Pharmacy Management

[PSW 404]
By Dr Adetutu Ajemigbitse
Clinical Pharmacy Department,
Faculty of Pharmacy, Bingham University
May 25, 2023.
 Ground rules!

• No late coming – that is distractive and not acceptable.

• No phone calls during lectures – keep phones on silent/vibration mode.
• Questions will be fully entertained at the end of the lectures.
• Assignments will be given and to be submitted later through the Class rep.

PHARMACY MANAGEMENT [PSW 404] 2

 Outline.
• Introduction to Managerial sciences
• Pharmaceutical care as a management movement
• Patterns and methods of drug distribution.
• Advertising in pharmacy practice
• Financing in pharmacy
• Pharmacy administration
• Record systems
• Case study
PHARMACY MANAGEMENT [PSW 404] 3
• Conclusion.
 Introduction to Managerial science
Learning objectives: at the end of this lecture, the student should be able to –
• Describe the concepts of management and how this play out in our everyday lives
• Describe the management process within the context of what managers do, the
resources they manage and levels at which managers perform their roles.
• Apply the management process to all personal and professional activities.

PHARMACY MANAGEMENT [PSW 404] 4

 Introduction to Managerial science cont’d
The word manage, according to Webster’s Dictionary, is a verb meaning “to control the
movement or behavior of, to lead or direct, or to succeed in accomplishing”.
According to Tootelian and Gaedeke (1993), management is “a process which brings
together resources and unites them in such a way that, collectively, they achieve goals
or objectives in the most efficient manner possible.”
Management is a process, or a method of doing something. Processes are used to
perform simple everyday tasks (e.g., borrowing a book from the faculty library) as well
as more complex activities (e.g., compounding a medication for a paediatric patient)
People perform processes because they want to achieve a goal or objective which can
be personal [like getting to school on time] or professional [like running a dept of
pharmacy]
PHARMACY MANAGEMENT [PSW 404] 5
 Introduction to Managerial science
cont’d
• Because processes require resources, and resources are scarce, it is important that
resources be used in such a way as to achieve goals and objectives in the most
efficient manner possible.
• Managers are simply people who perform management activities.
• Anyone who has a task to accomplish or a goal to achieve is a manager as well.
Pharmacy students and pharmacists who say that they do not want to be managers
may not desire the authority and responsibilities of having an administrative position,
but since they need to use resources efficiently to perform the tasks related to their
jobs, then all pharmacists, regardless of their job responsibilities or position, should
view themselves as managers!
PHARMACY MANAGEMENT [PSW 404] 6
 Introduction to Managerial science cont’d
Two individuals that have contributed to the classical study of management are F.W. Taylor and Henri
Fayol. Much of their work was developed based on the workplace conditions of the eighteenth,
nineteenth, and early twentieth centuries.
• Both Taylor and Fayol argued that all organizations, regardless of size or objective, had to perform a
standard set of functions to operate efficiently.
Fayol’s five management functions have become accepted throughout the industrialized world.
• Forecasting and planning,
• Organizing,
• Commanding,
• Coordinating and
• Controlling
PHARMACY MANAGEMENT [PSW 404] 7
 Introduction to Managerial science cont’d

• The workforce and workplace of the late twentieth and early twenty-first centuries have evolved
into something quite different. Today’s workforce is much better educated and more highly skilled
than workers had been in the past.
• These trends have led many to question the relevance of classical management theories in today’s
rapidly changing world.
• A lot of research has been done in the study of management and these have made important
contributions to management science, given the continued need to use scarce resources to achieve
goals and objectives in an ever-changing business climate.
• However, as will be discussed below, classical management theory still has a place in today’s
pharmacies, as well as in our personal lives.
PHARMACY MANAGEMENT [PSW 404] 8
 Introduction to Managerial science cont’d

• Fayol’s management functions has been adapted to describe what managers do in

today’s world. There are three dimensions of management:
(I) Activities that managers perform,
(II) Resources that managers need and
(III) Levels at which managers make decisions.
• Every action taken by a manager involves at least one aspect of each of the three
dimensions

PHARMACY MANAGEMENT [PSW 404] 9

 I. Management Activities

• Fayol’s five management functions

have been adapted to describe four Plan
activities that all managers perform.
• 1. Planning
Organiz
Control
• 2. Organizing e

