Veterinary inventory management: what good stock control looks like

Medicines and consumables can be a substantial operating cost for a veterinary practice. Inaccurate stock records can create both financial and operational problems. Gaps between recorded and physical stock create risk for a veterinary practice: cost risk, availability risk, and compliance risk. The practical question is whether the stock recorded in the PIMS matches what is physically held.

Common causes include expiry, missed charges, incorrect stock movements, receiving errors and unexplained losses.

Where the money goes

Stock loss can arise from several causes at the same time.

Expiry is one common source of stock loss. Industry estimates put the cost of expired medicine waste at somewhere between 1.5 and 2 percent of a practice's total revenue. That figure comes from a PIMS vendor rather than an independently audited UK dataset. Treat it as a directional estimate, not a benchmark to hold your practice against.

Undercharging occurs when stock is dispensed or used but the corresponding charge is not recorded correctly. Repeated missed charges can create a material gap between stock usage and billed revenue.

Shrinkage includes unexplained loss through miscounting, misplacement, damage or theft. For controlled drugs, an unexplained discrepancy is also a regulatory issue. It must be investigated.

The aim is to identify discrepancies early and understand their cause before they accumulate.

What good stock control looks like day to day

Stock-check frequency should be risk-based rather than identical across every product category.

Controlled drugs and other high-risk medicines need more rigorous reconciliation than low-value consumables. The consequences of a discrepancy are different.

In practice, this might mean:

• Controlled drugs should follow the applicable legal and practice-standard reconciliation requirements. Other high-risk or fast-moving medicines may justify more frequent checks, for example weekly.
• Mid-value, steady-demand products reconciled on a longer cycle, for example monthly.
• Low-value consumables checked periodically rather than counted precisely, since the administrative cost can outweigh the value at risk.

A practice might choose intervals along these lines. The right interval should reflect risk, usage and any regulatory requirements for each category, not a single fixed schedule applied across the board.

An ABC approach classifies stock by annual usage value. Tighter controls can then be applied to the items representing the greatest financial exposure. Veterinary practices may also need a separate risk overlay. This applies to controlled drugs, vaccines or other clinically critical items, since a low-value item can still carry high regulatory or clinical risk.

UK medicines record-keeping requirements

For UK practices, part of stock control is a legal record-keeping requirement rather than an operational choice.

Records relating to the receipt and supply of POM-V and POM-VPS medicines must be kept for at least five years. This requirement comes from the Veterinary Medicines Regulations. Practices should confirm that their PIMS retains the required records for the full statutory period rather than assuming this happens automatically.

Controlled drugs sit under a separate and stricter regime. Any practice holding a Schedule 2 CD, ketamine and ketamine based products included, must maintain a dedicated Controlled Drugs register. This can be a bound book or a compliant electronic system. Entries must be made in chronological order, on the day of the transaction or the next day. The prescribing vet can delegate the task of making the entry. The task can be delegated, but legal and professional responsibility stays with the veterinary surgeon.

The VMD has stated that common inspection findings include incomplete requisition paperwork. Registers that are not reconciled against physical stock regularly are another recurring gap. The VMD also highlights unclear accountability where tasks have been delegated, for example to a nurse or a receptionist. Regular reconciliation matters. A register that balances at one point in time does not show that records have been kept consistently.

Practices supplying POM-V and POM-VPS medicines are required to carry out a detailed audit of prescription medicines at least once a year. This means reconciling incoming and outgoing stock against what is held, with any discrepancy recorded. The RCVS Practice Standards Scheme reinforces this expectation as part of its inspection criteria. Any discrepancy should be investigated and documented in line with the applicable requirements.

Building a stock take rhythm that holds under pressure

The process needs to remain workable during busy periods.

Assign clear responsibility to a defined role or named team member, with cover arrangements in place for when they are absent. Cover arrangements help ensure the checks continue when the usual person is unavailable.

Use first-expiry, first-out (FEFO) shelving where expiry dates differ, so stock with the shortest remaining shelf life is used first.

Investigate discrepancies when they are identified. Delays make it harder to trace the transaction or stock movement involved.

Where your PIMS should be doing the work for you

Manual stock control, on a spreadsheet or a paper want list, puts the burden of remembering on your team. A PIMS that is properly configured for inventory can reduce the amount of manual reconciliation required.

When dispensing is linked directly to stock levels, stock decrements automatically when the invoice is finalized, so dispensing, billing and stock movement stay in sync.

Lupa's inventory tools link dispensing, billing and stock levels from the same record. Reorder levels and suggested orders flag low stock before it becomes a shortage.

Wholesaler integration can reduce a second layer of manual work. Where your PIMS can place and track orders directly with your usual suppliers, the reorder decision and the purchase order become one step instead of two.

Software can tell you what should be on the shelf. Confirming what is there still takes a human opening the cabinet.

Getting there without adding to your team's day

Keep the process proportionate to the value and risk of the stock being controlled.

Start with the highest-risk categories, including controlled drugs and any high-value or fast-moving medicines where discrepancies would have significant consequences, and get that reconciliation genuinely current before expanding the same discipline further. Build FEFO into the delivery and shelving process so it becomes part of the routine rather than a separate stock task. Use the PIMS for as much automated tracking as its verified functionality allows, so the team's job becomes checking the exceptions rather than maintaining the whole record by hand.

Effective stock control depends on consistent routines, clear responsibility and regular reconciliation.

To see how Lupa links dispensing, billing, and stock control into a single workflow, book a demo.