SOPs of Handling expired and damaged stock

Standard Operating Procedure (SOP)
Title	Handling of expired and damaged stock
QA Signature		Area Manager Signature
Date of signature		Date of signature

1.                  Purpose

The purpose of this SOP is to lay down the procedure for disposal of expired, damaged, near expiry, recalled and sales return products and stability, reference samples received from Sales Depots (Stock Points) QA departments at Ware house.

2.                  Scope

This Standard Operating Procedure is applicable to central ware house

3.                 Definitions

3.1         This Standard Operating Procedure (SOP) is an authorized written procedure, providing instructions for disposal of expired products, near expiry products and damaged products received at Warehouse.

4.                 Responsibilities

Activity	Responsibility
Receiving of the stocks and documentation, Obtaining approval for destruction, Sending the  waste  for incineration	Trained Ware House staff
Stock dispatch to	Expiry Department Manger
Ensure Compliance	Supplier Relations Manager / Logistics Manager / Director- Distribution / Director – QA & Supply chain

5.                 Procedure

5.1         Intimation Report of near expiry received from rack supervisors as per 7 month 5 month and 3 month intimation.

5.2         Receive the broken / damaged / expired / market returns/ supplier return/near expiry goods from storage locations.

5.3    Check the stocks as per verification report of Returned Stocks, for Batch and quantity authentication.

5.4         Segregate the near expiry and damage stocks properly in separate expiry/damaged rack.

5.5         Share intimation report to Expiry department

5.6         Same month expiry stock share with Expiry department.

5.8         Obtain approval for Dispatching Stocks for Incineration after Segregation of Stocks

5.9         Share whole near expiry stock or damage stock to expiry department.

SOP/Expiry/01 - Process of Identification, Recording and Intimation to Expiry department of 6 month expiry

1.      Objective and Scope:

To define the process of communicating the items with batch numbers as per supplier requirement expiry to the expiry department.

2.      Responsibility:

Operations Head, Purchase & Planning Manager, District Manager, Shop manager, Sales staff, Warehouse Manager

3.      Process: 

3.1.    During monthly self audits as per expiry provided sheet, the shop/Warehouse staff will  identify and record all items that are due as per mentioned in given sheet.

3.2.    At the completion of the monthly self audit, the complete list of items due as per provided sheet, will be entered in a sheet named “Expiry Intimation Sheet” and emailed to the Expiry Department (with CC to relevant department.).

3.3.    A hard copy of the “Expiry Intimation Sheet” will be filed in the register “Expiry” and signed by the shop/warehouse manager.

3.4.    The stock that has been highlighted will be taken out of its normal rack and moved to the expiry rack. (Stock from the expiry rack can continue to be sold) 

4.      Related Document(s):

Expiry Intimation Sheet

SOP/Expiry/02 - Process of communicating 6 month expiry to suppliers

1.      Objective and Scope:

1.1.    To define the process of communicating items that is nearing expiry to relevant suppliers as per sheet.

2.      Responsibility:

2.1.    Purchase & Planning Manager, Expiry department

3.      Process

3.1.    Expiry department is required to verify if each  location (hospital, community & Warehouse) has communicated its near expiry stock through an “Expiry intimation sheet”; all branches has to sent intimation before the 26^th  of the month

3.2.    Expiry department is required to compile the data of all locations and rearrange the combined list by suppliers.

3.3.    The detailed listing of near expiry stock is to be recorded on the a separate “Supplier Expiry Intimation Sheet” for each supplier

3.4.    The supplier intimation sheet is to be communicated to each supplier before the 15^th of the following month and a hard copy of the information is to be filed in the folder labeled “Expiry Intimations to Suppliers”

4.      Related Document(s):

4.1.    Supplier Expiry Intimation Sheet

SOP/Expiry/03 - Process of dispatching near expiry stock to Expiry Department

1.       Objective and Scope:

To define the process of documenting and physically transferring stock that is due to expire in two months to the expiry department

2.      Responsibility

Shop manager, Warehouse manager, District manager, Operation heads, shop staff, warehouse staff

3.      Process:

3.1.   During the last week of each month warehouse/shop managers are required to dispatch to expiry items that are due to expire in two months, not inclusive of the current month. (example in last week of April, items expiring in the month of June will transferred to expiry warehouse)

3.2.   Warehouse/Shop staff are required to do an audit of the e
xpiry rack and separate the relevant stock and counter verify the list with “Expiry intimation sheet” of relevant month

3.3.   Shop managers will make Transfer Report  to central warehouse

3.4.   Physical stock and Transfer report of Stock will be transferred to central warehouse

3.5.   Copy of report will be filed in expiry register

3.6.   Against intimations on demand of Expiry Department, Branch/Warehouse staff will be send stock to Expiry Department.