• 3. Leading or directing
Lead /
• 4. Control or evaluation.
Direct
PHARMACY MANAGEMENT [PSW 404] 10
 Management Activities cont’d
• Planning:
This is pre-determining a course of action
based on one’s goals and objectives.
Managers must consider many factors
when planning, including their internal and
external environments.
E.g. the pharmacist at a community
pharmacy will develop plans to
predetermine which drug products he
wishes to offer.
PHARMACY MANAGEMENT [PSW 404]
• Organizing:
Organizing is the arrangement and
relationship of activities and resources
necessary for the effective accomplishment
of a goal or objective.
Once a pharmacist has decided which drug
products or services s/he should offer, next
is to ask what resources are needed to
provide them, how these resources will be
obtained, and then when to obtain them
11
 Management Activities cont’d
• Leading or directing:
This step combines Fayol’s command and
coordinate steps to provide a better description of
what managers actually do in today’s world.
Leading or directing involves bringing about
purposeful action toward the desired outcome. It can
take the form of working with others to lead them to
where you want your organization to be.
A pharmacist eventually may offer the goods and
services described in their plans, but almost certainly
s/he will need to work with a number of other people
within the organization to accomplish this task.
PHARMACY MANAGEMENT [PSW 404]
• Control or evaluation:
This step involves reviewing the progress that has been
made toward the objectives that were set out in the plan.
It not only determines what actually happened but also
why it happened.
• Here, the Pharmacist seeks to determine if the goods
and services offered his clients met their goals; from
the perspective of their patients (e.g., Did the goods
and services result in high quality patient care or
improved clinical outcomes?), or from other
perspectives (e.g., Did it improve the profitability of
the pharmacy?).
• Performing quality-control checks helps to ensure that
12
patients are receiving the desired medication in the
appropriate manner.
 II. Resources that are managed
• Managers use resources to achieve their goals and objectives. These resources must be
used efficiently to achieve these goals. They are –
1. Money: Managing money is important to any organization or individual. It can be an
important yardstick in measuring the success of an organization or an individual. Money
also makes it possible to obtain additional resources that are necessary to achieve other
goals and objectives.
2. People: In pharmacy practice, there is very little that any one person can accomplish on
their own, regardless of the practice setting. Pharmacists must work with other employees
in their pharmacies, other health care professionals, and especially the patients and
customers they serve. PHARMACY MANAGEMENT [PSW 404] 13
 Resources that are managed cont’d
3. Time: Time management is essential for today’s busy pharmacist, as well as for most
other people.
4. Materials: Managing material resources is very important in a pharmacy practice.
These include drug products, equipment and other supplies for dispensing, furniture,
stationery etc.
5. Information: With the advent of the computer and the Internet, information is
literally at most people’s fingertips. This has had a great impact on pharmacy practice,
providing pharmacists with information about drugs and patients that they did not have
only a few years ago. Thus, information management is becoming an important job for
pharmacists.
PHARMACY MANAGEMENT [PSW 404] 14
 III. Levels of Management
Can be – 1. Self management
1. Self – management • This is the most frequently occurring level of
management. To succeed in life as a student or
2. Inter-personal professional requires self-management.
3. Organizational • For example, pharmacists must prioritize and manage
their time efficiently so that they can accomplish the
wide variety of tasks, from ensuring that every
prescription is dispensed accurately to making sure
that they have time to counsel their patients.
PHARMACY MANAGEMENT [PSW 404] 15
 Levels of Management cont’d
2. Interpersonal management
• This is the most frequent level on which
managers find themselves performing.
Interpersonal management occurs between the
manager and another person. In a pharmacy, this
might involve a pharmacist counseling a patient
about a medication or training a technician.
• Our personal lives are full of interpersonal
relationships, including those with our parents,
siblings, spouse, children, friends, and school
mates.
PHARMACY MANAGEMENT [PSW 404]
3. Organizational management
• This level of management occurs less
frequently. It involves actions that affect
groups of people. High-level administrators in
large organizations (e.g., pharmacy chains,
hospitals, etc.) often make decisions that affect
everyone within the organization. Anyone who
has ever had to make an “executive decision”
among a group of classmates can relate to the
kinds of organizational-level decisions that
business leaders make every day. 16
 Exercise 1
Below are 3 scenarios that represent how pharmacists use the management process on a daily basis. For
each, describe (1) the level of management being performed, (2) the type of management activity being
performed, and (3) the resources that the pharmacist needs to perform this activity

1. M.L is trying to decide what form of pharmacy post graduate education

programme will best allow him to maintain his practice skills [part-time, full-time or
MCPE].

2. Pharm K. U is training a pharmacy technician about information needed to be

included in a properly labeled dispensing envelop and how to fill a prescription.

3. The Director of pharmacy in a tertiary hospital is reviewing the pharmacy’s

annual financial report to determine if the department has met her goals for the
year. PHARMACY MANAGEMENT [PSW 404] 17
 Pharmaceutical Care as a Management Activity

• According to Hepler and Strand [1990],

“Pharmaceutical care is the direct, responsible provision of medication-related care for the purpose of
achieving definite outcomes that improve a patient's quality of life”
It is a practice in which the practitioner takes responsibility for a patient's drug-related needs, and is held
accountable for this commitment.
The ultimate goal of pharmaceutical care (optimize medicines use and improving health outcomes) exists
in all practice settings and in all cultures where medicines are used. It involves two major functions:
identifying potential and actual problems in the pharmacotherapy and then resolving the problems
& preventing the potential problems from becoming real for the patient and his therapy outcomes.
This should preferably be done together with other health care professionals and the patient through a
review of the medication (and diseases) and subsequent counselling and
PHARMACY discussions.
MANAGEMENT [PSW 404] 18
Pharmaceutical Care as a Management Activity
cont’d

