pharmacy inventory management system6 min read
Is Your Pharmacy Losing Revenue Due to Poor Inventory Management?
Simplify pharmacy management with Ferbz
12%GST on most medicines
0%GST on essential drugs
11thGSTR-1 filing deadline
₹40LGSTIN mandatory above
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As a pharmacy
As a pharmacy owner in a Tier 2 city, you understand the challenges of managing inventory. Let's consider a scenario: it's a typical Monday morning at your pharmacy, and you're already dealing with a long queue of patients waiting to collect their prescriptions. Your staff is busy attending to customers, while you're trying to keep track of the stock levels of various medicines. You notice that you're running low on a particular brand of diabetes medication, which is in high demand. However, you're not sure when the next shipment is arriving, and you don't want to oversell and disappoint your patients. This is a common problem faced by many pharmacy owners in India, and it can lead to significant revenue losses.
According to a study, pharmacies in India lose an average of 5-7% of their revenue due to stockouts and overstocking. This translates to a significant amount of money, especially for smaller pharmacies. For instance, if your pharmacy generates ₹50 lakhs in revenue per month, a 5% loss due to poor inventory management would mean a loss of ₹2.5 lakhs. This is a substantial amount that could be used to invest in the growth of your business or increase your profit margins.
Poor inventory management can also lead to waste and dead stock. If you're not keeping track of the expiry dates of your medicines, you may end up with a large quantity of expired stock that cannot be sold. This can result in a significant financial loss, as you would have already paid for the stock and would not be able to recover the cost. Furthermore, poor inventory management can also lead to compliance issues, as pharmacies are required to maintain accurate records of their stock levels and expiry dates.
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How Pharmacy Owners
How Pharmacy Owners Manage This Today
Currently, many pharmacy owners in India manage their inventory using manual methods, such as maintaining paper registers or using Excel spreadsheets. Here are some steps that pharmacy owners can take to manage their inventory without using any software:
- Maintain a paper register to track the stock levels of each medicine, including the quantity, batch number, and expiry date.
- Use Excel spreadsheets to track the sales and purchases of each medicine, and to calculate the stock levels.
- Create a WhatsApp group with your suppliers to track the status of your orders and to receive updates on new shipments.
- Make regular phone calls to your suppliers to confirm the delivery dates and to track the status of your orders.
- Use a physical calendar to keep track of the expiry dates of your medicines and to plan your stock replenishments accordingly.
However, these methods have several limitations. For instance, maintaining paper registers can be time-consuming and prone to errors, while using Excel spreadsheets can be cumbersome and may not provide real-time updates. Moreover, using WhatsApp groups and phone calls to track your orders can be unreliable and may not provide a clear audit trail.
It's also important to note that pharmacies in India are required to comply with GST regulations, which can be complex and time-consuming. For instance, pharmacies are required to charge 12% GST on most medicines, while essential medicines are exempt from GST. Pharmacies are also required to maintain accurate records of their stock levels and expiry dates, and to file their GST returns on a monthly basis. The HSN code for medicaments is 3004, and pharmacies are required to use this code when filing their GST returns.
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How Ferbz Solves
How Ferbz Solves This
Ferbz's expiry tracking feature can help pharmacy owners to manage their inventory more effectively. This feature allows you to track the expiry dates of your medicines and to receive alerts when a medicine is nearing its expiry date. This can help you to plan your stock replenishments accordingly and to avoid waste and dead stock. The expiry tracking feature can also help you to comply with GST regulations, as you can use it to maintain accurate records of your stock levels and expiry dates.
The expiry tracking feature is easy to use and can be accessed from the Ferbz dashboard. You can simply enter the batch number and expiry date of each medicine, and the system will track the expiry date and send you alerts when necessary. This can replace the need for manual tracking using paper registers or Excel spreadsheets, and can save you a significant amount of time and effort.
For instance, let's say you have a batch of diabetes medication that is expiring in two weeks. The expiry tracking feature will send you an alert, reminding you to replenish your stock or to return the expired medicines to the supplier. This can help you to avoid waste and dead stock, and to ensure that you have a steady supply of medicines to meet the demand of your patients.
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Frequently Asked Questions
You can track the expiry dates of your medicines using Ferbz's expiry tracking feature. This feature allows you to enter the batch number and expiry date of each medicine, and to receive alerts when a medicine is nearing its expiry date. You can access the expiry tracking feature from the Ferbz dashboard, and can use it to plan your stock replenishments accordingly.
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Get Started with
Get Started with Ferbz
If you're interested in learning more about how Ferbz can help you to manage your inventory and to comply with GST regulations, you can sign up for a free trial today. Simply visit https://dashboard.ferbz.com/ to access the trial, and contact support@ferbz.com to learn more about the features and pricing of Ferbz. With Ferbz, you can streamline your inventory management and billing processes, and focus on providing better care to your patients.
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