Training Module 3

Part 1

Inventory Management of
NTD Drugs
Standard Operating Procedure 05

Developed by the Accelerating the Sustainable Control and Elimination of NTDs (Ascend) program,
in collaboration with New Concept Information Systems Pvt. Ltd.
Funded by the UK Foreign, Commonwealth & Development Office (FCDO).
Learning outcomes

After completion of the session, participants will be

able to:
● Define inventory management
● Describe the purpose and scope of inventory
management
● Identify key considerations for inventory
management
● Explain the Standard Operating Procedures
(SOPs) for inventory management Photo Credit: Sightsavers, Ghana

Slide 1
Definition of
inventory management
The process of ordering, storing and using
inventory, as well as warehousing and
processing such items.

Photo Credit: Liverpool School of Tropical Medicine (LSTM), Liberia

Photo Credit: Liverpool School of Tropical Medicine

(LSTM), Democratic Republic of Congo (DRC)
Slide 2
Purpose of inventory management

The purpose of inventory management of neglected tropical

diseases (NTD) donated drugs is to:
● Minimize the total cost of inventory by balancing the costs
of carrying and ordering stock
● Ensure that the information on the stock levels in the
health system is readily available in all locations
● Facilitate adequate inventory to enable distribution to
affected populations
● Avoid stockouts
● Ensure proper recordkeeping
Photo credit: World Health Organization
● Minimize losses, damage, and misuse
● Ensure accountability to pharmaceutical donors

Slide 3
Scope of inventory management

Inventory management is performed whenever stock is received,

stored, transferred, near expiration, or disposed of

It involves physical inspection, counting, and

maintaining stock records

Slide 4
 ● The national NTD program
● Supply chain, warehouse/stores and
pharmacy staff at all levels of the health
system
The tasks and ● NTD Focal Persons, school and Community
responsibilities in this Drug Distribution (CDD) Supervisors
SOP are relevant for
The positions identified, their roles and the
steps to be taken in this SOP are illustrative and
should be adjusted according to the prevailing
context in each country.

Slide 5
The national NTD program should:

Regularly contact all sites where NTD donated or procured drugs are
stored for inventory updates

Encourage sites to conduct their own regular inventories of NTD

drugs alongside other health commodities and to create alert
systems for expiring drugs

Report the results of the physical inventory to all stakeholders

including NTD implementing partners, national supply chain
department, the WHO, pharmaceutical donors, or any other actor
involved in the Mass Drug Administration (MDA)

Slide 6
Before and during MDA

When Who

Responsible persons for stores

● Whenever stock is management at each level of What How
received, stored, the health system including:
issued or ● Supply Chain Manager
transferred near (SCM) ● Inspect and count
expiration or ● Pharmacist stock received
disposed of ● Pharmacist Technician ● Store NTD drugs
● Before MDA Physical
● Warehouse or Stores separately
inspection,
Supervisor ● Follow SOP 07 First
counting and
● NTD program staff Expiry First Out
maintenance of
● Transporter (FEFO) policy
stock records
● NTD Program ● Use transfer forms to
Coordinator record stock
● Ministry of Health movements
(MoH)

Slide 7
After MDA

When Who

● After Each MDA

● Before applying for and
Responsible persons for stores What How
requesting a new
management at each level of
consignment for example,
immediately prior to the health system, including:
● Check actual physical
submission of the annual ● SCM 1. Plan
Joint Application Package stock against the
(JAP)/Trachoma ● Pharmacist 2. Organize stock card balances
Elimination Monitoring
● Pharmacist Technician 3. Count ● Identify quantities of
Form (TEMF)
usable stock for
● Whenever a regular 4. Reorganize
● Warehouse or Stores distribution
physical inventory of other
Supervisor
health commodities is 5. Update ● Detect and separate
conducted ● NTD program staff
6. Action damaged and/or
● Anytime when alerted to
expired stock
damage, loss and/or theft ● Transporter
● When requested by the
donor
Slide 8
Before and during MDA

Receiving NTD
Storing Issuing Transferring
Drugs

Slide 9
After MDA

Organize stock Reorganize stock Action

Plan Count Update

physical stock stock
inventory card

Photo Credit: Liverpool School of Tropical

Medicine (LSTM), Liberia

Slide 10
Before and during MDA
Receiving NTD drugs
Task 1

Instructions Responsibility
1.1 Before receiving stock ensure that there is sufficient ● Supply Chain Manager
storage space and consider shelving ● Pharmacist or Technician
1.2 Ensure that the area is clean, clear and prepared for ● Warehouse or Stores Supervisor
receiving and storing stock ● NTD Program Coordinator
1.3 Inspect and count stock received, updating the stock ● Transporter (Driver)
card and Electronic Logistics Management Information
Systems ((e)LMIS) system (where such a system is in use)
accordingly
1.4 Inspect stock for any damage and check expiry dates Resources
1.5 If required, follow appropriate procedure for
damaged and/or expired stock
1.6 Complete a transfer form upon receipt of stock at ● SOP 03 Customs Clearance
each level. This form should be signed, dated, and a copy ● SOP 04 Transport
returned to the origin location ● SOP 06 Storage
● SOP 07 FEFO
● SOP 08 Reverse Logistics
● SOP 09 Removing Expired and
Unserviceable Drugs
● SOP 10 Waste management
● Transfer Form template Slide 11
Before and during MDA
Storing
Task 2

