March 27, 2025
Product wastage is a hidden yet costly issue in many Malaysian pharmacies. From expired supplements to unsold OTC items, poor inventory control can lead to significant losses, decreased profitability, and even regulatory risks. With rising operational costs and tighter competition, pharmacy owners and operators must adopt smarter inventory and merchandising solutions.
Efficient merchandising—when aligned with strong inventory practices—not only reduces spoilage but also boosts turnover and customer satisfaction. This is especially important for key industry players such as independent pharmacy distributors, pharmacy wholesale distributors, and pharmacy distributor Malaysia networks, who play a direct role in product placement, replenishment, and education.
This article explores practical, efficient merchandising strategies combined with inventory management best practices that help Malaysian pharmacies reduce product wastage, improve shelf performance, and build a more sustainable retail environment.
One of the leading causes of wastage is overstocking—when pharmacies order more products than needed, especially those with a short shelf life. Without demand forecasting and proper shelf management, this leads to expired products that never reach the consumer.
Neglecting proper pharmacy stock rotation means older inventory gets pushed to the back while newer stock is sold first. This “last-in, first-out” mistake often results in older units expiring unnoticed. Stock rotation must be systematic and staff-enforced.
Managing hundreds of SKUs with varying shelf lives is no small task. Without reliable expiry date labeling and tracking systems, pharmacies lose control of which products need to be prioritized for sale or returned.
Staff play a frontline role in inventory handling. However, without training and consistent merchandising guidelines, product misplacement, missed expiry checks, and stockroom-to-shelf delays all contribute to avoidable wastage.
An optimized planogram can drastically reduce waste. Pharmacy shelf optimization ensures high-demand products are prioritized with adequate visibility and low-movers are scaled back. Matching shelf space to sell-through rates avoids product stagnation.
Highlighting products nearing expiry with “Last Chance” tags or discounted bundles is an effective inventory shrinkage prevention tactic. Placing these items at eye level or near counters improves their chance of selling before spoilage.
Every pharmacy should have basic SOPs that train staff on proper rotation, visual checks, and expiry prioritization. Pharmacy staff training around product movement and merchandising principles reinforces accountability and precision in reducing spoilage.
Learn more: The Importance of Visual Merchandising for Pharmacies in Malaysia
Implementing FIFO (First-In, First-Out) ensures older stock sells first, reducing waste. FEFO (First-Expired, First-Out) is even more accurate for products with short expiry dates. Both methods are foundational for sustainable stock practices.
Modern pharmacy inventory software allows for real-time stock control, expiry alerts, and order planning. These systems reduce guesswork, automate reordering, and flag aging stock that requires urgent attention.
Weekly shelf audits and monthly backroom checks ensure at-risk items don’t slip through the cracks. Using clear expiry date labeling—with colored tags or stickers—adds a visual layer of expiry awareness on every product.
Using historical sales data and seasonal demand patterns helps pharmacies order only what they can sell within safe timeframes. Real-time stock control software can even suggest restock levels based on product turnover trends.
Learn more: A Guide to Pharmacy Inventory Management
Strategically using endcaps or counter displays to feature high-volume or near-expiry items boosts their visibility. For example, allergy meds before allergy season or supplements nearing expiry can be repackaged into themed bundles.
Use color indicators—red for urgent clearance, yellow for 30-days-to-expire—to guide staff and inform customers. These visual cues help align with merchandising compliance standards and improve decision-making for both consumers and employees.
Create displays around relevant seasons (e.g., immune boosters during flu season or sunblock in summer) to accelerate product turnover. This ensures that stock moves quickly and reduces the chance of spoilage due to seasonal irrelevance.
Learn more: How to Optimize Pharmacy Shelf Space for Maximum Sales in Malaysia
Independent pharmacy distributors often offer tools and dashboards that notify pharmacy clients of upcoming expiries, provide stock age reports, and suggest optimal replenishment cycles. This proactive support helps maintain freshness on the shelves.
Many pharmacy wholesale distributors integrate ERP systems with pharmacies, allowing automatic restocking based on real-time sales and current stock levels. This reduces the risk of both overstocking and understocking, enhancing overall efficiency.
Several pharmacy distributor Malaysia companies now offer stock-back programs, allowing slow-moving or near-expiry items to be returned or swapped for faster-selling alternatives. Others provide pre-bundled promotional kits to push soon-to-expire products before their shelf life ends.
Learn more: Cost-Effective Merchandising Solutions for Small and Independent Pharmacies in Malaysia
One prominent pharmacy chain in Kuala Lumpur reduced wastage by 40% after introducing a weekly shelf audit and FEFO-based stock movement system. Staff were retrained, and shelf stickers were color-coded based on expiry zones.
An independent chain in Penang partnered with their distributor pharmacy to rotate unsold vitamin supplements across branches. With centralized tracking and shared reporting, the program saved over RM30,000 worth of inventory in a single quarter.
Learn more: Towards Zero Waste in Pharmacy: Challenges and Opportunities in Managing Returned Medicines
Standard Operating Procedures (SOPs) should cover placement rules, expiry checks, and backroom-to-shelf flow. Templates and visual guides ensure all staff understand and follow standardized merchandising practices.
Routine pharmacy staff training helps reduce errors and increases staff confidence. Workshops on inventory software, shelf zoning, and real-life scenarios can improve compliance and encourage proactive stock management.
Daily or weekly checklists—covering expiry reviews, stock movement, and shelf conditions—help maintain consistency. Assigning team leads for different product zones increases accountability and supports performance tracking over time.
Learn more: Challenges in the Management of Community Pharmacies in Malaysia
Product wastage doesn’t just affect profits—it undermines customer trust, staff morale, and long-term sustainability. Through efficient merchandising and inventory control, pharmacies in Malaysia can significantly reduce losses, optimize space, and offer fresher, more reliable products to customers.
From shelf rotation and visual alerts to collaboration with distributors and data-driven inventory systems, there are proven strategies to reduce spoilage and protect margins. Independent pharmacy distributors, pharmacy wholesale distributors, and pharmacy distributor Malaysia networks play a vital role in supporting these initiatives with tools, training, and flexibility.
Looking to improve your pharmacy’s inventory health?
Contact us today to explore how PriooCare’s merchandising and distribution solutions can help you reduce waste, boost efficiency, and grow with confidence.
