Results of collaborative inventory management by the Government Pharmaceutical Organization (GPO) at Chumphon Khet Udomsakdi Hospital

Abstract

Medication inventory management plays a critical role in ensuring continuity of care, patient safety, and efficient use of financial resources in hospitals. Chumphon Khet Udomsakdi Hospital implemented a collaborative inventory management model in partnership with the Government Pharmaceutical Organization (GPO) to enhance medicine availability while controlling inventory costs and reducing pharmacy workforceburden.Objectives:(1) To evaluate the effects of medication inventory management with GPO participation on inventory management performance, and(2) To use the evaluation findings to refine the inventory management model to better suit the hospital context.Methods:This action research study utilized retrospective data extracted from the Inventory BMS–HOSxP XE system. Outcomes before the intervention (April 2024–July 2025) were compared with those after the intervention (September–November 2025). The study sample consisted of 112 medicines manufactured or distributed by the GPO or medicines supplied by a single manufacturer/importer. Key performance indicators included days of inventory on hand, inventory value, inventory turnover rate, order fill rate, stock-out rate, expired medicine rate, and procurement lead time. Data were analyzed using descriptive statistics and the Wilcoxon signed-rank test, with statistical significance set at α = 0.05.Results:The mean days of inventory on hand increased from 1.6 to 9.02 days, while total inventory value increased marginally from 1,605,278.64 to 1,617,411.38 Thai Baht. Inventory turnover rate decreased from 18.35 to 3.51. The order fill rate declined from 84.31% to 73.55%. No expired medicines were observed in either period, and the number of stock-out medicine items decreased from six to two. No statistically significant difference was found in median inventory value per medicine item before and after the intervention (W = 2086.5, p = 0.2296).Conclusions:Collaborative inventory management with GPO participation improved medication availability and system stability without significantly increasing inventory value. Flexible adjustment of safety stock levels and delivery cycles based on demand and supply variability is recommended. Further research is warranted to enhance long-term sustainability.

Keywords: medication inventory management; Government Pharmaceutical Organization; action research; stock-out; provincial hospital