Instructions Responsibility

● Supply Chain Manager

2.1 Physically separate NTD donated drugs from the ● Pharmacist or Technician
nationally procured drugs ● Warehouse or Stores Supervisor

2.2 Create a unique stock card and a unique stock

code in the (e)LMIS (where such system is in use) that
ensures that NTD donated drugs are distinguishable
from nationally procured drugs Resources

2.3 Attach a separate stock card to each stack of

drugs in the warehouse/stores

● SOP 06 Storage
● SOP 07 FEFO
● SOP 08 Reverse Logistics

Slide 12
Before and during MDA
Issuing
Task 3

Instructions Responsibility

● Supply Chain Manager

● Pharmacist or technician
3.1 Follow the First Expiry First Out (FEFO) policy at all ● Warehouse or Stores Supervisor
levels ● Transporter (Driver)
● NTD Program Coordinator
3.2 Only open one carton at a time to issue bottles at
the community level

3.3 Do not break cartons into single bottles except

when issuing to school and Community Drug Resources
Distributors (CDDs)

3.4 Update the stock card immediately after issuing

drugs (i.e. record keeping)

● SOP 04 Transport
● SOP 07 FEFO

Slide 13
Before and during MDA
Transferring
Before and during MDA Task
Task 4
4

Instructions Responsibility
4.1 The transfer form should be used when issuing NTD drugs, from one storage
● Supply Chain Manager
facility to another or to school or CDD teams
● Warehouse or Stores Supervisor
4.2 If there is no (e)LMIS system, two copies of the form should be used to record each
● Transporter (Driver)
transaction:
● NTD Program Coordinator
● One copy goes to the destination with the carrier (i.e. person responsible for
● School or Distribution Center Point of
transportation)
Contact
● One copy is kept in the origin location for record keeping purposes
● District Health Officer
● Both copies of the form should have the same serial number
4.3 The first part of the form records the origin, destination and the name of the
person transporting the shipment along with the quantity issued Resources
4.4 This part should be filled in at the origin location and signed by both the carrier
and issuer
4.5 The second part of the form should be filled in at the destination and signed for by
the carrier and receiver ● SOP 04 Transport
4.6 Any damaged quantity in the shipment should be recorded on the form and the ● SOP 07 FEFO
relevant staff informed, including NTD program staff. Follow relevant procedures for ● Transfer Form template
removing expired and unserviceable drugs and waste management ● SOP 08 Reverse Logistics
4.7 All levels of the health system, including school and CDD teams should use the ● SOP 09 Removing Expired
same form when receiving drugs
and Unserviceable Drugs
4.8 Transfer forms should be kept safely on file for the length of time mandated by the
Ministry of Health (MoH)/donor ● SOP 10 Waste Management

Slide 14
After MDA
Plan physical inventory
Task 1

Instructions Responsibility
Responsibility

● Supply Chain
1.1 Set specific dates and times to conduct physical inventories. At a Manager
minimum, before and after each MDA, and whenever a regular physical ● Warehouse or
inventory of other health commodities at the storage site is conducted Stores Supervisor

1.2 Avoid busy times, as receiving and issuing stock must be paused for the
duration of the counting process

1.3 Identify at least two people (wherever possible) to conduct the count Resources
and reconciliation

1.4 Ensure that there are no conflicts of interest. For example, the person Resources
in charge of the inventory should not participate but should be available on
site to show the inventories ● SOP 06 Storage
● SOP 07 FEFO
● SOP 08 Reverse Logistics

Slide 15
After MDA
Organize stock
Task 2

Instructions Responsibility

● Supply Chain Manager

2.1 Group bottles according to their expiry date
● Warehouse or Stores
2.2 Arrange the drugs by expiry date, older drugs at the front and newer Supervisor
at the back
2.3 Opened bottles should be kept separate from closed bottles
● Any reconstituted oral solutions (e.g., pediatric oral solution of
Zithromax) should not be saved in the inventory but disposed off
immediately
Resources
● Any chewable tablets (i.e., Vermox Mebendazole) once opened
have a shelf life of only 1-2 months, so should not be stored for
the next MDA ● SOP 06 Storage Resources
● SOP 07 FEFO
2.4 Separate damaged and/or expired drugs from usable stock. Follow
● SOP 08 Reverse Logistics
the SOPs for removing expired and unserviceable drugs, and waste
● SOP 09 Removing Expired and
management
Unserviceable Drugs
● SOP 10 Waste Management

