PTCB Supply Chain key terms

A formal document a buyer sends to a supplier that lists the items, quantities, and agreed prices being ordered; once accepted it becomes the record both parties rely on for the transaction.

An internal request asking the purchasing department to buy a specific item; it is reviewed and approved before anyone issues a purchase order to a supplier.

A contract that names one wholesaler as the main source for most of a pharmacy's drug purchases, usually in exchange for better pricing and more dependable delivery.

A licensed distributor that buys products from manufacturers and resells them to pharmacies and other buyers, handling storage, delivery, and often returns and credit.

An additional distributor used to fill gaps when the main supplier cannot ship an item; purchases from these sources usually cost more and require the same license checks.

An organization that combines the buying volume of many member facilities to negotiate lower contract prices from manufacturers and distributors than members could obtain alone.

The negotiated unit cost a pharmacy pays for an item under a specific purchasing agreement; it stays fixed for the contract term and differs from open market pricing.

An ordered item the supplier cannot ship right away but intends to fill later; it stays open on the order record until the product arrives or the line is cancelled.

A supply disruption in which manufacturers cannot meet demand for a product, forcing buyers to find alternatives, ration remaining stock, or purchase from other sources.

The process of verifying that a supplier holds valid licenses, is authorized to handle the product, and meets the pharmacy's standards before any order is placed.

The target quantity of an item that should be on the shelf after restocking; staff order up to this number, which is set from typical usage between deliveries.

A two-number ordering rule in which an order is placed when stock falls to the minimum and sized to bring the item back up to the maximum.

The stock quantity that triggers a new order; it is calculated from how fast the item is used and how long delivery takes, plus a cushion.

Extra inventory held beyond expected need to absorb unexpected demand or late deliveries so that patient care is not interrupted.

A ranking of inventory by value and usage so that the most expensive or most heavily used items receive the closest monitoring and the most frequent counting.

A running quantity record updated with every receipt, dispense, and return, so staff can see current on-hand amounts at any time rather than waiting for a physical count.

Counting a small, rotating portion of inventory on a schedule instead of counting everything at once; differences are investigated and corrected immediately.

A complete hands-on count of all stock at one point in time, usually scheduled or done at year end, then reconciled against the inventory record.

A stocking method in which the oldest product is placed in front and used first, so older stock moves out before it can expire on the shelf.

The manufacturer's last date on which the product is guaranteed to meet its labeled specifications; it drives stock rotation, removal, and return decisions.

A period when stored product goes outside its labeled temperature range, such as a refrigerator warming above the allowed limit; affected stock is quarantined and evaluated.

Items with no usage over an extended period that tie up money and shelf space; they are candidates for return, transfer, or write-off.

The process of checking an incoming shipment against the order and paperwork for identity, quantity, condition, and temperature before the product enters stock.

The document inside a shipment listing what the supplier says was sent; staff compare it item by item with the goods that actually arrived and with the purchase order.

Any mismatch among the order, the paperwork, and the goods received, such as a short shipment, wrong item, overage, or damage; it is documented and reported to the supplier.

A supplier-issued approval number that lets a pharmacy send product back; it ensures the return is tracked and the correct credit is issued.

A licensed company that collects expired, damaged, or recalled drugs, including controlled substances, and manages their return or destruction with proper documentation.

The routine of pulling outdated stock from the shelf, documenting what was removed, and sending it back for credit or to a reverse distributor for disposal.

A physically separate, clearly labeled holding area for product that cannot be used yet, such as recalled, expired, damaged, or suspect items awaiting a decision.

An action by a manufacturer or the FDA to remove a product from the market because of a defect or safety risk; the pharmacy must find, pull, and document affected stock.

The FDA's severity ranking for a recall: Class I when use is likely to cause serious harm or death, Class II for temporary or reversible harm, and Class III when harm is unlikely.

A practice drill in which staff trace a lot through purchasing, receiving, and dispensing records to prove the pharmacy could respond quickly to a real recall.

Federal law requiring prescription drug trading partners to exchange product tracing data, apply serialized product identifiers, and quarantine suspect product before distribution.

The DSCSA-required code on a prescription package that combines the NDC, a serial number, the lot number, and the expiration date so the unit can be verified and traced.

Product the pharmacy has reason to believe may be counterfeit, stolen, contaminated, or otherwise illegitimate; it must be quarantined and investigated rather than dispensed or returned to stock.

A manufacturer's code identifying the production batch of a product; it is captured at receiving so specific units can be traced and pulled during a recall.

The federal order form used to purchase Schedule I and II controlled substances; it must be completed accurately and the records kept available for inspection.

A chronological record of who did what and when inside a system, such as an adjustment, receipt, or dispense, used to investigate errors and unexplained inventory differences.

A written, approved, step-by-step instruction for a routine task such as receiving a shipment or processing a recall, followed by staff and reviewed on a set schedule.

The number identifying a drug's labeler, product, and package size; it appears on orders, invoices, and tracing records and is used for billing and inventory.