How can pharmacies address supply chain and operational efficiency challenges?

Rob Shaw, GM EMEA at Fluent Commerce, answers the questions: "How can pharmacies address supply chain and operational efficiency challenges?"

Over the past few months, pharmacies in England, Wales and Northern Ireland have voted to cut opening hours and reduce the number of home deliveries in a protest over government funding. It forms part of a wider picture that has seen pharmacies come under significant financial pressure, with challenges such as thin profit margins contributing to the closure of 700 outlets in England alone during the past two years, according to reporting by the BBC.  

Many are also faced with ongoing supply chain, fulfilment and customer service problems, ranging from poor inventory management processes and a high number of customers chasing up their orders to ongoing regulatory pressures, limited delivery options and the use of outdated technologies. At the same time, the role of community pharmacies has increased, with schemes such as Pharmacy First bringing new opportunities and additional overheads.  

Driving operational efficiencies 

Clearly, there are some very important issues at stake, but government funding arguments aside, what can be done to help pharmacies become more operationally efficient? Starting with the challenges associated with inventory management and order fulfilment, pharmacies are just one of many sectors where complex customer requirements and the need to stock a wide variety of products can create serious efficiency headaches.  

One of the most useful comparisons can be seen in the retail and e-commerce sectors, where commercial and efficiency demands have prompted the widespread implementation of real-time inventory systems designed to transform stock efficiency and help businesses become much better at predicting future requirements and availability.  

When integrated with streamlined workflows and attribute-based systems for managing regulated and complex or high-risk products, these technologies can give pharmacies the insight and agility they need to meet customer expectations. These processes are also more effectively aligned to deliver regulatory compliance and streamline complex supply chains, including situations when customers need prescription and non-prescription orders simultaneously – an area where legacy processes can fall short.  

Driving the customer experience 

These capabilities also put pharmacies in a stronger position to implement services such as same-day delivery, automated storage and delivery lockers, as well as inter-store transfers that enhance speed and convenience. This plays to the overall importance of customer experience, which has become a priority across the economy and where flexibility has become a minimum service requirement. If pharmacies are to replicate the processes that are now standard practice in other sectors, this kind of digital transformation will play a significant role in bridging the gap between objectives and operational capabilities.  

Ideally, pharmacy businesses will be able to integrate new enabling technologies with their legacy ERP solutions so they can avoid the need for full-scale replacements and reduce risks. In this context, modular, phased deployments targeting high-priority issues, such as inventory accuracy and order fulfilment, can help deliver quicker RoI. Targeted technology investment also helps future-proof infrastructure and processes, helping to embed agility within the organisation and ensuring pharmacies can keep pace with changing regulations.  

Looking further ahead, there’s no denying that the sector is facing a range of important challenges, but by prioritising supply chain and operational efficiency, there is also a major opportunity to move forward with confidence. In an environment where both government and customers expect pharmacies to be a one-stop-shop, those who can adapt now will be in an ideal position to succeed over the long term.