New approach for maximising the value of unwanted stock

Whether you are an independent proprietor or a branch manager for a multiple, good stock management is paramount to running a successful business. However, who among us could deny the existence of a few boxes of extra stock lurking in the depths of the store cupboard, that is reaching its expiry date and may need to be written off?

Now, a solution is being offered with the launch of an internet-based pharmacy stock transfer system, endorsed by the National Pharmacy Association. The site, called Rxchange, has been under trial for the last three months and is set to roll out across the UK on 1 July 2007.

The concept

The idea came from a scheme used in the automotive industry to allow car dealerships to move their stock to other sites to meet consumer needs. The company that developed this system approached the NPA with a view to constructing a similar network that would allow community pharmacies to trade excess stock between themselves. After a consultation to ensure that the system operated within the Royal Pharmaceutical Society’s medicines, ethics and practice guidelines, the trial began, with about 400 pharmacies using the system.

Bipin Patel, a director of Clockwork Pharmacy, a small chain of independent pharmacies based in London, says that he has sold £4,500-£5,000 worth of excess stock via Rxchange since March, selling it at a 25 per cent discount. “Before that I used to fax lists of my unwanted stock to my other stores and to my friends to see if I could move any of it,” he says.

How it works

Once registered, members can buy or sell short-dated, excess or otherwise unwanted stock to other members. Sellers list the product and quantity available, along with its expiry date, batch number, the asking price, and the percentage saving from the standard list price. After browsing an alphabetised list to select a desired product, buyers can contact the seller directly to ask any questions or negotiate the price, before agreeing a method for payment. Goods will be sent by registered post to the registered address of the receiving pharmacy.

The service allows for the trading of prescription-only medicines, over-the-counter medicines and dressings. The exchange of Controlled Drugs, specials and unlicensed medicines is not permitted. Users will be monitored to ensure adherence to the Society’s wholesaler dealing regulations.

Raj Nutan, pharmacy business manager at the NPA explains that informal trading arrangements already exist between small groups of proprietors, but Rxchange is the first official system open to all pharmacy contractors. He emphasised the importance of rational stock management (see Panel).

What it costs

NPA members can join the scheme at a charge of £12.50 per pharmacy per month (excl. VAT). Members can also opt to join on a short-term basis at £19.99 for one month’s subscription. At present, two wholesalers have also subscribed to the website. Mr Nutan says that in the future, the service could potentially be expanded to allow access for primary care trusts and hospitals.

For more information members should email pharmacybusiness@npa.co.uk