• Pharmaceutical care is not simply a list of clinically oriented activities to perform

for each and every patient but is, in fact, a new mission and way of thinking that
takes advantage of pharmacists’ accessibility and the frequency to which they are
engaged by patients
• A way of thinking that prompts the pharmacist to take responsibility for managing
a patient’s pharmacotherapy to resolve current and prevent future problems related
to their medications

PHARMACY MANAGEMENT [PSW 404] 19

Pharmaceutical Care as a Management Activity
cont’d

• Risks are an inherent part of any business activity, including the provision of
pharmacy services.
• Common risks to business practice include fire, natural disasters, theft, economic
downturns, and employee turnover, as well as the fact that there is no guarantee that
consumers will accept or adopt any good or service that is offered to them.
• The practice of pharmacy involves additional risks, specifically the risk that patients will suffer
untoward events as a result of their drug therapy

PHARMACY MANAGEMENT [PSW 404] 20

 Pharmaceutical Care as a Management
Activity cont’d
• These events are significant because they may result in significant harm and even
death to a patient and can also pose serious detriments to pharmacists, such as
feelings of guilt and stress, the potential for litigation from patients and their
families, the threat of punitive action by the regulatory bodies [eg PCN], and the loss
of social esteem enjoyed by the profession as a whole.
• Risk management suggests that risk cannot be avoided entirely but rather that it should be
assessed, measured, and reduced to the extent feasible.

PHARMACY MANAGEMENT [PSW 404] 21

 PHARMACEUTICAL CARE PRACTICE DOMAINS
RISK
MANAGEMENT
• Devise system of data
collection
• Perform prospective
drug utilization review
• Document therapeutic
interventions and
activities.
• Obtain over-the-counter
medication history
• Calculate dosages for
drugs with a narrow
therapeutic index
• Report adverse drug
events
Remain abreast of newly
uncovered adverse effects
and drug–drug interactions
PHARMACY MANAGEMENT [PSW 404]
PATIENT
ADVOCACY
- Serve as patient advocate
with respect to social,
economic, and
psychological barriers to
drug therapy
- Attempt to change
patients’ medication orders
when barriers to
compliance exist
- Counsel patients on new
and refill medications as
necessary
- Promote patient wellness,
maintain caring, friendly
relationship with patients
- Telephone patients to
follow-up on medication
orders called in and not
picked up
DISEASE
MANAGEMENT
- Provide information to
patients on how to manage
their disease state/condition
- Monitor patients’ progress
resulting from
pharmacotherapy
-Carry inventory of
products necessary for
patients to execute a
therapeutic plan (e.g.,
inhalers, nebulizers,
BP/glucose monitors, etc.)
- Supply patients with
information on support and
educational groups (e.g.,
Diabetes Association,
Sickle cell Society)
PC SERVICES BUSINESS
MARKETING MANAGEMENT
- Meet prominent Use pharmacy
prescribers in the local
technicians and other
area of practice staff to free up the
- Be an active member
pharmacist’s time
of professional
associations that support
the concept of
pharmaceutical care
- Make available an area
for private consultation
services for patients as
necessary
- Identify software that
facilitates pharmacists’
patient care–related
activities 22
 The Managerial sciences

• The reason they are referred to as sciences is because their proper application stems
from the scientific process of inquiry, much the same as with other pharmaceutical
sciences:
• The science of Accounting - involves “keeping the books,” or adequately keeping
track of the business’s transactions, such as sales revenues, wages paid to employees,
prescription product purchases from suppliers, rent, and utility bills. This must be
done to ensure that the company is meeting its debts and achieving its financial
goals.
• Accounting is also used to determine the amount of taxes owed, to make reports to
external agencies and/or auditors, and to identify areas where the company’s assets
could be managed more efficiently
PHARMACY MANAGEMENT [PSW 404] 23
 The Managerial sciences cont’d

• Finance - is more concerned with the sources and uses of funds (e.g., Where will the
money come from to pay for new and existing services? Which services are most
likely to enhance profitability for a pharmacy?).
• Economics - commonly associated with managing money. However, the use of
economics transcends financial considerations. Economics is a tool to evaluate the
inputs and outcomes of any number of processes. It can be used to determine the
right mix of personnel and automated dispensing technologies, the optimal number
of prescriptions dispensed given current staffing levels, whether or not a pharmacy
should remain open for additional hours of business, and how much to invest in theft
deterrence. It is also used to determine the most appropriate drugs to place on a
formulary or to include in a critical pathway.
PHARMACY MANAGEMENT [PSW 404] 24
 The Managerial sciences cont’d
• Human resources management - used to optimize the productivity of any pharmacy’s most critical asset—
its people. It involves determining the jobs that need to be done, recruiting people for those jobs, hiring the
right persons for those jobs, training them appropriately, appraising their performance, motivating them, and
seeing that they are justly rewarded for their efforts. It also involves issues such as determining the right mix
of fringe benefits and retirement programs, setting vacation and absentee policies, assistance with career
planning, ensuring employees’ on-the-job safety, and complying with laws and rules established by
regulatory bodies.
• Marketing - usually assumed to be another word for advertising, however, while promotional activities are a
significant component of marketing, its activities include identifying the company’s strengths over its
competitors, properly identifying consumer bases to which marketing strategies will be directed, carrying the
right mix of goods and services, arranging these products for optimal “visual selling,” and establishing the
right prices for goods and services. Price setting is critical not only for products but also especially for
services. It is here that pharmacists often make mistakes when trying to establish cognitive or value-added
services. Services priced too low are unprofitable, perhaps even a money-losing proposition, whereas
services priced too high will fail to attract customers.
PHARMACY MANAGEMENT [PSW 404] 25
 The Managerial sciences cont’d

