Pharmacy Daily | Managing Supplier Relationships

As dispensary margins shrink, we need to look at other ways to improve the bottom-line; having strong supplier relationships based on a developed strategy is vital in achieving this. The key points to supplier relationship success are: • Identify your core pharmacy business and strategy • Classify your suppliers into Gold (based on sales in your signature categories) Silver (priority categories) and Bronze (basic categories) • Link and build supplier relationships and partnerships based on your strategy • Ensure you plan for supplier meetings and set an agenda based on “The Pentagon”. Product: Does the product or range fit in your business strategy? What are the ranging requirements? Is it a core or opportunistic range? Is the product sale or return? Place: Where does the product sit in the current planogram (one-in-oneout policy)? People: All Staff must be trained – Non Negotiable!! Promotion / Communication: Coop Support available – lock in your yearly marketing calendar. In-store theatre – Windows, display ends, counter units, bin strategy. GWPs or other offers? Price/Value: Not necessarily the lowest price, but the best value – service value position. Consider product discounts and parcel buys and PDE terms Vs turnover. Ensure you “win” on each of these with suppliers to maximise GP and sales potential. Contributor: Nicole Hooley, Retail Projects Manager at Instigo

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