Pharmacy Inventory

Say Goodbye to Drug expiries at your Pharmacy

Losses due to expiries are one of the biggest nightmares for pharmacy managers, particularly in retail where margins are getting tighter every day.

Constant drug supply chain issues mean that pharmacies struggle to maintain adequate inventory to meet customer demand without tying down cash on their shelves or spending a lot of time and money on procurement.

When a drug expires it means that beyond the margin, the cost price is lost not forgetting the time it spent on the shelf which equates to money tied down.

Sometimes Pharmacy managers are tempted to want their outlets to look full and stocked, this can result in a lot of unneeded inventory, you don’t want to be keeping inventory you don’t need, if you want your outlet to look stocked then those extra stock should be items that fly off the shelves quickly.

Your goal when you procure medications is to turn them over as soon as possible and reinvest the cash into fresh inventory while keeping your margins or investing in expansion.

For a long time, the consensus has been that inventory management software can solve this problem and help us reduce expiries to the barest minimum but speak to pharmacy managers and you will discover this is far from being the case.

INVENTORY MANAGEMENT STARTS WITH PROCUREMENT

Data from conversations with pharmacy managers indicates that effective inventory management starts from procurement. There is a tendency for managers to assume that they have a firm grasp of drug demand patterns but sometimes they miss out on valuable insights when procurement decisions are not backed with data.

Here is a guide to picking a great inventory management software

Rather than simply go procure a list of needed medications, how about you review your sales data for those medications for say the last 6 months.

You just might find something you won’t have noticed easily that can guide your procurement.

Influence of Location on Inventory Stocking Strategy

Just like location plays a role in pharmacy viability, location should influence how you stock, if in the early days you are not sure of the kind of traffic you get it’s safe to stock cautiously and study your customers.

When you know your client base you know that maybe you don’t need to stock some kinds of supplements, maybe one or two bottles and not more.

Every pharmacy manager understands the theory/practice of inventory management but there appears to be a gap between what we all know and what happens on a daily basis.

Want to take control of your pharmacy’s inventory management today? Click here for more articles on selecting the perfect inventory management software for your needs.


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One response to “Say Goodbye to Drug expiries at your Pharmacy”

  1. […] let process issues and expired drugs drain your profits. Click here to learn more about the best practices for efficient inventory […]

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