Published on 28 Feb 2025
Effective inventory management is the backbone of a profitable pharmacy. Poor stock management leads to expired medicines, stockouts of high-demand products, and tied-up capital in slow-moving inventory. A well-managed pharmacy can reduce wastage by up to 30% and improve customer satisfaction significantly.
Unlike FIFO (First In, First Out) used in most industries, pharmacies should follow FEFO — First Expiry, First Out. This ensures medicines closest to their expiry date are dispensed first, minimizing the risk of expired stock. Organize your shelves so that near-expiry products are placed in front and easily accessible.
Every medicine in your pharmacy should have a defined reorder level based on its average daily sales and supplier lead time. When stock falls below this level, it triggers a reorder. This prevents stockouts of essential medicines while avoiding over-ordering of slow-moving items.
Use ABC analysis to categorize your inventory: Category A includes high-value, low-quantity items that need tight control. Category B includes moderate-value items with regular monitoring. Category C includes low-value, high-quantity items that need minimal oversight. This helps you focus your attention where it matters most.
Modern pharmacy management software can automate expiry tracking, generate reorder alerts, and provide real-time stock visibility. At Mahadev Pharma, our client portal gives you digital access to your order history, invoices, and delivery tracking — making inventory planning easier.
Conduct physical stock counts at least monthly. Compare actual stock with system records to identify discrepancies. Regular audits help catch theft, damage, and data entry errors early, keeping your inventory accurate and your finances in check.
