Table of contents
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Numbers to explore before we move
- The Architecture of an Inventory Management System in Pharmacy
- Pharmacy Software Systems: Key Features
- Pharmacy Inventory Management System: Operational and Financial Benefits
- Pharmacy Inventory Management | Types
- Off-the-Shelf vs. Custom Pharmacy Management System
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Pharmacy inventory management system by Interexy
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FAQ
Pharmacy Inventory Management System | Technology Breakdown
All pharmacies have a dynamic and vast supply-chain network they should manage, irrespective of whether it is part of a medical facility or an independent shop. The supply costs of any pharmacy are vulnerable to several factors which contribute to increasing costs and affect profitability.
The stock inventory projection should also be assessed accurately. Although pharmaceutical products tend to have a mid-term shelf life, overstocking still usually leads to a loss of value. Pharmacies should address important aspects like proper storage, expiration dates, and more.
- This makes pharmacy inventory management a must-have for most drug stores today.
Numbers to explore before we move
The Architecture of an Inventory Management System in Pharmacy
Pharmacy is made up of several modules: inventory, deliveries, prescriptions, billing, loads of documents, employee, user management, etc. Managing these processes can be organized in the following architecture:
Inventory Management
In contrast to paper-based inventory (which is difficult to manage and is linked with human mistakes), inventory management pharmacy units allow pharmacies to look up stock levels, define the location of required items, and keep data updated as soon as someone buys from the pharmacy. Inventory management software also allows for data-driven decisions based on history: what drugs will be in demand for refills, time of the season, weather, and other factors.
Document and Data Management
Pharmacies deal with a vast range of documents (prescriptions, data, orders), so small notes are often lost, and documents require lots of space for storage. Pharmacy inventory software allows you to store the documents neatly in virtual folders so staff can find data just by entering keywords.
User Management
User management grants access to authorized users only. Pharmacies can establish role-specific access, meaning some staff will only get data about inventory while management will be able to explore the entire picture with analytics, sales reports, as well as the performance of specific employees.
Prescription Management
The prescription management module helps pharmacists to reduce the risk of stolen or faked prescriptions, receive e-prescriptions and process them faster, and get notifications regarding contradicting medications or allergies. This module allows for higher efficiency, lifts off the pressure of producing and selling controlled substances, and improves patient care.
Pharmacy Analytics
Analytics remains the most crucial pharmacy software module. It helps pharmacies to achieve business goals faster by offering a clear overview of the drug store’s performance over an estimated period. The performance analysis includes the following:
- Revenue;
- Biggest expenses and losses;
- Reasons for shortages;
- Customer behavior.
Reports allow pharmacies to manage their inventories better, optimize losses from lack of insurance reimbursements and adopt new practices safely.
eCommerce
Pharmacies, pretty much like hospitals, are considered to be among the places where the chance of getting a virus is always high (and now we are not talking solely of COVID, people have become afraid of offline shopping or clinic visits).
It makes sense to add an eCommerce module while developing pharmacy management software so the pharmacy is able to run its own website without creating it from scratch.
Multi-Store and Multi-Location Support
Large pharmacy chains are one of those who need pharmacy management systems the most – they need to manage several stores in different locations. The ability to see a bigger picture while still being able to take a look at individual points in detail becomes a must-have with multiple locations. Therefore, it is best to have analytics on each chain level and inventory management for further distribution.
Integrations
A healthcare data integration module means a pharmacy will be able to integrate with e-prescriptions, point of sales, and EHR/EMR systems. This module eliminates the need for manual data entry, which will only increase the employees’ workload and a number of mistakes.
Pharmacy Software Systems: Key Features
E-Prescription
- Eliminate prescription errors by offering a user-friendly option for healthcare providers and patients.
- Reduce confusing paperwork and facilitates rapid dispensing of the right medication.
- Allows pharmacists to manage drugs, improve productivity, ensure quality care and patient’s satisfaction.
Automated SMS Messages and Notifications
- Schedule reminders and send notifications to patients before their prescription runs out.
- Get feedback from patients.
- Drive personalized engagement between patients and pharmacies.
Expiry Control
- Prevent huge losses from expired drugs and medical products.
- Pharma stores can keep track of expiry dates.
- Sell medications based on a first-in, first-out strategy.
Stock Reorder Management
- Strike a balance between reordering and supply.
- Get a clear picture of how medications are selling (which are in high/low demand and will be out of stock soon).
- Get data for setting a minimum stock level.
- Find time to place an order for new supplies.
Centralized Database and Backup
- It makes retrieval easy.
- Schedule automated data backup to avoid data loss in case of unauthorized access.
Data Reporting and Analytics
- Get data-driven reports regarding the standard prerequisite of drugs and their performance.
- Manage medication inventory with metrics like ROI and sales.
