Reducing the Cost-to-Fill: Workflow Automation as a Competitive Advantage

Apr 8, 2025

Pharmacies can cut costs and improve efficiency with workflow automation. Automation reduces labor needs, minimizes errors, and optimizes inventory management - key factors in tackling rising operational costs and improving patient safety.

Key Takeaways:

  • Lower Labor Costs: Automating tasks like blister card filling can reduce staff requirements (e.g., from 3 technicians to 1).

  • Save Time: Automated vial filling saves 33 seconds per prescription, boosting productivity.

  • Reduce Errors: Medication errors cost $42 billion annually - automation improves accuracy and compliance.

  • Streamline Inventory: Tools like RFID storage systems prevent waste and ensure real-time tracking.

Next Steps:

  1. Identify bottlenecks in your pharmacy’s workflow.

  2. Choose automation tools like dispensing robots or adherence packaging systems.

  3. Train staff to reallocate roles and integrate new systems smoothly.

Automation isn’t just about cutting costs - it’s about reallocating resources to focus on patient care and staying competitive in a challenging market.

Easy Pharmacy Automation Guide: How to Boost Efficiency ...

Workflow Automation Basics

Understanding workflow automation is key to addressing the financial and operational challenges faced by compounding pharmacies. By using technology to handle manual tasks, workflow automation helps pharmacies cut costs and improve accuracy.

Main Automation Tools

Several tools are helping pharmacies save money and improve safety:

  • Dispensing Robots: These robots handle medication dispensing with precision, speeding up prescription fill times and improving accuracy.

  • RFID-Enabled Storage Systems: These systems use RFID technology for real-time medication tracking. They ensure proper storage, retrieval, and return-to-stock processes, which reduces waste and improves inventory management.

Automation Component

Primary Function

Key Benefit

Dispensing Robots

Automated medication filling

Cuts fill time by 33 seconds per prescription

RFID Storage Systems

Medication tracking and retrieval

Provides near real-time inventory visibility

Pharmacy Management Systems

Business operations management

Simplifies workflows and reduces errors

Adherence Packaging Systems

Automated blister card filling

Tackles 50-60% medication non-adherence rate

These tools are driving major changes across the industry, making pharmacy operations more efficient and safer.

Current Industry Changes

The pharmacy sector is increasingly turning to automation to handle rising workloads and staffing shortages. These technological upgrades are becoming an essential part of pharmacy operations.

"Through automation, medication management can become safer, smarter, and simpler for pharmacists across all care settings, from a local community pharmacy to your bustling central fill operation."

Recent innovations are already showing improvements in key areas:

  • Safety Improvements: Medication errors cause 7,000 deaths annually in the U.S.. Automation ensures consistent accuracy in dispensing and verification, making it a critical tool for patient safety.

  • Better Workflows: AI is being used in drug discovery, dosage design, and hospital pharmacy tasks. These systems help pharmacies manage heavy workloads while reducing staff burnout.

  • Inventory Control: Automated systems offer precise tracking, minimizing waste and keeping stock levels efficient. They also help pharmacies stay compliant with regulations.

How Automation Reduces Costs

Automation plays a key role in lowering expenses by simplifying processes across various aspects of pharmacy management.

Cutting Costs Directly

Automation helps reduce costs by improving labor efficiency and managing inventory more effectively. For example, automation can reduce the need for three technicians down to just one, cutting labor expenses while allowing staff to focus on tasks that generate revenue.

Automated inventory systems ensure stock levels are just right, minimizing carrying costs and reducing waste from expired medications. This level of precision frees up money that would otherwise be tied up in excess inventory. Beyond labor and inventory, automation also reduces costs by cutting down on errors.

Reducing Errors

Medication errors cost a staggering $42 billion annually, or about 1% of global health spending. Automated systems help save money by significantly reducing these errors.

Error Prevention Benefit

Financial Impact

Improved Accuracy

Lowers costs tied to medication errors

Enhanced Verification

Saves time on pharmacist reviews

Automated Tracking

Prevents inventory losses

"In the pharmacy, time is the ultimate value-add. Through automation, medication management can become safer, smarter, and simpler for pharmacists across all care settings, from a local community pharmacy to your bustling central fill operation."
– W. Perry Flowers, RPh, MS, Vice President, Medical Affairs, Medication Management Solutions, Becton, Dickinson, and Company

Staying Compliant

Automation not only saves money but also helps meet regulatory requirements, reducing additional overhead. Advanced verification systems boost accuracy and patient safety, which are critical for compliance.

Digital tools provide detailed tracking and documentation, particularly useful for managing controlled substances. These systems automatically flag any discrepancies that need investigation, cutting down on resources needed for compliance monitoring.

To get the most out of automation, pharmacies should focus on:

  • Reallocating Staff Wisely: Shift staff to roles that bring in revenue rather than eliminating positions.

  • Using Data Analytics: Leverage automation to uncover opportunities for MTM programs and clinical billing.

  • Improving Workflow: Work with vendors who understand pharmacy operations and can help streamline processes.

Common Implementation Hurdles

Pharmacies often encounter several challenges when implementing automation. Being aware of these issues and preparing accordingly can make the process much smoother.

Budget Planning

One of the first hurdles is figuring out how to manage the upfront costs of automation. Breaking the investment into phases can help spread out expenses.

