Vitality Drug Store

Business Plan
Contents Vitality Drug Store
Business Plan

• Inventory Management
• Process Management
• Profit Management
• Sales Plan (Wholesales)
• Online Source/Process Plan
Inventory Management

• Over view
• Active SKUS – 12000+
• Active Suppliers - 180+
• Active Brands – 1000+
Inventory Management
• Inventory Classification

Item Level No of Items % of Sales Remarks Review sys

1ST 1798 80 % 90 daYS

2ND 2815 15% 90 dAYS

3RD 5725 5% 60 DAYS

4TH 1401 0% No Sales One 30 days

Year
5TH 849 - New Items 30 DAYS

6TH. -INACTIVE 9781 No Sales No Sales / NO ON REQUEST

Stock
Inventory Management
• Current Stock Level
Item Total Stock value Over Stocks % of Over Stocks Stock Availabity
Level
1st 3517686.02 335330.91 9.53% 2.5

2nd 1513088.98 502028.77 33.17% 5.71

3rd 895616.02 375981.20 41.98% 10.74

4th 222363.66 222363.66 100 % -

5th 144180.88 - -

6th - - -

Total 6292935.56 1435704.54 22.81 % 3.62

 Inventory Management
• Stock Control / Over Stock Liquidation/Monitoring system
Item DESc/ System Control System Purchase Control Over Stock Control Supplier Sales Actual Mr
Leve Itemlist/ (category/ Control/Inv return Incentive Phy
l OverStock Purchase enory
(Phy) status) Status

1st 1st-GL-OS- 1STLEVEL Overstock 30 to 45 days+bonus Monitoring & control Expiry Only Very Selective yes

2nd 2ND-GL-OS- 2NDLEVEL Overstock 30 to 45 days +bonus Stop Purchase , Liquidate between Expiry Only Selective Yes / OS
Branches, restart after below 3 months between
branches

3rd 3RD-GL-OS- 3RDLEVEL Overstock 30 to 60 days +bonus Stop Purchase , Liquidate Branches, Plan Expiry & Yes Yes / OS
OR Just in time if no with Suppliers Liquidation, replace with Over Stocks Between
Bonus moving Branches

4th 4TH-GL- 4THLEVEL Stop Purchase Stop Purchase , Liquidate Branches , Plan Expiry & Yes No/ Arrange
with Suppliers Liquidation, replace with non Moving from Avlbl
moving

5th 5TH-GL- 5THLEVEL New Items No Sales Yes Yes On Sale

Return After
6 Months

6th 6TH- inactive Purchase On Customer / NO

Not Allowed in Actual mr
Inventory Management
• Store Receiveing Procedures
Item Level Expiry Min Check Point Entry to System Arrange to Shelf
(Anshad) (Vishnu) (Anshad)

1st 11 Months LPO Recall LPO Arrange Goods in Suppliers shelf

Physical Qty only after GRn

2nd 12 Months Item Description GRN , Expiry , Qty , Arrange glass Bottles Down /
Bonus Drops / Ointment / tab /caps
/single pcs front / inj / fridge /

3rd 15 Months Bonus PI , Match Invoice FIFO Method (Short Expiry First )
Amount after returns
5th 15 Months Expiry , return short Make sure Supplier
Name is correct
Damage Filing the invoices
Discount

International BArcode
Inventory Management
• Store Transfer
Store Transfer
Procedures
Not Allowed to Not Allowed to Transfer Only by FIFO All Transfers In Delivery Out
transfer any items transfer any items (Short Expiry first ) must finish on same day & print
before entering Grn before entering stock Both System & the invoice Just before pick up &
In system transfer in system Physical Must be change the branch location from
same expiry delivery out to Original branch
No One is allowed to Any items Require ALL FBA Requirments All Items going out From the
handle the goods in from Store Must thru only actual Mrs store Must have Invoice signed
store other than the prepare Actual MR & store Staff will by store incharge after checking
Pharmacist & Store Including Online prepare the goods & who collect items must sign
Staff Branch and inform when one copy . After receiving goods
ready for collection receiver must sign the copy of
invoice & return to driver for the
store records.
File the Signed Transfer
Invoices
Inventory Management
• Stock Counting
Physical Counting Cycle Counting

