

Button, then click
Issue Stock for all
Placeholder Lines.

10. Instantly, all the items are allocated according to FEFO.

• Items that are not available remain in red.
• Items that did not have enough quantity in one batch will automatically be
allocated across two batches (as you can see here with aspirin).

11. Review carefully. To make any changes, double click the line to open the detailed
window. To delete a line, select it and click Delete Line(s).
12. To print a Picking Slip, check the Print box and click OK. Select your preferred
printing method when prompted.

46
Standard Operating Procedure: Processing & Distributing Customer Orders

PICKING & ASSEMBLING

Purpose

To ensure that orders are picked and assembled in a timely and accurate
manner.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy
Customs DDA Logistics
Department
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

47
Procedure: Picking & Assembling

1. Following SOP: Order Processing, Team Leader gives responsible

Warehouse Staff member a printed Picking Slip. Other staff may help, but
ONE staff member takes responsibility for assembling the order as
efficiently and accurately as possible.

2. Team Leader coordinates the picking process and supervises Warehouse

Staff, ensuring orders are assembled efficiently and accurately.

3. As stock is picked off the shelves, Warehouse Staff:

a. Tick the Picking Slip to indicate they have completed that line.
b. Clearly mark the Picking Slip wherever there is a discrepancy or
change (e.g. different quantity, location or batch number, or if the stock
on Picking Slip is unavailable).
4. Stock picked from the shelves is placed in a box clearly marked with the
customer’s name to prevent confusion and errors. Stock being assembled
for an order must be clearly separated from warehouse stock.

5. If using recycled boxes for assembling orders, Warehouse Staff must clearly
mark that the box no longer contains its original contents. They should use
a dark marker to cross out previous markings on all sides of the box and
write ‘REPACKED’ in large letters.

6. The Team Leader should consult relevant staff for the following:
a. Forklift required: Forklift-accredited member of staff.

b. Cold chain: Cold Chain Coordinator.

i. Assemble immediately prior to dispatch. Vaccines should only

be packed when transport is fully arranged and departure is
imminent.
ii. The packing container used for cold chain items depends on
the mode of transport.
• Polystyrene cool-boxes: May be used for flights or
transport that will arrive at the destination within 6-12 hours.
• Large, hard-bodied cold-boxes: Must be used if using
ships or long-distance transport. These can keep vaccines
at an appropriate temperature for up to 72 hours in normal
conditions.
• Small vaccine carriers: May be used if walking or using
other means to reach difficult-to-access communities,
where large containers are impractical.

48
 iii. All packaging must be used following the manufacturer’s
specifications. Before use in packing, ice packs should be removed
from the freezer and left at room temperature until no longer solid
inside. When the ice pack is shaken, movement should be felt
inside. This indicates they are ready to be used and packed inside
cool containers.
iv. Prepared ice packs are used to line containers and only then
should vaccine vials be removed from the cool room and placed
in the cool container. The container is then immediately closed and
all seals are firmly taped.
v. Where necessary, separate diluents (for reconstitution) and
droppers (for oral vaccines) must also be packed. These may be
packed within the cool container (if space allows) or packed
separately (but sent together).
vi. Once the cool container is sealed, it is then labelled. Labels should
clearly indicate they are cool items and not part of normal stock. If
available, pre-prepared stickers may be used. If not, template
labels should be made, printed and clearly affixed to the container.

c. Controlled substances: DDA Coordinator.

i. Assemble immediately prior to dispatch and package separately to

other stock.
ii. DDA Coordinator and Team Leader notify the Warehouse Manager,
who gives them the DDA safe key.
iii. DDA Coordinator picks the required stock from the safe and makes
an entry in the DDA Register, recording the item, quantity removed,
quantity remaining, date, invoice number, time and place of issue.
iv. The DDA Register entry is counter-checked and counter-signed by
the second staff member. Both officers must physically count the
remaining stock before signing.
v. When the stock is removed from the safe, both staff members also
counter-sign the Picking Slip.
vi. The signed Picking Slip is given directly to the Responsible Officer
for distribution of that delivery, who takes responsibility for it until it
reaches the receiving facility.

d. Cytotoxic or hazardous: Cytotoxics Coordinator.

i. Assemble using safe handling/packaging methods.

ii. Package separately to other stock and clearly mark box with a
cytotoxic or hazardous label.

49
 7. The last Warehouse Staff member to pick stock for the order informs the
Team Leader when it is ready for inspection.

8. Team Leader and the responsible Warehouse Staff member jointly check
the assembled order against the Picking Slip. When verified (and any
errors corrected), both sign the Picking Slip.

9. Team Leader reopens the Customer Invoice in mSupply, updates it with

any changes noted on the Picking Slip, and confirms it.

10. Team Leader prints and signs the confirmed Customer Invoice.

11. Team Leader hands the confirmed Customer Invoice to the Warehouse
Manager, who finalises it in mSupply.

12. Warehouse Manager prints and signs 4 copies of the finalised Customer
Invoice and returns them to the Team Leader.

13. Team Leader hands paperwork and assembled order to the

Transportation Chief Officer for dispatch (see next SOP: Dispatch &
Distribution).

Performance Indicators

1. Average time from order receipt to picking.

2. Average time from order receipt to dispatch.
3. Total number of orders filled and dispatched.
4. Proportion of orders with 100% picking accuracy.

50
Process Summary: Picking & Assembling

Team Leader prints Picking Slip and

hands it to a Warehouse Staff member

Warehouse Staff pick the items from Cold chain, controlled

the locations in their section and substances and
passes it to the next team member cytotoxic/hazardous
items are handled by
relevant coordinator,
The order is assembled in clearly assembled just prior to
marked boxes for the customer dispatch and packaged
separately from other
items
Team Leader and responsible
Warehouse Staff member check
complete assembled order
Warehouse Manager
finalises, prints and signs 4
copies of the Customer
Team Leader enters any changes into
Invoice, then hands back
the Customer Invoice in mSupply, then
to Team Leader
confirms, prints and hands it to the
Warehouse Manager
Team Leader hands
paperwork and assembled
order to Transportation
Chief Officer for dispatch

51
mSupply Procedure: Editing, Confirming, Finalising & Printing a Customer Invoice

1. Navigate to the Customer tab.

2. Click the Customer Invoices List button.

3. Search for the Invoice Number and click

Find to open it.

If you don’t know the Invoice Number, leave

the box blank and click Find to show a list of
the most recent transactions, then double
click the relevant Customer Invoice to open
it.

4. After the order has been assembled,

Team Leader makes any required
changes to the Customer Invoice,
then clicks Confirm à Yes.

The Customer Invoice status will change to Confirmed (cn).

5. Warehouse Manager checks the Finalise box and clicks OK to

prevent further editing.

6. To print at any time, check the Print box before

clicking OK.

