Commercial Audit of a Pharmacy Chain

A commercial audit shows where a pharmacy chain is losing profitability: in purchasing and inventory, markup, the assortment matrix, contracts with manufacturers, staff workload and in-store processes. The diagnostic ends with a loss map, each loss priced in rubles, and a change plan ranked by priority. I do not handle drug registration, pharmacovigilance or licensing.

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Who needs a commercial audit

The audit is for owners and managers of pharmacy chains who want to know which lines are leaking profitability and what that leak costs in rubles.

The second case is preparing a pharmacy chain for sale. A buyer pays for sustainable profitability backed by numbers. So, several months before the sale, the economics are put in order: loss-making outlets, contracts with manufacturers, inventory, management accounts.

What I examine

Purchasing and inventory

I calculate stock turnover for every SKU. A category average hides the spread: within one category some lines sell out in a week while others sit for a year. What that stock costs, I worked out in the article "Selling what isn't there". The median Moscow pharmacy does not hold in stock 78 of the lines that an online booking storefront shows for it. For a chain of 50 pharmacies to cover those lines from its own stock would take 3,900 packs, or 2.54 million rubles at purchase prices. At a short-term borrowing rate of around 18% a year, that stock costs roughly 457,000 rubles a year. Turnover has to be calculated from exports of the chain's own inventory system: there is no ready-made calculation on track-and-trace data yet.

Markup and assortment

A single markup across the whole range is convenient, but the chain leaves income on the table with it. I look at which lines bring in the footfall and which ones earn, how front margin (the retail markup) and back margin (manufacturer payments) relate to each other, and where the regulated markup caps on VED medicines (the state list of essential drugs) apply.

Contracts with manufacturers

Marketing contracts are a pharmacy chain's second source of income after markup. They regularly contain money that has been accrued but never collected. I show where terms are below market, where obligations go unfulfilled and where back margin drains away into discounts at the till. You run the negotiations; I join in at your request.

Staff and in-store processes

I look at staff workload and the processes in each outlet. As a benchmark: according to AlphaRM data presented by Alexander Kuzin of the 36.6 chain at a RAFM (Russian Pharmaceutical Marketing Association) meeting in November 2025, payroll at a standalone pharmacy runs at 25–30% of revenue and above, against 15–20% at federal chains.

Data

From the start I separate the data that can be trusted from the rest.

How the work runs

A 30–40 minute conversation. I take the task apart and tell you whether I can help and whether it is worth taking on now.

A diagnostic on the numbers. I look at sales, markup, assortment, channels and contracts with manufacturers. The output shows exactly where money is being lost and how much.

Solution and implementation. Together with your team we write the rules, procedures and system specifications, train staff and monitor execution.

Measurement and fine-tuning. We calculate the effect against the metrics fixed at the start. Whatever did not work, we redo.

The baseline figures and metrics are agreed in writing before work begins, so that no one picks convenient indicators after the fact. The effect is separated from market growth and seasonality: we compare with the same period last year, count like-for-like pharmacies separately and, where possible, keep a group of pharmacies running the old way. If the market grew 8% and your chain grew 9%, that is exactly what the report will say.

What the pharmacy chain keeps

After the diagnostic you keep a loss map with each loss priced in rubles, a change plan ranked by priority with owners and deadlines, and the metrics both sides will use to measure the effect. From there the decision is yours: do it in-house or with me.

If the work continues into implementation, this is added:

Markup rules by product group.

A rebuilt assortment matrix.

Requirements for upgrading the inventory system.

A method that separates the effect of the changes from seasonality and market movement.

Often the first practical result is management accounts put in order: without them there is nothing to manage with. Your project will not appear on this site, in my channel or in a conversation with the next client. I take no fees from the contractors, platforms or manufacturers I recommend.

Ways of working

Express diagnostic: 2–3 weeks, fixed fee. I work through your data and hand over a map of profitability losses, priced and prioritised.

Project for a specific task: 1–4 months, fixed fee by stage. One task with a clear deliverable, such as a pricing system or an assortment rebuild. I work inside your team.

Ongoing support: from 3 months, fixed monthly fee. I work with your management team, go through the numbers, help set priorities and make decisions. You get the experience of a commercial director without hiring one.

The fee depends on the scale of the business, the state of the data and the amount of work. I name the sum after the first conversation and fix it in the contract together with the scope and timeline.

Frequently asked questions

We have a commercial director. Why would we need an audit?
Your commercial director signed off the current matrix and signed the marketing contracts, which makes them part of the system that is about to change. I work alongside them: they know the business better, I see what they have grown used to.
Prices on VED medicines are regulated. Where is the room to grow profitability?
The markup caps apply only to medicines on the VED list. Other medicines, parapharmaceuticals, medical devices and personal care products fall outside them. And beyond markup, profitability depends on the structure of the matrix, purchasing terms, back margin, inventory, write-offs and staff workload.
Our data is a mess. Can we start?
Yes, that is the usual situation. I take what there is and immediately separate the data that can be trusted from the rest.
Who on the team needs to be assigned to the project?
Usually three people: whoever exports the data, a category manager or the commercial director, and a manager with the authority to make decisions. Full-time involvement is not needed; what is needed is access and answers within a reasonable time. If there is no one to assign, the work is better postponed: without the team's involvement, the changes will stay on paper.
We have hired consultants before and were left with slides. What will be different?
After the document comes implementation. The diagnostic ends with a plan that has owners and deadlines; then come markup rules, requirements for the inventory system, training for category managers and counter staff, and a review of the first results.
Do you name a growth percentage up front?
I do not name a growth percentage before I have seen your numbers: it depends on the market and on execution on your side. Under the contract I answer for the scope, the timeline and the metrics we use to measure the effect.

Let's Discuss Your Case

To discuss a commercial audit of your pharmacy chain, write to me on Telegram.

Message on Telegram
Phone +7 926 145‑07‑47 Email i@tiukos.ru Telegram @tiukos