Datarithm & Pharmsaver featured in ComputerTalk Magazine – Smart Buying on Short-Date Inventory Benefits Bottom Line
ON ANY GIVEN DAY, Randell Peck, director of compliance at Pharmore Drugs in Skokie, Ill., is purchasing 300 to 400 different items for this long-term care pharmacy that has been in business for 11 years and services 13,000 beds. Finding the best deal quickly is top of mind for him. One tool he’s used for the past five years is the web-based purchasing app from PharmSaver that lets customers see the best deals available at wholesalers beyond the customer’s primary wholesaler. For the past six months, Peck has benefited from the added value of a short-date purchasing app – the result of a partnership between Datarithm, a provider of inventory control software, and PharmSaver.
“We’re a pretty good size operation, and we have seen in excess of $1 million in annual savings from the PharmSaver app, with 2% to 3% of our savings beginning to come as a direct result of the short-date buying application,” Peck says. “There’s even more savings if you take into account the favorable impact on contract generic compliance with our prime wholesaler.” Peck’s staff uses the app to search pricing on close to 30 different products across a wide range of drug wholesalers; even searching on 10% of that number without the app would be prohibitive from a time standpoint. “It’s a fantastic application to pull up a single web page and see some 30 different short-dated products offered by a wide variety of wholesalers, and look at each product to see what the price and savings opportunity is for each product” he says.
The app has saved PRN Pharmacies, three Medicine Shoppe pharmacies based in Harrisburg, Ill., southeast of St. Louis, up to 75% on products, says, Steve Ledbetter, R.PH., the company president. PRN uses Datarithm in two of the pharmacies, and Ledbetter says the integration between Datarithm and PharmSaver, along with his pharmacy system vendor, Rx30, makes it easy to pick the sale items the pharmacy uses on a daily basis. He’s found that the overstock expirations, usually slightly less than one year, gives the pharmacy adequate time to move the discounted products from the inventory.
PharmSaver receives pharmacy data via Datarithm to match sale items and short-dated items with store sales and lists these daily as opportunities, along with calculating the amount of each product that could be safely bought within the dating time frame. Datarithm provides the historical dispensing data, based on data extracted from the pharmacy management system, so the PharmSaver software can flag the best deals available at its list of wholesalers, allowing pharmacists to comparison shop.
“We look at the app daily to see what products are available, and match that to existing stock to determine if the buying opportunity warrants purchase,” says Ledbetter. “The app fits well into our workflow, because most of the calculations of quantity are done for us. We have parameters set at 20%, so only products with a 20% savings are shown in the daily buy.”
Both Peck and Ledbetter quickly saw the benefits of the short-date app from the integration between Datarithm and PharmSaver. The short-date app interested Peck because it reflects purchasing recommendations based on historical dispensing data analyzed by Datarithm, and sometimes there are products there that are items the pharmacy does use, but not on a daily basis. This is important, says Peck, because the staff might miss a purchasing opportunity for a low-volume drug that’s on a short-date sale list. Inventory data is exported from the SoftWriter’s FrameWork software, and Datarithm’s algorithms populate the PharmSaver website with the valid opportunities to save money. “We give Datarithm the pharmacy’s usage information and the current costs, and in turn what we get back is a page loaded with opportunities to save money on short-dated goods,” explains Peck.
The system is flexible in responding to a pharmacy’s individual inventory needs. Ledbetter says that Datarithm recommendations based on historical use for the month will recommend a reasonable quantity to purchase using the product dating, but it’s up to the pharmacy to purchase what it needs. Even if there is a good deal, if there isn’t enough room to store the inventory, Ledbetter just purchases what he needs.
“The integration between Datarithm and Rx30 makes it very easy to manage the app, since the system picks the items on a daily basis that we are using and are on sale at the wholesaler,” Ledbetter says. “And it calculates the quantity we can order that would still be used within the reasonable time frame. It’s a calculation that’s pretty safe, not just up to the expiration date, but what we can use 60 days prior to expiration.” This keeps the customers safe, as they will use the medication prior to the expiration date.