7. When the Customer Invoice window closes, you will return to the Requisition window.
If you didn’t have enough stock to fulfil the Requisition and intend to issue more
Customer Invoices from it later, click OK to keep the Requisition unfinalised.
If you have supplied everything off the Requisition (or you do not intend to supply any
more), check the Finalise box and click OK to block other Customer Invoices from being
created from it.

52
Standard Operating Procedure: Processing & Distributing Customer Orders

DISPATCH & DISTRIBUTION

Purpose

To ensure that orders are dispatched in a timely fashion and arrive at their
destination complete and in good condition

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy Logistics
Customs DDA
Department Officers
Clearance Coordinator
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

53
Procedure: Dispatch & Distribution

At the end of each year (November or December), the Warehouse Director

prepares a schedule of deliveries for each customer for the next year. This
should be based on the National Distribution Plan.

1. Following SOP: Picking & Assembling, Team Leader hands paperwork (4

copies of finalised Customer Invoice) and assembled order to
Transportation Chief Officer for dispatch.

2. All boxes are clearly labelled with their destination and moved to the
dispatch area of the warehouse.

3. Transportation Chief Officer allocates the dispatch of the order to a Driver.

4. Warehouse Director allocates a Team Leader or Warehouse Staff member

to accompany the order as the Responsible Officer.

5. Special items require additional considerations by the Responsible Officer

during dispatch:

a. Cold chain: Ensure the container is appropriately stored in transit.

b. Controlled substances: Responsible for security of controlled
substances until arrival at the destination.
c. Cytotoxic or hazardous: Ensure items are stored securely in the
vehicle to avoid spills or breakage during transit.

6. Warehouse Director prepares a per-diem approval document for the

Driver and Responsible Officer, who take this to a Finance Officer.

7. Finance Officer issues a cash per-diem according to standard rates for a

same-day trip or overnight trip.

8. Logistics Officer issues a fuel voucher to the Driver, which is given to staff
at the petrol station and used for reconciling the fuel account. Logistics
Officer is responsible for maintaining accounts at appointed fuel stations.

9. Before leaving the warehouse, Responsible Officer calls receiving facilities

to ensure they will be open upon arrival and that there will be additional
staff to help unload larger orders.

10. Upon arrival at the facility, the Driver and Responsible Officer help to
unload the order with local staff and then count it, in the presence of the
Pharmacy Officer or Nurse in Charge.

a. Cold chain: Responsible Officer is responsible for ensuring goods

are placed in fridges immediately upon arrival. Cold Chain items
cannot be offloaded or stored in shipping warehouses. Responsible

54
 Officer must also communicate the arrival time to the Cold
Chain Coordinator; this should also be noted on each copy of
the Customer Invoice.

b. Controlled substances: Responsible Officer and facility staff

member must sign each copy of the Customer Invoice to note
handover of each controlled substance. At this point, facility
staff take custody of the products. Controlled substances must
not be left unattended at any stage and must be taken straight
to the safe where it is entered into the DDA Register and signed
by two staff members.

11. There are 4 copies of the Customer Invoice. Each one is marked as
correct and signed by the facility staff member and the Responsible
Officer.
a. If something is missing or incomplete, facility staff note this on
the invoice.
b. If items with short expiration have been included, the facility
may reject it and mark this on the invoice.

12. One copy of the signed Customer Invoice remains at the facility, and
the Responsible Officer takes the remaining 3 copies back to the
warehouse.

13. Upon return to the warehouse, the Driver updates the vehicle logbook
and the Responsible Officer distributes the 3 signed Customer Invoices
to the relevant people.
a. Transportation Chief Officer
b. Warehouse Manager
c. Finance Officer

Performance Indicators

1. Total number of orders filled and dispatched.

2. Proportion of orders with 100% picking accuracy.
3. Average time from order receipt to picking.
4. Average time from order receipt to order filled.
5. Average time from order receipt to order dispatched.

55
Process Summary: Dispatch & Distribution

Transportation Chief Officer allocates Special considerations for:

Driver; Warehouse Director allocates 1. Cold chain items
Responsible Officer to accompany
2. Controlled substances
delivery
3. Cytotoxic or hazardous
substances

Driver and Responsible Officer collect

standard per diems from Finance
Officer for same-day or overnight trip

Logistics Officer ensures fuel account

is up-to-date and issues fuel voucher
to Driver

Responsible Officer calls facility

ahead of time to plan arrival (prior to
leaving warehouse)

At facility, Responsible Officer and

Invoices go to:
Facility Staff Member check delivery
1. Receiving Facility
and sign 4 copies of the Customer
2. Transportation Chief Officer
Invoice
3. Warehouse Manager
4. Finance Officer

When back at NMS, Driver completes

the vehicle logbook and Responsible
Officer distributes signed Customer
Invoices

56
57
Standard Operating Procedure: Warehouse Maintenance

WAREHOUSE STORAGE

Purpose

To ensure all stock items are stored appropriately and can be easily located
within the warehouse at all times.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy Logistics
Customs DDA
Department Officers
Clearance Coordinator
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

58
Procedure: Warehouse Storage

General Storage

1. Items should be stored on shelves. If absolutely necessary, only waterproof,

non-perishable items may be stored on the floor.

2. Items with short expiry dates should be stored in easily accessible, low-shelf
locations. Bulk items with long expiry dates may be stored in higher, more
inaccessible areas.

3. Fragile items should be moved by hand where possible.

4. Stock marked ‘This Side Up’ should be stored accordingly.

5. Team Leaders and Coordinators of special stock (Cold Chain, DDA,

Cytotoxics) are responsible for their own sections in the warehouse. This
may be overseen by the Warehouse Manager and/or Director.

Specifically, they should regularly inspect their areas to:

a. Ensure mSupply reflects actual storage in the warehouse.

i. If a discrepancy between mSupply and the warehouse is found,
Warehouse Staff must immediately inform their Team Leader.
ii. The Team Leader should:
• Cross-check other batches and locations to determine if
an error has occurred
• Undertake physical inspections of batches to ascertain the
cause and extent of the error
iii. All items in the warehouse should be added to mSupply, even if
they were not ordered (e.g. donated stock accepted by the NMS
President or sample stock sent by a supplier),

b. Ensure stock is being stored efficiently.

i. Small amounts of stock stored in different locations à
consolidate stock into the same area
ii. ‘Next to expire’ stock stored in a high, inaccessible location à
move to a low, accessible location
iii. Insufficient space for incoming goods à rearrange stock to make
room for incoming goods
iv. If stock needs to be moved, determine the new location and work
with Warehouse Staff to physically move the stock.

