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INNOVATION IN PROCUREMENT OF MEDICINES AT BTPS

PRESENTED BY DR SUDEEP CHATURVEDI MBBS, MS(OPHTHO) SR SPL(AGM) NTPC LTD HOSPITAL, BTPS, NEW DELHI 110044. INNOVATION IN PROCUREMENT OF MEDICINES AT BTPS. PROBLEMS OF PREVIOUS YEARS’ PROCUREMENTS CAUSES IDENTIFIED OVERCOMING THE AREAS OF CONCERN RESULT’S ANALYSIS CONCLUSION. OUTLINE.

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INNOVATION IN PROCUREMENT OF MEDICINES AT BTPS

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  1. PRESENTED BY DR SUDEEP CHATURVEDI MBBS, MS(OPHTHO) SR SPL(AGM) NTPC LTD HOSPITAL, BTPS, NEW DELHI 110044 INNOVATION IN PROCUREMENT OF MEDICINES AT BTPS

  2. PROBLEMS OF PREVIOUS YEARS’ PROCUREMENTS CAUSES IDENTIFIED OVERCOMING THE AREAS OF CONCERN RESULT’S ANALYSIS CONCLUSION OUTLINE

  3. MANY TENDERS FOR MEDICINES- 141 for 145 ITEMS POOR VENDOR RESPONSES REPEATED EXTENSIONS OF BOD MANY ORDERS ON SINGLE TENDER HIGHER COST OF PROCUREMENT LOW EXECUTION OF INDENTS TO PURCHASE ORDERS- 103 ITEMS PROCURED SOME ITEMS SHIFTED TO DEPARTMENTAL PROCUREMENT THROUGH PANEL PHARMACY(FIXED DISCOUNT OF 18% ON MRP)- LOW VALUE PROCUREMENT/ NO OR POOR RESPONSE PROBLEMS OF PREVIOUS YEARS’ PROCUREMENTS

  4. INDIVIDUAL ITEM STANDARDISATION • SINGLE ITEM INDENTS • RELATIVELY LOWER VALUE OF EACH INDENT • POOR VENDOR RESPONSES • REPEAT EXTENSIONS OF BOD • MANY INDENTS DECIDED ON SINGLE TENDER BASIS DUE TO POOR RESPONSE • LOW VALUE ITEMS COULD NOT BE INDENTED- PROCURED AT HIGHER COST ON MRP CAUSES ANALYSED

  5. EMD • POOR VENDOR RESPONSES • EMD EATING IN PROFIT • MOSTLY DISTRIBUTERS QUOTING ON BEHALF OF MANY MANUFACTURERS WITH AUTHORISATION ; SOMETIMES FOR SAME TENDER • HIGHER COST OF EMD-HIGHER COST OF PROCUREMENT/ ESTIMATED COST • DELAY IN RELEASE OF EMD DUE TO VOLUME OF FILES/PROPOSALS CAUSES ANALYSED

  6. INCREASED NUMBER OF INDENTS • DIFFICULTY IN FOLLOW UP FOR TENDERING, TS, CS AND PURCHASE ORDERS BY INDENTING DEPARTMENT • REPEATED MOVEMENTS OF EACH FILE TO APPROVING AUTHORITY FOR EACH DEVIATION- EXTENSION OF BOD, RELEASE OF EMD & SD, VARIATION IN QUANTITY OF PROCUREMENT, ADDITIONS OF VENDORS ETC. • LACK OF ATTENTION OF PURCHASE DEPARTMENT PERSONNEL DUE TO PROLONGED, REPEATITIVE PROCESS/ INTERRUPTIONS BY MAIN PLANT NEEDS CAUSES ANALYSED

  7. HIGHER COST OF PROCUREMENT • POOR VENDOR RESPONSES • MANY ORDERS AGAINST SINGLE/ TWO OFFERS • OTHER PROJECT SUPPLY RATES NOT COMPARED • STANDARDISATION NOT ON THE BASIS OF DEEP STUDY OF MARKET TRENDS CAUSES ANALYSED • LOW EXECUTION OF PO • POOR VENDOR RESPONSES • QUOTED PRICES HIGHER THAN THE LPP- ITEMS DROPPED