- Calculating reorder points according to the product and category.
- Customize reports to check marketing insights, budgeting roadmaps, and patterns.
Multi-Store and Multi-Location Synchronization
- Manage data and stocks across all sales points.
- Get comprehensive reports in a central database.
Integration with Third-Party Software
- Integration with EHR/EMR system, prescription monitoring programs, interactive voice response, point of sale software, DHL, and medical insurance verification software.
Compliance and Regulatory Feature
- Stay compliant with main regulations (HIPAA, GDPR, DEA, and more).
- Implement the latest security measures.
- Ensure the smooth handling of business activities.
Customer Support System
- Improve customer satisfaction.
- Get recorded patient data for effective management.
- Automatically update patients’ lists to control patient treatment.
Pharmacy Inventory Management System: Operational and Financial Benefits
- #1: Increased Speed
- #2: Increased Accuracy
- #3: Improved Time Management
#1: Increased Speed
One in five U.S. residents will be of retirement age by 2030. Considering that 87 percent of people from 65 to 79 years use prescription drugs, pharma stores can expect a drastic increase in prescriptions to fill. Manual efforts will not be able to cover all needs and keep up with the demand. Pharmacy inventory management software will greatly increase each pharmacy’s productivity.
#2: Increased Accuracy
People can make mistakes. Regardless of how many checks, balances, and safeguards pharma stores put in place. While making mistakes is okay, in the pharmacological industry (or medical overall), even the smallest error can lead to a financial and operational disaster.
On-hand accuracy provided by pharma management software allows us to avoid overstocking and stock-outs alike. Some solutions also help re-calculate optimal order points every month for every item/ group according to the changes in dispensing.
#3: Improved Time Management
Manual data input and paper trails are not no longer needed or relied upon. Inventory management software for pharmacies streamlines inventory tasks, freeing up techs and pharmacists so they can focus more on patients and the care they provide.
Alongside the increase in patient load, new regulatory requirements and compliances are put into place, and requirements for medications increase. This forces pharma stores to transition from manual to error-free tools and processes. And inventory management is a way to go.
Pharmacy Inventory Management | Types
There are 3 types of pharmacy inventory management:
Visual Method
The Visual Method requires medical staff to manually inspect the inventory. In case the inventory level of any drug appears insufficient to cover upcoming demand, the pharmacy triggers a replenishment. In most cases, both a pharmacist and technician are usually too busy to place an order and will often write a note or commit the needed reorder to memory.
As a result, pharmacy issues are not realized until it is too late. This method is not effective since it is an almost impossible task to keep up with constantly changing inventory stock and patient demand.
Periodic Method
Similar to the first option, the Periodic Method is more focused on performing basic inventory management tasks at specific routine intervals. Pharmacies may incorporate basic technology that can remove the need for manually updating status as well as incorporating barcode scanning. Therefore, pharmacy staff inspects the inventory at specific periods: either a week, month or every year.
Although being more systematic compared to the Visual Method, staff may notice inaccuracies after status updates, so the method still relies on pharmacy personnel to decide based on their observations, experience, and analytical knowledge.
Perpetual Method
The Perpetual Method is used to measure inventory in real-time using a computer system. This system continuously and automatically updates on-hand quantities based on delivery and dispensing.
It is realized through an automatic replenishment system that guarantees that medications are identified for reorder when the stock level either falls below or reaches a calculated replenishment point. Items identified by the system are then reviewed and accepted by the staff. The system electronically orders the items via EDI through the pharmacy management system.
Off-the-Shelf vs. Custom Pharmacy Management System
Ready-Made
You may already have encountered many off-the-shelf inventory management solutions. Most of them promise to instantly streamline any inventory management process with an easy setup process. Although these solutions are great for medical setups, they also have several cons to know before choosing the option to go with.
Custom
Custom software development by a telemedicine app development company offers a highly personalized approach to technology implementation designed to cover unique customers’ needs. Every part of the solution, including security measures, the technology chosen, features, as well as user interfaces, are designed and developed concerning the target user base, budget, particular business requirements, and existing processes.
Pharmacy inventory management system by Interexy
Electronic pharmacy inventory systems will go a long way in enhancing the overall quality of care provided and help pharmacists optimize operations. These systems also form a large part of the broader integrated care management strategy at large medical setups.
Get a quoteFAQs
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What is a pharmacy inventory management system?
A hospital pharmacy inventory management system is a system implemented to provide better stock control, replenishment, and medication dispensing.
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How much does it cost to develop a pharmacy inventory management system?
The answer depends on several factors, like timelines, complexity, the development model you choose, and more. The cost usually starts from $50.000.
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What are the most common features in the pharmacy inventory system?
Among the most common features in the inventory system for pharmacy are electronic prescriptions, automated SMS messages, and notifications, stock reorder management, and centralized database and backup.