"If I can do more with less, which is always what every organization is trying to do right now... So, if I can have a piece of automation and accomplish my workload with less staff, obviously, I'm going to be able to have a better margin and cost associated with my production time."

Implementation Phase

Cost Consideration

Strategy

Initial Investment

Equipment and Software

Spread implementation across quarters

Training Period

Staff Time and Resources

Schedule training during slower periods

Maintenance

Ongoing Support Costs

Work with vendors offering full support

Once the financial plan is in place, the next step is preparing your staff for the transition.

Staff Training

Automation shouldn’t be seen as a way to replace staff but as an opportunity to refine their skills and shift their roles.

"I think one of the misconceptions around it is to help pay for this automation, I have to lower my staff number. Again, it's reallocation. Are there activities that you could be doing with those staff members that today you can't currently do?"

With ongoing staffing challenges, proper training becomes essential. Partnering with automation providers that offer robust training programs and continuous education can make all the difference.

After training, the focus shifts to ensuring the new systems work well with your current operations.

System Connection

Integrating automation tools into existing pharmacy systems requires careful planning. Finding technology partners who understand pharmacy workflows and provide ongoing support is key.

"Automation for the sake of automation helps with some of the problems, but plugging in a piece of automation isn't going to immediately drive revenue, it's not immediately going to fix your workflow issues and your staffing issues. But partnering with the right vendor will relieve those issues down the road, as well. So, I think it's a 2-part piece: it's technology and choosing the right vendor."

Key areas to focus on include:

  • Giving technicians tools to make informed decisions based on machine capacity, inventory, and delivery schedules

  • Introducing remote verification workflows

  • Ensuring the new tools integrate seamlessly with existing pharmacy management systems

Steps to Add Automation

Review Current Process

Before diving into automation, it's crucial to take a close look at your pharmacy's daily operations. Identify bottlenecks and areas where time and resources are being wasted.

"Implementing a more efficient pharmacy system can have benefits for both patients and employees." - Donald Grove, RPh

Start by organizing your workflow into clear zones:

Zone

Purpose

Key Considerations

Entry Station

Prescription intake

Use color-coded baskets for priorities

Filling Station

Medication preparation

Ensure tools and resources are nearby

Verification Area

Quality control

Keep close to the pharmacist station

Patient Service

Counseling and pickup

Easy access to verification rack

Pinpoint tasks that consume unnecessary time or resources. By addressing these areas with automation, you can streamline processes and improve efficiency. This analysis helps you choose automation tools that align with your specific needs.

Select Tools

Choose automation solutions that directly tackle your pharmacy's challenges. For example, an automated vial filling system can save 33 seconds per prescription, which adds up quickly in a busy environment.

Look for tools that offer features like:

  • Advanced tracking for controlled substances

  • Automated adherence packaging

  • Seamless integration with your existing systems

  • Real-time inventory updates

Implementation Plan

Once you've selected the right tools, a well-thought-out plan ensures a smooth transition. A phased rollout helps minimize disruptions and gives your team time to adjust.

Key steps in the implementation process include:

1. Staff Role Optimization

Reassign roles to make the most of your team's strengths. Technicians can focus on tasks like prescription prioritization and counting, while pharmacists dedicate their time to clinical responsibilities.

2. Workflow Restructuring

Organize workspaces to improve efficiency. Place the pharmacist’s station near verification areas and counseling windows to reduce unnecessary movement and improve oversight.

3. System Integration

"Automation plays a unique role in that in the fact that it allows you to reassign staff as needed." - Jeff Swanson, senior vice president of sales and marketing at JFCRx

Integrate automation tools into your existing processes instead of overhauling everything. For example, introducing a patient services coordinator can help manage third-party rejections and streamline care coordination, letting automated systems handle routine tasks.

Conclusion

Main Points

Workflow automation has reshaped cost-to-fill metrics while maintaining quality and compliance. Data highlights clear benefits in staff efficiency and operational improvements.

Here’s how automation impacts key areas:

Area of Focus

Operational Impact

Staff Efficiency

Frees up staff for more meaningful tasks

Inventory Management

Supports just-in-time ordering practices

Quality Control

Enhances accuracy in verification processes

Cost Savings

Boosts margins through streamlined production

"If I can have a piece of automation and accomplish my workload with less staff, obviously, I'm going to be able to have a better margin and cost associated with my production time." - Jeff Swanson, senior vice president of sales and marketing at JFCRx

Next Steps

To fully capitalize on these benefits, it’s essential to take a thoughtful approach to automation. Start by partnering with vendors who understand pharmacy workflows. Evaluate your current operations to identify areas where automation can make the biggest impact. The ultimate aim? Lower cost-to-fill while improving workflow efficiency.

Beyond efficiency, automation opens doors to new revenue streams and enhances patient care.

"Automation going into a site isn't the final solution. Having and making sure that you know you have a pharmacy partner as the vendor around the automation, who can help you with the workflow, is the second half of that equation." - Jeff Swanson, senior vice president of sales and marketing at JFCRx

Success in automation requires a deliberate strategy and collaboration with experienced vendors. By focusing on these steps, pharmacies can confidently move forward in their automation journey.

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© 2025. All rights reserved. 503Pharma

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Insights to elevate compounding pharmacy practice and business

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© 2025. All rights reserved. 503Pharma

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