2 Per Year 4 Per Year

Full Count Mix -Selective products from all Category

(High Value , Low , High Sales , Low Slaes)
TEAM Accounts Team

Night Time Working Hours

Upload System Identify Error , Cause , Action &

correction
Process Management
• Material Requsition - UIC

• UIC of pharmacy raise their requirements thru Actual Mr In System.

• On daily basis check Item below level and place the orders as per stock
movement report suggested and make changes as per pharmacy requirement.
• Max Order Qty - 30 Days Sale
• Minus Available stocks
• Order Level – 1st,2nd ,3rd
• Budget Use- 80 %- 1st level
• Budget Use - 15 %- 2nd Level
• Budget Use- 5 % - 3rd level
Material Requsition - UIC
• 4th level - For Liquidation Only (branch to branch)
• 5th Level – New Items (Order Based On Movement )
• 6th Level – Inactive List – Approval to release from Inactive / Mail /
• Order Timing
• Daily MR Cut off - 11 Am (Same Day Delivery on avlblty in Store)
• Reference for Actual Mr
• Stock Movement Fast & Non Moving Report
• Auto Mr – 1st of Month & 15th of Month
• Nb
• Items Not received add again in Actual Mr only after (4 days)
• (last actual mr Date avlbl in stock movement reprt )
Process Management
• Material Receiving – phy
• Receiver - Pharmacy Staff
• Pharmacy Will receive their Orders from “ Vitality Drug Store “ as a Stock
Transfer.
• After receiving the Stock transfers staff should check for quantity, expiry,
strength, pack size which should match with the Stock transfer Invoice. Any
discrepancies damages should be notified to Store In charge by mail/call
• After receiving the stock transfers and supplies, pharmacy staff should
monitor pending items which have to be notified to purchase team.
Process Management
• Pharmacy Supply Management
• Vitality Store as the Central Purchase for Pharmacies & Online Stores
• All the Actual Mr will receive in the Purchase Dept Thru the Auto Gen
Module .
• All items line by line will be reviewed for the qty , Item Level , last ordered
date & filtered as required. (Tijo )
• After the filtration All items in the Auto Gen Pr will be converted AS a Local
Purchase Order under the Vitality Drug Store Account each pharmacy wise.
• All Branch LPOS then Convert to Inter Location Transfer for the Store to
Branch Transfers.
• Ready for Store At 1.30 Pm
Process Management
• Pharmacy Supply Management
• Branch Transfer – Vitality Store-(Anshad)
• Start Time – 2 PM
• All the Inter Locations transfer Pending from the Delivery out (Branch)
will be printed. (Vishnu )
• 1st print - Pickup List - Pick the products Agentwise / FIFO /As per
Invoice (Anshad)
• Any corrections in the 1st print must be Verified & modified in the
system. ( Vishnu )
• Packing of the Products Must be invoice wise / well arranged / bottles
separate / Fridge items in cooler Box (Anshad)
• 2nd Print –Invoice for Pharmacy
Process Management
• Pharmacy Supply Management
• All the Packed Boxes shift to Delivery out area
• Delivery Collection
• Collection Time –( HASAN)
• Sharjah Phys - 5.00 PM (Same daY)
• Muveilla & Dubai (Next Day )-10. Am )
• Sign the Green Copy (HASAn )
• Return the Signed Red copy from Pharamcies to store (Hasan )
• File The Green & Red Copies after Verified ( MR Amro )
Process Management
• Product Sourcing From Suppliers – (Tijo)
• All the items unable to Supply from the store will be identified thru the
Consolidation MR.
• All items Will be reviewed again for the right Qty , Bonus & Supplier
• Max Order Qty (30 to 45 Days)
• All the 4th Level & 6th Level items will be removed from the
Consolidation report .
• Items Will Be Reviewed On a 30 Days Sales & 180 Days sales as required
• Items Will also be removed from consolidation if overstocks in group &
Prepare for Internal Branch transfers
Process Management