4.      Related Document(s)

4.1.   Stock Transfer Report

4.2.   Goods Dispatch Noted

SOP/Expiry/04 - Process of receiving near expiry stock

1.       Objective and Scope:

To define the process of receiving expiry stock; segregation of returnable and not returnable items

2.      Responsibility

Expiry department in-charge, Purchase & Planning Manager

3.      Process:

3.1.         Upon receiving physical stock and Stock Transfer Report (or Goods Dispatch Note in case of central warehouse expiry), expiry department in-charge will reconcile the physical stock and documents.

3.2.         After verification expiry department in-charge will request central warehouse to issue GDN in favor of expiry warehouse

3.3.         In case of difference between physical and STR, only confirmed stock STR will be accepted

3.4.         In case any location has not physically sent any stock, expiry department will check against the locations previous intimations for relevant month and send a reminder email with CC to Purchase & Planning Manager and Head of operations

3.5.         Expiry department in-charge will segregate the returnable and not returnable stock based on prior intimations

3.6.         The details will be recorded in the “Expiry Receiving Sheet” and emailed to the Purchase & Planning Manager

3.7.         A hard copy of the monthly receiving’s will be maintained in the Expiry folder

3.8.         Company not claim (CNC), wrong and not/late intimated, loose cutting and damage stock will not be received

4.      Related Document(s)

4.1.   Expiry Deduction report (Annexure – 1)

SOP/Expiry/05 - Process of returning near expiry/expired stock to suppliers

1.       Objective and Scope:

To define the process of returning returnable expiry items to suppliers and establishing responsibility of purchase staff.

2.      Responsibility

Expiry department in-charge, Manager Purchase, Purchasers

3.      Process:

3.1.         In the first week of every month expiry department in-charge will intimate the suppliers about the expiry items under purchase dept. confidence.

3.2.         Supplier will provide evidence of return of expiry stock in the form of credit note or will deduct against an invoice

3.3.         The expiry department will enter “Return Note” in system against the evidence provided by supplier and will file the evidence and copy of return note in folder. The evidence must also be attached to the new purchase invoice and sent to accounts department for balance payment.

3.4.         At the end of the month, Expiry department in-charge is required to issue an “Expiry Stock Movement Report” which must be counter signed by the Purchase & Planning Manager & Operation Head

3.5.         All the credit notes along with system return note must be placed with manager purchase for adjustment against new purchase payment.

4.      Related Document(s)

4.1.   Return Note

4.2.   Expiry Stock Movement Report

4.3.   Supplier Credit Notes

4.4.   Supplier deduction against invoice

SOP/Expiry/06 - Process of Disposal of non-returnable expired Stock

  

1.       Objective and Scope:

To define the process of disposal of non-returnable and expired stock and establishing accountability of purchase staff

2.      Responsibility

Expiry warehouse in-charge, Manager Purchase.

3.      Process

3.1.         At each month end, Expiry department in-charge will send a report named as “Expired Stock” to the Director, Head of Finance and Manager Purchase & Planning about the non-returnable and expired stock in hand.

3.2.         Reason of expired stock must be established in the (Process of returning near expiry/expired stock to suppliers) report.

3.3.         Before disposal audit of expired stock must be conducted

3.4.         Disposal committee will authorize the disposal. Member of the committee will be as under:

3.4.1.      Director

3.4.2.      Head of Finance

3.4.3.      Head of Operation

3.4.4.      Manager Purchase & Planning

3.5.         After approval of committee expiry department in-charge is required to enter return note in the expiry system. This will reduce the expired stock in hand.

3.6.         Approval note of disposal committee along with system return note must forwarded to the accounts department for the financial recording

3.7.         Head of finance must ensure the proper book keeping

3.8.         There are different methods of disposal like return to manufacturer, Landfills, Sewer and Incineration (burning at high temperature).

3.9.         Disposal Committee will select the disposal method, however incineration is recommended.   

4.      Related Document(s)

4.1.    Expired Stock

4.2.    System Return Note