Dead Stock: Meet the Liquidation Engine by Datarithm

SYRACUSE, NY—September 23, 2025— Datarithm®, the trusted ally in pharmacy management, is announcing a powerful addition to its perpetual inventory management platform in the form of enhancements to its Liquidation Engine. This solution which will be revealed at NCPA October 18th – 21st, is designed to assist independent pharmacy owners maximize returns on surplus Rx as they face increasing financial and operational pressure from shrinking claim margins caused by DIR fees, ever-present competition, manipulative PBM practices, and staffing shortages.

“Independent pharmacies are the frontline of community care, but too often they’re left holding the bag when it comes to costly unsold inventory,” says David Belinski, President of Datarithm. “While our Wholesaler Return and Transfer features provide strong results for our clients, we saw the need to apply additional pressure on inventory that wasn’t being addressed with these functions—namely, dead stock.”

Dead stock refers to short-dated or expired inventory that has not been dispensed in 4+ months, posing substantial financial risk to pharmacies. To date, the only remaining outlet for this inventory was reverse distribution via return vendors.
“Unfortunately, these vendors provide no financial transparency, allowing them to quietly reap large financial gains at the expense of independent pharmacies,” continues Belinski. “Designed and built in partnership with RxDirectSolutions, our improved Liquidation Engine introduces Return to Manufacturer which will provide a level of transparency never offered before, substantially larger return credits with lower fees and, moreover, much faster credit timelines than return vendors. This is a game-changer for independent pharmacies.”

The Liquidation Engine builds on Datarithm’s proven capabilities for demand forecasting, reorder point updates based on dispensing volume (its Forecast Engine), and wholesaler returns and store-to-store transfer (its Balance Engine).
By identifying dead inventory that isn’t eligible for wholesaler return, nor recommended for in-chain transfer, Datarithm provides actionable paths for pharmacy owners to recover more value. Whether an item is eligible for manufacturer return or can be listed for resale to other pharmacies, Datarithm will automate the entire process with full transparency and real-time decision support.

Here’s how it works:
Datarithm compiles the list of Liquidation Engine candidates and pharmacy staff follows simple steps to process:
• Step 1: Scan + Identify
When an item is scanned, Datarithm immediately identifies the product’s lot number, serial number, and expiration—and determines whether it meets the manufacturer’s credit policy.

• Step 2: Creditworthy? Get Real Value
If eligible, Datarithm provides a transparent estimate of the item’s return value—giving pharmacy owners clarity on what to expect, without the black-box approach of reverse distributors.

• Step 3: Not Returnable Yet? No Problem.
If an item isn’t eligible for return today, pharmacy owners are given the first action date that the product can be returned as out of date by manufacture policy. Some manufacturers allow for expired returns six months before expiration. The eligible products can be sorted by next action date, so you have a clear path to getting your cash as early as possible instead of waiting six months to start the process.

• Step 4: Keep Tracking
Datarithm continuously monitors it until it becomes eligible for manufacturer return, ensuring no opportunity to recover revenue is missed.

Launching Soon
Datarithm’s Liquidation Engine is expected to roll out later this fall, promising enhanced efficiency and profitability to community pharmacies.

On the Workbench
In addition to Manufacturer Returns, Datarithm is working on an additional feature with InStockRx, that will provide an option for pharmacy owners to automatically post inventory to InStockRx’s virtual shelf for potential purchase by other independent pharmacies across the U.S. when items are determined to be temporarily ineligible for Manufacturer Return (see Step 3 above). Stay tuned for status updates.

About Datarithm
Datarithm was founded in 2005 by a pharmacist, a software engineer, and a medical sales professional who joined forces to fill a gap in the independent pharmacy space. We share the belief that pharmacies are the first line of healthcare within our communities.

As your ally, we pair the power of our inventory management platform with hands-on training, daily insights, and personalized guidance. You’ll get information you can act on as soon as tomorrow and financial results you can see in less than two weeks. With an intuitive dashboard, automated forecasting, inventory balancing, cycle counting, and advanced analytics, it’s never been easier to increase your pharmacy’s cash flow while putting time back in your staff’s day. Efficiently manage turns and fill rates and keep your business operating above the wellness line.
Visit www.datarithm.co to schedule a no-obligation demo or call Jennifer Wilcox at 315.233.4024 and start securing the future of your pharmacy today.