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Tips for managing high-cost retail products

High-cost retail items can negatively impact your pharmacy’s financial position. However, with this simple guide, you can create a systematic inventory control process for your high-cost retail products.

 

Audit your high cost retail items

The first part of the process to uncover how you can better manage high-cost retail products is to conduct an audit of your existing inventory of these products. To help your conduct your audit and to understand the current stock and sales position of these products, here is a list of activities we recommend you undertake:

 

1. List

Review the notes from your last audit and then get a current list of all your stocked high-cost retail products. In Minfos, we offer a High Cost Items Report to help you quickly identify these items.

 

2. Stocktake

Conduct a stocktake. Minfos offers a stocktaking mobile app (Minfos App) to help you easily carry out this task. Here is a guide to help you get started.

 

The stocktake should help you answer two questions:

  • How much stock on hand do you have?
  • How long have you had this stock at hand?
  • Are any of these retail products short dated?

 

3. Location

Take a look your product’s position, display, location and other merchandising elements. Are these retail products:

  • Easily visible?
  • With their complementary products?
  • Labelled correctly?

 

4. Profitability

Measure the product’s sales performance. There are numerous ways to measure a product’s profitability, start by answering the following questions about each of these products:

  • How long will it take for you to sell the stock you have on hand?
  • Do you need to revise your ordering strategy for these products?
  • Would you classify any of these as dead stock or slow movers?
  • Does the season affect the sales of any of these products?
  • What is the gross profit margin for these products?
  • Which of these products are your best and worst performers?
  • Are the products priced attractively?

 

Action plan

Once you’ve conducted your audit and answered the questions above, the next step is to create an action plan to address the issues you have uncovered. Ensure you include a plan for:

  • Finding tools that can help you manage this ongoing process.
  • Scheduling ongoing auditing activities.

 

5. Process efficiency

Find ways to help you efficiently manage and save time.

 

Use tools from your POS software to help you keep an eye on your high-cost retail items. For example:

  • Allocate high-cost retail items into a category – this helps you with your ongoing audit process.
  • Automatically generate orders – use order templates to create orders based on sales history, stock on hand and more, you can review the order by highest to lowest unit cost before placing the order.
  • When you receive multiple totes from Symbion, you can use the Minfos SSCC barcode tool to find high cost retail items quickly and sort the order by cost to easily mark off the stock.

 

6. Regularly review

To keep on top of your high-cost retail inventory, regularly review the stock on hand and sales. In Minfos, schedule the following into Minfos Calendar for a timely reminder.

 

Don’t forget to setup an ongoing reminder:

  • To review the high-cost retail product report.
  • To stocktake these costly retail products.

 

We hope this guide has given you some ideas on how you can better manage your inventory for your high-cost retail items.

 

Looking to effectively manage your inventory? Minfos software enables you to manage every aspect of your pharmacy – from dispense to retail. Let us show you a demo.

 

All advice provided is general in nature and is not intended as legal advice.