• Product Sourcing From Suppliers – (Tijo)

• All the Items after prepared in Consolidation report will be converted
to Suppliers LPO.
• LPOS will be ready on same day for Final Review & approval
• Final Review & Approval (Next Day morning ) – Dr Omar
• Email To Suppliers (Next Day 11.30 Am )
• Follow Up Orders for Not Received (After four Days From Sent Date )
• LPO Partially Received , resend again in new Lpo with items not
received
Expiry Management

• Expiry Management Team - Dr Khalil & Mr Amro

• UIC assigned staff identifies supplier wise list of expiry items –by manual checking and computer
generated reports.
• Expiry data for the next 6 months is prepared in Excel. To be accomplished before 5th of each month.
• The above lists forwarded to Expiry Management team for compilation and will decide the course of
action.
• Every UIC should regulate the expiries which are a loss to pharmacy and company; it is taken as high
priority than their individual benefits
• Initiatives should be taken to have short expiry products liquidated by
• a. Promoting over the counter.
• b. Liquidating through other pharmacies.
• c. Returning to Abeer Expiry Store on time.
• Expiration of fast moving consumer goods and OTC will hold the pharmacy responsible.
• An expiry liquidation chart should be prepared on monthly basis and the contribution of every team
member should be monitored.
• All expiry Must be returned on time in full either after expired or from 6 Months as per suppliers policy
• A Supplier Expiry Policy Must be prepared in Excel & share to all Phys.
Promotions & Markdown prizes
• Promotions Strictly Controlled & only as per agreed with the Supplier
• An Yearly calendar Must be prepared.
• Mode Of Promotions
• 2+1 , 1+1 & Direct Discount as agreed with Supplier
• Offer Compensations Report prepare on 1st of Month & send to supplier on time
& get the full compensation.
• Fixing Of Online Promotional Prizes in Online platforms (Amazon & Noon ) Must
be after their actual bench mark prize . Not Discount direct from cost .
• Eg Cost – 192
• Bench Mark 192 x 25 % = 256 Dhs
• Supplier Offer = 2+1 take As 30 % discount
• Online Offer prize = 256 x 30 % discount = 179 dhs (Not List below 179)
Promotions & Markdown prizes
• Mark down prizes
• Items Not Moving more than 180 days & not replaceable or non
returnable mark down the prizes .
• Mark Down to 20 % in the first 30 days & if not moving again
• Mark down to 30 % or even try 1+1 offer
• Another Mark down is for prize competition in the market
• Mark Down the Product goes Near to expiry & no ways to Save
• When Product Outdated
Profit Management
• Profit From Sales
• Profit From Suppliers
• Profit From Indirect Income
Profit Management
• Profit From Sales

• Track Reports Daily for Gross Profit Per Invoice

• Higher Margin Substitutions
• Ads on to increase the margin
• Build Customer Relationship & Sell More Personal Care & OTC
• Merchandising / Change frequently On the counter area
• A good deal at the entrance.
• Non Pharmaceutical Products Sales
Profit Management
• Profit From Sales

• Referrals from clinics, and physicians

• Referrals From Govt Institutions
• Refill Reminder Programs
• Quotations
• Events
Profit Management
• Profit From Sales (Pharmacy)

• Customer Analysis
• 2021 Data
• Monthly : 11800
• Avg Daily : 393

• Avg Sales Per Customer – 112.00

• Avg Cost Per Customer – 77.00
• Avg Profit Per Customer – 35.00
• Avg % Of Profit - 31.25 %
Profit Management
• Profit From Sales
• 2022 Goal Pharmacy
• Atv – 3 dhs increase - 115 dhs
• ACV – 1 Dhs decrease – 76 dhs
• Avg profit – 39 dhs
• Target % of Profit : 39/115 = 34%
2021 Profit Expected 2022 Profit @ 34 % Expected Growth 2022
dec31st @11800 Cust @
4,956,000 / year 5,522,400 / year 566,400 / year