• Operations management - involves establishing policy delineating the activities of

each employee on a day-to-day basis, what tools they will use to accomplish their
tasks, and where those tasks will be performed (i.e., workflow design). It also entails
maintaining the proper inventory of prescription and non-prescription products so that,
on the one hand, the pharmacy is not consistently running out of products that patients
need and, on the other hand, there are not excess amounts of products reaching their
expiration date prior to sale or otherwise taking up valuable space that could be used
for other purposes.

• The managerial sciences are summarized in the Table below:

PHARMACY MANAGEMENT [PSW 404] 26
 The Managerial sciences
1. Accounting 2. Finance 3. Economics
- Keep the necessary books • Determine financial needs • Determine optimal mix of
- Record financial transactions & • Identify sources of capital labor, and capital and
prepare financial statements • Develop operating budgets optimal output
- Manage cash flows & analysis of • Invest profits • Determine optimal hours of
profitability • Manage assets business operation
- Determine business strengths and • Determine levels of
weaknesses investment into risk
- Compute taxes owed to federal, state, management
and local governments
4. Human resources management 5. Marketing 6. Operations management
- Conduct job analyses & hire Identify & implement competitive • Design workflow
personnel advantages • Control purchasing and
- Orient and train personnel Identify target markets inventory
- Motivate personnel for performance Evaluate & implement promotional • Perform quality assurance
- Appraise personnel performance strategies initiatives
- Allocate organizational rewards Select proper mix of merchandise 27

Terminate employment Properly arrange and merchandise products

Price goods and services
 Case study
• Miss LT is an 300L student of pharmacy who is particularly happy with her courses and
exam scores so far. Her best subjects are pharmaceutical technology and clinical
pharmacy as she sees these as teaching the practical aspects of working as a pharmacist.
As she registered for her 400L courses, she is surprised and not so excited that she is
required to take a course in ‘Pharmacy management’. On inquiry, she is told it is about
accounting, finance and marketing. She wonders how these are related to the profession
of pharmacy and reluctantly registers for it as it is compulsory. She was hoping to have
more time to do ‘locum’ work at ‘Gado Pharmacy’ and then this! How is this going
to help me become a better pharmacist? she lamented to herself.
• How do you feel about the role that management plays in the practice of pharmacy?
PHARMACY MANAGEMENT [PSW 404] 28
 Conclusion
• Contrary to popular belief, good business and good patient care are not mutually
exclusive. In fact, they are almost entirely mutually dependent.
• Superior patient care and the implementation of clinical services are made possible
by pharmacists who are skilled in management. Pharmacists must be attuned to the
internal and external forces that shape the practice of pharmacy.
• The managerial sciences of accounting, finance, economics, human resources
management, marketing, and operations management are indispensable tools for
today’s practitioner.
PHARMACY MANAGEMENT [PSW 404] 29
 References

• Pharmacy Management – Essentials for All Practice Settings. Editted by Shane P.

Desselle and David P. Zgarrick. 2nd Edition, Mc Graw Hill Medical (2009). DOI:
10.1036/0071494367.
• Allee JG (ed). 1990. Webster’s Dictionary. Baltimore: Ottenheimer Publishers.
• Hepler CD, Strand LM. 1990. Opportunities and responsibilities in pharmaceutical
care. Am J Hosp Pharm 47:533 - 543.
• Tootelian DH, Gaedeke RM. 1993. Essentials of Pharmacy Management. St. Louis:
Mosby.
PHARMACY MANAGEMENT [PSW 404] 30
 Pharmacy Management
[PSW 404]

Patterns and Methods of Drug

Distribution
PHARMACY MANAGEMENT [PSW 404] May 30, 2023. 31
 Patterns and Methods of Drug Distribution:
Introduction
Distribution management is part of the supply chain management
process that ultimately delivers goods to end-users or consumers.
Managing distribution is essentially managing the movement of
goods, whether it be from a wholesaler to a retailer or from a retailer
to a consumer.
Distribution management is the process used to oversee the
movement of goods from supplier to manufacturer to wholesaler or
retailer and finally to the end user.
PHARMACY MANAGEMENT [PSW 404] 32
 Levels of a Distribution Channel.
• 1.

