Community pharmacy management encompasses the planning, organizing, and controlling of pharmacy operations to provide safe, effective, and efficient pharmaceutical care to the public. It combines business management principles with professional pharmacy practice, ensuring that the pharmacy is financially viable, compliant with regulations, and capable of delivering quality patient services. This presentation aligns with Unit 1 of Pharmacy Practice, focusing on financial management, procurement, order placement, and infrastructure requirements in community pharmacy settings. It is designed for students, faculty, and practicing pharmacists seeking structured academic and practical guidance.

1. PHARMACY
PRACTICE
B. Pharmacy Sem-7
Amit A. Shahapurkar.

2. Chapter 6
Community pharmacy
management
UNIT 2
Amit A. Shahapurkar.

3. Community pharmacy is an organization where
infrastructure and human resource are
systematically co-ordinated and along with
optimum utilisation of finance the best possible
services are provided to the community. Activities
like procuring, handling, storing, selling and
recording of medications are performed in
community pharmacy. The point is management
means utilization of all available resources to
attain organizational objectrives and individual
goals.
Community pharmacy
management
Amit A. Shahapurkar.

4. Finance represents money management and the
process of acquiring needed funds.
Financial management is defined as dealing with and
analyzing money and investment for a business to
help make business decisions.
Financial management is a process of planning,
organising, controlling and monitoring resources to
achieve organizational goals and objectives.
Finance
Amit A. Shahapurkar.

5. For an entrepreneur (community pharmacist) to achieve success in
entrepreneurship (running a community pharmacy) apart from
professional knowledge and skills, the financial literacy is of utmost
importance. Some of the tips to keep in mind-
• Choose the right finance when starting business.
• Check the finance options available.
• Types of bank and non-bank finance for business.
• Plan and forecast your sales.
• Understand cashflow forecast.
• Set up a profit and loss account statement.
• Understand balance sheet.
• Understand how to manage cashflow.
• Setup a record-keeping system.
Finance
Amit A. Shahapurkar.

6. 1.Financial management helps to take appropriate financial
decisions.
2.It helps to establish guidelines that enable the entrepreneur to
earn more profit with minimum costs.
3.A good financial management helps to control financial aspects
of business.
4.It provides correct and reliable information about business
activities through financial reporting.
5.An effective financial management is vital for business survival
and growth.
Importance of financial
management
Amit A. Shahapurkar.

7. 1.The basic objective of any business is to acquire profit and objective of
financial management is to maximise profit with appropriate
spendings.
2.Financial management goal is the proper mobilization of finance.
3.Survival and growth of the business organization.
4.Financial management needs to establish co-ordination between
financial decision areas and other supportive disciplines such as;
accounting, marketing, production etc.
5.The operational objective of financial management is ensuring safety
of investments.
6.Searching new and better sources of finance.
Objectives of financial management
Amit A. Shahapurkar.

8. There are four main financial decisions:
1.Investment Decision: It is concerned with investment of firm’s
available funds in assets. Investment in capital assets is long-term
investment which is not much relevant in community pharmacy
management, while short-term investment i.e. working capital
investment is much important decision.
2.Financial Decision: It is concerned with the raising of finance from
various long term sources of funds. The cash flow position of the
business is an important factor in financial decision.
Financial decisions
Amit A. Shahapurkar.

9. 3. Dividend Decisions: It is concerned with the
distribution of profits earned by the organization. It
is not much concerned with community pharmacy.
4. Working Capital Decision: The goal of working
capital management is to ensure that the firm is able
to continue its operations and that it has sufficient
cash flow to meet upcoming operational expenses.
This decision is most important in community
pharmacy management.
Financial decisions
Amit A. Shahapurkar.

10. These are procedures, policies and ways by which an organization
monitors and controls the direction, allocation and usage of its financial
resources. removing the deteriorated and outdated drugs.
Financial controls
Amit A. Shahapurkar.
1.Balance sheets.
2.Profit and loss account.
3.cash flow statement.