59
 c. Ensure stock is not expired, damaged or otherwise subject to removal
(e.g. deletion from Essential Medicines List, product recalled).
i. Work with Warehouse Staff to physically move such stock to the
Quarantine Area or Expired Items Area.
ii. Every container must be clearly marked: ‘ITEMS FOR
DESTRUCTION – DO NOT USE.’
iii. Items should be destroyed as per the local policy for disposal of
pharmaceutical waste.
iv. One Team Leader is also responsible for regularly monitoring
and coordinating removal of expired stock throughout the
warehouse: see SOP: Expiring Items.
6. In addition to local documentation, the Team Leader (or Coordinator of
special stock) must make the appropriate updates in mSupply:

Warehouse Issue or Change Update in mSupply

Discrepancy Between mSupply and Warehouse

Item found in the wrong location (but correct Update Location

batch number, expiry date, quantity)
Stocktake (single-item)
Item discovered in warehouse but not in OR Positive Inventory
mSupply at all Adjustment

Item in mSupply but cannot be found Stocktake (single-item)

anywhere in the warehouse after an OR Negative Inventory
extensive search Adjustment

Unordered item entering warehouse (e.g. Supplier Invoice (manual)

donated stock, sample stock from supplier)
Stock Movement

Moving all stock of one batch to a different Update Location

location
Moving some stock of one batch to a Split Stock
different location
Moving stock of one batch currently stored Consolidate Stock
in different areas to the same location
Stock Destruction

Destroying damaged or expired stock Negative Inventory Adjustment

60
Performance Indicators

1. Proportion of items correct on physical stocktake

2. Proportion of items stored on the ground
3. Proportion of orders with 100% picking accuracy
4. Time to prepare orders

61
mSupply Procedure: Moving Stock

1. Navigate to the Item tab.

2. Click the Item List button.

3. Search for the item, then click Find.

The default search is by Item Name,

but you can change this to Item
Code.

There are many filters to help you

search (e.g. Starts With, Contains…)

4. Double click the item to be moved.

5. Click the Stock tab to see all the

available stock of that item,
separated by batch and location.

In this example, there are 3

batches of amoxicillin all stored in
the same location (Blue Shelf).

62
Update Location

If you want to move all stock from

one location to another, you need to
change the location of the entire item
line.

1. Complete Steps 1-5 above,

then double click the line to
move. This will open a
detailed window.

2. Enter the new Location for

all the stock in the line.

3. Click OK.

Split Stock
If you want to move some stock of the
same batch to a different location,
you need to Split the stock. This is
used when you have stock of the
same batch that need to be stored in
different locations because, for
example, they don’t all fit in one place.

1. Complete Steps 1-5 above, then

click the line to split.

2. Click Split.

3. Enter the Quantity to Split (i.e. the quantity to move).

4. Enter the New Shelf Location of the moved stock.

In this example, 5 of 30 packs are being moved to the
Red Shelf.

5. Click OK.

63
 We can see 5 packs are now stored in
the Red Shelf, while the remaining 25
packs of the same batch are still in
the Blue Shelf. The total quantity is
still 30.

Consolidate Stock
If you want to move stock of the same
batch to the same location, you need
to Consolidate the stock. This is used
when you have stock of the same
batch stored in two locations, and you
want to bring them together.

1. Select the two lines to consolidate

(press Control on the keyboard +
click the lines).

2. Click Consolidate.

3. Choose which location to Keep (green) – this is where all selected stock will be moved.
Note that the other location will automatically switch to Merge (red).

In this example, we will move all stock to the Red Shelf.

64
4. Click OK.

We can all 30 packs are now stored in

the Red Shelf. None of this batch is
stored in the Blue Shelf.

65
mSupply Procedure: Removing or Destroying Stock

If you want to remove stock from the warehouse for destruction or quarantine, you need to
perform either a Negative Inventory Adjustment (enter the quantity removed) OR Stocktake
(enter the quantity remaining after stock is removed).

Negative Inventory Adjustment

Use this option if you want to enter the quantity of stock being removed.

1. Navigate to the Item tab.

2. Click the Inventory Adjustment –

Reduce Stock button.

3. Select a Category from the

dropdown list to explain why stock
is being reduced.

4. Click New Line to start selecting

items requiring adjustment.

5. For each item, double click the

relevant Line requiring adjustment,
making sure the Batch and
Location are correct.

6. Enter the Quantity of that item

line being removed.

In a Negative Inventory
Adjustment, you are
entering the quantity being
removed from stock.

66
7. Click OK & Next to keep
entering items to adjust, or
click OK to return to the main
inventory adjustment screen.

8. Check that all information

entered is correct. When you
are sure you don’t want to
make any more changes,
check the Finalise box and
click OK.

If you want to print a record

of the transaction, check the
Print button before clicking
OK.

Stocktake

Use this option if you want to enter the quantity of stock remaining after
removal/destruction
1. Navigate to the Item tab.

2. Click Stocktakes.

3. Click New Stocktake.

4. Search for the item you want to update, then

click OK.

67
5. Find the item line requiring adjustment,
making sure it has the correct Batch and
Location.

6. Review the Snapshot Quantity (what x x

mSupply thinks you have).

Enter the new correct quantity in the

Enter Quantity column.

In a Stocktake, you are entering the

total remaining quantity of stock
(i.e. after the unusable goods have
been removed or destroyed)

7. To finish the stocktake and update mSupply

stock levels, click Create Inventory
Adjustments and Confirm when prompted.

68
mSupply Procedure: Adding Unordered Stock (e.g. Donations or Samples)

1. Navigate to the Suppliers tab.

2. Click the New Supplier Invoice button.

3. Enter the Supplier.* You can:

• Type the first few letters and press tab
OR
• Type the supplier code and press tab
OR
• Type @ and press tab to choose from a
list of ALL suppliers

4. Click New Line to start entering received

items.

5. Enter the received Item details. You can:

• Type the first few letters and press tab
OR
• Type the item code and press tab
OR
• Type @ and press tab to choose from a
list of ALL items

6. Enter Number of Packs and Pack Size

received (the Total Quantity will be
automatically calculated). Carefully enter
the Batch, Expiry, Location and other
details as appropriate.

7. Click OK & Next to keep entering more

received items. When you are finished
adding items, click OK to return to the main
Supplier Invoice screen.

8. When you are sure no further changes

will be made, check the Finalise box and
click OK. If you want to print the Supplier
Invoice, check the Print box before
clicking OK.

69
* If you are receiving stock from someone who isn’t a regular supplier (e.g. an organisation
donating stock), you will need to add them as a new Supplier in mSupply first.

To add a new Supplier:

1. Navigate to the Suppliers tab.

2. Click the New Supplier button.

3. Enter the details of the new supplier.

The minimum details to enter are the

Code, Charge To (automatically
completes when you enter the code) and
Name.

4. Enter as many details as you can now to

save you time later.

If you use supplier Categories, enter

them here too. Note that the Supplier
checkbox is already ticked.

5. When you are finished, click OK.

Now you can receive stock from this Supplier.

