Managing A Pharmacy Successfully And Bottom Line Improvements

In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.

To be successful in today’s business environment, an organization must be able to perform certain fundamentals accurately and efficiently. One of these elements is having an effective and efficient Inventory System Management (ISM). ISM enables one to have the knowledge of where his or her inventory is at every step of the way. This allows one to better interact with consumer and make sales. Choosing the right ISM can lead and pave the ground work for future business success and profitability.

In regards to inventory turnover in 2009, CVS experienced a favorable amount of inventory on hand compared to cost of goods sold. When comparing this result to 2011 it climbed to 10.66, which improves the company’s regulation of managing inventory. From 2009 to 2010 there was an improvement

The company that our group has partnered with for this project is CVS Pharmacies. We looked into this company to see if there were any areas for improvement within the organization that would have an impact on external customers. Within this define stage is when we did exactly that, we defined the problem. One problem that we found within the CVS Pharmacy, that would be easy enough to handle given the scope of the project, concerned the stores current inventory (overstock, backstock) system. It seemed that currently there was no formalized process with regard to placing items in overstock, resulting in an unorganized and unconventional overstock area. This created a problem because it made it harder

Managing inventory effectively is a huge task for most businesses, but in the healthcare arena, it can be particularly hard to do. Hospitals have to make sure they never run out of critical medical supplies, however not making the correct decisions could leave facilities overstocked with expiring supplies and medication.

As three of America's leading retailers, Home Depot, Nordstrom, and Cold Water Creek, are responsible for over $80 billion in annual sales. Retail industry analysts look for commonalities in inventory management reporting in order to track company's ability to move inventory and maximize pricing strategies and avoid having to discount obsolescent inventory thus affecting profit. Through analysis of a company's inventory management ratio, outside investors and inside management can track the number of times each year a company turns its inventory. Industries such as retail are extremely sensitive to inventory management as many retail products have short shelf lives due to cyclical inventory and technological advances.

Implementing Change: The owner of the pharmacy wants you to implement change to encourage some creativity amongst the employees in the hope that it may create some ideas that may be used for marketing purposes. Using the concepts covered in class, outline how you would implement this specific change

PruittHealth is very much interested in helping you care for your infusion patients. We thank you for the opportunity to discuss with you this possibility. We have reviewed our current contract between PruittHealth and Kaiser Permanente and believe that the contract does not support our mutual goal of providing Chemotherapy drugs to your Infusion Centers, due to insufficient rates and location of drug delivery (clinic v home). I have proposed new rates that will cover our cost: drug acquisition, pump rental, supplies, compounding, delivery and pick. I have bulleted reasons for our proposed rates. I look forward to talking with you in the near future regarding this proposal.

In the past few years, they have experienced a significant increase in inventory days. Not having attractive inventory leads to a decrease in sales and an increase in discounts and write offs leading to further decreases in EBITDA Margins. In 2009, the inventory turnover took 215 days. This is significantly above Le Chateaus competitors, for example Reitman’s inventory took only 72 days (Annual Report 2010). This means it takes Le Chateaus three times as long to sell inventory compared to their competitors. To make matters worse, this trend has been exacerbated in recent years. Le Chateau’s turnover has ballooned to a staggering 341 days while Reitman’s has kept inventory turnover stable at only 76 days.

The location of the pharmacy creates many physical risk. The most obvious concern is the large, open access to the pharmacy. The first risk this creates is the large number of people who walk in and out unnoticed. They can easily walk in, grab some medication that is on the shelves at the front part of the pharmacy. Once they have the medication in hand they can walk out without paying for

The prices of drugs by Pharmaceutical companies are dependent on various costs such as Production, Cost of R&D, Marketing & Distribution and Demand for the Drug4.

We would like to thank you so much for all the hard work that you all have been doing. As Walgreens still continue being one of the top largest retail pharmacy in the United States. Our goal and vision has always been; to be America's most loved pharmacy-led health, wellbeing and beauty retailer and to champion everyone’s right to be happy and healthy and that also include our employees. With that being said we really appreciate your loyalty and the excellent work that you continue to do despite our current predicament.

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Managing what's in a warehouse or on the shop floor can be extremely complex if you're looking for optimal cost and supply chain management capabilities( Needleman, 2017 ). Inventory estimation and control is directly impacted a company’s profitability.

Inventory management has two very different, but effective methods: Vendor managed inventory, and consignment inventory. A company may choose to utilize either of these two methods to manage inventory. If a company is able to manage inventory, they will be better able to work the company's capital to the fullest extent. The following paper will identify the differences between the two as well as identify what type of company is best suited for each method.