Since the purchasing options presented in the app are based on the individual pharmacy’s dispensing volume, any size pharmacy benefits. PRN Pharmacies fills 1,200 to 1,300 prescriptions a day, while Pharmore Drugs services about 90 different skilled-nursing, assisted-living, and independent-living facilities in three states. When the pharmacist logs on, there are close to 30 different products on the page for the pharmacy, explains Peck, with only the products the pharmacy uses listed, and allows for how much short-date inventory could be purchased and used well before the product expiration date. The app also tells the staff what it’s paying for the drug now and the sale price, giving an estimate on the savings. Peck likes the ease of the one-click shopping – orders for various wholesalers can go into one shopping basket for one checkout.
“Not only do they show the item and the price, they show you what your monthly usage is and in turn a recommended quantity based on your usage and the product short date,” Peck says. “You get the information and how much you will save if you buy the recommended amount. It’s a very powerful and effective tool to use on the buy side.”
Ledbetter agrees. “This could benefit anyone who wants to spend the time to look for items being sold at a “discount,” he says. “It is a really good tool to look at multiple sources of products and search out the best buys across all the warehouse that PharmSaver links with.”
Another example of the ability to tailor the system is managing inventory over multiple locations. When Peck does purchase through the app, the product is then removed from the list of options displayed in the app. This is important to avoid duplicate orders, if you have multiple people making the purchases in the pharmacy across different shifts.
“It’s just an incredible tool,” says Peck. “It’s very efficient way to buy inventory at the best price.”
written by: Maggie Lockwood – VP, Director of Production – ComputerTalk – Sept/Oct 2017
Datarithm & InventoryIQ Join Forces
by: Dan Sullivan
October 20, 2016
It is with accuracy & efficiency that Datarithm and Inventory IQ are joining forces in creating a business alliance. The combination of Inventory IQ and Datarithm provides pharmacy owners and managers the very best path to getting and keeping their Rx inventories under control.
“An alliance just makes sense” states Dan Sullivan, VP of Sales & Marketing for Datarithm. Elaborating further, “by joining forces with Inventory IQ to best serve the independent and small chain owners, we now have a ground attack. I think of Inventory IQ as the Marines; Wade and his team go into a location and fight the battle to get the pharmacy operating on a perpetual inventory system. Datarithm is the Navy; we support Inventory IQ in liberating a pharmacy’s Rx inventory. Then, we keep the location sovereign through our automation, bi-directional interface with the pharmacy management system, and nightly analysis of the formulary’s performance.”
Wade Hinkle, co-founder of InventoryIQ, had this to say about the exciting collaboration. “A pharmacy’s largest expense is inventory. The proactive approach to managing the millions of dollars we spend each year on inventory is through a perpetual inventory system. However, setting up a perpetual system from scratch can be tremendously difficult and time consuming. Counting 500,000 pills, setting reorder points, learning the ins and outs of your software system’s EDI (electronic data interchange) interface with your wholesaler, and the list goes on extensively. With InventoryIQ, we tackle all of the work involved for you, and we also train your staff how to properly manage your upgraded pharmacy inventory system. Partnering with Datarithm makes sense. They can provide the technology to keep your inventory levels fluctuating with respect to customer demand.”
RxSafe & Datarithm Work Together to Offer Rx Inventory Peace of Mind
by: Dan Sullivan
February 11, 2016
It is with great anticipation that RxSafe & Datarithm jointly announce a working business alliance between our two systems. RxSafe’s real-time perpetual inventory ensures 100% “minute to minute” on-hand accuracy. Datarithm delivers optimized order points and order quantities through advanced forecasting. With accurate on-hands and optimized replenishment points established, surplus inventory is quickly identified. Datarithm’s “return to wholesaler” and “store-to-store” transfer recommendations allow pharmacies to attack their daily surplus. Continued use of both RxSafe and Datarithm results in the avoidance of future overstocks and suppresses carry costs. This leads to better cash flow, increased customer service levels, and greater profits.