70
Standard Operating Procedure: Warehouse Maintenance

STORAGE CONDITIONS

Purpose

To ensure that medicines and medical supplies are stored appropriately

according to labelled storage requirements. This ensures product safety and
efficacy is maintained,

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy Logistics
Customs DDA
Department Officers
Clearance Coordinator
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

71
Procedure: Storage Conditions

Room Temperature

1. The temperature of the main warehouse should be below 25°C

whenever possible and should never exceed 30°C. Common storage
terms on product labelling:
a. Store at room temperature: 15-25°C.
b. Store at ambient temperature: 15-25°C, up to maximum 30°C.
c. Keep cool: 8-15°C.

2. To monitor warehouse temperature, a series of thermometers are to

be installed throughout the facility, in various locations and at different
heights. These thermometers should automatically report data to an
electronic database, which should be monitored periodically by the
Cold Chain Coordinator.

3. To facilitate room temperature regulation, the following measures

should be strictly adhered to by all staff:
a. The main roller doors should only be opened when receiving
or dispatching stock.
b. Keep all external doors and windows closed unless in use.
c. The air conditioning system must be regularly maintained, with
filters to be cleaned monthly and repairs carried out
immediately as required. A comprehensive program of
maintenance must be contracted to a reliable and suitable local
supplier who is familiar with all air conditioning infrastructure in
use at the warehouse.
d. Ensure there are gaps between pallets stored on shelves to
allow air flow.
e. Do not store items on the ground, wherever possible.
f. Never store items in front of air conditioners or ventilation ducts.

72
Cold Chain

1. The temperature in the fridge(s)/cold room must be maintained at 2-8°C.

Common storage terms on product labelling:
a. Refrigerate, do not freeze: 2-8°C.
b. Store frozen: -20°C.

2. Store cold chain items in fit-for-purpose cool rooms. Sometimes, it may be

necessary to use additional refrigerators due to space issues or where cool
rooms are not available.
a. Refrigerators that open on the top are more efficient than vertical ones,
because hot air rises while cold air falls.
b. The coldest part of vertical refrigerators is at the bottom.
c. Store products that are sensitive to freezing or very low temperatures
on the upper shelves.
d. Always have enough frozen icepacks to transport cold chain items in
cold boxes and/or vaccine carriers. Use only icepacks filled with water.
Do not use icepacks prefilled with other liquids, which are usually blue
or green. When ordering cold chain equipment, larger facilities should
reassess the needs for icepacks and icepack freezer space.
e. If there is enough space, place a few plastic bottles of water in the
refrigerator. This will help maintain the temperature for a longer period
of time if the power is cut off.
f. To increase air circulation, ensure there is adequate space between
multiple refrigerators and freezers, and that they are placed about an
arm’s length away from the wall.
g. If air conditioning is not possible, install fans around the equipment to
increase airflow. Place fans so that the air also flows in the spaces behind
the refrigerators.
h. Ideally, larger facilities should have a cold room rather than numerous
refrigerators.

3. To facilitate cold chain temperature regulation, the following measures should

be strictly adhered to by all staff:
a. Ensure adequate space between items to allow air flow.
b. Where possible, all individual items should be removed from large
packing containers or boxes and stored on shelves – this does not mean
individual vials should be removed from small boxes but items should
be unpacked from large shipping boxes.

73
 c. Items should not be placed on the floor, stored near the
compressor, too close to the door or at extreme highs or lows in
the cool room. If a multi-log temperature monitoring system is
in place, this may be used to guide placement of stock.
d. In smaller fridges, ice packs or water bottles may be placed at
intervals between the items. This can help mitigate temperature
increases in the event of power outages.

4. Ideally, the temperature in the fridge(s)/cold room is monitored constantly

by a multi-log temperature monitoring system which uses 16 sensors to
constantly record temperatures and feed data into a software system. This
can be monitored via mSupply Mobile, with thresholds set to alert the Cold
Chain Coordinator of any temperature breaches.

5. Alternatively, the Cold Chain Coordinator manually monitors the

temperature in the fridge(s)/cold room twice daily (morning and afternoon
before departure) and records these on a standard Fridge Temperature
Monitoring Chart.

6. A contract will be signed with an external service company for an agreed

program of fridge/cool-room maintenance, servicing and calibration of
measuring devices. All fridges, cool-rooms and freezers must be serviced
bi-annually and repaired immediately whenever a problem is noticed.

7. Measuring devices should be part of a calibration program.

a. Any instrument used to measure a parameter such as
temperature or humidity, in any storage area must be calibrated.
b. Each instrument will have a unique number.
c. The documented list will indicate where on the premises the
instrument can be found. This record will be held by the Cold
Chain Coordinator and the external service provider.
d. Calibration will be conducted by a service company who has
standards that are traceable to an internationally recognised
standard (such as the national standard in Australia or New
Zealand), or as agreed in accordance with the cool-room
manufacturer specifications.
e. A copy of the method of calibration needs to be given to the
Cold Chain Coordinator with the calibration certificate.
f. All thermometers should be calibrated initially when purchased
and continue to do so annually.

74
 g. All chart recorders and fixed temperature gauges are to be
calibrated annually.
h. Should malfunction of any measuring device be suspected, the
device should immediately be calibrated.
i. A log of maintenance/repair is to be kept on the Calibration Log
of each instrument being calibrated.
j. Limits: All temperature gauges should be accurate to within 0.5°C.
k. Calibration Stickers: Each portable device should be marked
with its unique number and contain a sticker with the following:
i. Instrument/device number
ii. Date of calibration
iii. Date of next calibration
l. Certificates of Servicing and Calibration are to be retained with the Master
Calibration Log for a minimum of 5 years

Additional Considerations for Storage in Tropical Areas

The following are examples of common medicines that have poor stability
under tropical (hot, humid) conditions. It is not an exhaustive list.

Oral solids (tablets)

• Acetylsalicylic acid
• Amoxicillin
• Ampicillin
• Penicillin V (Phenoxymethylpenicillin)
• Retinol

Oral liquids (syrups or mixtures)

• Paracetamol

Injections
• Adrenaline (Epinephrine)
• Ergometrine
• Methylergometrine
• Reconstituted antibiotics

Humidity

When a product label states, “Protect from Moisture”, store the

product in a space with no more than 60% relative humidity.

To reduce the effects of humidity consider:

75
 • Ventilation: Open the windows or air vents of the storeroom to allow
air circulation. Ensure all windows have screens to keep out insects and
birds, and either have bars or are not open wide enough for anyone to
climb in. Put boxes on pallets, ensuring there is space between pallets
and walls and leaving room between rows of stacked boxes.

• Packaging: Secure all lids. Never open a new container unless

necessary.

• Circulation: Use a fan to circulate fresh (outside) air. In smaller

storerooms, standing fans may be sufficient. In bigger storerooms, a
ceiling fan may be necessary. This requires electricity and some
maintenance.