413,000 / month 460,200 / month 47,200 / month

Profit Management
• Plans how to achieve the sales goal 2022

• 1. NO Discount sales – by offering a vitamin c free through out the

year for 1 pcs / 100 dhs
• (Buy a Vitamin c in bulk enough for 6 months or label in own brand
name to work out this plan )
• 2. One + One Offer Vitamin C
• Current Sales - Approx 3000 pcs / year (Asstd)
• Opportunity - 140,000 Customers in a year (2021 data)
• Target – 10000 pcs @ 1+1 offer -
Profit Management
• Plans how to achieve the sales goal 2022

• 3. Create An Upselling Product List

• 4. Increase the No of Cross Selling Invoices
• 5.Merchandising
• A)categorywise
• B)place related products nearby
• 6.Update the Tv Displays
• 7.Banners, leaflets ,brochures
• 8. Patient awareness programs
Profit Management
• Plans how to achieve the sales goal 2022
• 9. Use Whats app Marketing
• 10.Visit the businesses in the near area
• 11.Analysing results on a monthly basis of all your efforts
• 12.Demographic analysis (age ,gender , nationality & their purchase
behavior ) and add more items in pharmacy
Profit Management
• Profit From Suppliers
• Contracts With Suppliers
Brands Purchase 2021 Expected No Sales Oppurtunities
• Brands to be added to Contract 2022
NOVO NORDISK 467925.19 600000 Retail , Wholesale
• Contracts in the new year 600000 Retail , Wholesale,Online
435922.00
• If direct contract not able NOVARTIS (PHARMA & CONSUMER )

• To make, join a contract PFIZER 319815.14 400000 Retail , Wholesale,online

300000 Retail , Wholesale,Online

• With small independent MCNEIL CONSUMER 238543.81
MSD DEAL 238301.14 300000 Retail , Wholesale
• Groups that pool their 250000 Retail , Wholesale
ASTRAZENECA 211186.17
• Resources to purchase in SCHERING 166092.80 200000 Retail , Wholesale

• bulk MERCK 148969.70 200000 Retail , Wholesale

ELI LILLY 101122.15 200000 Retail , Wholesale

SPIMACO 100560.97 200000 Retail , Wholesale

 Profit Management
• Profit From Suppliers
• Items for Bulk Purchases @ High Margin @ 2022
Item Sold 2021 Expected 2022 Sales oppurtunities
SKINOREN CREAM 30GM 2,845.00 3000 Pharmacy , Online

ARTIZ 10MG TAB 10S 1,698.60 3000 Pharmacy , Wholesales

SMART CHECK PREGNANCY TEST 1,662.00 3000 Pharmacy , Online , Wholesale

BETAZOL CREAM 30G 1,643.50 3000 Pharmacy , Online , Wholesale

RAPIDUS 50MG TAB 20S 1,516.12 3000 Pharmacy , Online , Wholesale

IONIL T SHAMPOO 200ML 1,452.00 3000 Pharmacy , Online , Wholesale,Market Place

FLUDREX TAB 24S 1,285.86 3000 Pharmacy , Online , Wholesale

FEME HAIR ((vitamin factory )) 1,106.00 1500 Pharmacy , Online , Wholesale

PROCOMIL SPRAY 45ML 1,079.00 4000 Pharmacy , Online , Wholesale,Market Place

BIO OIL 200 ML 960.00 1500 Pharmacy , Online , Wholesale,Market Place

Profit Management

• Profit From Suppliers

• Avoid Payment Delay
• Stop Supply results in loss of sale thereby profitability
• Bad Relations with supplier results in loss of discounts & conversion to
cash Supply
• Loss of discounts From suppliers reduces gross profit
• Avoid Stock Out Situation
• Quantity Discounts/Bonus

• continued