PHARMACY MANAGEMENT [PSW 404] 33

 Patterns and Methods of Drug Distribution:
Introduction cont’d
Numerous activities and processes are involved, including raw materials
management, packaging, warehousing, inventory, supply chain, logistics and
procurement.
A distributor may be any individual or business that delivers goods to a
customer. For example, a pharmaceutical company is a distributor of
products to pharmacies.
In Nigeria, the National Products Supply Chain Management
Programme [NPSCMP] ensures effective management, coordination and
supervision of the supply chain of pharmaceuticals and other health products
across all levels. It also harmonizes supply chain of all healthcare
programmes in Nigeria. 34

PHARMACY MANAGEMENT [PSW 404]

 Patterns and Methods of Drug Distribution:
Introduction cont’d
A standard distribution system should have these five major elements
namely –
1. System design with good geographical and population coverage
2. Sound information system for tracking
3. Effective system control
4. Good storage and handling facilities at all strategic points.
5. Efficient delivery and good human resources development.
This structure minimizes leakages and maintains constant supply, good
condition of
PHARMACY drug [PSW
MANAGEMENT and
404] provides reliable information for forecasting. 35
 Supply Chain Management

•This is the coordination and integration of all the planning and management of
activities in sourcing and procurement, storage, distribution and all logistics

management activities involved in moving a product from the manufacturer or

source to the end user or client to guarantee optimal inventory in a cost-effective

manner.*

* The Logistics Handbook: A Practical Guide for the Supply Chain Management of Health Commodities (2011)
36

PHARMACY MANAGEMENT [PSW 404]

 The Logistics Management System
A logistics system provides excellent customer service by fulfilling the SEVEN
Rights.
It ensures that the -
• Right goods or products in the
• Right quantities in the
• Right condition are delivered to the
• Right place, at the
• Right time for the
• Right cost to the
• Right customer.
PHARMACY MANAGEMENT [PSW 404] 37
 The Logistics Management System cont’d

Example:
A pharmacist who deals in hand sanitizers has an agreement with a local supplier to supply an
agreed number of liters of ethanol to his pharmacy on regular basis.
For him to continue to patronize the supplier on a continuous basis, this situation must exist
at all times:
The supplier will always supply the ethanol (right product).
The number of jars (right quantity) of the ethanol for which the pharmacist (right
customer) has a standing order should always come in good condition (right condition) and
will be delivered to the pharmacy (right place) on the agreed days (right time) and at the
cost will be as agreed (right cost).

PHARMACY MANAGEMENT [PSW 404] 38

 Components of the Logistics Cycle
The strategic actions in the supply chain cycle focus on processes
such as: Other strategies include –
rational drug selection, promotion of local drug
proper quantification of drug needs, manufacture,
effective procurement practices,
assurance of quality of drugs through quality control and
appropriate registration,
quality assurance mechanisms, research and
inventory management, development,
appropriate storage /warehousing,
monitoring and evaluation
proper costing,
and
effective distribution and
rational use of these medicines by consumers who are patients human resources
and other healthcare workers.
PHARMACY MANAGEMENT [PSW 404]
development. 39
The Supply Chain Distribution Cycle
Selection

Rational Forecasting &

Use Quantification
Management
Support

Warehousing
& Procurement
Distribution 40
 Components of the Logistic Cycle:
Product Selection [1/5]
• Product selection is the first activity in the logistics system.
• The objective of the medicine selection process is to have a national
list of medicines rationally chosen to satisfy the health care need of the
majority of the population.
• Medicines are selected from the Essential Medicines List (EML)
patterned in line with the World Health Organization (WHO) Model List.
• Also considered are Standard Treatment Guidelines (STG) and NAFDAC
list for controlled medicines.
PHARMACY MANAGEMENT [PSW 404] 41
 Components of the Logistic Cycle:
Quantification and Procurement [2/5]
• This is the process of estimating the quantity and cost of the
products required to ensure uninterrupted supply of products
• The quantity required for every product must be determined and
procured.
• Here, appropriate, adequate and quality medicines are procured.
• The process is a major determinant of availability and affordability
of medicines

