Pharmacy inventory guide for small vet clinics: FEFO, ABC, par level, cold chain

Three opened bottles of Amoxicillin on the shelf. Two expired last month. Vaccines sitting against the fridge door. End-of-month reports showing 15% more drugs dispensed than billed. Sound familiar?

This article doesn’t teach ERP — it provides 5 principles + practical checklists for clinics with 1-3 vets, where the “inventory manager” is usually also the doctor.

Sources: AAHA, VHMA, DEA best practices, ezyVet, WHO.

Inventory workflow

graph LR
    A[Order<br/>ROP trigger] --> B[Receive<br/>Check qty + temp + expiry]
    B --> C[Shelve<br/>FEFO: shortest expiry in front]
    C --> D[Dispense<br/>Record in medical chart]
    D --> E[Charge patient<br/>Auto if using PIMS]
    E --> F[Cycle count<br/>A: weekly, B: monthly, C: quarterly]
    F -->|Variance?| G[Root cause<br/>Expired? Missed charge? Theft?]

1. FEFO — not FIFO

FEFO (First Expired, First Out) matters more than FIFO for drugs and vaccines, because the risk is expiry date, not receiving date.

• Shortest expiry → front of shelf
• New stock → push old stock forward
• Watchlist: expiring within 90 days — check weekly for vaccines, monthly for drugs

2. Par Level + Reorder Point — stop ordering by gut feel

Formula	Example: Amoxicillin 250mg
ROP = avg daily × lead time + safety stock	2 tabs/day × 5 days + 10 = 20 tabs
Par = daily × (lead time + review period) + safety	2 × (5+7) + 10 = 34 tabs
Safety stock = daily × buffer days	2 × 5 = 10 tabs

AAHA: “Move from gut-feel ordering to data-driven reorder points.”

3. ABC Analysis — what to count first

Group	Examples	Count every
A	Core vaccines, expensive injectables, flea/tick, controlled drugs	Week
B	Oral antibiotics, NSAIDs, fluids, derm products	Month
C	Gauze, syringes, disposable supplies	Quarter

Controlled substances (ketamine, diazepam): count at end of every shift.

4. Five types of loss

Type	Cause	Prevention
Expired	Over-ordering, poor rotation	FEFO + 90-day watchlist
Damaged	Cold-chain excursion, breakage	Receiving inspection + data logger
Pilferage	Loose controls	Locked storage + cycle counts
Missed charges	Dispensed but not billed	Dispensing linked to billing
Admin errors	Receiving mistakes, unit conversion	Standard receiving SOP

Research: 17% of diagnostic charges are missed in vet clinics (JAVMA 2024). Missed charges are the “silent thief.”

5. Cold chain — a bigger problem in tropical climates

Mistake	Fix (low cost)
Mini household fridge	Proper stand-alone unit
Vaccines on fridge door / against wall	Center of fridge, 2-3 inches from walls
No thermometer	Min/max thermometer → 30-day logger
Shared with food	Dedicated vaccine fridge
Power outage, no one notified	Outage SOP + backup power

Research: household fridges are out of range 37% of the time. Only 32% of fridges maintain 2-8°C continuously.

Checklists — print and post in the pharmacy

Weekly

Task	Check
Count A-items (vaccines, expensive drugs)	☐
Count controlled substances at end of shift	☐
Check fridge temp log + min/max	☐
Review watchlist expiring <90 days	☐
Reconcile unreceived POs	☐
Spot-check missed charges (hospital cases)	☐

Monthly

Task	Check
Cycle count B-items	☐
Full expiry shelf review	☐
Review turns by category	☐
Review vendor backorders	☐
Check open-container labels	☐
15-30 min variance meeting	☐

When to leave spreadsheets behind

If your clinic has ≥2 of these signs → you need software:

• Don’t know actual stock levels
• Missed charges keep happening
• Too many end-of-period adjustments
• Multiple people accessing pharmacy
• Controlled substances + vaccines + multiple vendors

Practice management software like VetGo can link dispensing → billing → inventory automatically, reducing missed charges and simplifying reorders.

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Sources: AAHA Inventory Tips, VHMA, DEA Controlled Substances, ezyVet, WHO Vaccine Storage.