Effectiveness of vendor-managed inventory system in drug inventory management in sub-district health-promoting hospitals
Article Sidebar
Main Article Content
Abstract
This study aimed to evaluate the effectiveness of the vendor-managed inventory (VMI) system for the five highest consumption levels of chronic disease medication in the sub-district health-promoting hospitals (SHPHs) in Laemsing, Chanthaburi, Thailand. The research methods comprised qualitative research, which explored the current inventory management system, and quantitative research, which investigated the inventory control system and the effectiveness of the VMI approach. Effectiveness measured by comparing the difference between before and after VMI implementation and the difference between SHPHs using the traditional approach and those adopting the VMI system. Two indicators comprising inventory management and logistics were used to measure the differences. This study highlighted the advantages of VMI for the inventory of chronic medications, as a smooth demand product. The VMI approach used with a periodic review system was more effective than the traditional approach. It reduced the average stock rate, increased inventory turnover rate, inventory accuracy, and ensured products were delivered in full and on time (DIFOT). Further, the SHPHs staff and the community hospital staff were extremely satisfied with the time efficiency, convenience, practicality, and inventory accuracy.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Bhakoo, V., Singh, P., and Sohal, A. (2012). Collaborative management of inventory in Australian hospital supply chains: practices and issues. Supply Chain Management, 17(2), 217-230.
Chen, D. Q., Preston, D. S., and Xia, W. (2013). Enhancing hospital supply chain performance: A relational view and empirical test. Journal of Operations Management, 31(6), 391-408.
Claassen, M. J. T., van Weele, A. J., and van Raaij, E. M. (2008). Performance outcomes and success factors of vendor managed inventory (VMI). Supply Chain Management, 13(6), 406-414.
Dong, Y., Dresner, M., and Yao, Y. (2014). Beyond information sharing: An empirical analysis of vendor-managed inventory. Production and Operations Management, 23(5), 817-828.
Eisenhardt, K. M., and Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25-32.
Fungsuk, N., and Polnok, A. (2017). Development of effecicient medicine inventory management of the health promoting hospital, Uthai district, Phranakorn Sri Ayutthaya province. HCU Journal, 21(41), 109-122. [in Thai]
Guimaraes, C. M., de Carvalho, J. C., and Maia, A. (2013). Vendor managed inventory (VMI): Evidences from lean deployment in healthcare. Strategic Outsourcing, 6(1), 8-24.
Intoyos, N., and Kessomboon, N. (2013). Improving the inventory management system using modified vendor managed inventory: A case study of primary care units in Klonglan district, Kampaengpetch. Journal of Health Systems Research, 7(2), 241-251. [in Thai]
Kim, D. (2005). An integrated supply chain management system: A case study in healthcare sector. In E-Commerce and Web Technologies (LNISA Volume 3590) (Bauknecht, K., Pröll, B., and Werthner, H., eds.), pp. 218-227. Heidelberg, Berlin: Springer.
Krichanchai, S., and MacCarthy, B. L. (2017). The adoption of vendor managed inventory for hospital pharmaceutical supply. The International Journal of Logistics Management, 28(3), 755-780.
Mustaffa, N. H., and Potter, A. (2009). Healthcare supply chain management in Malaysia: A case study. Supply Chain Management, 14(3), 234-243.
Niranjan, T. T., Wagner, S. M., and Nguyen, S. M. (2012). Prerequisites to vendor-managed inventory. International Journal of Production Research, 50(4), 939-951.
Program for Appropriate Technology in Health (PATH), and World Health Organization, Health Systems Research Institute, and Mahidol University. (2011). An Assessment of Vaccine Supply Chain and Logistics Systems in Thailand, Seattle: PATH, pp. 1-49.
Siha, W., and Arparsrithongsakul, S. (2019). Development of medical supplies system in health promotion hospitals from Kamalasai hospital by applying vendor managed inventory. Master’s thesis. Mahasarakham University, Thailand.
Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies, 3rd, New York: McGraw-Hill/Irwin, pp. 232-249.
Sooksriwong, C., Osirisakul, N., Sripairoj, A., and Maluangnon, K. (2019). Benefits to hospital finance from hospital pharmacy’s vendor management inventory. Thai Journal of Pharmacy Practice, 11(1), 160-170.
Srilamart, S., and Bouphan, P. (2013). Drug management of health personnel at sub-district health promoting hospitals in Khon Kaen province. KKU Research Journal, 13(2), 121-132. [in Thai]
Stanger, S. H. W. (2013). Vendor managed inventory in the blood supply chain in Germany: Evidence from multiple case studies. Strategic Outsourcing: An International Journal, 6(1), 25-47.
Sumrit, D. (2019). A multi-criteria decision making model for readiness assessment of vendor managed inventory in healthcare. International Journal of Management and Decision Making, 18(4), 376-406.
Turhan, S. N., and Vayvay, Ö. (2012). A non traditional vendor managed inventory: A service oriented based supply chain modeling in health services. In Proceeding of 2012 International Conference on Industrial Engineering and Operations Management, pp. 1526-1535. Istanbul, Turkey.
Vigtil, A. (2008). A Framework for Modelling of Vendor Managed Inventory. Trondheim: Department of Production and Quality Engineering, Norwegian University of Science and Technology, pp. 187-232.
Waller, M., Johnson, M. E., and Davis, T. (1999). Vendor-managed inventory in the retail supply chain. Journal of Business Logistics, 20(1), 183-203.
Watson, N., Serumaga, B., and McCord, J. (2012). Selecting and Implementing Vendor Managed Inventory Systems for Public Health Supply Chains: A Guide for Public Sector Managers. Arlington, VA: USAID Deliver Project Task Order 4.
Youcharoen, T., and Wasusri, T. (2018). The development of pharmaceuticals and medical supplies inventory replenishment system: A case study of community hospital. Isan Journal of Pharmaceutical Sciences, 14(3), 92-106. [in Thai]