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

In the realm of pharmaceuticals, stockouts can present numerous sensitive issues compared to those in retail, manufacturing, or any other industry. Indeed, retailers facing stockouts endure lost income, market share, and consumer loyalty. However, pharmaceutical unavailability could lead to severe health complications. Furthermore, many people are dependent on medication, whether they are elderly, suffering from chronic diseases, etc. Therefore, pharmaceutical companies must utilize pharmacy inventory management software to overcome several issues.

If patients lack access to essential medications, such as certain prescribed drugs, their health may suffer. This underscores the necessity for pharmaceutical companies to adopt inventory management software.

What Is Inventory Management Software?

It tracks and manages inventory and product sales, automating the process and eliminating the need for manual inventory management.

Implementing inventory management software is crucial for pharmaceutical organizations to ensure they do not experience stockouts and that they are complying with all government regulations.

There are several complex aspects associated with pharmaceutical inventory management, and the industry faces challenges in keeping processes streamlined and efficient.

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

The importance of inventory tracking for the Pharma and Healthcare Sector includes:

Accurate Shipment Delivery

Tracking inventory is crucial because it ensures that shipments reach their destinations on time and without compromising accuracy.

Pharmaceutical manufacturing companies invest substantial resources in producing medicines, which can cost hundreds of thousands of dollars. Therefore, tracking inventory is vital. 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 each year to manage drug

shortages.”

Equipment Tracking

Hospitals possess a lot of costly surgical equipment. For instance, one piece of equipment can range from fifty thousand to eighty thousand dollars. Such expensive equipment must be tracked continuously. An effective inventory management system provides information on equipment availability and whether it is cleaned and sanitized. It also tracks equipment in real time, reducing the chances of asset theft or misplacement.

Asset Safety

Another reason for inventory tracking is asset safety. These valuable pieces of equipment are often moved from one place to another, making them vulnerable to damage during transit. However, the software alerts you to maintenance needs if any issues arise.

Moreover, you can add, move, and draw inventory from one location to another. For example, if a particular hospital branch has too many patients and no beds left, you can bring more beds from another branch.

When hospitals manually track inventory, they often miscalculate due to the myriad factors that need consideration. It has been observed that a lack of stock can lead to problems.

Hence, this software provides alerts and notifications whenever the inventory falls below the reorder level to hospitals and pharmaceutical providers. This software also allows setting a reorder level according to the organization's requirements.

For instance, if the medicine stock is nearing depletion, the software notifies the management team so they can replenish the pharmaceuticals.

One of the major factors for inventory tracking is temperature control. As we know, drug efficacy can be jeopardized if environmental factors are not considered. Hence, this software can monitor temperature levels at all times and alert you if the temperature exceeds defined criteria.

For example, if a shipment is not kept at the correct temperature, the product may become ineffective.

Regular Compliance

Inventory tracking is also important because it ensures that shipments successfully reach their destinations on time. It is crucial for pharmaceutical manufacturing organizations to keep their clients informed, enhancing customer satisfaction. Without an inventory management system, tracking the shipment status in real time is difficult. Manufacturers would have to request updates from the driver to know the location. However, with the system, real-time updates are available, and the route taken by the driver can also be monitored to increase cost-effectiveness.

Nonetheless, even minor mistakes in inventory management can quickly lead to confusion, increased turnaround times, unnecessary costs, or worse, prescription errors that compromise patient safety.

Furthermore, advancements in the pharmaceutical industry also entail several challenges in the global health pharmaceutical delivery supply chain, especially in meeting the demands for new and personalized therapeutics.

Conclusion

For efficient business management, inventory management is crucial. Especially healthcare and pharmacy companies must utilize pharmacy inventory management software for proper management of medicines. This asset management software ensures that the stock quantity is available in the required location at the right time.

Moreover, this software plays a crucial role in achieving compliance with government rules and regulations. Compliance is mandatory for everyone, especially hospitals and pharmaceutical manufacturers, as it can be a matter of life and death. Pharmacy inventory management software can aid in adhering to these mandates, making it an effective and helpful tool for the healthcare industry.

Frequently Asked Questions (FAQs)

What are the different types of inventory?

Different types of inventory include:

1. Products for sale - Manufacturers produce these using raw materials, such as medicines, which are then sold to distributors.

2. MRO - Maintenance, repair, and operation. This inventory includes items such as spare parts, for example, a headlight needed for a car's repair.

3. Safety stock - Extra inventory kept in storage to be utilized in emergencies when immediate inventory is required.

What is inventory control?

Inventory control is the process of managing the inventory currently in stock. Inventory tracking software aids in inventory control by providing information on how much stock is available and its location.

Why is inventory important?

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

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