Buying well in any business is a key area. Historically, community pharmacy has done a phenomenally good job in providing the Treasury with one of the most cost-effective and efficient distribution networks across the whole of Europe. However, before you spend even more time looking at price lists and spreadsheets, what is the return? Are you better served by focusing on other areas?

Stock holding and range is usually an area that can improve. When was the last time you looked at the ‘dead stock’ on the shelves? Do you still need to hold as much stock, certainly of the expensive drugs, with EPS? What about OTC space, is it managed well? Are you holding stock just because you always have? Does everything on the shelves justify being there?

Staffing is probably one of the highest spend areas and this is often the first area to be addressed. However, with growing volumes and the need for change, is this the real answer? Perhaps we should be asking ourselves instead if there are more roles we can delegate to our staff, freeing up our time for more professional/income generating activities?

Correct endorsing is critical, especially with EPS. Our payment system is complicated, and getting this element right is fundamental. Using your PMR system to get it right first time is invaluable. Have a look at Check 34 to double check your Average Item Value and that you are being paid for your EPS prescriptions.

How much of the work being done in your pharmacy is for free? Are there things that can stop or new processes to make life more efficient? There is great debate about monitored dosage systems, but I know of at least one pharmacy that charges their patients for them.

What are your overheads like? Gas, water, telephone and electricity are potential quick fixes through the comparison websites. Have you had a rates review? When was the last time your lighting was looked at? LEDs are considerably cheaper to buy and run. Have you looked at your bank charges lately? There are some great deals out there just for the asking.

We were never trained as managers or indeed business administrators. Many of us have picked up these skills over time, but do we have to keep doing them? Don’t get me wrong, back office functions are essential, but is there another solution? I know some pharmacies have combined back office functions.

One example is three independents working together to form a virtual group. A manager over the three practices handles HR, accounts and is supporting them to deliver KPIs (key performance indicators). We have outsourced all our bookkeeping services, enabling us to free time and have monthly reports understanding how the business is performing from a profit and cash flow perspective.

What strategies do you need to put in place to meet your vision? Are they about delegation, training and education, marketing, team building, making more money or reducing costs? Business strategy defines what needs to be done to meet your business vision, which also means that it helps you make sound decisions related to hiring, firing and resource allocation (purchases and spending).

If it is not measured, it is not managed. Use KPIs to drive and deliver the change. If you decide that NMS is essential to drive your business model forward, then use a SMART indicator: Specific, Measurable, Attainable, Realistic and Timed.