Annual Report 2010 - St. James's Hospital

Corporate Division Reports I Materials Management
Activity 2010
The Department’s activity continued to grow in 2010,
engaging in new contract developments and providing a
materials management service for a portfolio of 26,000
product lines to 133 internal customers. The Materials
Management Department has continued to work closely with
key suppliers on areas such as vendor performance, value for
money initiatives and consignment management.
End of year stock take 2010
The Department is charged with the responsibility of procuring
non fi xed assets for the Hospital and safeguarding such
assets, with the exception of Pharmacy and Blood products.
The annual stock take was carried out on 25th, 26th and 27th
of November, representatives from the Materials Management
Department, Finance Department, Internal Audit, clinical users
and the Comptroller and Auditor General were present.
Materials management department overview 2010
Total value of goods and services procured by €96,249,007.91
the MM Department
Euro Activity 1997-2010
Millions
120
100
80
60
40
The stock take comprised of identifying, counting and
recording in excess of 8,000 products across fi ve inventory
managed areas and 73 non inventory managed areas. The
Department inventory manages its stocks from four locations
in the Hospital: Main Warehouse, Distribution Centre (Phase
1C), Technical Services Warehouse, Cardiac Angio.
End of year stock take 2010 results
Value
€3,173,974.33
Inventory Managed Value €907,452.54
Non Inventory Managed Value €2,266,521.79
20
0
1997 1998
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
2010
The total value of inventory managed stock @ 31.12.2010 was
€907,452.54. This is €179,838.22 or 16.54% lower than 2009.
Operations Management Function
The Operations Management function of the Department
focuses on the design and implementation of all supply chain
processes concerned with the fl ow of goods and services
from external agencies through the organisation until they are
ultimately consumed.
The total stock receipt value for 2010 was €11,293,49 which
comprised of 2194 active product lines from 135 vendors.
The Department processed 29,148 stock orders to 133
Departments, in addition the Department continued to provide
a logistics service for the Pharmacy Department.
The value of blood in stock as at 31st December 2010 was
€1,229,460.65. This is €960,291.29 or 43.85% less than 2009.
The blood stock turnover for 2010 was €47m therefore; the
stock on hand at the end of year equates to 1.36 weeks supply.
Inventory managed areas are monitored continuously
during the year and the department constantly reviews
these areas and endeavours to achieve further effi ciencies.
The Department commenced planning for a RFID (Radio
Frequency Identifi cation) project for some high value inventory
managed areas in 2010 which will allow the Department to
track products right through from delivery to consumption
with minimal intervention.
Operations Activity 2010 €
Stock Receipt Value 11,293,49
Product Lines 2194
Vendors 135
Stock Orders processed 29,148
Deliveries received 41,682
Documents Digitally Archived 45,395
Purchase orders generated 26,547
Procurement
The procurement and contractual function has continued to
increase the number of formal contracts implemented through
the tendering process in consultation with key stakeholders
and end users. The remit of the procurement function is
to minimise fi nancial, clinical and legal risk through the
establishment of formal contracts in the following areas:
• Medical and Surgical Products
• Laboratory Products and Services
• Technical and General Support Services
• Blood Products
• Capital Projects and all other products and services
excluding Pharmacy product
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