Application
This unit describes the performance outcomes, skills and knowledge required to investigate, plan for and update a range of pharmacy products and services at regular intervals. It requires the ability to continually analyse the market; choose and introduce products and services; negotiate the cost of supply, determine pricing policies; and monitor quality.
This unit applies to retail, front of pharmacy and other managers working in community pharmacies. They work with significant autonomy and are responsible for making a range of management decisions across single or multiple pharmacy outlets.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Analyse market. | 1.1.Identify pharmacy customer groups and analyse their product and service preferences. 1.2.Analyse sales and stock data to identify demand for products and seasonal variations. 1.3.Identify and use opportunities to improve pharmacy product and service range. 1.4.Research and identify potential new products and services. 1.5.Evaluate supplier claims, and refer recommendations to pharmacist. 1.6.Identify market competition for specific products and services. |
2. Plan front of pharmacy product and service range. | 2.1.Analyse existing pharmacy product and service range against pharmacy values and objectives, market analysis and sales performance. 2.2.Document specifications clearly and accurately for new merchandise quality. 2.3.Determine display space requirements and optimum product or service mix according to market analysis. 2.4.Plan for updating of product range at regular intervals. 2.5.Identify product lines to be deleted and take action to minimise adverse effects on profit. 2.6.Consolidate stock to maximise sales potential. |
3. Maximise profit. | 3.1.Calculate or estimate product range contributions against budget targets. 3.2.Develop product range assessment checks and implement against budget targets. 3.3.Negotiate cost of supply and terms of trade to maximise profit margins. 3.4.Develop and document complete and accurate records of negotiations and agreements to appropriate personnel. 3.5.Determine pricing policies for products and services according to nett profit margin stated in pharmacy merchandising plan. 3.6.Clearly document pricing policies for use by pharmacy staff. |
4. Introduce new products and services. | 4.1.Provide clear information to staff about new product and service range, and implement relevant staff training. 4.2.Demonstrate, promote and display new products and services to staff. |
5. Monitor quality. | 5.1.Establish specifications for quality of supplier merchandise. 5.2.Monitor merchandise quality during supply and delivery process and rectify deficiencies. 5.3.Check stock return figures and analyse against target figures. |
Evidence of Performance
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
research four different pharmacy customer groups and their product and services preferences
review the performance of two different categories of pharmacy products and services
research and identify two new products and suppliers for each of the two product categories chosen
identify product line for deletion for one of the product categories chosen
develop and document pricing policies for the four new products
monitor the quality and performance of new supply over a two month trading period and rectify deficiencies.
Evidence of Knowledge
Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
sources of information on pharmacy customer groups and their product and service preferences
overview of pharmacy product range
front of pharmacy layout and space requirements for different categories of pharmacy products
pharmacy values and objectives that impact on product and service provision
overview of current competitor products, services and price structure
format and content of sales budgets, sales and stock reports and their use in analysing product performance
sales budget targets for:
turnover
profit
format, content and use of:
merchandising plans
product pricing policies
specifications for quality of supplier merchandise
sources of product and supplier information
principles of negotiation, stages in the negotiating process and different techniques that can be applied
key components of contracts and agreements with suppliers:
nature of agreements and contracts
preferred supplier agreements
terms and obligations of parties
terms of trade
exclusion clauses
dispute resolution clauses
termination of contracts
methods of monitoring quality of supply and identifying systematic deficiencies
features and functions of pharmacy stock control and sales data software.
Assessment Conditions
Skills must be demonstrated in a pharmacy with a designated front of pharmacy area. This can be:
an industry workplace
a simulated industry environment.
Assessment must ensure use of:
information technology hardware and software
stock control and sales data software currently used by the community pharmacy industry
online information systems
customer profiles and product and service preferences
the following documents which can be:
sales budgets
sales reports
stock reports
supplier product and cost information
supplier contracts and agreements
supplier terms of trade
merchandising plans
product pricing policies
specifications for quality of supplier merchandise
team members with whom the individual can interact; these can be:
staff in an industry workplace; or
individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.
Assessors must satisfy the Standards for Registered Training Organisation’s requirements for assessors, and:
have worked in the pharmacy sector for at least two years.
Foundation Skills
Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement. | |
Reading skills to: | interpret complex information on customer profiles, product and service preferences supplier contracts and terms of trade. |
Oral communication skills to: | conduct negotiations of significant commercial value. |
Numeracy skills to: | complete complex calculations for cost of supply for various quantities, product mark-up structures and profitable selling prices. |
Technology skills to: | use the system capabilities and functions of a pharmacy stock control and sales data system. |
Sectors
Community Pharmacy
Competency Field
Community Pharmacy Management