PHARMACY MANAGEMENT [PSW 404] 42

 Components of the Logistic Cycle:
Inventory Management & Distribution [3/5]
• Items procured and received must be stored (warehoused) until needed.
• The products are stored to ensure security and maintenance of quality
throughout their shelf life and accessibility.
• Storage capacity must be adequate to manage all the products
• It is the role of inventory management to store and distribute products
throughout the system.
• Effective distribution through the pipeline to the end users is key to
improving access to medicines.
PHARMACY MANAGEMENT [PSW 404] 43
 Components of the Logistic Cycle:
Rational Drug Use (RDU) [4/5]
• The logistic system ensures the rational safe use of medicines by
customers/patients.
• RDU requires that patients receive medications appropriate to their
clinical needs, in doses that meet their own individual requirements
for an adequate period of time and at the lowest cost to them and
their community.
• It ensures providing excellent customer service by fulfilling the
Seven Rights
PHARMACY MANAGEMENT [PSW 404] 44
 Components of the Logistic Cycle:
Logistics Management Information System (LMIS)
[5/5]
• LMIS is the motor that drives the logistic cycle.
• Without information, the logistics system would not be able to run.
• LMIS is a system of records and reports, whether paper based or
electronic, used to aggregate, analyze, validate and display data
(from all levels of the logistics system) that can be used to make
logistics decisions and manage the supply chain.
• LMIS data elements include stock on hand (SOH), demand issues,
consumption, losses and adjustments
PHARMACY MANAGEMENT [PSW 404] 45
 Summary
• A well-coordinated supply system will ensure that funds available for
purchase of medicines are used effectively to maximize access, to
obtain good value for money and to avoid waste.
• This will increase confidence in health services and promote end user
attendance and satisfaction.
• There needs to have good coordination between these central
elements in the supply system. Failures at any point in the drug
supply system can lead to shortages or to waste, resulting in serious
health and economic consequences.
PHARMACY MANAGEMENT [PSW 404] 46
 References
• National Supply Chain Policy for Pharmaceuticals and other Healthcare
Products. Department of Food and Drug Services, Federal Ministry Of
Health, Abuja. National Products Supply Chain Management Programme
(NPSCMP), Feb 2016.
• National Policy For Controlled Medicines and Its Implementation
Strategies. Federal Ministry of Health, Nigeria. 2017 document.
• Training on Good Warehousing Practices & Inventory Management for
Narcotic Medicines. Training Content notes. March 2019, Abuja.
• How to develop and implement a National Drug Policy. 2 nd Edition, 2001.
PHARMACY MANAGEMENT [PSW 404] 47
 Pharmacy Management
[PSW 404]
Record Systems in Pharmacy.

PHARMACY MANAGEMENT [PSW 404] 48

 Record Keeping in Pharmacy
• It is important to keep good records of all the medicines and
related supplies you have in stock. This helps you to understand
the flow of supplies into and out of the health facility.
• Keeping records serves as the basis for the information needed
when ordering new stocks of medicines and other supplies.
• Record keeping saves time and protects you. In cases of theft or
misuse of supplies, one would be able to refer to the records, as
records document the movement of supplies.
PHARMACY MANAGEMENT [PSW 404] 49
 Logistics Management and Information
System [LMIS] Tools
• Record keeping in Pharmacy practice requires tools used to
collect data critical for decision taking.
• Examples are:
1. Stock card / Inventory control card
2. Delivery Voucher
3. Return and Transfer Forms

PHARMACY MANAGEMENT [PSW 404] 50

 Stock Card / Inventory Control Card [ICC]
• The stock card is a stock keeping record that is used to track
supplies received, issued and held in storage.
• When properly filled, the stock card helps to determine the stock
level of a product at any point in time.
• The card is very important in commodities logistics system because
the information is used for providing reports which can be weekly,
monthly, quarterly or annually.

PHARMACY MANAGEMENT [PSW 404] 51

 Stock Card / Inventory Control Card [ICC] cont’d
Features of entries in an ICC is shown here
STEPS ACTIONS NOTES

1 NAME OF HEALTH FACILITY: Enter name of facility where the

products are stored.
2 Product: Enter the product name, dosage and strength.
3 Unit: Enter the unit used for issuing and receiving this product.
4 Location: Enter the location of this product in your facility.
5 Serial No: Enter the number corresponding to the entry of the Enter only
transaction. one
transaction
52

PHARMACY MANAGEMENT [PSW 404] per line

 Stock Card / Inventory Control Card [ICC] cont’d
STEPS ACTIONS NOTES
6. Date: Enter the date the transaction was made
7. SIV / SRV: Enter the number of the SRV/Delivery Voucher if the
transaction is a receipt
8. FROM/TO: Write the store you received products from or the area of
your facility you issued to.

9. Quantity Received: Enter the quantity you received. Use a red pen
when receiving.
10. Quantity issued: Enter the quantity you issued, if issuing.
PHARMACY MANAGEMENT [PSW 404] 53
 Stock Card / Inventory Control Card [ICC] cont’d
STEPS ACTIONS NOTES
11. Losses: Enter the exact amount of losses to the inventory on this
date. Explain any losses in the ‘Remarks’ column.
12. Adjustments: Enter adjustments either positive or negative. Explain
any adjustments in the ‘Remarks’ column.
13. Balance: If receiving products, add the quantity received to the
balance from the previous row and enter the new balance. If issuing
products, subtract the quantity issued form the balance from previous
row and then enter the new balance.
14. Signature/ Remarks: Sign and add any comments or remarks
regarding the transaction.
54
15. Monthly close out.
PHARMACY MANAGEMENT [PSW 404]
 Stock Card / Inventory Control Card [ICC]
cont’d
STEPS ACTIONS NOTES

16. Date: Enter the date of the closing month. This should be
the last
working day of
the month.
17. TO / FROM: Write monthly close out.

18. Quantity Received: Add all the quantity received for the month
and enter the total.
Quantity Issued: Add all the quantity issued for the month and
enter the total.
19. Balance: Conduct a physical count and enter balance here. 55

PHARMACY MANAGEMENT [PSW 404]

 Delivery Voucher

• The Delivery voucher is a transaction record used to accompany a

consignment being moved from a higher level to a lower level.