  8. SUMMARISED CAUSES OF FAILURES • LOW VALUE OF TENDERS • POOR VENDOR RESPONSES • STANDARDISATION WITHOUT STUDY OF MARKET TRENDS/UPDATION • DELAY IN RELEASE OF MONEY(EMD/SEC DEPOSIT) • POOR FOLLOW UP DUE TO LARGE VOLUME OF FILES • REPEAT EXTENSIONS CAUSES ANALYSED

  9. STANDARDISATION • GROUP WISE STANDARDISATION OF MEDICINE VENDORS E.G. HYPERTENSIVE , DIABETES, ANTI INFECTIVE, NUTRITION, GIT RELATED ETC • POPULAR COMPANIES FROM STANDARDISED LIST OF VENDORS INCLUDED IN A GROUP WHICH WERE FOUND TO BE HAVING LOW MRP OF PRODUCTS • PO OF OTHER PROJECTS STUDIED TO INCLUDE THE SUPPLIERS SUPPLYING PRODUCTS AT LOWER RATES • MANY VENDORS FOR EACH ITEM INCLUDED IN A GROUP OVERCOMING THE AREAS OF CONCERN

  10. INDENTING • SINGLE PURCHASE REQUISITION FOR ONE GROUP OF MEDICINES- 18 FILES FOR ENTIRE MEDICINES • COLLECTIVE VALUE OF INDENTS INCREASED • EMD REMOVED WITH APPROVAL OF CA • CLOSURE REVIEW OF FILES WITH TIMELY REMINDERS TO VENDORS ABOUT ENQUIRIES, AND BOD THRU SMS, PHONE & E MAILS • TENDER FILLING MADE EASY- SINGLE PAGE TENDER FILLING; MENTIONING THE ITEM CONSTITUENTS, RATE OFFERRED, MRP, PACK SIZE AND BRAND NAME AND SUPPLY AGENT. OVERCOMING THE AREAS OF CONCERN

  11. RESULT ANALYSED( SAMPLE)

  12. ONLY 19 INDENTS FOR 173 ITEMS • EASY FOLLOW UP • ALL BUT ONE INDENT OPENED ON BOD WITHOUT EXTENSIONS( DENTAL PROCEDURE ITEMS PROCURED THROUGH COMM PURCHASE) • ONLY ONE ITEM ORDERED ON SINGLE TENDER • ALL ORDERS AGAINST ONE INDENT ON SAME DATE • RATES OFFERED LOWEST AMONG ALL PROJECTS AS AVAILABLE IN SAP(FOR RECENT PO OF SAME ITEMS) • DISTRIBUTION OF ORDERS TO MULTIPLE VENDORS RESULTS ANALYSED

  13. Cost of medicine procurement RESULT ANALYSED • TOTAL QUANTITY OF EACH ITEM INCREASED BASED ON CONSUMPTION • TO REDUCE NON AVAILABILITY IN SUBSEQUENT YEARS • THE COST OF EACH ITEM /UNIT REDUCED IN EACH SUBSEQUENT YEARS • MOST ITEMS PROCURED AT LOWER RATE THAN AVAILABLE SAP RATES ALL OVER NTPC LTD

  14. THE FACTORS FOR INCREASED COMPLIANCE: • INCREASED VALUE OF INDENTS/ INCREASED VENDOR RESPONSES • REDUCED VOLUME OF WORK/ EASY FOLLOW UP • RESULT OF PROCEDURE: • INCREASED AVAILABILITY OF PRODUCTS • LOW VALUE OF PROCUREMENT DUE TO INCREASED COMPITITION • INCREASED SATISFACTION DUE TO INCREASED AVAILABILITY OF MEDICINES/ REDUCED NON AVAILABILITY CONCLUSION

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