Seventy percent (70%) of veterinary practices have not locked their pharmacy. This means that approximately 25% of their annual revenue (equivalence) is un-secured. When advised to lock their pharmacy, some practice owners ask with obvious discomfort, "So you're asking me to offend my employees by locking my drugs up? Isn't that going to upset all of my employees?"
This is a great question. Veterinarians, by their nature are trusting people. We trust almost everybody. And that doesn't need to change. However, securing 25% of your annual revenue isn't about trust. It's about being responsible and looking after the health and well-being of your practice, which also provides jobs and paychecks for your employees. Employees have a tendency to like pay increases and benefits. In order to ensure continued employment for your employees, and to provide even the possibility of future pay raises, up-to-date equipment and technology, it is irresponsible of the ownership and management not to secure 25% of your annual revenue (equivalence).
In making a decision to lock your pharmacy, it is relatively easy to provide context to your team. It is not always an easy conversation, but it is one that needs to occur. The context is that your inventory represents a large portion of your annual revenue, and in order to ensure optimal financial health of the practice (and as a result jobs, paychecks, and benefits), it is important to implement sound inventory management systems and processes which includes securing your inventory by locking your pharmacy. Seek help from your primary distributor. This is a reason to have strong supplier relationships, as they have tremendous resources that can help you, if you have a strong and loyal relationship with them.
At the same time, make sure that you have proper internal controls in place with different people ordering and receiving inventory, and different people performing accounts payable and accounts receivable. Separate duties so that no one person has too much un-controlled access to cash or the ability to manipulate the flow of money or inventory.
A good resource to help you learn how to have potentially difficult conversations such as 'we're locking our pharmacy' is a book called "Fierce Conversations" by Susan Scott. It will pay great dividends to you in communicating with your team.
Secure 25% of your revenue and lock your pharmacy.
