Independent pharmacies are always looking for ways to increase revenue and profitability. This is especially true as a very difficult 2020 comes to a close, and even more challenges lay ahead in 2021. These challenges include rising PBM DIR fees, ever-increasing regulations and other market forces. Let’s face it—positive cash flow has never been more important to the health of your business!
So, where can a pharmacy turn to improve cash flow? Many consider adding non-traditional services like dispensing pet medications or expanding retail offerings. This may include promoting CBD products and other health/nutritional supplements. Others launch difficult to monitor and manage rewards programs.
Unfortunately, these and similar tactics rely on adding expenses. Furthermore, to be effective, they all rely on increasing pharmacy foot traffic. And let’s face it, in this day-and-age increased foot traffic is something you cannot count on nor control.
But don’t despair—there is a better plan. In conjunction with adding additional products and services, consider focusing on what you can control! That includes all of your expenses—none more important or larger than your pharmacy inventory.
A better-managed inventory means increased turn rates, optimized order points, and the elimination of surplus Rx inventories. The result? A near-instant and ongoing decrease in dollars tied up in inventory and improved cash flow! What’s the best way to achieve such inventory control success? Many pharmacies rely on Datarithm®.
Datarithm® is an intuitive, cloud-based inventory management software system for pharmacies of all sizes. Its user-friendly system provides on-demand real-time updates.
Datarithm® will allow you to manage and automate your pharmacy inventory. The result? How about an average of 4+ point improvement in inventory turns and an average inventory reduction of -$43,703!
Datarithm® automatically calculates optimal order points for every item/group based on changes in dispensing. These new order points are then automatically uploaded to your pharmacy management system. Every item and generic group in your pharmacy inventory is handled – nothing is missed, and nothing falls through the cracks.
Does your pharmacy struggle with surplus inventory? Most do! Datarithm® automatically surveys and recommends wholesaler returns for full packages. These recommendations allow pharmacies to eliminate surpluses and convert cash on the shelf to cash in the bank boosting their bottom line and cash position.
Best of all, Datarithm® is so easy to implement. Through order point optimization, inventory Balancing (Returns/Transfers), and maintenance of hand precision through Cycle Counting, Datarithm® optimizes your most significant investment and most considerable expense, your pharmacy inventory.
Consider all that Datarithm® offers—streamlined operations, reduced expenses, increased profits, and improved cash flow and liquidity, and find your way to a profitable community pharmacy.
This post is related to:Inventory Management