• Air conditioners: If possible, use an air conditioner. This is costly,

depends on a constant supply of electricity, and requires regular
maintenance. Depending on climatic conditions, a dehumidifier may be
a less costly option. However, they also need a constant supply of
electricity and require regular attention to empty the water containers.

Sunlight

Some products are photosensitive and will be damaged if exposed to

light. These include multiple vitamins, furosemide, chlorpheniramine
maleate, hydrocortisone, latex products (such as male condoms), and x-
ray film.

To protect products from sunlight:

• Keep direct sunlight out of the storeroom by shading the windows
or using curtains.
• Keep products in cartons.
• Do not store or pack products in sunlight.
• Use opaque plastic or dark glass bottles for products that require
them.
• Maintain trees on the premises around the facility to help provide
shade, but check them regularly to ensure that there aren’t any
branches that can damage the facilities.

Heat

Heat affects many products. It melts ointments and creams and causes
other products to lose their efficacy.
• Protecting products from humidity and sunlight as described
previously will also help protect them from heat.

76
 • It is important to have thermometers in various parts of the storeroom
to monitor temperature.
• Even if thermometers are not available, you can still monitor the heat.
If you feel hot, your products are probably hot, too.

Performance Indicators

1. Number of days per year of cold chain integrity

2. Proportion of items that fail Quality Assurance standards

77
Standard Operating Procedure: Warehouse Maintenance

STOCKTAKES
Purpose

To ensure the information in mSupply accurately matches the actual stock in the
warehouse at all times. This is beneficial for finding stock quickly, auditing,
quantification and procurement processes, and quality assurance purposes

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy
Customs DDA Logistics
Department
Clearance Coordinator Officers
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

78
Procedure

A full stocktake must be conducted at the start of every year (January or February).
The aim is to capture the most accurate assessment of stock in the warehouse at
that time, to allow Procurement to confidently run the annual tender.
Rolling stocktakes (or spot-checks) occur periodically throughout the year for
auditing purposes and to ensure errors in the inventory are corrected. This supports
regular stock management techniques and is useful for reporting to the Ministry of
Health and donor partners.
Though the outputs and scope of each stocktake are different, the procedure is
largely the same.

General Requirements for All Stocktakes

For the item(s) being stocktaked:

1. Before the stocktake:

a. Every pending order must be processed.
b. Every outstanding Goods Receipt must be processed.
c. Every order awaiting dispatch must be processed and excluded
from the stocktake.

2. During the stocktake:

a. No new Customer Invoices can be created.
b. Any items processed but not dispatched before the stocktake
must be clearly set aside and not counted; in addition, those
Customer Invoices should be confirmed.
c. No stock is to be moved. Expired items or stock in the wrong
location should be counted, and then moved or destroyed at
the end of the stocktake.
d. Any item not on the list but on the shelf must be recorded.

79
Full Stocktake

1. The full stocktake schedule is determined in advance by the Warehouse

Director and Warehouse Manager. A full stocktake should take up to 5
working days.
2. Contract Management Chief provides a forecast of all imminent
deliveries to the Warehouse Manager.
3. Warehouse Manager determines an appropriate date to stop all Goods
Receipts and notifies the following people of the stocktake date:
a. Clearance Officer
b. Team Leaders
c. Team Leaders will notify customers of their upcoming closure
as soon as the date is confirmed and again in the week before
the stocktake.
4. Warehouse Manager prepares and prints stocktake sheets at close of
business on the working day before commencement. To ensure stock
is not counted twice, each location should only be printed once.
5. On the first morning, the Warehouse Manager distributes stocktake
sheets (organised by location), calculators and pens to the Team
Leaders.
6. Under the Warehouse Manager’s supervision, Team Leaders coordinate
the stocktake in their areas.
a. Team Leaders divide their team into groups of 3 and allocate
each group a leader.
b. As the stocktake sheets are organised by location, each team
should start in a different location, so as not to overlap or crowd
areas.
7. Counting then commences:
a. Each item is counted by batch and location.
b. The stocktake sheets have two columns – the Snapshot
Quantity (what mSupply thinks is available) and a blank space
for the Actual Quantity (what is actually counted on the shelf).
c. Warehouse Staff count each line and fill in the Actual Quantity,
which may be different from what mSupply thinks is on the shelf.
8. Once a stocktake sheet is completed, it is given to the Team Leader,
who gives the group a new stocktake sheet for another location.
9. The Team Leader periodically takes the completed stocktake sheets to
the Warehouse Manager, who enters the actual quantities and location
in the mSupply Stocktake screen. This is done consistently throughout
the week, not at the very end.

80
 10. If necessary, the Warehouse Manager may request Team Leaders to
assist in updating mSupply. However, the mSupply Stocktake screen can
only be opened by one person at a time, so it is a good idea to have
someone entering data at most times during the week, so that data entry
does not become a major bottleneck at the end of the stocktake.
11. Counting and data entry is carried out until every sheet has been filled in
and every item counted.
12. At the conclusion of the stocktake and when every item has been
entered in the mSupply stocktake, the Warehouse Manager informs
everyone to re-open the warehouse.
13. Team Leaders notify customers. Warehouse Manager notifies the NMS
President, Warehouse Director, Procurement and the Clearance Officer.
14. The final stocktake report is printed and given to the NMS President and
the Warehouse Director.
15. NMS President organises a meeting of all staff to discuss the results of
the stocktake and go through key training points arising. Any major
discrepancies are discussed.
16. Procurement meets immediately after the stocktake to assess urgent
procurement needs arising from the stocktake (if any). Data is also used
in monthly and annual reports.
17. Warehouse Manager files the physical stocktake sheets for auditing
purposes.

Spot-Check (Rolling) Stocktake

1. Each day, each Team Leader conducts a stocktake on one item
(medicine, consumable or laboratory).
2. The Warehouse Manager coordinates and allocates the items to be
stocktaked. Some items will take only 3 or 4 minutes to count. Others
may take up to an hour or more. Team Leaders should try to count high-
volume items only when they are sure they will have time.
3. Before commencing the stocktake, the Team Leader checks if there are
any outstanding Customer Invoices on that item.
a. If there are no outstanding Customer Invoices, the stocktake can
proceed.
b. If there is a Customer Invoice that has nearly been completed, they
may help to complete it and confirm the Customer Invoice.
c. If there are several outstanding invoices containing that item or if
the outstanding invoice is not near completion, they may choose
another item to stocktake.

81
4. Team Leader generates and prints a stocktake for that item in mSupply,
and gives it to Warehouse Staff.
5. Warehouse Staff perform the stocktake.

