INTRODUCTION

Provision of adequate and timely supply of material to departments is of prime importance

for carrying out various activities to render the patient care as well as for meeting its needs
Procurement is very important step in material management. Usually hospital has central
store and procurement store officer under the control of Medical Superintendent is recruited,
who manages the materials.

Equipment Supply Preparation Procedure :

In the healthcare sector, the timely and efficient supply of medical equipment is essential to
ensure high-quality patient care and maintain operational effectiveness in hospitals, clinics,
and other healthcare facilities. The preparation procedure for equipment supply in the health
department involves a meticulous process of identifying the necessary medical devices,
selecting reliable suppliers, managing logistics, and ensuring proper installation and training.
This process is not only crucial for maintaining daily healthcare operations but also for
adhering to strict safety standards, regulatory requirements, and patient care protocols.

By following a structured and comprehensive procedure, the health department can minimize
risks associated with equipment failure, reduce operational downtime, and ultimately ensure
that healthcare professionals have the necessary tools to deliver effective care. This document
outlines the key steps in preparing for the supply of medical equipment, aiming to provide a
robust framework for ensuring that the equipment meets the department's needs and
contributes to the overall improvement of healthcare services.

PROCUREMENT

Definitions

Procurement

Procurement is the sourcing and purchasing of goods and services for business use. It is the
acquisition of goods of commodities by a company, organization, institution, or a person.
This simply means the purchase of goods from suppliers at the lowest possible cost

It is also defined as the process of obtaining goods and services from preparation and
processing of a requisition through to receipt and approval of the invoice for payment
According to Defense Acquisition University, It is the act of buying goods arid services for
the government

Procurement Process

Procurement process is a method by which items are purchased from external suppliers. It
involves managing the ordering, receipt, review and approval of items from suppliers A
procurement process also specifies how the supplier relationships will be managed, to ensure
a high level of service is received.

Objectives of Procurement System

To acquire needed supplies as inexpensively as possible

To obtain high quality supplies

To assure prompt and dependable delivery

To distribute the procurement workloads by avoid period of idleness and overwork

To optimize inventory management through appropriate procurement procedures.

Procurement Process

Following a proven step-by-step technique will help manage ment successfully achieve its
goals

Step 1: Need Recognition

Recognize the need for procuring the materials for the department either from internal or
external sources. The item may be one that needs to be reordered, or it may be a new
item for the unit.
Procurement process

Step 2: Specific Need

Determine specifications for the item required to be procured Take help of suppliers to visit
the department or from engineering department.

Step 3: Source Options

Determine from where to obtain the product. The hospital might have an approved vendor
list. If not, search for a supplier using purchase orders or research a variety of other sources
such as magazines, the Internet or sales representatives, etc..

Step 4: Price and Terms

Investigate all relevant information to determine the best price and terms for the product..
Usually look for three suppliers before It makes a final decision.

Step 5 Purchase Order

The purchase order is used to buy materials between a buyer and seller. It specifically defines
the price, specifications and terms and conditions of the product or service and any additional
obligations.
Step 6: Delivery

The purchase order must be delivered, personally, email or other electronic means.
Sometimes the specific delivery method is specified in the purchasing documents. The
recipient then acknowledges receipt of the purchase order.

Step: Expediting or Follow Up

Expedition of the purchase order addresses the timeliness of the service or materials
delivered.

Step 8: Receipt and Inspection of Purchases

Once the sending supplier delivers the product, the material is checked for quality, quantity as
per the order placed

Step 9: Invoice Approval and Payment

Three documents must match when an invoice requests payment -the invoice itself, the
receiving document and the original purchase order. Any discrepancies must be resolved
before bill is paid by the finance department. Usually payment is made in the form of cash,
cheque, bank transfers, credit letters or other types of electronic transfers.

Step 10: Record Maintenance

In the case of audits, the department must maintain proper records. These include purchase
records to verify any tax information and purchase orders to confirm warranty, information
Purchase records reference future purchases as well

Flow of Procurement Decision

The following steps are taken for taking decision for procurement of materials

Need assessment

Finding the budget

Prioritization of purchase of equipment, machinery etc

Standards and specification development

Placing of indent by the head of department

Consideration of indent

Choose procurement method

Receipt of tenders

Opening of tenders
Evaluation of tenders

Placement of orders
Follow up of orders

Receipt and inspection of maternal

Invoice approval and payment.

