How Expired Medicines and Poor Stock Control Can Eat Into a Nigerian Pharmacy's Profit

Expired products turn stock value into a loss

Inventory represents money committed to the business. When products reach expiry and can no longer be sold, their recorded value needs appropriate adjustment. Leaving them in the available-stock figure overstates what the pharmacy has to sell.

Capture expiry details at receiving and review a dated-stock list regularly. Compare the report with the physical shelf. Give each flagged item an owner and a recorded next step under the pharmacy's established procedures; do not allow an unresolved entry to disappear between shifts.

This article addresses business records and financial controls. Decisions about medicine handling, supply and disposal belong with the responsible pharmacy professionals and applicable procedures.

Overstocking ties up cash while stock-outs lose sales

Buying a large quantity to obtain a lower unit price may commit cash to products that move too slowly. At the same time, other products may be unavailable because purchasing attention is focused on total stock value rather than individual demand.

Review sales patterns, supplier lead times and the stock already held before placing an order. Establish product-specific review levels and revisit them when demand changes. Check confirmed incoming deliveries to avoid ordering the same requirement twice.

Distinguish a deliberately stocked low-volume item from accidental overstock. The business decision should be explicit, with an agreed quantity and review date, rather than an automatic repeat purchase.

Slow-moving products can disappear inside a large catalogue

A monthly total may look healthy while individual lines remain unchanged on the shelf. Compare the last sale date, quantity held, purchase cost and expiry information for products needing attention.

Investigate the reason for slow movement before reordering. Similar names, different pack sizes or duplicate product records may split the sales history and create a misleading picture. Maintain clear product descriptions and consistent units across purchasing, stock and sales records.

Manual counts need a reliable movement record

A physical count is only useful when the counting process is controlled. Sales or deliveries during the count can create apparent differences if their timing is not recorded. Counting boxes while the system records individual units creates another source of error.

Plan count windows, define the unit being counted and reconcile movements during the exercise. Recount significant differences, identify the cause and record authorised corrections. Use selective counts between broader stocktakes to catch errors earlier.

Where branches share stock, record dispatch and receipt separately and follow up on unconfirmed transfers. A transfer should not be treated as a sale or as a new purchase by the business as a whole.

Supplier prices and scattered purchasing reduce margin visibility

Different suppliers may offer different pack quantities, discounts and payment terms. Compare like-for-like costs and keep invoice details attached to the relevant purchase. Record approved returns and supplier credits so balances remain accurate.

When purchase costs change, review selling prices and realised margins. The price charged at the till should reflect the approved product record. Restrict discount and price-change permissions, and review exceptions to identify recurring errors.

Customer credit and operating expenses also affect the result

Where the business permits customer credit, record the customer, amount and due date. Review overdue balances and match payments to invoices. A sales total that includes unpaid invoices cannot be treated as cash available for supplier payments.

Record wages, rent, electricity, fuel, delivery costs and other expenses consistently. Compare net sales with the cost of goods sold and operating costs for the same period. Keep stock write-offs visible and avoid including the same loss twice in the analysis.

A workable pharmacy stock-control checklist

• At receiving: verify quantities, product descriptions, units, costs and expiry records.
• Daily: review low-stock exceptions and reconcile sales with receipts.
• Regularly: review dated stock under the pharmacy's established procedures.
• Weekly: identify fast-moving, slow-moving and duplicate product records.
• Before ordering: check stock, outstanding orders, supplier terms and available cash.
• At stocktakes: control movements, recount differences and authorise adjustments.
• Monthly: review supplier balances, customer credit, discounts, expenses and profitability.

Assign each task to a role and keep evidence of the review. A concise exception report with named follow-up is easier to use than an unrestricted inventory export.

When should you consider business software?

Review your tools when staff cannot reliably reconcile stock, expiry records and sales, or when purchasing and branch records take too long to combine. Clean the product catalogue and opening quantities before importing them into a new system.

The TrakPoints pharmacy inventory solution lists stock and expiry monitoring, low-stock visibility, POS, purchases, suppliers, expenses, accounting, reporting and multiple locations. Confirm the exact plan and demonstrate the stock-detail workflow your pharmacy needs.

These are business-management capabilities, not clinical decision tools. Explore TrakPoints solutions to review the operational scope and choose the relevant next demonstration.