Background
A large GP practice in Yorkshire operated two community pharmacy branches: a 100-hour practice-based dispensary and an off-site internet pharmacy hub. The business was struggling with reduced profits, declining cashflow, and challenges in paying dividends to partners. Leadership invited Meridian to assess operations and identify performance improvement opportunities.
Analysis
Meridian’s one-week analysis revealed a lack of operational leadership, poor management skills among senior pharmacists, and significant inefficiencies across both branches. Delivery route planning was ineffective, stock control was weak, and basic financial controls such as budgets and variance tracking were not in place. Team dynamics were inconsistent, and the use of the Electronic Point of Sale (EPoS) system was poor, with frequent negative variances.
Implementation
Meridian delivered an eight-month improvement programme focused on leadership coaching, management reporting, and streamlined processes. Daily and weekly KPIs were introduced, standard operating procedures (SOPs) were updated, and performance management tools were implemented. Delivery driver capacity and pharmacist staffing models were restructured, and cost-saving supplier arrangements were introduced for medicine procurement.
Results
The project generated £63.7K in annualised cost savings through pharmacist salary adjustments and reduction in delivery overheads. The return on investment was 455%. Pharmacist resourcing was rebalanced through planned replacements at market rates. Weekly reporting gave the Board clear visibility into operations for the first time. Additionally, a Turnaround Director was appointed to continue embedding sustainable change.
