Closeup pharmacist hand holding medicine box in pharmacy drugstore.

Closeup pharmacist hand holding medicine box in pharmacy drugstore.

How is Fragmented Inventory Losing Money for Your Pharmacy?

You’ve heard of overstock and deadstock, but have you heard of fragmented inventory? If you haven’t, you should know that it could be costing your pharmacy thousands of dollars.  

What is fragmented inventory? 

Many medications come in compliance packs, typically for a 30-day or 90-day supply. These products are almost always sold in whole packs, but occasionally a partial pack may be filled. So, what happens to the inventory that is left over from the prescription for less than a whole pack? The partial pack usually sits on the shelf. Although the product may not be deadstock, the partial package or fragmented pack of the product is deadstock.  

How can pharmacies avoid turning partial packs into deadstock? By finding other stores that have a partial pack and turning the fragmented packs, or fragmented inventory, into a full pack. 

For example:  

Store On Hand Quantity Inventory Value Fragmented Inventory Fragmented Value 
A 135 $1,863.59 -15 $207.07 
B 105 $1,449.46 -15 $207.07 

Drug Z is a compliance pack for 30 tablets. Store A has an on-hand quantity of 135 tablets of which 15 tablets are considered fragmented since Store A has only sold whole packs in the last 120 days (a configurable parameter in Turn Rx). Store B has on-hand quantity of 105 tablets and it too has a fragmented amount of 15 tablets because it has only sold whole packs in the last 120 days. Therefore, we can move the 15 from Store A to Store B, resulting in only whole packs at both stores. This results in $414.14 of inventory that can now be used. 

What does that mean for pharmacies? 

Deadstock inventory often sits at the back of the shelf, therefore, becoming expired. Transferring fragmented inventory from store to store can help reduce inventory costs by thousands of dollars for just one NDC!  

Our inventory management tool, Turn Rx, will soon have the ability to track and transfer fragmented inventory easily between stores. Contact us to learn more! 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *