Abstract
Logistics management is a useful tool with applicability to many businesses. However, drug distribution
from Klonglan District Hospital to its primary care networks was still in its infancy, resulting in an
excessive drug inventory. This is a quasi-experiment study that monitored 3 Key Performance Indicators
(KPIs) for comparison before and after using the modified vendor-managed inventory (VMI). The KPIs
were 1) inventory efficiency evaluated by ratio analysis, 2) cost-benefit analysis, and 3) stakeholder satisfaction
evaluated through content analysis from focus group discussions. The KPIs were monitored for
eight months at ten primary care units in Klonglan district. The period before using the modified VMI was
from December 2011 - March 2012; the period after using the modified VMI was from April 2012-July 2012
The results showed that KPIs were improved. The average inventory turnover ratio was reduced
from 6.67 months to 1.31 months. The inventory cost saving was 1,006,416.55 baht and the benefit-to-cost
ratio was 80.03. Stakeholders expressed satsifaction with the modified VMI because of the lower workload.
Regular meetings among stakeholders, however, are needed for improvement and maintenances of the
new inventory management system.
