Abstract
Medical supply depots in South Africa face a critical challenge with medication inventory losses, which contribute to inefficiencies, increased costs, and delays in restocking and order dispatch. This issue, while prevalent globally, remains underexplored within South Africa's healthcare infrastructure, particularly in the context of MSDs. Analogous inventory management challenges, observed in healthcare settings in Chile and the Philippines, highlight the universal nature of these problems and the need for targeted solutions. Existing approaches, such as conventional stock auditing methods, basic inventory tracking systems, and manual order-picking procedures, fail to comprehensively address the root causes of inventory loss. These methods lack the integration of modern technological solutions and fail to mitigate human error, system discrepancies, and resource inefficiencies, leaving a significant gap in inventory management at MSDs. Inventory discrepancies at medical depots stemming from issues like theft, measurement inaccuracies, and inadequate audits have severe implications for patient care, where timely access to medication is essential. This study seeks to conceptualize the development of a framework to minimize inventory losses of medication at Gauteng MSDs. This study seeks to identify and define the key components necessary for an effective inventory management framework, addressing operational inefficiencies, order-picking errors, and systematic challenges unique to Gauteng’s MSDs. Key variables explored include order-picking processes, inventory management techniques, technological infrastructure, and budget constraints, each of which has demonstrated a significant impact on inventory loss. By focusing on these areas, the framework aims to enhance the accuracy of stock records, reduce waste, and optimize resource allocation. The research methodology incorporates an explanatory and exploratory research design, leveraging both quantitative data from 132 respondents and qualitative insights from interviews with 15 staff members, to gain a holistic understanding of the inventory management landscape at the depot. Quantitative analysis using SPSS and qualitative analysis with Atlas.ti reveals that technological infrastructure and order-picking processes are the most significant factors affecting inventory loss, with outdated systems and lack of automation leading to frequent errors. Descriptive statistics indicate that 94.2% of inventory loss variability can be explained by the selected variables, underscoring the importance of each in shaping inventory outcomes. The results highlight the potential for modernized, integrated systems like ERP/WMS and RFID tracking to improve inventory accuracy and streamline workflows. Continuous employee training is also recommended to reduce human error and reinforce quality control practices. This study contributes a structured framework that integrates advanced technology, streamlined processes, and targeted employee training to mitigate inventory loss. The framework’s recommendations align with the budgetary constraints and resource limitations characteristic of South Africa’s healthcare system, proposing sustainable solutions that improve operational efficiency. By implementing these strategies, MSDs can enhance inventory accuracy, reduce waste, and ensure the availability of essential medications, ultimately strengthening healthcare delivery.