4 Ways Pharmacy Inventory Management Can Boost Profits
Finding expired medications on your shelf or running into inaccurate counts can be frustrating for many reasons, most notably, losing profits and patients. Drug inventory makes up a large component of a pharmacy’s cost of goods sold (COGS), making it an integral area to maintain strict control over.
Here are four tips that you can utilize to ensure optimal management of your pharmacy inventory:
1. Pay attention to the numbers!
Understanding calculations specific to inventory is essential for benchmarking and tracking activity. Examples of these important figures include total inventory as a percentage of sales, accounts payable turnover, and inventory turn days.
2. Consider implementing a “Just in time” (JIT) approach.
This strategy will help your pharmacy decrease waste by ordering inventory on an as-needed basis and operate with continuously low inventory levels. While it will require you to be extremely accurate in forecasts for demand of products, the little to no waste balances it out.
3. Eliminate slow-moving items from your shelves.
Your inventory management system should easily identify your productive vs. “dead” inventory.
4. Automate pharmacy inventory management.
Streamline inventory with an automated solution that provides visibility into your inventory landscape and improves efficiency.
For more tips on boosting your pharmacy’s profitability through best inventory management practices check out this article.
Inventory management can be made seamless with the right tool. Turn Rx, driven by predictive analytics, is an automated inventory management solution built to improve your bottom line. Contact firstname.lastname@example.org to learn more.