Spot-check stocktakes may be difficult, as they do not

necessarily capture ‘missing stock’ that has not been recorded
properly and is in an unknown location. This stock is captured
in a full stocktake, as eventually someone will come to count
that location and ‘find’ the missing stock. With that in mind, the
spot-check team should look out for large discrepancies or
missing batches while they do their count.

6. If Warehouse Staff notice a large discrepancy (e.g. missing stock or

batch), they should investigate and try to find it. This might work by asking
all staff members if they have seen it, or by spreading out and doing a
visual search. If found, details should be noted and communicated to the
Team Leader for updating in mSupply.
7. When the stocktake is complete, Warehouse Staff return the sheet to the
Team Leader who enters the data in mSupply.
8. Team Leader gives the stocktake sheet to the Warehouse Manager for
filing.

Warehouse Audit

1. In the middle of each month, a warehouse audit should be undertaken to

determine the accuracy of the data in mSupply. This is carried out by 2
non-warehouse staff from the National Pharmacy Division.
2. A stocktake is generated with 20 randomly selected items (medicines and
consumables) in mSupply and printed. For items with multiple locations,
one location may be selected for the purpose of the audit, so that a total
of 20 items/locations are checked.
3. The two auditors check the selected 20 items in the warehouse. If the
item location, batch, expiry and quantity are correct, this item is marked
as correct.
4. The two auditors calculate the % accuracy:
% Accuracy = Number of correct items x 100%
Total number of items checked (20)
5. The % accuracy is graphed each month and displayed in the warehouse
for all staff to see.

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 Controlled Substances Audit

Periodic stocktakes of controlled substances against the DDA Register

should take place at least once every 3 months and are to be conducted
by two staff members: the Warehouse Manager and the DDA
Coordinator, who is selected on a rotational basis. Any discrepancies must
be immediately reported to the NMS President and the National Director
of Pharmacy to initiate an investigation.

Performance Indicators

1. Proportion of items correct on physical stocktake =

(Value of Items as Checked / Total Expected Value) x 100%
2. Proportion of physical stocktakes carried out according to schedule.
3. Value of total stock on hand.
4. Proportion of expired stock.

83
Process Summary

Full Stocktake

Warehouse Manager informs

Procurement of stocktake
date. No Goods Receipt, No
Customer Invoices.

Warehouse Manager prints

stocktake sheets

Team Leaders coordinate

teams of 3 staff. They work by
location, counting every item
and every batch.

Warehouse Staff complete

stocktake sheets. Items found
in wrong locations are noted.

Warehouse Manager enters

data in mSupply during the
stocktake, not at the end. Team
Leaders may assist if needed.

Upon completion, Warehouse

Warehouse Manager notifies
Manager finalises the
everyone to reopen the
stocktake in mSupply and files
warehouse.
the hard copy sheets.

84
 Rolling Stocktake Warehouse Audit

Warehouse Manager
2 Non-warehouse staff
coordinates items to be
perform an audit in the middle
stocktaked each day: one item
of each month.
per Team Leader per day.

Team Leader checks there are

Auditors generate a random
no outstanding Customer
stocktake of 20 items in
Invoices for the item before
mSupply.
starting stocktake.

Team Leader generates a Auditors perform stocktake of

single item stocktake in the 20 items. If location, batch,
mSupply and gives printed expiry and quantity are correct,
copy to Warehouse Staff. the item is marked as correct.

Auditors calculate % accuracy,

Warehouse Staff complete
which is graphed and
stocktake sheets. Items found
displayed in the warehouse for
in wrong locations are noted.
all staff to see.

Team Leader enters data in

mSupply, finalises the
stocktake and prints a copy for
the Warehouse Manager.

Warehouse Manager files the

hard copy sheet.

85
mSupply Procedure: Full Stocktake

1. Navigate to the Item tab.

2. Click Stocktakes.

3. Click New Stocktake.

4. Leave all fields blank and click OK. This will

automatically generate a list of all the items in
your store, including batches, expiry dates and
the quantity mSupply thinks you have in your
store.

5. Print the stocktake list to help warehouse staff

perform physical stock counts. Click Print >
General > select a print destination > OK.

6. Once the physical stock count is complete,

compare these values with the Snapshot
Quantity (what mSupply thinks you have).

Update any incorrect levels in the Enter

Quantity column. If you want to correct other
details such as batch or expiry date, double
click on the line to open a detailed window.
x x
Hint: Use the Tab button on the keyboard to
move between lines quickly.

86
7. To add an item that is physically in your store
but not in the stocktake list, click New Line.

8. Find the Item you want to add. You can:

• Type the first few letters and press tab
OR
• Type the item code and press tab
OR
• Type @ and press tab to choose from a list
of ALL items

9. Enter the Stocktake Quantity, Pack Size,

Batch, Expiry Date, Location (if applicable),
Donor (if applicable), Cost Price and Sell Price.

10. Click Add New.

11. Review your stocktake carefully.

12. To finish the stocktake, click

Create Inventory Adjustments and
Confirm when prompted.

This will finalise the stocktake and update your

stock in mSupply.

13. After the stocktake is finalised, two new buttons

appear at the bottom of the stocktake screen:
Show added adj and Show reduced adj..

These are summaries of the inventory

adjustments made during the stocktake and
can be used for reporting purposes.

87
mSupply Procedure: Spot-Check (Rolling) Stocktake

1. Navigate to the Item tab.

2. Click Stocktakes.

3. Click New Stocktake.

4. Enter the Item Code to find the exact item you

want to stocktake, then click OK.

5. This will display a stocktake list of every batch

and location of that item in the warehouse.

6. To print the stocktake list, click Print > General

> select a print destination > OK.

7. Once the physical stock count is complete,

compare these values with the Snapshot
Quantity (what mSupply thinks you have).

Update any incorrect levels in the Enter

Quantity column. If you want to correct other x x
details such as batch or expiry date, double
click on the line to open a detailed window.

88
8. To add a line that is physically in your store but
not in the stocktake list, click New Line.

9. Find the Item you want to add. You can:

• Type the first few letters and press tab
OR
• Type the item code and press tab
OR
• Type @ and press tab to choose from a
list of ALL items

10. Enter the Stocktake Quantity, Pack Size, Batch,

Expiry Date, Location (if applicable), Donor (if
applicable), Cost Price and Sell Price.

11. Click Add New.

12. Review your stocktake carefully.

13. To finish the stocktake, click

Create Inventory Adjustments and
Confirm when prompted.

14. This will finalise the stocktake and update your

stock in mSupply.

89
mSupply Procedure: Warehouse Audit (Random Stocktake of 20 Items)

1. Navigate to the Item tab.

2. Click Stocktakes.

3. Click New Stocktake.

4. Specify to Randomly Select 20 Items. You can

also specify a Program, Stock Location or
other parameter to narrow down the items from
which mSupply will randomly generate the list.

5. Click OK.

6. This will display a stocktake list of 20 random

items in the warehouse.

