Pharmacy Inventory Management SOP Template

1.Purpose

To keep pharmacy shelves stocked to meet patient demand while minimizing overstock, expired product and variance between the physical count and the pharmacy system.

2.Scope

Applies to non-controlled prescription and over-the-counter inventory. Controlled substance receiving and reconciliation follow the controlled substances handling SOP.

Definitions

Par level

The target on-hand quantity for an item, used to trigger reordering.

FEFO

First-expired, first-out, a stock rotation method that dispenses the soonest-expiring stock first.

Cycle count

A periodic physical count of a subset of inventory used to check accuracy without counting the whole pharmacy at once.

3.Responsibilities

Pharmacy Technician

Receives deliveries, puts away stock and performs cycle counts.

Pharmacist

Reviews shortages affecting patient care and approves substitutions.

Pharmacist in Charge

Approves wholesaler accounts, reviews variance reports and sets par levels for critical items.

Purchasing Coordinator

Generates purchase orders, manages wholesaler relationships and processes returns.

RACI matrix

R = Responsible, A = Accountable, C = Consulted, I = Informed

4.Materials and PPE

Materials, tools and systems

• →Pharmacy inventory management system
• →Wholesaler ordering portal
• →Receiving log and packing slips
• →Cycle count sheets or handheld scanner
• →Return authorization forms
• →Shelf labels with par level markers

5.Procedure

1. 5.1

   Review par levels and reorder points

   Purchasing Coordinator

   Check the inventory system's suggested order list against current par levels, adjusting for seasonal demand or known upcoming prescriptions.

2. 5.2

   Generate and submit the purchase order

   Purchasing Coordinator

   Submit the order to the primary wholesaler, and to a secondary source for items on backorder or short supply.

3. 5.3

   Receive the delivery

   Pharmacy Technician

   Check the delivery against the packing slip for correct item, strength, package size and quantity before signing for receipt.

4. 5.4

   Verify lot numbers and expiration dates

   Pharmacy Technician

   Record the lot number and expiration date for each new item received, checking that none are already near expiration on arrival.

   Checkpoint: No newly received item has less shelf life remaining than the pharmacy's minimum acceptable dating.

5. 5.5

   Put away stock using FEFO

   Pharmacy Technician

   Shelve new stock behind existing stock of the same item so the soonest-expiring product is dispensed first.

6. 5.6

   Update the inventory system

   Pharmacy Technician

   Confirm the received quantities post correctly to the inventory system, resolving any variance between the packing slip and system receipt.

7. 5.7

   Monitor fast-moving items

   Pharmacist

   Watch daily usage on high-volume items and adjust par levels or place an interim order if usage is trending above the current par.

8. 5.8

   Conduct scheduled cycle counts

   Pharmacy Technician

   Count a rotating subset of shelves each week using the cycle count sheet or handheld scanner, comparing the physical count to the system balance.

9. 5.9

   Investigate count variances

   Pharmacist in Charge

   Recount any item with a variance beyond the pharmacy's tolerance, then check recent transactions for a data entry or dispensing error before adjusting the system.

10. 5.10

    Flag damaged or near-expired stock

    Pharmacy Technician

    Pull damaged packaging or stock nearing expiration from the shelf and route it to the expired medication disposal process rather than dispensing it.

11. 5.11

    Process wholesaler returns

    Purchasing Coordinator

    Prepare eligible overstock or recalled items for return using the wholesaler's return authorization process, and track the credit received.

12. 5.12

    Reconcile invoices

    Purchasing Coordinator

    Match wholesaler invoices to received quantities and purchase orders, and forward confirmed invoices to accounting for payment.

6.Quality checks

• →Received quantities match the packing slip before stock is put away.
• →Stock is shelved by FEFO with no expired product left on the shelf.
• →Cycle count variances are investigated and documented before adjustment.
• →Wholesaler credits for returns are tracked to completion.

7.Records

• →Purchase orders and packing slips
• →Cycle count sheets
• →Variance investigation notes
• →Return authorization and credit records

8.KPIs

• →Inventory accuracy rate from cycle counts
• →Number of stockouts on par-level items per month
• →Dollar value of expired or wasted stock per quarter
• →Days of inventory on hand for key items

9.Common mistakes

• →Shelving new stock in front of existing stock instead of behind it.
• →Adjusting the system count without investigating the cause of a variance.
• →Letting near-expired stock sit on the shelf instead of pulling it early.
• →Missing the return window for a wholesaler credit.

10.Revision history