Your Pharmacy or Department Manager has decided to the review your suppliers and ask them to re-tender for your top 20 lines dispensed - the top 10 lines dispensed by volume and top 10 lines dispensed by cost. You have been given the task of deciding whether to remain with the current supplier for the product or change suppliers.
1. Complete an excel sheet showing your workings for the 20 lines using the templates provided. You must use at least 3 comparators in your data on generics data (this may include the current supplier even if it direct from wholesaler). For the branded products please look at the top 10 lines that can be sourced from alternative suppliers (these may not be the top 10 most expensive items dispensed as not all products are available as parallel imports). Please look at at least one alternative supplier to your current one for at least 8 out of the 10 products. (20)
2. Produce a concise Purchasing Analysis Report using the template provided as a guide. (30)
3. Describe your findings as you would to your manager/department head. (20)
4. Discuss your decision of where to source products including a discussion about how & where factors other than cost have had an impact on your decision-making process. (20)
5. Describe what you believe the next steps for procurement management in your organisation are and why or briefly describe how pharmacy procurement contributes to the overall budget of your organisation. (10)
Please note all students may substitute the data given for ‘real data’ from their own pharmacy/Pharmacy Department if they wish. In this instance real data may be used but will not be shared and will be kept confidential at all times. In such cases, students will be required to submit the real data they used to make their purchasing decisions eg supplier quotes etc.
Please ensure you seek the express permission of the Pharmacy owner or Head of Department before using and submitting real data.
Pharmacy Procurement & Purchasing:
Your pharmacy currently deals with several OTC and FOC suppliers eg Reckitts, Johnson & Johnson, GSK, Blackhall, Perrigo, Valeo, Sundrelle, Calco, Parle & Hickey, Cosmetique Active etc. These suppliers have been selected by your team based on their company’s ability to supply products and based on the company’s merits and previous relationship with your pharmacy.
(Note: Please answer questions 1-3 OR question 4)
Your task is to meet with your OTC/FOC Procurement person and scope out the following information:
1. What decision process was involved in selecting those suppliers originally? (If the current purchaser was not involved in that original decision they have been involved in continuing to use that company and will have an opinion on why that is so.) (10)
2. What general terms of business are offered by suppliers of your FOC/OTC suppliers. When/How often are orders placed with these suppliers and why? Please select at least 6 suppliers with whom you deal with and use the template for your answer. (Be careful to not disclose any information that is confidential to your pharmacy.) (40)
3. Discuss what you have learned above in terms of the theory you have learned in Workshop 2 – include areas such as, the Pareto Principal, 5 rights of Procurement, Supplier Selection and Supply Chain Management. (50)
Please note if discount &/or bonus stock is a feature of supplier selection you need not disclose the discount or bonus amount just that it was given (or select discount/bonus as a generic reason).
4. Discuss purchasing the various types of items that are stocked in the Pharmacy Department in terms of HOW the following principals will (or should) affect the procurement process:
• The Pareto Principal
• The 5 Rights of Procurement
• Supply Chain Management within the Department
• Supplier Selection & Evaluation (100)
Word count 1000 words
Assignment 3 Pharmacy Procurement & Purchasing
Appraise the impact of Just-In-Time on supply management in your organisation in terms of it's impact on workflow and customer service as well as it's financial merits. (If your organisation does not use JIT then please answer using the hypothesis that it has been decided to move to this model of supply in the near future and answer on that basis.) Word Count: 1000 words Worth 20% of Module Marks