7. To print the stocktake list, click Print > General

> select a print destination > OK.

8. Once the physical stock count is complete,

compare these values with the Snapshot
Quantity (what mSupply thinks you have).

Update any incorrect levels in the Enter

Quantity column. If you want to correct other
details such as batch or expiry date, double
click on the line to open a detailed window.

x x

90
9. Review your stocktake carefully.

10. To finish the stocktake, click

Create Inventory Adjustments and
Confirm when prompted.

This will finalise the stocktake and update your

stock in mSupply.

91
Standard Operating Procedure: Warehouse Maintenance

EXPIRING ITEMS
Purpose

To minimise the amount of expired items in the warehouse and to help

reduce overall item expiration through better stock management.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy
Customs DDA Logistics
Department Officers
rep.) Clearance Coordinator
Officer (rotational)

Shipping
Broker

Staff

Security Drivers

92
Procedure

1. Each Team Leader is responsible for monitoring and managing the

expiring items in their section: they are expected to take action without
waiting for the nominated Team Leader for Expired Goods (a rotational
role). This includes regularly checking that the expiry date of items on the
shelf matches the expiry recorded in mSupply. This may be done during
daily spot-checks or when mistakes are noted on Picking Slips.

2. In the middle of each month, a nominated Team Leader for Expired Goods
prepares and prints an Expiring Items Report in mSupply.

3. Team Leader for Expired Goods identifies all items due to expire that
month. All items that have previously expired should have been removed
already but, if not, they should now be included in the report and removed.

4. Team Leader for Expired Goods physically checks each expiring item in
each location. Warehouse Staff may be required to assist.

5. Team Leader for Expired Goods physically removes expiring or expired

stock from the shelf and puts it in the Expired Items area.

6. If the data is incorrect, the Team Leader for Expired Goods fixes the
location and/or expiry date in mSupply.

7. Team Leader for Expired Goods records items that have been physically
removed from the warehouse in mSupply by doing a negative inventory
adjustment.

8. The Expiring Items Report is added to a summary Excel report that lists all
the expired items removed from the warehouse that year.

9. (If an item’s expiry or location was found to be incorrect and was NOT
removed from stock, it should obviously not be included in the summary.)

10. The Expired Items shipping container is periodically removed and taken
to the local tip for disposal (see the ‘National Policy on the Disposal of
Pharmaceutical and Medical Waste’). Items should be kept after expiry for
a minimum of 3 months before destruction, in the event that auditors or
Ministry of Health staff wish to inspect or investigate expired goods.

93
 11. Each month following removal of expired stock, the Team Leader for
Expired Goods prepares a report showing the items that will expire in
the following 6 months and sends it to the National Director of Pharmacy

12. Using the information in this report, the National Director of Pharmacy is
responsible for working with stakeholders to:

13. Encourage use of under-utilised products, as appropriate

14. Review products where demand has not met supply, which is an
important consideration in national quantification and Quality Use of
Medicines initiatives

Performance Indicators

1. Percentage (%) of expired stock in warehouse

2. Total value of expired stock annually

94
mSupply Procedure: Expiring Items Report

1. Navigate to the Reports tab.

2. Click Expiring Items.

3. Enter a date (to Report on all items whose

expiry date is before that date). Following the
SOP, set this to either:
• End of the month = to show all items
expiring before the end of the month; or
• 6 months = to show all items expiring in the
next 6 months

4. Choose to sort the report by item name, expiry

date or value.

5. To search for all items, leave all other fields blank.

Alternatively, to search for specific items, by
location, or another variable, set relevant Filters.

6. Click OK.

7. The report will open in Excel, which is then printed and used to physically check the stock on
the shelf (example shown)
Report title (name may be edited)

Item Code Location Item Name Batch Value Cost Price Quantity Pack Size
Expiry Date
(all items with expiry date on or before
the date you selected are included)

8. Add an additional ‘Justification’ column to include a brief explanation about why stock
expired and confirming it had been distributed during this period.

9. Add monthly report into an aggregated annual report of expired stock in Excel.

95
Standard Operating Procedure: Warehouse Maintenance

SUPPLEMENTARY ORDERS
Purpose

To ensure appropriate quantities of stock are available at the national

warehouse at all times, while also minimising stock wastage.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Control Cold Chain Accounts
and 1 Officer Coordinator Officers
National
Pharmacy Logistics
Customs DDA
Department Officers
Clearance Coordinator
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

96
Procedure

The national warehouse should have 3 to 15 months cover of all Normal Items in
stock at all times. To achieve this, annual tenders shall be placed with quantification
based on a 12-month minimum with 3-months buffer stock. All orders should be
placed as per local procurement plans and annual tender guidelines.

A Normal Item is any item on the Essential Medicines List or the Essential
Medical Supplies List (consumables and basic equipment). It does NOT
include laboratory items, other medical equipment, specialist departmental
purchases or other items.

A Critical Item is any item the Ministry of Health determines cannot be out
of stock at any time.

Stock holdings may, however, still be affected by fluctuations in usage, delays in

delivery schedules, errors in quantification, changes to clinical treatment guidelines,
stock damage, theft and unforeseen events.

It is therefore necessary to monitor stock levels on an ongoing basis and place

‘supplementary orders’ as required. Annual and rolling stocktakes are essential for
inventory control and are covered separately in SOP: Stocktakes. This SOP defines
the process for stock monitoring and quantification for supplementary orders.

1. Once a month, the Warehouse Manager runs reports in mSupply to find:

a. All Normal Items with less than 3 months available stock remaining
b. All Critical Items with less than 6 months available stock remaining

2. Warehouse Manager consolidates the reports and sends them to the

Warehouse Director and Procurement Director.

3. Procurement Director schedules a meeting in the same week with the

‘NMS Commission’, which must include (at a minimum) the National
Director of Pharmacy, NMS President, Chief Pharmacist, Warehouse
Director and Procurement Director.

4. At the meeting, the Procurement Director presents the following

information:
Normal Items
a. A list of Normal Items that are out of stock
b. A list of Normal Items with <3 months available stock on hand
c. A summary of those items that are already on order and the
Estimated Date of Arrival (EDA) of each.

97
 Critical Items
a. A list of Critical Items that are out of stock
b. A list of Critical Items with <6 months available stock on hand
c. A summary of those items that are already on order and the
Estimated Date of Arrival (EDA) of each.

5. The NMS Commission must assess each item on the following:

Criteria Considerations

Is the information • Warehouse Manager should verify any information

accurate? that seems incorrect.

Is the item still in • National Director of Pharmacy should verify if unclear.

use according to • If the item is no longer in use but still listed on the
the EML? EML, it should be referred to the National Medicines
and Therapeutics Committee (NMTC) and flagged for
removal from the EML. Once removed from the EML,
the item can be removed from mSupply.