11. Descriptio
n
Balance Sheet Profit and Loss Account
Purpose
To know the financial position
of the firm. What firm owes
and owns.
To know if firm is profitable as it
shows net profit or net loss.
What it tells
The financial position at
specific point in time like;
photocopy of the bank
account.
Revenue, cost and expenses over a
period of time say fiscal year or
quarter. Like a child’s report card.
Financial controls
Amit A. Shahapurkar.

12. Description Balance Sheet Profit and Loss Account
What it shows Firm’s assets and liabilities.
Financial health of firm i.e. whether
firm is in profit or loss.
Performance
Does not show
performance of firm.
Shows performance of firm over a
period of time.
Importance
Second in importance to
the profit and loss account.
As it reports the results of firm it is
more important.
Financial controls
Amit A. Shahapurkar.

13. The major activities of community pharmacy are procurement, storage
and dispensing of drugs and healthcare products along with the
provision of services pertaining to pharmaceutical care.
Materials management
Amit A. Shahapurkar.

14. Procurement of medications
Factors to be considered before
procurement are-
1.Quality of medications.
2.Availability of budget provision.
3.Reliable supplier.
4.Timely delivery of items.
5.Cost-effectiveness.
6.Compliance to regulatory provisions.
Factors to be considered before
selecting a supplier are-
1.What medications are to be
ordered?
2.From whom to order?
3.How much to order?
4.When to order.
5.Time required for delivery of supply.
6.Cost considerations.
Materials management
Amit A. Shahapurkar.

15. Procurement of medications
Vendor audit-
• Possession of valid licenses.
• Activities carried out under the supervision of pharmacist.
• Staff handling medicines are trained.
• Transport of medicines in proper vehicle.
• precautions are taken to prevent mix ups of returned/damaged
medicines.
• All records are filled and maintained.
Materials management
Amit A. Shahapurkar.

16. Procurement of medications
Vendor audit-
• Storage area is with appropriate staorage conditions and is clean.
• Storage conditions such as temperature, humidity are adequate.
• Separate storage areas for different items.
• Storage and handling of controlled substances is as per legal
provisions.
• Prompt and timely delivery.
• The complaints are handled efficiently.
• Vendors have written SOPs and are carefully followed.
Materials management
Amit A. Shahapurkar.

17. Placement of order
Once the order list is ready, the purchase orders need to be sent to
different suppliers. Based on previous experience, reputation of supplier
and time required for delivery; the suppliers need to be identified and
purchase orders have to be placed with them. Pharmacist should not
forget to preserve the duplicate copy of orders placed for further checking
of supplies.
Materials management
Amit A. Shahapurkar.

18. Checking of supplies received
• Name of medications.
• Quantity received.
• Damaged items if any.
• Strength.
• Batch number.
• Cost and taxes.
• Dosage form.
• Expiry date.
Materials management
Amit A. Shahapurkar.

19. Infrastructure requirements
Amit A. Shahapurkar.

20. Infrastructure requirements
Amit A. Shahapurkar.

21. Infrastructure requirements
Amit A. Shahapurkar.
For Retail/Community Pharmacy: Location of pharmacy is very important. In
rural area, it should be near market, especially nearby the post office, bus
station, bank, medical practitioner’s place and it should be in hygienic
environment.
• Space Requirement
• Furniture
• Protecting and Maintaining Stability
• Convenience of Handling Medications
• Aesthetic Look

22. Infrastructure requirements
Amit A. Shahapurkar.
Factors for Designing Structure of Community Pharmacy
1.Ease and convenience of customers (patients): The drug store should not
appear crowded and messy.
2.Appearance should be clean and tidy with professional look.
3.Adequate space for waiting, additional services like patient counselling, blood
pressure, blood sugar, body weight measurements.
4.Healthy atmosphere with adequate lighting and ventilation.
5.Optimum utilisation of available space.
6.Medicines and other healthcare products protected so as to preserve their
potency.
7.Systematic and streamlined operations to avoid unnecessary prolonged waiting
by customers.

23. Thank
You
Amit A. Shahapurkar.