Page 41 - P4304.1-V94_PS-Magazine-February 2024 PRINT

Purchasing and supply Management accounting

Looking for financial losses often leads us to You must know where your business is
blame other organisations; the NHS, the CCG, financially, at all times, not just after year
your wholesaler… the postman, the cleaner… end when your accounts are produced. You
anyone else? should be looking for monthly dips in profits

You MUST look at yourselves first if you and reasoning through why that might be
are to reduce losses. The prescription happening. Sometimes there are obvious
reimbursement system in the NHS is not reasons such as the purchase of all the flu
designed to bankrupt everybody but you vaccines which will distort your purchasing in
need to have an attention to detail to reduce a particular month or the 6 monthly reduction
the losses which dent your profit margins. or increase in dispensing fees. Other
anomalies need prompt investigation so you
When did you last look at the volume of items can reverse any negative influences on your
(outside of those on a Restricted Wholesaler profits as quickly as possible.
Arrangement) being ordered from your
second and third-line wholesalers? I suggest Acknowledging that we maybe can do better
you do – it might make your toes curl! is a starting point in turning a struggling
business around so I would suggest you look
• Your main wholesaler will sell you internally and put your own house in order
your generics as part of your generic before you look to blame other organisations
scheme which in turn will offer you a for your downfall. It is harder to have to
healthy margin on these lines. When you make organisational changes in our ways
purchase from your second- or third- of working than to ignore our short fallings
line wholesalers the price to you will be but the hard work will pay off; after all the
charged will usually be at Drug Tariff cost beneficiary of all the effort put in will be you.
or above which means all these lines
become loss makers. Also look out for low
order surcharges here – they can be eye
watering.

• I say it over and over, but if you don’t
check your MDS sign ups and rebate
statements then more fool you. You need
to be proactive here and make the most
of what’s on offer. If you fail to engage
with this aspect of the business then you
will be the loser. No-one else to blame.
Same goes for product caps – if you are
being capped and you are not trading
then appeal to the manufacturer to have
your quotas raised. It is your business after
all – take control.

Need more help?

Contact me at

carolinepond@chasepeople.com

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