The feasibility of implementing a prime vendor program for laboratory supplies and related material

Abstract

In 1993, the Department of Defense (DoD) implemented an inventory reduction program for medical treatment facilities referred to as Prime Vendor (PV). This program was a new approach to the procurement and management of pharmaceutical and medical/surgical supplies. The results have been documented as an overwhelming success. Typically, a medical treatment facility's laboratory department has the same type of inventory issues as a pharmacy. The products have a predictable usage rate and usually a short shelf life, overstocking typically occurs, a considerable amount of manpower is applied to maintaining the stock, and information technology is not used to expedite order processing. This research provides insight into the feasibility and effects of implementing a prime vendor program for laboratory supplies and related material. The findings show that many of the benefits realized in civilian industry and in the Pharmaceutical and Medical/Surgical Prime Vendor Programs can be realized in the medical treatment facility's laboratory departments with the creation and implementation of a Laboratory Prime Vendor Program.