• It contains detailed information about the contents of the delivery

package including batch number and expiry date.

• If correctly filled and endorsed by both the sender and receiver of the
goods, the delivery voucher serves as evidence of delivery.
PHARMACY MANAGEMENT [PSW 404] 56
 Delivery Voucher
cont’d
STEPS ACTIONS NOTES
1. Voucher No: Write the number of the voucher
2. Source Address [FROM]: Write the name and location of store
sending out the products.
3. Delivery Address: Write the store/facility name and location the
products are being sent to.
4. S/N: Write the serial number for items being sent.
5. Product name/Strength: Write the name od the product and
strength of the product where applicable.
6. Unit: Write the unit designated for the product.
57
PHARMACY MANAGEMENT [PSW 404]
 Delivery Voucher
cont’d
STEPS ACTIONS NOTES
7. Quantity Issued: Write the quantity of the product that is
being issued
8. Package description: Describe the delivery package
starting from the largest to the smallest unit issue.
9. Batch No: Write the Batch/Lot number on the product.

10. Expiry Date: Write the expiry date on the product.

11. Quantity Received: Write the quantity of products
received.
12. Remark: Write any comments relating to the transaction 58

that was made.

PHARMACY MANAGEMENT [PSW 404]
 Record for Returning / Transferring
Commodities
• Also referred as RT Form.
• Whenever a product is moved, there must be a document
accompanying it so as to show delivery.
• It is a transaction record used to track products that are
returned.
• It is also used to track products transferred between facilities at
the same level.

PHARMACY MANAGEMENT [PSW 404] 59

 Record for Returning / Transferring Commodities
cont’d
STEPS ACTIONS NOTES
1. Name of the facility returning/transferring products
2. Sent to: Write the name of facility & location where the
products will be returned / transferred to.
3. Generate the reference number.

4. S/N: Write the serial number of items being sent.

5. Product name/Strength:

6. Unit: Write the unit designation for the product.

60
PHARMACY MANAGEMENT [PSW 404]
 Record for Returning / Transferring Commodities
cont’d
STEPS ACTIONS NOTES
7. Quantity Issued: Record in individual
units of issue

8. Batch No: Write the Batch/Lot number on the product.

9. Expiry Date: Write the expiry date on the product.
10. Reason: Write the reason for which the product is being
returned/transferred.
11. Record complied by/Sign/Date: The person
returning/transferring the products writes their name, signs
and writes date.
12. Transfer/Return Approved by sign/Date: The person 61

who approves the return/transfer writes their name, signs

and writes date.
 Record for Returning / Transferring Commodities
cont’d
STEPS ACTIONS NOTES
13. Name of carrier: The person transporting the
returned/transferred products writes their name.
14. Carrier’s Signature:

15. Carrier’s comments: The person transporting the

returned/transferred products writes any comments
related to the products.
16. Receiver’s name: This will be completed by the person The recipient will verify that
at the receiving facility who receives the the form, the Ref no. and
returned/transferred products. type of products match.
17. Receiver’s signature/Date: The person receiving the The receiver verifies62 that
returned/transferred products signs etc. the form, number and type
of products match.
 Keeping Accurate Records
• It is important to count stock at regular intervals, such as monthly
or quarterly. This is called physical count of physical inventory.
• A physical count checks that the amount actually in the shelf/store
equals the BALANCE IN STOCK number on the stock card.
• Physical count is particularly important for expensive medicines like
anti cancer medicines, some antibiotics and other medicines at high
risk of theft like narcotics.
• When checking inventory, ensure that each item counted
has theMANAGEMENT
PHARMACY same [PSWgeneric
404] name, form, strength and unit size.63
 Keeping Accurate Records cont’d
• If there are discrepancies in the information on the stock card and the
physical count, INVESTIGATE.
• If the stock card is missing, INVESTIGATE.
• It may be necessary to open a new stock card to replace a missing
one. Note that it is a replacement card in the ‘Remarks’ column. If
the old stock card is found, copy the information from the
replacement card to the old one. Then, destroy the replacement card.
• Completed stock cards are kept for two to five years [or as the local
policy determines].
PHARMACY MANAGEMENT [PSW 404] 64
 Conclusion
• LMIS tools contain very useful information on how to
prepare for changes in stock due to seasonal factors,
epidemics or other such causes. They are essential to
managing supplies correctly. They should be kept in a
safe and conspicuous place in the store to inform,
encourage and motivate staff to keep good records and
follow the procedures set out by the store supervisors and
facility management.
PHARMACY MANAGEMENT [PSW 404] 65
 Pharmacy Management
[PSW 404]