Slide 16
After MDA
Count stock (1/2)
Task 3

Instructions Responsibility

● Supply Chain Manager

3.1 One person should count whilst the other person records ● Warehouse or Stores
3.2 Use a different colored pen to highlight the physical inventory quantities Supervisor
on the stock card ● NTD Program Manager
3.3 Count one location at a time and record separately by expiry date group
3.4 Count the number of bottles per expiry date group
3.5 Mark the expiry date clearly, in large, dark numbers on the front of each
carton. Separate any damaged or expired drugs, recording the amount in the Resources
Losses/Adjustments column on the stock card and provide a brief explanation
for the expiry or damage
3.6 Count the number of sealed/complete cartons first, multiply this by the
number of bottles in a carton and this will give you the total number of
bottles ● SOP 06 Storage
3.7 Count the number of unopened bottles in open cartons ● SOP 07 FEFO
● SOP 09 Removing
Expired and
Unserviceable Drugs

Slide 17
After MDA
Count stock (2/2)
Task 3

Instructions Responsibility

● Supply Chain Manager

3.8 Count the number of open bottles and divide the total count by two. This will
give you the estimated equivalent number of the full bottles ● Warehouse or Stores
Supervisor
3.9 Do not mix or consolidate open bottles into a single bottle
● NTD Program Manager
3.10 On the physical inventory form (from the donor) record:
● Quantity of opened bottles
● Quantity of unopened bottles
● Expired and/or damaged product
Resources
3.11 Record quantities in the lowest unit denomination, and not by bottles
3.12 Obtain sign-off on the final physical inventory report by the
Pharmacist/Pharmacist Technician or other relevant member of staff
3.13 Set up an alert system for expiry dates of stock-on-hand. This should include
alerts at six months, three months and 30 days
● SOP 06 Storage
3.14 Notify the NTD Program Manager via SMS of any stock expiry alerts, ● SOP 07 FEFO
providing drug and quantities expiring
● SOP 09 Removing Expired
and Unserviceable Drugs

Slide 18
After MDA
Reorganize stock
Task 4

Instructions Responsibility

● Supply Chain
Manager
● Warehouse or
Stores Supervisor
4.1 Reorganize the stock according to the expiration dates and
complying with the FEFO policy
4.2 If open are allowed for use, ensure that they are issued first
during the next MDA campaign
Resources
4.3 Complete the process as quickly as possible to allow normal
operations to resume

● SOP 06 Storage
● SOP 07 FEFO

Slide 19
After MDA
Update stock card
Task 5

Instructions Responsibility

● Supply Chain Manager

5.1 Once counting is finished, reconcile the total number of bottles ● Warehouse or Stores
counted with the quantities recorded on the stock card Supervisor
5.2 Use a different colored pen to highlight the physical inventory
stock quantity on the stock card
5.3 If there are any differences, add or subtract the number of
bottles on the stock card under the Loss/Adjustment column. Clearly
record the date, quantity difference, and write “Physical Inventory” Resources
5.4 Keep records of all stock cards for NTD donated/procured drugs
5.5 Transfer stock cards that are older than two years to the national
NTD program

● Stock Card template

● Physical Inventory Form template
● SOP 09 Removing Expired and
Unserviceable Drugs

Slide 20
After MDA
Action
Task 6

Instructions Responsibility

● Supply Chain Manager

● Warehouse or Stores
Supervisor
6.1 Share physical inventory reports on NTD drugs with the ● NTD Program Manager
national NTD program and national supply chain department
where relevant. If the physical inventory differs from the stock
card balance, report the reasons for the discrepancy
6.2 Include actions resulting from physical inventory in budget Resources
planning. This may cover reverse logistics and waste
management

● SOP 08 Reverse Logistics

● SOP 09 Removing Expired and
Unserviceable Drugs
● SOP 10 Waste Management

Slide 21
Recapitulation of key messages

Inventory management is the process of ordering, storing, and using

inventory, as well as warehousing and processing such items

The purpose of inventory management of NTD donated or procured

drugs is to minimize the total cost of inventory by balancing the costs of
carrying and ordering stock and avoid stock outs

Inventory management is performed whenever stock is received, stored,

transferred, near expiration, or disposed of. It involves physical inspection,
counting, and maintaining stock records

The national NTD program should regularly contact all sites where NTD
donated or procured drugs are stored for inventory updates and sites
should create alert system for expiring dates and report back on NTD
drugs stocks
Slide 22