medicine inventory management6 min read
Are You Losing Sales Due to Poor Inventory Management?
Simplify medicine inventory with Ferbz
12%GST on most medicines
0%GST on essential drugs
11thGSTR-1 filing deadline
₹40LGSTIN mandatory above
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Imagine owning a
Imagine owning a pharmacy in a bustling Tier 2 city in India, where the demand for medicines is high, and the competition is fierce. You, like many other independent pharmacy owners, face a daily struggle to manage your medicine inventory effectively. Let's consider a real-life scenario: Mr. Kumar, a pharmacy owner in a Tier 2 city, stocks a wide range of medicines to cater to his customers' needs. However, he often finds himself dealing with expired or near-expired stock, which results in significant losses. For instance, if he stocks 100 units of a particular medicine with a shelf life of six months, and only 50 units are sold within that period, the remaining 50 units become dead inventory, costing him around ₹5,000 to ₹10,000, depending on the medicine's price. This is a common problem faced by many pharmacy owners, and it's estimated that the average pharmacy loses around 2% to 5% of its revenue due to expired or near-expired stock.
Moreover, poor inventory management leads to stockouts, which can result in lost sales and damage to the pharmacy's reputation. According to a study, the average pharmacy experiences stockouts around 10% to 15% of the time, resulting in lost sales of around ₹50,000 to ₹1,00,000 per month. Additionally, managing inventory manually is a time-consuming process, taking away from the time pharmacy owners could spend on more critical tasks, such as patient care and customer service. Mr. Kumar, for example, spends around 2 hours every day manually tracking his inventory, which could be better utilized to engage with his customers and improve his business.
The problem of poor inventory management is further complicated by the need to comply with GST regulations. Pharmacy owners must ensure that they are charging the correct GST rates for different types of medicines, which can range from 0% for essential medicines to 12% or 18% for other medicines. Failure to comply with these regulations can result in penalties and fines, adding to the financial losses. For instance, if Mr. Kumar fails to charge the correct GST rate for a particular medicine, he may end up paying a penalty of around ₹5,000 to ₹10,000, depending on the amount of tax evaded.
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How Pharmacy Owners
How Pharmacy Owners Manage This Today
Currently, many pharmacy owners manage their inventory using manual methods, such as paper registers or Excel sheets. Here are some step-by-step practical advice that pharmacy owners can follow to manage their inventory:
- Maintain a paper register: Keep a record of all the medicines in stock, including the quantity, price, and expiry date.
- Use Excel sheets: Create a spreadsheet to track inventory levels, including the quantity of each medicine, the number of units sold, and the remaining stock.
- Create a WhatsApp group: Communicate with suppliers and distributors through a WhatsApp group to track orders and deliveries.
- Make phone calls: Regularly call suppliers and distributors to confirm orders and track delivery status.
- Use a GST-compliant billing software: Use a billing software that is compliant with GST regulations to generate invoices and track tax payments.
However, these methods have limitations. Manual tracking can be time-consuming and prone to errors, while Excel sheets can become cumbersome to manage as the inventory grows. Additionally,GST compliance requires careful tracking of tax payments and filing of returns, which can be challenging using manual methods. For example, pharmacy owners must ensure that they file their GSTR-1 returns by the 11th of every month and their GSTR-3B returns by the 20th of every month. Failure to comply with these regulations can result in penalties and fines.
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How Ferbz Solves
How Ferbz Solves This
Ferbz's expiry tracking feature addresses the problem of poor inventory management by automatically flagging near-expiry stock, allowing pharmacy owners to take action before it becomes dead inventory. This feature replaces the need for manual tracking and reduces the risk of errors. With Ferbz, pharmacy owners can:
- Track inventory levels in real-time
- Receive alerts for near-expiry stock
- Generate reports on inventory levels and expiry dates
- Make informed decisions about stock levels and ordering
By using Ferbz, pharmacy owners can save time and reduce losses due to expired or near-expired stock. For example, Mr. Kumar can save around 1 hour every day by using Ferbz's expiry tracking feature, which can be better utilized to engage with his customers and improve his business. Additionally, Ferbz's GST-compliant billing feature ensures that pharmacy owners are charging the correct GST rates for different types of medicines, reducing the risk of penalties and fines.
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Frequently Asked Questions
The best way to manage medicine inventory in a pharmacy is to use a combination of manual and automated methods. Manual methods, such as maintaining a paper register or using Excel sheets, can be useful for small pharmacies or for tracking specific types of inventory. However, automated methods, such as using a pharmacy management software like Ferbz, can provide more accurate and efficient tracking of inventory levels, expiry dates, and GST compliance.
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Get Started with
Get Started with Ferbz
To get started with Ferbz, simply visit our website and sign up for a free trial. Our trial link is https://dashboard.ferbz.com/. If you have any questions or need help with setup, you can contact us at support@ferbz.com. With Ferbz, you can streamline your pharmacy operations, reduce losses due to expired or near-expiry stock, and ensure GST compliance. Try Ferbz today and discover how it can help you grow your pharmacy business.
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