5 Inventory Management Best Practices for Pharmacies

When pharmacies develop an inventory management strategy, the goal is typically to minimize the total inventory costs while still meeting patient demand. Having too much inventory on hand will tie up your cash flow, while stocking too little can cost you sales. That’s why it’s essential to have a process for how you’ll proactively monitor and adjust your inventory when needed. To help get you started, here are 5 inventory management best practices that can help you achieve and maintain optimal inventory levels:

Establishing Reorder Points

You can use your BestRx software to generate a variety of sales and inventory reports. These reports can help you quickly identify which products are most popular, and which may need to be kept in limited supply. They can also help you determine how much inventory you’re selling on average, for a set amount of time. This is helpful in determining both the minimum amount you’ll need on hand to keep up with patient demand, as well as the maximum quantity you should keep on your shelf.

Monitoring Trends

Setting reorder points shouldn’t be a one-and-done activity. Be sure to review your sales and inventory reports monthly ( at least or quarterly) so you can quickly identify changes in demand as well. For example, demand for brand-name medications may decrease as generics become available. Or, certain items like cold and flu medications may be a top seller in the winter but have limited sales in other seasons. By comparing your inventory levels against your current sales, you can adjust your ordering habits to stay stocked on what’s selling now, without getting stuck with excess inventory of everything else. Read more >