Does the usage • Some items have sporadic usage or declining usage,
data reflect actual due to changing treatment guidelines.
usage trends? • Monthly averages in mSupply may therefore be
accurate but not reflective of true usage trends.
• For example, some items may have had a spike in
usage due to an MDA program but are no longer in
high use. Other items might have recently changed
from first-line therapy to second-line therapy. These
items do not need to be removed from the EML but
ordering quantities should be decreased. mSupply
may suggest that <3 months stock is available while
the stock will actually last for much longer.

Is this a long-term • Some disease outbreaks or vaccination campaigns

item for NMS prompt large orders of short-term items that are not
inventory? regularly used (e.g. Tamiflu® during the H1N1 virus
scare of 2009).
• These items do not necessarily get removed from the
EML but may not be ordered regularly. Other
examples include very sporadically used items, such
as snake anti-venom.

98
 Is the item already • Procurement Director is responsible for providing
on order? updates on the status of orders.
• If the order status is satisfactory, a supplementary
order may not be required.
• If an item has passed its estimated date of arrival, the
Procurement Director must follow up with the
supplier.

6. If a supplementary order for an item is required, the NMS Commission

must determine the quantity to order. To calculate the quantity, they must
first determine if a large order for the item has already been placed.

a. If a large order for the item has already been placed:

Supplementary Order Quantification

= Cover up to EDA of the larger order + 3-month buffer

b. If there is no current order for the item:

Supplementary Order Quantification

= Cover up to EDA of the next annual tender + 3-month buffer
(may be up to 12 months away)

7. Procurement Director summarises the item list and arranges for

supplementary orders to be placed.

Performance Indicators

1. Number of days’ cover of stock

2. Minimum stock level days’ cover
3. Value of total stock on hand
4. Value of expired stock
5. Proportion of expired stock
6. Percentage (%) of Critical Items in stock

99
Process Summary: Supplementary Orders

Warehouse Manager generates Normal Items

monthly report on stock remaining <3 months remaining
(months’ cover)
Critical Items
<6 months remaining
List is consolidated and given to
Procurement Director, who organises
meeting within the next week

NMS Commission considers stock

remaining, on order and other relevant
issues to determine if order is required

If an order is required, NMS

Commission calculates quantity to
order

Procurement Director initiates

supplementary order based on local
guidelines

100
mSupply Procedure: Months Cover Report

1. Navigate to the Reports tab.

2. Click Suggest Order Quantities.

3. Enter the number of months of

usage data to Base Analysis On (e.g.
6, 12, 18, 24 months).

4. Enter the Months Stock Required:

Normal Items = 3 months.
Critical Items = 6 months.

5. Check boxes according to local

requirements.

6. Ensure the Open report in Excel box

is ticked.

7. Click OK.

8. The report will open in Excel (example shown)

Report title (name may be edited)

Item Stock on Hand Usage Data Months Cover Quantity Already on Order Suggested
Order Quantity

101
mSupply Procedure: Items Already on Order & Estimated Date of Delivery

1. Navigate to the Suppliers tab.

2. Click the Outstanding Purchase Order Lines

button.

3. A list of all ordered items still awaiting delivery

is displayed.

4. If the item’s Expected Delivery Date (EDD)

has been entered in the Purchase Order, it is
displayed here and the Days to EDD will be
automatically calculated.

5. Items in red are overdue (or do not have an

EDD entered).

6. You can double click on a line to open the

Purchase Order it is related to.

7. If you want to change the EDD for a single

item: Double click on it and enter the new
Expected Delivery Date, then click OK.

8. If you want to change the EDD for multiple

items: Highlight the relevant lines and click
Update EDD.

Enter the new EDD and click Update.

102
Standard Operating Procedure: Warehouse Maintenance

SECURITY

Purpose

To keep the warehouse facility secure and safe for both staff and commodities. The
scope of this SOP is only to outline basic minimum standards. The actual day-to-
day operations of security staff is guided by local procedures.

Persons Responsible

Minister of Health

Ministerial Chief
National Director of Pharmacy
Tender Board Pharmacist

Central Tender National Medical Stores (NMS)

Board President

Finance &
Receipt and Procurement Warehouse Distribution
Administration
Inspection
(R&I)
Committee Director
Director Director

Contract
President Management Manager Chief Officer
Chief

Stock Control Transportatio

Team Leaders Finance Officers
Members Officer n Chief Officer

(must include
1 NMS rep. Inventory Cold Chain Accounts
and 1 Control Officer Coordinator Officers
National
Pharmacy Logistics
Customs DDA
Department Officers
Clearance Coordinator
rep.)
Officer (rotational)

Shipping Cytotoxics
Broker Coordinator

Staff

Security Drivers

103
Procedure

1. 24-hour security staff must be available and:

a. Wear a clearly recognisable uniform at all times.
b. Be responsible for granting access to staff members and –
where necessary – inspecting credentials. Security staff have
the right to challenge any person seeking entry and ask them
what their business is at the facility.
c. Inspect the paperwork for every delivery vehicle arriving to
ensure the delivery is for the facility. Security staff will receive
training in how to properly assess the delivery paperwork and
redirect the vehicle to the correct site.

2. The facility should have:

a. A working phone and radio.
b. Adequate external lighting for night staff.
c. Fire extinguishers at convenient points throughout the facility,
particularly in the warehouse. Staff should know the locations of
all fire extinguishers.
d. Amenities, including a guardhouse and toilet, which must be
available to security staff and not accessed by non-staff
members.
e. A well-maintained perimeter fence made entirely of concrete
(or with concrete footings and solid metal bars) to prevent
penetration by vehicles or large groups
f. A well-constructed gate, which must remain closed and locked
at all times outside of business hours. During business hours, a
security staff member is to be actively on duty at the entrance.

3. All staff are responsible for ensuring warehouse access is

appropriately restricted:
a. The main roller doors to the warehouse should remain closed at
all times, unless stock is being received or dispatched.
b. The warehouse and all office facilities should be locked outside
business hours and not accessible by security staff. The facility
should also be lockable from the inside for staff working alone.
c. External visitors must be accompanied at all times when inside
the warehouse. They must fill in the visitor’s log, recording their
name, organisation, reason for entry, date of entry, time in , time
out and signature.

104
 d. No stock may be removed by any person at any time without the
express permission of the NMS President. Only stock for which an
invoice and cargo receipt have been generated may be
dispatched from the facility. Any staff member suspected of
inappropriately removing stock must be reported immediately to
the Warehouse Director or Manager.

4. A comprehensive Closed-Circuit TV (CCTV) system should be set up

with video stored on a local server.
a. Data storage, backup and monitoring is the responsibility of the
local IT Department.
b. Access to the server should be restricted and the room should
remain locked whenever IT staff are not present.
c. If footage needs to be reviewed, IT staff should prepare the
relevant video and watch it in the presence of senior staff
members.

105