OBJECTIVE： To promote the establishment of hospital drug logistics system， and to guarantee drug supply. METHODS： The establishment and functions of SPD （supply， processing， distribution） system in our hospital were introduced， and its effect was evaluated by comparing work quality and efficiency before （in 2014） and after （in 2015） the application of the system. RESULTS： SPD system of our hospital included following modules of purchasing order， checking order， warehousing management， purchasing order inquiring， general information maintenance； the system possessed those functions， such as automatically creating purchasing order， automatically receiving exchanging and warehousing information， inquiring drug sale volume and state， prompting expiry date， etc. Through one year of practice， compare to 2014， work efficiency （developing plan， checking bills） of dispensing rooms and drug storage in 2015 all increased by about 80％； accurate rate increased from 98％ to 100％； the stockout frequency and inventory turnover days declined by 52％ （8.4 times） and 32％ （4.7 d）. CONCLUSIONS： The application of SPD system can improve drug supply and management in the hospital.