Many small hospitals in Africa are facing severe problems of shortages of supplies. This is an internal-control system designed to help the Sisters of Charity of St Capitanio and Gerosa and their small hospital in Chriundu to improve the efficiency of planning and security to alleviate the shortages of supplies. The goals of our internal-control system are: establishing collaborative relationship with suppliers; improving inventory control and enhancing employee control. Once the hospital received the funds, we need to record the sum of funding and make sure it matches with the sum of donation. As the hospital is facing a problem of counterfeit drugs, it can select suppliers with high prestige and seize purchase drugs from untrustworthy suppliers. After the selection, we can enter into a long-term contract with fixed suppliers and make orders from them regularly according to needs. We use traditional approach to determine the reorder time and the quantity of each order, so that we can make sensible arrangement on orders and reduce the risk of having shortages of supplies. When the suppliers delivered the drugs, we need to send a supervisor to make sure the variety and sum of drugs they delivered matches with the order and the witness supplier sign on the record. The supervisor would get on the delivery car with the driver. And we need another person to sign and count the quantity of drugs actually received, to make sure there is no action of theft happened during the delivering process. We also need experts to sample every batch of drugs and do some testing to make sure the drugs are genuine and work. Then we storage the drugs in a storehouse, which needs to be dry and clean. We need two stocktakers to do physical stock...
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...rs. Such mistake can be avoided through a formal supplier selection process and the information gathered through the process should be stored.
The supplier selection process starts with collecting application from suppliers, both existing and new. Then the hospital needs to assign two people to deal with the selection process. Firstly, each potential supplier’s delivery performance will be examined by obtaining its historical percentage of orders delivered on time and average lead-time for deliveries. Secondly, quality will be investigated by looking at suppliers’ achievement of quality certification and reputation among the industry. All the suppliers should be required to possess quality certification, for example ISO 9000. Other information will also be considered. For instance, how many percentage reductions in price of supplies are offered by suppliers.
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