Every retailer needs an inventory management system that oversees costs while meeting customer demand. But proper inventory control in pharmacy settings has higher stakes.
Pharmacists dispense nearly 5 billion prescriptions per year in the U.S. alone — medications that help patients manage everything from seasonal allergies to life-threatening illnesses. And in many cases, people can’t wait if their medications are out of stock.
To meet customers’ needs, the average retail pharmacy keeps thousands of prescription and over-the-counter (OTC) SKUs on hand for a wide range of conditions. The tricky part is predicting which ones patients need without overstocking.
A strong pharmacy inventory management system is key to overcoming these challenges.
Common pharmacy inventory management methods
There are several approaches to managing inventory at a pharmacy, each with its own advantages and drawbacks.
Visual method
A small-town druggist at a low-traffic pharmacy might visually scan shelves to keep tabs on stock levels. This method is unreliable and unsustainable for pharmacies with more than a few medications on hand.
Periodic method
A team of pharmacists that diligently counts every medication at the end of each month practices the periodic method. This provides a more accurate picture than the visual method, but it’s time-consuming and disrupts the team’s workflow.
Perpetual inventory management
Pharmacies that digitally track every dispensed or received medication use perpetual inventory management, which ensures accuracy and efficiency.
Hybrid method
Some pharmacies use a combination of periodic counts for high-value medications and a perpetual system for the rest, creating a customized solution that gives attention to the medications that need it.
Key features of a pharmacy inventory management system
Inventory management orchestrates a large number of tasks that would otherwise overwhelm the pharmacist and employees, like updating patient data, automating messages, and recording stock.
These are the features that keep things running smoothly in a pharmacy:
- Electronic prescriptions (ePrescribing) integrate with electronic health records (EHRs) and patient portals for seamless prescription management.
- Expiry control tracks expiration dates to reduce waste and make sure customers receive fresh medications.
- Supply and reorder management automates reordering based on predetermined thresholds, maintaining adequate stock levels.
- Customer support systems help pharmacists and staff offer assistance for efficient customer service.
- Data reporting and analytics generate reports on inventory trends, sales, and profitability for informed decision-making about which medications are actually being prescribed.
- Automated messages and alerts notify you of low stock levels, expiring medications, and other critical events.
- Centralized patient data stores medication histories and preferences for personalized care.
- Regulatory compliance ensures adherence to both federal and state laws regarding medication inventory management.
4 tips for improving pharmacy inventory management
An ideal inventory management system should include the features above, but there’s more you can do. Here are four practices to implement for an optimal inventory management system.
1. Perform regular cycle counts
Don’t wait for an inventory audit to discover discrepancies. Instead, make a habit of counting small portions of stock at regular intervals. This proactive approach catches errors early enough to act on them — before they impact patient care or the bottom line.
2. Optimize inventory levels
Each medication has an ideal stock level — not too much to tie up capital or risk expiration, but not too little to risk running out.
Determine the optimal levels for each medication by analyzing historical sales data, seasonal trends, and prescription patterns. This data-driven approach maintains enough inventory to meet demand while minimizing excess stock and holding costs.
3. Streamline dispensing
An efficient dispensing process improves patient satisfaction and staff productivity. Analyze your workflow from prescription intake to medication handover, and look at strategies to speed up the process, reduce errors, and free up staff for other tasks. Options like barcode scanning or automated dispensing systems make a major impact.
4. Prioritize patient communication
Consider setting up automated reminders or personalized communication plans so patients refill their medications on time. A simple phone call or text message can prevent a crisis — the patient won’t risk running out, and since you influence the timing of their refill, you can plan to restock accordingly.
The benefits of automated pharmacy inventory management software
Automation changes the healthcare game. And for pharmacies, adopting inventory management software is one of the best ways to take advantage of this technology.
Here are the top benefits of using software for automation.
Reduced errors and increased safety
Human error is inevitable, especially in fast-paced environments like pharmacies. Automated systems drastically reduce the risk of manual data entry mistakes, mislabeling, and incorrect dispensing. By ensuring accurate inventory records and proper medication tracking, automated inventory management systems enhance patient safety.
Increased efficiency and empowered staff
Pharmacy staff are highly skilled professionals. Their time is best spent on patient care, not tedious inventory tasks. Automated software eliminates the burden of routine chores like reordering, expiration date management, and report generation, freeing up valuable time for pharmacists and technicians to focus on consultations and relationship-building.
Improved cost control and optimized spending
Automated systems optimize stock levels by analyzing historical data, predicting demand, and automatically generating purchase orders. This prevents overstocking and obsolescence due to expiration, leading to substantial savings over time.
Enhanced regulatory compliance
The pharmaceutical industry is heavily regulated, and non-compliance can lead to severe legal and financial consequences. Automated inventory management software helps pharmacies adhere to strict regulations by tracking lot numbers, maintaining detailed records, and generating reports for audits — information that would otherwise be cumbersome to find.
Better patient care
A pharmacy’s ultimate goal is to provide the best possible patient care. Automated inventory management systems make it possible by ensuring medication availability and minimizing errors that could harm patients. The result is a more efficient, reliable, and trustworthy pharmacy that fosters stronger relationships with patients and improves health outcomes.
Get started with Fishbowl
Effective pharmacy inventory management isn’t just about efficiency and cost savings. It’s a critical component of patient safety.
Managing stock is easier with Fishbowl, the all-in-one solution designed to optimize medicine stocks, track medications efficiently, and ensure regulatory compliance. The platform also integrates with QuickBooks to promote both inventory and financial health and visibility.
Are you ready to see how automation takes your healthcare and pharmaceuticals inventory management to the next level? Schedule a demo today.
