Shrinkage 

Shrinkage is the term used to describe the loss of products from your inventory. This might be from damage, theft or date expiry. Shrinkage might also include price reductions on retail products as this reduces the potential sale value of the stock.

It is important that stock loss from all of these causes are reduced to avoid losses. Reducing stock holding generally reduces shrinkage. In the dispensary, regular use of the broken endorsement is important in ensuring that redundant stock is paid for whenever possible.

Obviously, there are certain categories of retail stock that are more frequently stolen and should be managed carefully, such as batteries and razor blades. Shrinkage can be limited by putting out limited quantities of this type of stock and using the anti-theft devices provided to deter theft.

Purchasing

Purchasing stock is a cost that can be reduced through careful buying. Pharmacists working in multiple pharmacies should follow central purchasing policies as these will be designed to reduce costs.

Minimise your costs

In all businesses, ensuring that costs are kept to a minimum is important. Focusing on absolute costs should be avoided as this can, in the long-term, damage a business. Instead, costs should be viewed in the context of the income and profit they support and they should be considered through the lens of cost effectiveness.