Ad Hoc Pharmacy Inventory Management: Short-Term Fixes, Long-Term Problems
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by Laisha Daley<br/>
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Laisha is the Chief Marketing Officer of InStockRx.<br/>
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If you are a Community Pharmacy Owner or Pharmacist in Charge looking for new strategies to improve your margins, this is for you.<br/>
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“Hey, can anyone help with this med?”<br/>
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This question is a common exchange between friendly pharmacies. On one hand, it may be a pharmacy owner looking to part ways with their surplus inventory, or alternatively, a pharmacy dealing with a shortage and trying to fill a patient’s script. Whether you run a single independent pharmacy or have responsibility for a small chain of community pharmacies, it is customary practice to establish relationships with other pharmacies in the local community and then trade amongst each other. The main benefits of these relationships include the ability to satisfy a patient’s need, help a peer pharmacy in a time of need, and help avoid the cost of wasted, expired inventory. Win-win-win, right? <br/>
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Common ad hoc methods for dealing with surplus inventory<br/>
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Typically, pharmacies call around to other locations in the local community, but with the proliferation of technology and various apps, communication is now more fragmented. These communication methods can include but are not limited to: <br/>
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Taking Photos of shelves & surplus stock and texting or emailing it to a nearby pharmacy <br/>
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WhatsApp messages<br/>
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Teams Chats <br/>
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Zoom Calls <br/>
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Shared spreadsheets<br/>
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Certainly, these methods have a level of convenience to them (they are quick and easy to do with our mobile devices), but this also has some drawbacks, longer term.<br/>
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The drawbacks to ad hoc inventory management<br/>
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The primary drawback to these methods is that these methods will not be compliant with the Drug Supply Chain Security Act, in terms of the supporting data and documentation to track and trace products in the supply chain. The pain of this will be most deeply felt in a PBM audit. Patient needs may be met short term (win), but pharmacies run the risk of losing, big time.<br/>
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Another critical drawback is that these are very reactive methods for dealing with inventory. As we have shared in earlier articles, pharmacy margins are becoming razor thin, leaving little room for error. These methods certainly provide a short-term fix, but they are not necessarily scalable in the long term.<br/>
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Lastly, these ad hoc methods may be limited to a smaller circle of local pharmacies. Sure, these may be your closest peers you do business with, but this may limit your network of opportunity, and limit your ability to sell that surplus inventory. Plus, in the example of a shared spreadsheet, someone may accidentally delete an item or forget to update an item.<br/>
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There is, of course, one more frightening method to consider… that is, the risk of doing nothing with the surplus stock. This is the most dangerous because it is the most costly for a pharmacy.<br/>
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There is a better way forward<br/>
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There is a better way for pharmacies to deal with their overstock, dead stock, and expiring stock. Independent pharmacies have an opportunity to move:<br/>
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The InStockRx platform provides both the insights that pharmacies need to proactively identify, analyze, and liquidate their surplus inventory, and the online marketplace that facilitates transactions between pharmacies, with the necessary documentation to comply with DSCSA.<br/>
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Additionally, the platform also provides a way for pharmacies to conduct real-time searches of medication availability to meet a patient’s need. Pharmacy owners, PICs and pharmacy teams can view available items for sale, and view items considered surplus and request for purchase, all in real time.<br/>
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InStockRx’s Real-time Medication Search capabilities. View surplus inventory availability from other pharmacies.<br/>
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Independent pharmacies can still achieve a win-win-win situation, and maintain those friendly relationships with peer pharmacies, by leveraging technology solutions that can help proactively identify and manage inventory in a way that meets the regulatory requirements.<br/>
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Ready to turn your problem inventory into cashflow and improved profitability? Click here to get started with InStockRx.<br/>
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by Laisha Daley<br/>
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Laisha is the Chief Marketing Officer of InStockRx.