Need Assessment

Assess the need for having the equipment/item in the department

Finding the Budget

There should be specific budget provision for purchase of materials. However specific
indents can be made without specific budget provision for the current year with the approval
of Head of Institution

Prioritization of Purchase of Equipment, Machinery, etc

Correctly assess the requirement of equipment/material to be purchased including

infrastructure requirement. A committee can be formulated for this purpose. Depending on
the cost of the material equipment, that can either be purchased by the department or sent
indent to the central store

Standards and Specification Development

Get a detailed specification and standard of product as per the requirement before placing
indent.

Placing of Indent by the Head of Department

Place indent by specifying a detailed description of equipment, specifications including

whether the requirement is fresh or additional or replacement, the estimated cost, its utility
and approximate period of equipment to become operational from the date of arrival.

Choose Procurement Method

There are various modes of procurement: open tender, limited tender, negotiated procurement
and single tender.
The Open tender method
This method is followed for all high cost items. The notice inviting tender should be short,
clearly worded. It should give a brief description of the item to be procured, the qualification
of opening the tenders. This is public bidding, resulting in low suppliers, the date of receipt of
tender, the date, time, venue of prices, published in newspapers. Term is usually of 4 weeks.
Quotations must be sent in the specific forms that are sold, before the time & date mentioned
in the tender form. In technical items, two packets or two bins system is followed. Offers are
given in two separate packets: technical bid and financial bid. Validity of tenders is generally
90 days. Two % of the tender amount or as decided has to be paid along with all quotations as
earnest money. In case of default 1/5 is withheld.

The limited restricted tender method

The Tenders are invited from limited suppliers (about 10). The lead time is reduced in this
type of tenders.

Negotiated tender

Procurement by negotiation is a battle by both the buyer and the suppliers. It is an art of
arriving at common understanding through bargaining on the essential points for the contract
such as delivery, specification, price and payment terms, etc keeping in mind ethics and
objectives of negotiation (Fig. 59,4). It should not be at the cost of quality. Maintain relation
and try to have win-win situation. Follow principles of negotiation as given below:

Put yourself in supplier shoes

Negotiation is essentially an artful communication Let the suppliers do most of the talking

Let the supplies save face

Satisfy the supplier needs

Talk to the proper person

Build up confidence

Always ask for discount

Take one point at a time.

Negotiate bulk price.

Direct procurement

It is practiced when purchase is done from single supplier at his quoted price. It is reserved
for proprietary materials, or low priced, small quantity and emergency purchases.

Rate contract

Firms are asked to supply stores at specified rates during the period covered by the contract.
Spot purchase

It is done by a committee, which includes an officer from stores, accounts and purchasing
departments.

Risk Purchase
If supplier fails, the item is purchased from other agencies & the difference in cost is
recovered from the first supplier.

Receipt of Tenders

Tenders are received either by post or through courier or by hand. The tenders should be
dropped in the tender box received open within due date, may be accepted at the bidder. The
tenders received late, shall be marked as late delayed. These tenders are filed and not opened
at all and be returned to bidders in the original envelop without opening

Opening of Tenders

The tenders should be opened by the committee. A separate notice may be given to bidders
before opening the bid. The officer opening the tender will read out the particulars of the
tender.

Evaluation of Tenders

Evaluation of tenders is made in a scientific and logical manner A neat comparative statement
of the tenders opened shall be made. It should contain details like rate, delivery schedule,
make taxes etc. The conditional tenders should not be accepted Negotiations can be done
only with the lowest bidder wherever necessary. A separate evaluation can be made for
technical and financial bids. The tenders can also be called for discussion The idea is to arrive
at a threshold level of acceptability above which all the bidders shall be treated on par. The
bidders who technically acceptable shall be allowed to withdraw their price bids and send
again a revised bid in a sealed envelope or to adhere to original price bid sent. These price
bids are opened, evaluated and the contract awarded to the lowest evaluated bidder.
Placement of Orders

Once the purchase proposal is approved, the purchase officet prepares the purchase orders
and arranges to send it to the vendor. The purchase order shall contain the make and model of
the item with description, rate, quantity ordered, amount and terms and conditions.

Follow up of Orders

Once the order has been placed, be in touch with the supplier

Receipt and inspection of Material

The material received at the entry point is checked thoroughly for quantity, quality by the
indenter. The materials received an also verified against the supplier's packing slip and
purchase order. Record in the receiving report all the discrepancies between the material,
incomplete supply etc. The report should carry the signature of the receiver and the date.
Enter the serial number of the item in the receiving report

Invoice Approval and Payment

After the approval of invoice the payment is done to supplier by the finance department
of the Institute.
Procurement process for consumable items

The consumable or non stock materials are ordered by description.

Consumable materials are entered without a material number, but rather a short text
description as the main identifiable characteristic.

The purchase requisition is subject to approval, based on predefined parameters, prior to

being converted to a Purchase Order and issued to a vendor

There is no inventory in the system

Process Flow for Consumable Items

It includes the following steps

Request, approval, and purchasing of non-stock materials and services

Approval of purchase requisitions for descriptive, non-stock

materials and services

Goods receipt of non-stock materials

Request, approval, and Purchase Order creation for services

Service entry sheet creation and approval

Invoice processing

Facility Period-end reporting

PURCHASING

Meaning

Purchasing means to buy various materials by paying money or ts equivalent from

suppliers/vendors. Purchasing is one of the important functions of administration. Like any
process the purchasing process is made up of several steps or activities. Each step takes
information, processes it and tums into output to feed into the next step The purchasing
process may vary from organization to organizations, but the major fundamental remain the
same. In 5. this process, the materials are bought and acquired using some standardized
specification. The act of purchasing a a fundamental function in the supply cycle. Purchasing
is a store responsibility for the needed materials of the right quality, at the right price, for the
night source, at the right time and at the right place in the most economical manner. This also
includes selection of sources of supply, finalization of terms of purchase, placement of
purchase order, follow up, maintenance of smooth relation with suppliers, approval of
payments of suppliers, evaluating and rating suppliers.
Key Steps of Purchasing

The key steps of purchasing are request to purchase/requisition, supplier selection, purchase
order, fulfilment, order receipt, supplier invoice/payment

1. Purchases /Requisition: Identify the need, what to buy and how much of it and when it is
needed to delivery.

2. Supplier selection: Identify supplier, price and lead time.

3. Purchase order: Raise purchase order and send to supplier. The purchase officer identifies
the items to be procured, the quantity required and price being paid

4. Fulfilment Supplier procures the items and sends to buyer.

5.Order receipt items are checked for quality and quantity per the order placed.

6. Supplier invoice payment: The supplier sends the invoice which is processed by the
finance department before supplier is paid.

Principles of Purchasing

Purchasing is based on need assessment

The ultimate aim of purchasing is right quality, right quantity, right prices, right source, and
at right time to the right place with right mode of transportation, right attitude, with
techniques such as value analysis, material intelligence, purchase research, SWOT analysis,
purchase budget, lead time analysis, etc.

Centralize the purchase system

Back up of good systems management

Points to Remember while Purchasing

Proper specification

Invite quotations from reputed suppliers

Comparison of offers based on basic price, freight & insurance, taxes and levies

Quantity & payment discounts

Payment terms

Delivery period, guarantee

Vendor reputation ((reliability, technical capabilities, convenience, availability, after-sales

service, sales assistance)

Short listing for better negotiation terms

Seek order acknowledgement.

Points to Remember while Purchasing Equipment

Latest technology

Availability of maintenance & repair facility, with minimum down time

Post warranty repair at reasonable cost

Upgradeability

Reputed manufacturer

Availability of consumables

Low operating costs

Conclusion

The preparation procedure for equipment and supply involves a multi-step process that
ensures the organization’s resources are adequately acquired, stored, and maintained. By
following a structured approach, organizations can ensure that their operations run efficiently,
stay within budget, and avoid disruptions caused by faulty or unavailable resources. The key
to effective equipment and supply management lies in careful planning, supplier selection,
thorough documentation, and continuous monitoring.
SUB: NURSING MANAGEMENT and
administration
ASSIGNMENT
ON PREPARATION PROCEDURE OF
EQUIPMENT SUPPLY

SUBMITTED TO SUBMITTED BY

MADAM- M.N. MITRA BISHAKHA MAITY

SENIOR LECTURER M. Sc NURSING, PART-II

CON, NBMCH CON, NBMCH