Brian Pagni, CEO of Bradley’s Pharmacy, said, “The Real World System eliminates overstocks and understocks, it has effectively put a lot more cash in our bank account and paid for itself many times over with this single benefit.”
View the full Bradley’s Case Study here.
Customer: Deployment country:
Bradley’s Pharmacy Republic of Ireland
Industry: rwr Business Partner:
Real World Retail for Pharmacy
Bradley’s Pharmacy is an independent wholly Irish owned company established in 2001. Located across Dublin, its surrounding area’s and the Northeast of Ireland, Bradley’s Pharmacy Group currently consists of 18 stores: Ardee, Blackrock (Louth), Blanchardstown, Carlingford, Carrickmacross, Churchtown, Clondalkin, Drogheda, Dunleer, Dorset Street, Killester, KCR, Mounttown, Mulhuddart, Ringsend, Stillorgan, Trim, Wicklow.
As a company they provide a professional Pharmacy service to the local communities they serve. Their aim is to deliver excellence in patient care through their dedicated team of Pharmacists and team members, within modern well equipped stores.
CEO Brian Pagni MPSI instigated a strategic review early 2012, due to recessionary and government funding pressures. Whilst management accounts give a good view of a business at an aggregate level they do not give an in depth view of what is really happening.
The requirement was for a bespoke but uncomplicated IT business tool to allow all the information data to be collated, for both the business and patient, which would free up management time to be able to evaluate the key information and then act/plan accordingly.
After detailed research they turned to Real World Retail (rwr) who provide a decision support system for pharmacies which has a fast roll out compared to the typical consulting engagement. Bradley’s in conjunction with rwr designed the required integrated reports, giving the pertinent information required to make key decisions. Key Performance Indicators (KPI’s) which were identified in the strategic review needed to be checked on a weekly basis.
At all times the performance of each individual member of the Bradley’s team in each store is continually being monitored by line management with a specific emphasis on their KPI’s and ‘Complete Customer Care‘ program.
Some examples are listed below:
• Sales actual week vs same week last year vs budget per store
• Average transaction values
• Basket sales reports
• ‘At Risk’ patients
• Overdue patients
• Dispensing trends i.e. generic vs brand
Patient health benefits were brought about by evaluating likely ‘at risk’ patient groups. Potential high risk cholesterol patients were identified due to their existing dispensed drug profiles and subsequently approached, suggesting that their blood cholesterol levels be screened.
• 80 patients approached
• 37.5% of these referred to GP
• 80% of these referred patients had stat in therapy initiated.
In addition evaluation of ‘at risk’ diabetic patients and appropriate inhaler usage for asthmatic patients has produced significant patient benefits for each of these targeted at risk patient groups. Operationally we can identify at risk patient groups using an integrated rwr report.
The business benefit of providing patient health benefits are more loyal customers which increases the Life Time Value (LTV) of these patients.
There were significant measurable business benefits too. rwr designed an intelligent stock replenishment reporting module, with this Bradley’s reduced the front of shop stock-holding by over €350,000 and improved sales from fewer stock outs. Dispensary stock has been reduced by over €375,000 in the same period with corresponding improved cover.
In summary the key elements Bradley’s achieved were:
• Daily monitoring of each team members service performance
• Patient group targeting for their health benefit and improved Life Time Value
• Increased sales + 2% yoy
• Increased margin +3.0% yoy
• Increased productivity +1.5%
• Reduced stock-holding > €725,000
• Greatly improved cash-flow to the business.
Going forward Brian believes that the build-up of knowledge and refinement of their KPIs will lead to continuous improvement to planning in an industry which is going through the most dramatic changes in decades.
Products and services used
rwr-RX – decision support for dispensing (RX) and rwr-FOS – decision support for Front of Shop
rwr-RX – decision support for dispensing (RX).
rwr-FOS – decision support for Front of Shop.
All stores are linked to a central server, data is collected from their RMS EPoS system at the front of store and their Helix dispensing system at the back of store. Overnight data of the previous day’s transactions is transferred to the rwr server on sales, purchases, inventory and cashier hours from their payroll system. The budget is imported into the system from Excel on a once off basis. The system automatically keeps track of stock fluctuations and performs its own sales analysis, demand planning and forecasting. Analysis results trigger alerts with suggestions for immediate action and future consideration. A detailed view and insight into sales trends by both item and location help Bradley’s management and buyers make informed, confident decisions in identifying profitable and unprofitable products and determining appropriate stock levels. There are many more levers employed to extract more margin or increase sales based on the deep retail insight built into the system.