--- title: Pharmacy Inventory Management Tips to Boost Profits description: Expired medications or inaccurate counts can impact profitability. Ensure optimal management of your pharmacy inventory to boost profits, get the tips: image: https://www.datarithm.co/hubfs/Canva%20images/Canva%20Design%20DAE1WVO15Tg.png --- [Inventory Management](https://www.datarithm.co/blog/tag/inventory-management) # Pharmacy Inventory Management Tips to Boost Profits [Datarithm Team](https://www.datarithm.co/blog/author/datarithm-team) ** June 03 2020 Share [Share via Facebook ](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.datarithm.co%2Fblog%2Finventory-management-tips-to-boost-profits) [Share via Twitter ](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.datarithm.co%2Fblog%2Finventory-management-tips-to-boost-profits&text=Pharmacy+Inventory+Management+Tips+to+Boost+Profits) [Share via Email ](mailto:?subject=Pharmacy+Inventory+Management+Tips+to+Boost+Profits&body=https%3A%2F%2Fwww.datarithm.co%2Fblog%2Finventory-management-tips-to-boost-profits) [Share via LinkedIn ](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.datarithm.co%2Fblog%2Finventory-management-tips-to-boost-profits&title=Pharmacy+Inventory+Management+Tips+to+Boost+Profits&summary=Expired+medications+or+inaccurate+counts+can+impact+profitability.+Ensure+optimal+management+of+your+pharmacy+inventory+to+boost+profits%2C+get+the+tips%3A+) Every pharmacy’s business depends on inventory. Finding expired medications on your shelf or running into inaccurate counts can be frustrating for many reasons, most notably, declining profitability and potential loss of patients. The better you manage the flow of goods, the more money you make and the more cash you have on hand to grow your business.   ## Here are tips that you can utilize to ensure the optimal management of your pharmacy inventory to boost profits.   ### Avoid accumulating excess inventory When back-of-store shelves overflow with a surplus of products, you end up tying up your cash in a lot of inventory that doesn’t move off your shelves fast. Instead, track your sales to pinpoint the medications that move quickly and the ones that don’t. Your pharmacy management system may identify your productive vs. dead inventory. ### **Keep track of analytics and activity** You can’t improve your pharmacy inventory management if you don’t know the numbers behind the inventory. Understanding calculations specific to inventory is essential for benchmarking and tracking activity. It’s important to consistently track figures including total inventory dollars, gross margin, accounts payable turnover, inventory turn days, and gross margin return in inventory (GMROI). Run daily reports that identify your total inventory, slow inventory, and dead inventory. With insights into trends, opportunities, and service levels, you’ll better understand your inventory data across the enterprise and individual locations.   ### **![Pharmacy Inventory Management Tips to Boost Profits](https://www.datarithm.co/hs-fs/hubfs/Canva%20images/Canva%20Design%20DAE1WVO15Tg.png?width=429&name=Canva%20Design%20DAE1WVO15Tg.png)Perform cycle counts** Perform routine or periodic manual audits of inventory to account for shortages, overages, misplaced or stolen products, and more. Customize count frequency to emphasize expensive and fast-moving inventory so you have consistent on hand precision throughout the year. Pick your count days and track staff compliance. ### **Stay up to date on shortages** Staying diligent in tracking shortages will help you know when to increase your stock or order alternative NDCs with minimal disruption. A drug receives Resolved status when the Drug Shortages Staff (DSS) determines that the market is covered, based on information from all manufacturers. The market is considered covered when supply is available from at least one manufacturer to cover total market demand. However, some manufacturers may not have all presentations available. DSS monitors the supply of products with Resolved status. For the most current supply information, contact the manufacturers. [Click here for the complete list!](https://www.accessdata.fda.gov/scripts/drugshortages/default.cfm) ### **Incentivize pharmacy technicians** When pharmacy technicians regularly check for and identify short and outdated surplus inventory, it may be possible to reduce losses associated with returns to your reverse distributor, avoid restocking fees from your wholesaler. Essentially moving cash off your shelf and into your bank account. Incentivizing staff will likely be more attentive to these important tasks. ### **Automate pharmacy inventory management** Streamline inventory with an automated solution that provides visibility into your inventory landscape and improves efficiency. With an automated management system, you’ll know the inventory on hand and the items that need to be replenished. Inventory management can be made seamless with the right tool. Datarithm, driven by predictive analytics, ** **is an automated inventory management solution built to improve your bottom line. [Click here](https://www.datarithm.co/) to learn more. [![Guide to Pharmacy Automation and Inventory Management; download now](https://no-cache.hubspot.com/cta/default/6116359/cff72ea1-70a6-4ef9-a1a4-78de060800a7.png)](https://cta-redirect.hubspot.com/cta/redirect/6116359/cff72ea1-70a6-4ef9-a1a4-78de060800a7) ## Latest Posts [Inventory Management](https://www.datarithm.co/blog/tag/inventory-management) [Datarithm Team](https://www.datarithm.co/blog/author/datarithm-team) ** July 02 2026 ## [Taking the Guesswork Out of Inventory Management](https://www.datarithm.co/blog/taking-the-guesswork-out-of-inventory-management) There doesn’t seem to be enough time in the day to run a pharmacy, and managing inventory by hand can take up a lot of your time... [read article **](https://www.datarithm.co/blog/taking-the-guesswork-out-of-inventory-management) [Inventory Management](https://www.datarithm.co/blog/tag/inventory-management) [Datarithm Team](https://www.datarithm.co/blog/author/datarithm-team) ** June 01 2026 ## [Not the End All, Be All Solution for Inventory Management](https://www.datarithm.co/blog/not-the-end-all-be-all-solution-for-inventory-management) It seems like AI can handle everything right now from pharmacy operations to marketing, to inventory. While it may seem like a... [read article **](https://www.datarithm.co/blog/not-the-end-all-be-all-solution-for-inventory-management) [Inventory Management](https://www.datarithm.co/blog/tag/inventory-management) [Datarithm Team](https://www.datarithm.co/blog/author/datarithm-team) ** May 08 2026 ## [Mastering the Shelves: Your Top Pharmacy Inventory Questions, Answered](https://www.datarithm.co/blog/mastering-the-shelves-your-top-pharmacy-inventory-questions-answered) Managing a pharmacy is a delicate balancing act. You need enough stock to serve your patients immediately, but not so much that... [read article **](https://www.datarithm.co/blog/mastering-the-shelves-your-top-pharmacy-inventory-questions-answered) [![Datarithm® Pharmacy Inventory Management Software](https://www.datarithm.co/hs-fs/hubfs/logo_footer.png?width=246&height=56&name=logo_footer.png) ](https://www.datarithm.co) ![Our Location](https://www.datarithm.co/hubfs/ico_f_1.svg) 7037 Fly Road  East Syracuse, NY 13057 ![Phone Number](https://www.datarithm.co/hubfs/ico_f_1.svg) 877.273.5112 ![Email](https://www.datarithm.co/hubfs/ico_f_1.svg) info@datarithm.co  © 2026 Datarithm®. 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