Case Study - Sanders Pharmacy Proves that "Less is More"

Updated: Sep 7, 2019

Sanders Pharmacy is an award-winning community pharmacy in Te Awamutu providing dispensing and healthcare services and a quality range of retail health and beauty products.

Pharmacy owner Gemma Perry and her team are dedicated to providing great service to their community. The pharmacy is open 7 days a week and works closely with the doctors at the adjacent medical centre.

The Problem

As a result of continued growth in prescription numbers and the changing nature of pharmacy retailing, Sanders needed to develop a better system to manage and monitor retail inventory performance.

The pharmacy was carrying more than 4,700 SKUs with over $40,000 Dead Stock. Stock levels were increasing and the shop area was feeling cramped and cluttered.

The Solution

Sanders Pharmacy joined The Pharmacy Co-op Retail Group in November 2018. This group supports independent pharmacy owners with better buying and merchandising of a core range of 1000 top-selling products using the RPM smarter ordering software. Members receive permanent discounts on every retail order from key suppliers through their co-operative wholesaler.

By following The Pharmacy Co-op planograms, Sanders has focused on a tighter core range of retail products, and re-allocated valuable shelf space to the best performing products.

Key staff are using the RPM insights, dashboards and performance reports for real-time visibility on their KPIs and the ability to drill-down to actionable information.

The Results

Since joining The Pharmacy Co-op, Sanders Pharmacy has improved their sales performance in all OTC categories and significantly reduced their retail stock levels.

The pharmacy’s retail reporting is automatically available using the RPM benchmarking software providing a consistent focus on sales and inventory performance.

OTC sales increased. Up by 9% overall – customers love the new shop layout!

Better Gross Margin. An extra 2% profit margin on sales.

Range Rationalisation. The pharmacy operates with 800 fewer SKUs in their OTC categories.

Less dead stock. Over half of dead stock cleared.

Smarter Ordering. The pharmacy saves time using the RPM ordering software.

Consistent reporting. Online access to store KPIs for the pharmacy owner and retail staff.

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