The management of stock in local Maltese pharmacies : an evaluation

Abstract

Purpose: The purpose of this research is to evaluate the stock management in local Maltese pharmacies. It analyses the techniques to manage stock, procedures to perform a stocktake and how stock is safeguarded. Design: In order to achieve the research objectives, a qualitative approach was implemented. Fifteen semi-structured interviews with local pharmacies were carried out with owners, directors and pharmacists. Findings: The findings revealed pharmacies locally when valuing stock use the FIFO and FEFO methods. The most popular techniques used to control stock in the Maltese pharmacy are barcodes, JIT stock levels and stock turnover respectively. Findings show that using a computerised system facilitates stock management when carrying out stocktakes and it also provides perpetual updates. Stock is safeguarded through a number of measures to protect it against theft, fraud or obsolescence. Conclusions: Local pharmacies in Malta have adequate stock control procedures. However, in independent pharmacies there is lack of segregation of duties and some do not value the importance to perform a stocktake hence any discrepancies will not be identified. This study therefore concludes that accurate inventory records are essential, besides meeting the customers expectation it saves time and costs for the business. Value: This dissertation evaluates how the stock in Maltese pharmacies is managed, controlled and safeguarded. Nowadays, competition is increasing in the pharmaceutical retail market. Hence one has to be efficient and effective when managing their inventory for the business to grow and develop. The results and recommendations can be applicable to all local pharmacies and also other retail businesses in different industries.