Right Sizing Automation: The Key To Addressing Labor Shortages And Improving Margins In Retail Pharmacy
Retail pharmacies across America face increasing competition, not just for business, but for the employees needed to staff the pharmacy and properly address patient needs. Labor has been tight for a few years and recent data shows some staggering demand for qualified personnel.
According to the American Association of Colleges of Pharmacy, in the first three quarters of 2023, there were more than 60,000 job postings for pharmacists, a 17.9% increase from the previous year. The first quarter of 2024 showed almost a 10% increase in demand for pharmacy technicians from the same quarter in 2023. Meanwhile, major chains like CVS, Walgreens, and Walmart have reduced pharmacy hours at thousands of locations due to staffing shortages.
This workforce crisis, combined with shrinking reimbursements and increasing prescription volumes, threatens both operational efficiency and financial sustainability. Forward-thinking pharmacy owners are turning to automation as a strategic solution to transform their business model.
The Multi-Layered Retail Pharmacy Automation Strategy
Successful implementation of pharmacy automation requires more than an equipment purchase. It demands thorough consideration of software integration, hardware, and strategic operational design, customized for your specific business needs and goals, whether you operate one location or hundreds of pharmacies.
Centralized Filling Solutions Offer Economies of Scale
When many pharmacy owners hear “centralized filling,” they envision massive, conveyor-based systems with price tags in the millions. However, today’s solutions offer cost-effective centralized filling options accessible to regional and smaller pharmacy chains.
Modern automation that sorts, packages, and dispenses medication can be surprisingly cost-efficient. Advanced software utilizing medication synchronization and cycle fill technology can optimize output without requiring massive capital investments. By creating a “mini-central fill” or what is commonly known as a hub and spoke model, even modest pharmacy operations can achieve economies of scale previously available only to industry giants.
The key is identifying your top-moving medications for retail pharmacy automation. In many operations, 20% of the formulary accounts for 80% of prescription volume. Automating this filling process provides a high return on investment while addressing the most labor-intensive portion of your workflow.
Tailored Solutions for Peak-Time Challenge
Every pharmacy experiences peak demand times that strain resources and potentially impact customer satisfaction. These pressure points vary between operations, but addressing them is critical for both staff retention and customer loyalty.
An effective automation solution should consider:
- Capacity to handle fast-moving medications simultaneously
- Automated counting technology for medium-volume prescriptions
- Software that prioritizes prescriptions based on pickup time and staffing levels
The goal is to create a balanced workflow where technology handles routine dispensing tasks during peak periods, allowing staff to focus on patient consultations, clinical services, and addressing complex medication needs that truly benefit from their expertise.
Enterprise-Level Management Systems
Perhaps the most significant recent advancement is the development of enterprise-level management systems. These cloud-based software solutions allow pharmacy chains to leverage automation across multiple locations, creating a network effect that multiplies efficiency gains.
These systems can:
- Route prescription orders across your pharmacy network
- Consolidate filling operations based on workload and capacity
- Batch prescriptions by delivery time or geographic route
- Balance labor resources across locations during peak times
- Maintain HIPAA compliance while sharing workload between pharmacies
This interconnected approach transforms how pharmacy chains operate, allowing owners to function as a unified system rather than as isolated locations struggling with individual workload challenges.
Factors to Consider When Implementing Automated Filling
When developing your automation strategy, several key factors should guide your decision-making process:
- Scalability – Choose solutions that grow with your business. The ideal automation strategy adapts to changing prescription volumes, additional locations, and evolving service offerings.
- Integration Capabilities – Ensure seamless integration with your existing pharmacy management system. Compatibility issues can negate efficiency gains and create new workflow bottlenecks.
- Staff Engagement – Involve pharmacy staff from the beginning for valuable insights and essential buy-in. Remember that automation should enhance your team’s capabilities, not replace them.
- Financial Flexibility – Explore creative financing options like equipment leasing, subscription-based models, and phased implementation that make advanced automation accessible even with budget constraints.
The Labor Shortage Solution
Pharmacy automation addresses the industry-wide labor shortage by reducing dependency on finding and training technicians for routine dispensing tasks. In today’s competitive hiring market, this alone can be transformative for pharmacy operations.
It also creates a more attractive work environment where pharmacists and technicians can practice at the top of their license—focusing on patient care, clinical consultations, and revenue-generating services rather than performing mundane counting tasks.
Measuring ROI Beyond Labor Savings
While labor efficiency is the most obvious benefit, a comprehensive ROI analysis should consider multiple factors of retail pharmacy automation:
- Reduced medication errors and associated costs
- Improved inventory management and reduced waste
- Enhanced capacity for clinical services and revenue diversification
- Increased prescription capability without proportional staff increases
- Better patient satisfaction and loyalty through reduced wait times
These combined benefits typically deliver ROI that far exceeds simple labor-hour calculations. Many pharmacy owners report a complete return on investment within 12-24 months of implementation.
Conclusion: Partner With Experts to Navigate the Path Forward
With pharmacy technician turnover rates of 21-30% now common and the Bureau of Labor Statistics projecting about 14,200 pharmacist openings annually through 2033, strategic automation is essential for survival and growth in today’s challenging retail pharmacy environment.
By implementing a multi-layered approach to automation that combines centralized filling capabilities, location-specific solutions, and enterprise-level management systems, pharmacies of any size can address workforce challenges while improving operational efficiency and profit margins.
As you develop a strategy for your specific needs, consider partnering with experienced specialists like JFCRx™, a company that brings extensive industry expertise to help sort through right-sizing retail pharmacy automation to fit your operations. From cost-effective centralized filling systems to tailored solutions for peak-time challenges and innovative enterprise-level management software, the team at JFCRx understands the unique operational and financial demands facing today’s pharmacy owners.
Whether you operate two pharmacies or two hundred, developing your retail pharmacy automation strategy now is imperative. Contact JFCRx today to schedule a consultation and discover how their customized automation solutions can help position your pharmacy business for long-term success in an evolving healthcare landscape.