“We are excited to have a business alliance with RxSafe. Their RxSafe 1800 System, and all that it does, combined with Datarithm’s customizable Rx inventory software, and all it does, makes for a very flexible, powerful, and automated solution”. – Dan Sullivan, VP of Sales & Marketing for Datarithm
“At RxSafe, we are passionate believers in the power of technology to improve service delivery and profitability in pharmacy. When our customers combine Datarithm’s sophisticated inventory modeling with RxSafe’s proven automated perpetual inventory accuracy, the result is a game-changing model that eliminates cycle-counting, frees up cash, and allows pharmacies to focus on patient care and services.” – William Holmes, President & CEO at RxSafe
RxSafe is the leader in automated, high-density robotic storage and retrieval technologies for all types of pharmacies. Our flagship RxSafe inventory control systems enable pharmacies to take control of their inventory management and prescription fulfillment processes, enhance patent safety, and increase profitability. RxSafe’s industry-leading RxASP adherence packaging technology enables pharmacies to custom package patient medications in strips with unprecedented throughput, accuracy, and efficiency, as well as the lowest consumables cost in the industry. For more information, visit http://www.rxsafe.com.
Datarithm & Pioneer Rx Launch Interface
by: Dan Sullivan
October 26, 2015
Datarithm & Pioneer Rx have completed the construction, testing, and launch of a bi-directional interface. Datarithm further enhances an already strong and forward thinking Pioneer Rx application. Our shared co-client list has grown rapidly simply by “word of mouth”. We are excited to market the fully functional interface to Pioneer Rx clients looking for the most complete Rx inventory control with advanced analytics.
Datarithm Surpasses 400 Users!
by: Dan Sullivan
October 22, 2015
Datarithm’s has surpassed 400 users! The 2nd and 3rd Quarters of 2015 have flown by and Datarithm’s client base has exploded. We would like to thank our new and longtime clients for their generous testimonials. “Word-of-mouth” continues to be our most powerful marketing tool. It only works with happy clients that are experiencing an average net reduction of 20% in the Rx inventory levels while increasing their customer service levels. We forecast continued steady growth throughout Q4 of 2015 and beyond!
Special Thanks to Computer Rx from Datarithm
by: Dan Sullivan
April 20, 2015
Datarithm recently attended the Computer Rx Idea Exchange in Oklahoma City. Due to the completed bi-directional interface between Computer Rx and Datarithm; the vendor part of the exchange was a huge success. A special thanks to our partners at Computer Rx!
Datarithm and CARE Pharmacies Cooperative Sign Agreement
by: Dan Sullivan
December 9, 2014
Datarithm and CARE Pharmacies Cooperative have signed an agreement to partner in the optimization of member prescription drug inventories.
Drug Store News issued the press release December 3rd, 2014.
Datarithm Attends CARE Annual Meetings
by: Dan Sullivan
November 24, 2014
For the second consecutive year Datarithm attended the CARE Pharmacies Annual Meetings as a participant in the vendor show as well as a break sponsor. As CARE Pharmacies has grown its membership, their need for inventory control has become increasingly important. Datarithm is happy to work with both the individual CARE pharmacy owners along with the CARE Pharmacy Coop in general. We look forward to a long relationship with CARE!
Datarithm Lands the #2 Spot in Rx Insider’s 20 Ways Fall 2014 Edition
by: Dan Sullivan
November 11, 2014
Datarithm has landed at the #2 spot in Rx Insider’s 20 Ways Fall 2014 Edition. The issue’s focus of Retail, Specialty, & LTC is a bi-annual publication with distribution in print and online. Steady growth and brand awareness is the ultimate goal. The fall & spring editions of 20 Ways have a circulation near 32,000. It has become clear that Datarithm’s growth continues to trend upwards.
NACDS TSE 2014 is a Success for Datarithm
by: Dan Sullivan
September 8, 2014
Datarithm’s staff wrapped up a very busy summer at the NACDS Total Store Expo in Boston, August 22-26th. The expo featured both front of store and back of store vendors. Datarithm’s booth, amongst the back of store vendors, was consistently busy with both prearranged appointments as well as “walk ups.” Datarithm’s solution to the most common inventory problems is unique enough that simple word of mouth at the expo produced several quality leads. Our schedule this fall remains full as we bring new clients on board and begin preparations for NCPA Austin, TX.
