How to Boost Profit of Retail Pharmacy Using Pharmacy Inventory Management Tips

 

Proper inventory management is crucial to the health of any pharmacy. But far too often a pharmacy’s inventory is neglected and left to develop out of control that is bloated with surplus and dead inventory. But it doesn’t have to be that way.


Here are some tips to boost your inventory management:


1. Stop inventory stockpiling

Stockpiling is panic buying. Think Hydroxychloroquine during the start of the Covid-19 pandemic. Stockpiling drugs isn't appropriate for your business in 3 ways. First, it locks up valuable inventory dollars on objects that could take a long time to fully dispense. Second, you could be shopping for those drugs at an inflated price hurting margin, and thirdly you could fuel an artificial demand for the drug and push its price up while decreasing supply for those that need it.


2. Keep enough inventory on hand

You can't dispense what you don’t have in stock. And failure to serve your patients could lead to dropping them off for a month or forever. In this day and age, independent and smaller chain pharmacies can't lose any customers! That is why it's imperative that your pharmacy team knows the value of right cycle counting, demand forecasting, and optimized reorder points. 


3. Plan for Wholesaler Returns monthly


Your wholesaler representative won’t alert you that drugs on your shelves are ready to be returned. And your pharmacists and techs won't even be aware that a sizable portion of your surplus Rx inventory is available to be returned. Many pharmacies are running nowadays with a 10-15% return opportunity and don’t even recognize it!


4. Reward your pharmacy techs for accuracy


None of their coursework organized them for one of the most essential responsibilities they'll have to control your Rx inventory. Some pharmacy GPOs incentivize their groups in response to measurable development of Rx inventory conditions.


5. Conduct regular reviews


You can’t enhance what you don’t measure. Your inventory is no different. Owners, directors, and managers want to take the time to check and really recognize the nuances of their inventory. After all, it’s your single biggest investment and your largest expense! Proper inventory analysis; however, is no easy task for independent pharmacies wherein the owner may work behind the counter,  and even more unwieldy for a multi-store operation, especially if the stores do function cohesively.


6. Incorporate automation:


It is simple, they automate. They rely upon technology to do the tough work and then rely on their people to use that technology. Many national and very big regional chains have the funds to construct and increase a bespoke software solution but this is beyond the means of most independent and smaller multi-store chains. But they want to worry. Because there's an extremely cost-effective solution available to them. One can also make use of the SRS pharmacy management system to maximize profitability and reduce overhead costs.

Comments

Post a Comment

Popular posts from this blog

Key Difference Between Independent Pharmacy vs. Chain Pharmacy

Image
On average, patients visit the pharmacy twenty times per year, as opposed to the best 4 visits per year to a primary care physician. With that many visits, and with health on the line, it's essential to select a pharmacy that fits your needs and eliminates headaches. 1. Customer Service  It’s no secret that locally owned companies are much more likely to have excellent customer service, and pharmacies are no exception. Because independent pharmacies are not bound to the same bottom lines as corporate pharmacies, their pharmacists and staff have extra time and energy to deal with customers as individuals rather than numbers. 2. Convenience  Independent pharmacies can be outnumbered in most states, and they'll have tighter hours of operation windows, however, they also have the flexibility and willingness to supply medications to their community members flexibility that chains truly do not have. Of course, not every independent pharmacy will provide free delivery. And you'l...
Read more

5 Things Tiny House Owners Should Know About Tiny Home Insurance

Image
The tiny house movement has gained tremendous popularity among those seeking a simpler, downsized lifestyle or looking to travel in style. However, it's important to understand that even tiny homes require insurance coverage to protect your investment and ensure peace of mind. In this article, we'll explore the various aspects of insurance for tiny homes and what you need to know. 1. The Necessity of Insurance:  While there is still some ambiguity surrounding the legal aspects of insuring tiny homes, there are situations where insurance is a must. Tiny homeowners should consider specific types of coverage, though in some cases, it might not be legally mandated. 2. Categorization of Tiny Homes :  Tiny homes come in various forms, and the insurance requirements can vary based on their classification. If your tiny home is on wheels and you plan to hit the open road, it's essential to obtain vehicle insurance coverage, as mandated by law. Insurance for mobile tiny homes diffe...
Read more

3 Main Pharmacy Finance Pitfalls to Avoid By Independent Pharmacies

Image
A study letter posted in JAMA1 showed that although the number of pharmacies starting in the U.S. was increasing, 1 in 8 pharmacies closed from 2009 to 2015. Many of the closed pharmacies were independent pharmacies . Let us look at the 3 factors that independent pharmacies should avoid: 1. More Debt Than the Cash Flow Can Support. It takes time to build up income, and new pharmacy owners must be prepared for a period of 12 to 24 months before the business is ready to break even. Although it does not help to be pessimistic when making projections, being conservative can protect pharmacies from taking up too much debt. eg. if a pharmacy has $800,000 in revenue for one year, the business owner shouldn’t borrow $1,500,000 for the following year. 2. Managing the Pharmacy’s Finances. A certified public accountant or financial planner will add another line item to the expenses of running a pharmacy and owners may be tempted to either completely skip hiring one or wait until a pharmacy is mo...
Read more