Information from the abstract
This study presents a benchmarking approach for managing multi-site community pharmacies, focusing on maintaining profit resilience despite sales declines that may reveal portfolio weaknesses. Analysing VAT-excluded annual summaries from five community pharmacies in Thailand for 2024–2025, we used gross profit as a proxy for operating profit. A two-factor profit bridge helped decompose year-on-year profit changes into sales and margin/mix effects. At the same time, portfolio dependency was assessed through positive-profit SKU rankings and concentration metrics. Network sales declined by 3.9%, but the operating-profit proxy decreased only 1.0%, reflecting a 1.47 percentage-point increase in gross margin. Branch A’s margin/mix effect added +328,968 THB, offsetting its sales drop, while Branch B faced a sales-driven decline of −267,325 THB. Profit coverage curves indicated that 80% of positive-profit SKU profit came from 17.5–23.2% of SKUs. This integrated toolkit supports interventions for margin recovery and profit-pool risk control, with findings limited to this pharmacy chain's five branches.
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Related topics: Pharmaceutical Economics and Policy · Supply Chain and Inventory Management · Auction Theory and Applications
Thai researcher and institutional participation
K Wongwejwiwat · Jainuch Kanchanapoo · Siam University
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