Advertising in Pharmacy
Practice
PHARMACY MANAGEMENT [PSW 404] 66
 Introduction
• Advertising can be viewed as a form of communication that attempts to
translate the quality of goods and services on the language of consumers.
• It is a tool conveying information about a product or company, the commercial
promotion of consumer goods and the good qualities of the company, the tool that
prepares an active and potential customer to purchase.
• Advertising is particularly important in the highly competitive environment of
business. It involves almost all sectors of the economy; no company or enterprise
can function in one way or another without advertising
PHARMACY MANAGEMENT [PSW 404] 67
 Introduction cont’d

• Advertising can be viewed in three ways:

1. In-house advertising;

2. Advertising to promote a company's prestige in the community (public

relations);

3. Advertising to increase sales.

PHARMACY MANAGEMENT [PSW 404] 68
 Types of Advertisement

There are two types of advertisement:

1. Advertisement to professionals &

2. Advertisement to the public.

PHARMACY MANAGEMENT [PSW 404] 69

 Advertisement to professionals
• Adverts for professionals should fully meet the scientific data on the medical and
biological properties of specific drugs. Promotional materials, along with other data,
must contain the following information:
1. The name of the active component (s) with the use of international nonproprietary
names [INN] or agreed common name drug, trade name.
2. Content of active component (s) in the dose or order of admission
3. The name of the other components (which can cause adverse indirect effects)
4. Approved therapeutic indications.
70
PHARMACY MANAGEMENT [PSW 404]
 Advertisement to professionals
(Cont’d)
5. Dispensing or receiving order
6. Side effects and major adverse effects of drugs
7. Precaution, contraindications and warnings
8. The major interactions between drugs
9. The name and address of the manufacturer or wholesale company
10. Reference to scientific literature on this drug.
If advertising material is not intended to promote drugs on the market it must contain at least the
brand name, INN/approved common name, the name of each active ingredient and the name and
address of the manufacturer or wholesale company in order to obtain additional information.
PHARMACY MANAGEMENT [PSW 404] 71
 Advertisement to the public

• Advertising to the general public should help people make intelligent decisions on
the use of medicines sold without prescription.
• Prescription drugs cannot be promoted or advertised by law. Care must be taken in
wording of advertisement to the public to prevent the issue of trials and tests,
testimonials, competition, giving out of free samples, use of slogans etc.
• All advertisement to infuse fear in the public should be discouraged.

PHARMACY MANAGEMENT [PSW 404] 72

 Advertisement to the public
(Cont’d)

• Advertising messages for the public should contain the following information:
1. The name (s) of the active component (s) with the use of international nonproprietary
names or agreed common name of the medicinal product
2. Corporate name
3. The main indications for use
4. Plant and equipment precautions, contraindications, and warnings
5. The name and address of the manufacturer or wholesale company.
Consumers should [PSW
PHARMACY MANAGEMENT be 404]
given accurate and truthful information about the price. 73
 Acts regulating Advertisement
There are two Acts that regulate Advertisement in Nigeria namely:
1. The Poisons and Pharmacy Act [P.P.A] and
2. The Food and Drugs Act [F.D.A] 1974.
These two documents were instituted to regulate or prohibit the advertisement of drugs and
appliances as related to the treatment of certain diseases.
In this, an advertisement can be defined as any notice, circular, label or wrapper or other
document , and any methods of announcement which is calculated to induce the sale or
supply, of any medicine or surgical appliance related to the treatment of humans for the
various ailments
PHARMACY in the
MANAGEMENT Acts.
[PSW 404] 74
 Prohibition of Advertisement under P. P. A
• In addition to the Amenorrhoea Gallstones Goiter Tuberculosis
listed diseases, it is
completely illegal for Blindness Hernia Septicaemia Restoration or
stimulation of
any person to publish mental faculties
or take part in the Cancer Infantile paralysis Paralysis Promotion of
publication of any sexual virility or
desire
article which can be
Diphtheria Kidney stones Pneumonia Tetanus or Lockjaw
used to procure
abortion in women. Epilepsy or Fits Leprosy Tetanus or Venereal diseases
Lockjaw
PHARMACY MANAGEMENT [PSW 404] 75
 Prohibition of Advertisement by the F. D. A
[Schedule 1 of F.D.A of 1974]
• It is illegal for any Alcoholism Enteric fever Jaundice Rabies
person to advertise any
food, drugs, cosmetic or Asthma Filariasis Nervousness Snake bite
devise as a treatment,
preventive or cure for Blood disorders Gangrene Loss of youth Tumours
the diseases stated in
Schedule 1 to the Act. Cataract Heart disease Measles Ulcers of the
• The diseases referred to G.I.T
in the Decree are: Disorders of Influenza Poliomyelitis Yellow fever.
menstrual flow
PHARMACY MANAGEMENT [PSW 404] 76
 Conclusion
• It is very important for regulatory agencies to ensure that the quality of information
used to advertise/promote a medicine is accurate and important in promoting the
rational use of such medicines.
• The guiding principles are that advertising should be in keeping with national health
policies and in compliance with national regulations, as well as meeting voluntary
standards as they exist.
• All promotional claims should be reliable, accurate, truthful, balanced, up-to-date,
capable of substantiation and in good taste.
PHARMACY MANAGEMENT [PSW 404] 77