Pharmacy Pills · Orders, delivery notes and promotions

Ordering, stock and reorder point

How much to order and when, with real consumption rather than intuition

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What it is

Ordering well means answering two questions: when? and how much? The answer does not come from looking at the shelf but from the product’s consumption, how long it takes to arrive and a margin for the unexpected. In most pharmacies the management software proposes the order against minimums and maximums; the human job is to make sure those numbers are reasonable and to review them when sales change.

An order to a wholesaler is continuous: it goes out several times a day against the minimums, so a wrong minimum is repeated at every delivery. That is why it pays to review the minimums before the order.

The three numbers behind an order

For every product that turns over:

At the counter

When to recommend it

When not to

What to say at the counter. If a product always runs out before the order arrives, raise the minimum. If a third is always left over, lower it. It is the best management review you can do in ten minutes.

Warnings

How to review a product’s minimums

  1. Look at how many units sold in the last three to six months and work out the daily average.
  2. Multiply by the days the order takes to arrive.
  3. Add a cushion proportional to how irregular sales are: little for stable products, more for ones that go up and down.
  4. Compare with the minimum the software has now and correct it if it is far off.
  5. Repeat the review when something changes: a campaign, a shortage, a new medical practice nearby.

Ordering by minimums versus ordering by hand

AspectBy minimums (software proposes)By hand (when someone sees it is missing)
ConsistencyGoes out on its own at all hoursDepends on who remembers
RiskA wrong minimum is repeatedUnexpected stock-outs
When it fitsProducts that turn over regularlyOccasional or very expensive items
What to watchReview the minimums oftenNote what has been ordered

What turns over is ordered by well-set minimums; what is occasional, by hand and with thought. In both cases the number that matters is real consumption.

Self-assessment

Three questions. When you check your answers you will see the explanation for each one.

  1. How is a product’s reorder point calculated?
  2. A medicine is in shortage nationwide. What do you do?
  3. How do you order a product with short expiry?

Training content. It does not replace the summary of product characteristics or clinical judgement.

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