Datarithm Spreads the Word – Rx Drug Abuse is an Epidemic
by: Dan Sullivan
May 28, 2014
Please view the following video provided by Drug Store News.
Datarithm Spends Time in Florida
by: Craig Lyndon
February 10, 2014
The Datarithm staff has been logging those frequent flier miles to Florida in the first quarter of 2014. Dan Sullivan, Director of Sales & Marketing and Dave Belinski, EVP have just returned from the NACDS Regional Chain conference at the Ritz Carlton in Naples, FL only to turn around and head to the NCPA Multiple Locations conference at the Waldorf Astoria also in Naples.
Sullivan states, “Vendor shows & conferences are critical to Datarithm’s growth, as well as, an opportunity to meet face-to-face with existing clients to discuss upcoming feature sets to our application”.
The Datarithm team closes out their Florida travels at the end of February when they attend the Independent Pharmacy Business Growth Conference by PDS in Orlando at the Gaylord Palms.
Datarithm Launches DRM-Lite
by: Craig Lyndon
February 9, 2014
In response to market demand Datarithm has launched a “lighter” version of its application. Dubbed “DRM-Lite” it delivers key data to pharmacies so that they may make critical inventory decisions in a timely manner. “Datarithm’s full application streamlines and automates as much of the prescription drug inventory work as we possibly can, however that process can take time due to the fact that we partner with pharmacy management systems (PMS). While interfaces are under construction with PMS providers, we can still bring immediate value to a pharmacy by delivering easy to use and interactive reports, quarterly. Pharmacy decision makers can then use our reports however they deem useful; the end game is to increase profits and customer service levels” said Dan Sullivan, Director of Marketing and Sales.
“DRM-Lite is geared towards forecasting, which delivers significant benefit regardless your PMS provider” stated Michael Dowd, Chief Information Officer and Co-Founder. Datarithm’s full application is currently divided into 3 “pillars”: (1) Forecasting, (2) Balancing, and (3) Cycle Counting. Each “pillar” focuses on a specific function in the optimization of a pharmacy’s prescription drug inventory. “DRM –Lite’s focus is on forecasting; it delivers listings of optimized inventory replenishment points (Min / Max or OP / OQ); those in turn, will reduce slow, overstocked, and dead inventory and all associated expenses; reduce costly stock-outs; and lower incidence of expiring drugs” Dave Belinski, EVP of Datarithm reports.
Whether you are a single store, regional chain, or a version of a pharmacy; if you carry a prescription drug inventory DRM-Lite may be “a fit for profit”.
New Website Launch
by: Craig Lyndon
February 8, 2014
Datarithm has launched its new website. “The updated look and feel will allow viewers to gain up-to-date knowledge about not only Datarithm and our products, but also our affiliates, whose relationships we value greatly”, stated Dan Sullivan, Director of Sales & Marketing.
The website began the process to its new look in late October of 2013. After preforming an exhaustive audit, a punch-list of features and updates was created. Searching for the best fit; Datarithm then solicited bids from three different website design teams. Sullivan continued, “it made sense that we performed our due diligence in comparing different web design teams for the best possible fit to our needs; after all, our Datarithm application does just that, we gather dispensing history of a pharmacy’s prescription drug inventory and our system automatically applies the best fit lowest error algorithm and/or precise logic to predict upcoming demand.”
In the end Datarithm selected Common Giant, whom they already had a marketing history with. Common Giant began the concept/design process in early November 2013 and worked quickly to deliver wireframes. Once approved by Datarithm, Common Giant’s developers went to work building the new site. Andrew Bort, Datarithm’s Application Architect, was impressed by Common Giant’s ability to be “responsive and creative” in such a timely manner. The new website went live 3 months after the project began. “Common Giant banged the site out, there were weekly meetings where we at Datarithm would issue changes and suggestions, those issues were addressed and work continued right on schedule”, closed Sullivan.
Datarithm’s affiliates are located on the new home page, the horizontal list is scrollable and each logo is an active link.