5-year inventory management of drug products using ABC-VEN analysis in the pharmacy store of a specialized public hospital in Vietnam

Abstract

In developing economies, expenses of healthcare delivery have risen disproportionally to the monetary backing supplied by the federal government. However, issues relating to inventory control alongside regulating the pharmaceutical market have been recognized. We conducted a systematic categorization based on ABC and VEN analysis for available drugs at Can Tho Dermatological Hospital (CTDH) from 2016–2020, thereby making evidence-based recommendations for public authorities to attain rationality in monitoring the stock supply network. Results revealed that ratio of Category I with the highest cost and importance to the annual revenues was barely 88%. Meanwhile, fractions of Category II and III to the overall expenses were 5–10% and below 5%, respectively. Given scarce funds, it is crucial that Essential drugs be utilized effectively. Thanks to ABC-VEN integrated matrix, we uncovered medicines for which significant savings could be achieved. This method has proven to be a powerful tool in decision-making for importation and stockholding.

Diagnosing category management in a pharmacy retail chain

“…Different from previous studies [9,10,15,17,19,20] is that the described factors of category management are structured for the study of pharmacy retail. They allow us not only to assess the real state of the enterprise but also develop an optimal plan for its future development, taking into account the tools of a comprehensive approach, and not just individual areas of categorical management.…”

“…Also, a study of cooperation between a supplier of pharmaceuticals and a retailer is provided, which is substantiated in works [12,13]. Methods of analysis, as ABC-VED described in works [8][9][10][11], ECR method [14] and cross-category analysis [19,20] are taken into account in component "A" of the "MARS Category Management Profile".…”

“…For more effective management of services in the pharmacy, there is a need for timely supply of medicines, and the described method allows predicting the supply according to the just-in-time system. The authors of paper [9] prove the relevance of pharmaceutical inventory management using ABC-VED analysis as a practical and affordable method of optimizing the supply chain.…”

Analysis of pharmaceutical inventory management based on ABC-VEN analysis in Rwanda: a case study of Nyamagabe district

“…In fact, conducting ABC or VEN analysis alone has its limitations. ABC analysis ignores the criticality of medicines, and VEN analysis alone also ignores the cost value of pharmaceuticals [ 14 ]. Therefore, to take advantage of the complementary benefits of the two methods, ABC-VEN matrix analysis is required to identify products that need strict control [ 4 , 14 ].…”

“…Different inventory management techniques are used for pharmaceutical expenditure analysis [ 13 ]. Among inventory control techniques used, we may enumerate ABC, VEN, FSN, HML, SOS, and ABC-VEN [ 14 ]. Among those techniques, ABC-VEN analysis is often preferred since it contributes to analyzing the medicines expenditures based on public health value and cost [ 12 , 15 ].…”