How Important Is It for the Pharmaceutical Companies to Keep Track of Their Inventory?

In the realm of pharmaceuticals, stock outs can have a lot of sensitive issues compared to the retail, manufacturer, or any other industry. Indeed, retailers with stock outs endure lost income, market stock share, and consumer loyalty as well. Nonetheless, pharmaceutical unavailability could prompt extreme wellbeing complexions.

Moreover, lots of people are dependent on medicine either they are old people, suffering from chronic disease, etc. Therefore, pharmaceutical companies must use pharmacy inventory management software that can help them in overcoming several issues.

If patients don't approach fundamental medicine, for example, certain physicians recommended drugs, their wellbeing may suffer. That is why pharmaceutical companies need inventory management software!

Also Read: How Functional is Inventory Management in Healthcare Industry?

What Is Inventory Management Software?

It keeps track & manages inventory, product sales. This makes the process automated and eliminating manual inventory management.

Implementing Inventory management software is significant for pharmaceutical organizations to guarantee that they don't encounter stock outs and that they're maintaining all government enactment.

There are a few complex components related to pharmaceutical stock administration, and the difficulties this industry faces keeping measures smoothed out and productive.

Why Inventory Tracking Is Important for the Pharmaceutical and Healthcare Sector?

1. Accurate Shipment Delivery

Tracking inventory is important because it ensures that shipment reaches its destination on time & it shall not be compromise accuracy.

Pharmaceutical manufacturing companies invest a lot of resources to make medicines. These medicines can cost hundreds of thousands of dollars. Therefore, it is very important to keep track of inventory.

According to RevCycle Intelligence,  “the group purchasing organization's analysis of more than 6,000 hospitals found that, on average, hospitals and health systems allocate over 8.6 million hours of additional labor hours to manage drug shortages each year.”

2. Equipment Tracking

Hospitals have a lot of surgical equipment which is very costly. For example, one equipment can cost fifty thousand dollars to eight thousand dollars. These types of costly equipment need to be kept track all the time.

An effective inventory management system lets you know the availability of equipment and if it is cleaned and sanitized or not. An effective system also tracks equipment in real-time reducing the chances of asset theft or misplacement.

3. Asset Safety

Another reason for inventory tracking is asset safety, these precious equipment are moved one place to another. There is a possibility of asset breakdown while moving, as these costly assets are very vulnerable. But the software alerts you for maintenance if any issue occurs.

You can also add, move, and draw inventory from one place to another. Here is an example suppose there are too many patients admitted to a particular hospital branch and no beds are left but you can bring more beds from another branch.

Also Read: How Asset Management helps Hospital and Pharmaceutical Industry?

When hospitals keep manual track of inventory, most of the time, they miscalculate because there are so many factors that need to be considered. Many it has been seen there are a lack of stock due to which problem occurs.

Hence, this software provides get alerts and notifications whenever the inventory goes below the re-order level to hospitals and pharmaceutical providers. This software also allows you to set a re-order level as per the organization's requirement.

For example, if the medicine stock is about to end then the software notifies the management team so that they can refill the pharmaceuticals.

One of the major factors for inventory tracking is temperature control. As we know that drug effects can be jeopardized if environmental factors are kept in mind. Hence, this software can monitor the temperature level all the time and alert you if the temperature goes beyond the defined criteria.

For example, if the shipment is not given the right temperature then the product may become not effective as it should be.

4. Regular Compliance

Inventory tracking is also important because it needs to be ensured that shipment reaches its destination successfully and on time. It is also important for a pharmaceuticals manufacturing organization to keep their client in the loop. It increases customer satisfaction as well.

Without an inventory management system, it will be difficult to keep track of the shipment status in real-time. The manufacturer will have to ask the driver for an update to know the location. But with the system, you get the real-time updates and you can also know which route the driver is taking to make it more cost-effective.

Nonetheless, even little mix-ups in inventory management can rapidly prompt disarray, expanded turnaround times, superfluous costs, or more regrettable, remedy mistakes that jeopardize quiet wellbeing.

Besides, the headways in the pharmaceutical business additionally involve a few difficulties in the worldwide wellbeing pharmaceutical conveyance gracefully chain, especially in satisfying the needs for new and customized therapeutics.

Conclusion

For efficient business management, inventory management is important. Especially healthcare and pharmacy companies must utilize pharmacy inventory management software for managing medicines properly. This asset management software ensures that you have the stock quantity in the required location at the right time.

Moreover, this software plays a crucial role in achieving compliance as per the government rules and regulations. Government rules need to be followed by everyone especially hospitals and pharmaceutical manufacturers as per the provided instructions. Because it can be a matter of life and death. Pharmacy inventory management software can help in following these orders. No wonder this software can be very effective and helpful to the healthcare industry.

Also Read: Requirements of Asset Management Software in Pharma Industry

Frequently Asked Questions (FAQs)

1. What are the different types of inventory?‍

Different types of inventory are as follow:
1. Products for sale - Manufacturers made it with raw materials for example medicines. After that, they sell it to the distributor.
2. MRO - MRO means maintenance repair and operation. In this inventory is used such as the spare part for example if a car needs to headlight replacement then in inventory headlight must be there to complete this work order.
3. Safety stock - The extra inventory you keep in storage so that if in an emergency inventory required this safety stock can be utilized.

2. What is inventory control?‍

Inventory control is the process of inventory management that you have in current stock. Inventory tracking software helps in inventory control because they let you know how much stock you have where it is located.

3. Why inventory is important?‍

Inventory is important because it helps in achieving controlling costs. It is an important part of creating a product or service. Without an inventory, a complete product cannot be manufactured.