For small community pharmacies, automation often feels like a luxury reserved for larger operations. However, the reality is that investing in pharmacy automation—particularly in blister pack preparation and inventory management—can unlock significant long-term returns. From reducing labour costs and minimising dispensing errors to freeing up staff for revenue-generating clinical services, automation transforms the bottom line.
This article serves as a practical guide for pharmacy owners and managers who are considering, or questioning, the return on investment (ROI) of automation. We’ll break down the real costs of manual workflows, explain what’s included in a typical automation system, and provide a simple model for calculating payback periods.
Featuring a case example from Savages Pharmacy and actionable tips on building a strong business case, this guide helps pharmacy decision-makers shift their mindset, from seeing automation as a cost, to understanding it as a strategic investment in sustainability and patient care.
1. Why Is ROI a Barrier to Automation?
For many small pharmacy owners, the decision to automate comes with a major psychological hurdle: cost. The upfront investment in blister pack robots, digital interfaces, or inventory control systems can appear daunting, especially in businesses operating on tight margins or still recovering from pandemic-era disruptions. While the benefits of automation are widely acknowledged, uncertainty about return on investment (ROI) can slow or even stop the decision-making process.
Part of the issue lies in visibility. Manual workflows have hidden costs, labour inefficiencies, error corrections, bottlenecks, that rarely appear in spreadsheets. Because these costs are baked into daily operations, they’re accepted as normal, and the real opportunity cost of not automating is underestimated.
In addition, many pharmacy owners fear that automation might disrupt their team’s workflow or require extensive retraining. Without clear evidence that the investment will pay off, hesitation is understandable.
The good news is that ROI on pharmacy automation is measurable, predictable, and often faster than expected, especially when broken down into productivity gains, error reduction, and time reallocation. This section lays the foundation for understanding why the ROI conversation must shift from speculative to strategic, and how pharmacy leaders can reframe automation as a necessary business evolution, not an optional expense.
2. What Are the Real Costs of Manual Dispensing?
Manual dispensing may seem inexpensive on the surface, especially for pharmacies accustomed to traditional workflows. But when time, labour, risk, and lost opportunity are all factored in, the cost of sticking with manual processes quickly adds up.
The most significant hidden cost is labour. Staff often spend hours each day sorting medications, double-checking trays, and correcting packing errors. These tasks, though critical to safety, consume time that could otherwise be spent delivering Medicines Use Reviews (MURs), flu vaccinations, or other clinical services that generate revenue and improve patient outcomes. Over the course of a year, this opportunity cost can equate to tens of thousands of pounds in unrealised value.
Then there’s the cost of errors. Manual workflows are inherently vulnerable to mistakes, from incorrect drug selection and mislabelled packs to missed doses or compliance failures. Even minor slip-ups can erode patient trust, trigger rework, or lead to potential regulatory scrutiny. In the most serious cases, errors can result in adverse events or liability risks.
Inventory management is another pain point. Without automation, pharmacies may struggle with overstocking, stockouts, and expired medicines—all of which eat into profitability. Poor stock visibility also leads to waste and inefficiencies that accumulate silently in the background.
Finally, manual processes slow down your ability to scale. Every new MDS patient adds incremental strain on technicians and increases the chance of burnout. Without automation, pharmacies hit operational ceilings far sooner, limiting their growth potential.
Understanding these real, recurring costs is essential. It reframes automation not as an expense to be justified, but as a logical investment to control costs, safeguard quality, and unlock time for higher-value services. When manual inefficiencies are made visible, the ROI case for automation becomes much harder to ignore.
3. What’s Included in a Pharmacy Automation Investment?
Understanding what goes into a pharmacy automation investment is essential for accurate ROI modelling. Many owners focus on headline hardware costs, such as an automated blister pack machine, but overlook the broader system components that contribute to the total value delivered.
At the core of most solutions is a dispensing automation system like the VBM 200F, which automates blister pack filling with precision and consistency. This is often the most visible part of the investment, but it's only the beginning. Most implementations also include software integration, which connects the machine to your pharmacy management system, enabling real-time syncing of prescriptions and reducing manual data entry.
Setup and training are also critical components. Initial onboarding often includes on-site installation, calibration, and staff training to ensure a smooth transition. These services reduce disruption and empower your team to confidently operate the system from day one. Ongoing technical support and maintenance are usually bundled into service contracts, helping to prevent downtime and maximise uptime.
Then there’s space planning and workflow design. Vendors like Omnicell work with pharmacies to integrate automation into existing dispensing areas, optimising layout for safety and throughput. This step ensures the solution enhances, rather than disrupts, your operational flow. It also ensures all legal regulation is observed.
Additionally, automation often includes advanced safety features, barcode verification, dosage tracking, and digital logs, which help meet regulatory requirements and strengthen documentation during inspections. These features not only protect patient safety but also contribute to operational confidence and audit readiness.
While the upfront spend might include capital expenditure (CapEx) for equipment and installation, the long-term costs typically fall under operational expenditure (OpEx), which includes maintenance, consumables, and service agreements. Many vendors offer leasing or financing plans to spread costs over time, further improving affordability and ROI clarity.
Pharmacy automation is more than a machine, it’s a full ecosystem of technology, support, and transformation. Understanding the full picture is essential to communicate value to stakeholders and make informed, future-proof investment decisions.
Bundling these services from the outset helps reduce risk, align expectations, and shorten the time to ROI.
4. How to Model ROI: Inputs & Timeframe
Modelling return on investment (ROI) for pharmacy automation is more straightforward than many expect. The key is to shift the conversation from cost to value, quantifying savings, efficiency gains, and risk reduction over time. To do this effectively, pharmacy leaders should focus on four primary variables: upfront investment, time savings, error reduction, and clinical capacity enhancement.
Start by estimating the total cost of automation: equipment, installation, training, and maintenance. This is your capital expenditure (CapEx) baseline. Next, project the time savings in hours per week for staff no longer performing manual blister pack filling or inventory handling. Multiply this by hourly wage rates to establish your monthly savings. For example, if automation saves 20 technician hours per week at £15/hour, that equates to £1,200 per month.
Then, factor in the cost savings from reduced errors. Fewer mistakes mean less rework, fewer returns, and reduced risk of harm or liability. These aren’t always easy to quantify precisely, but conservative estimates can still highlight meaningful gains. If automation avoids just one dispensing error per week, the potential cost avoided, both direct and reputational, can be substantial.
Clinical value is another overlooked input. Freed from repetitive tasks, pharmacists can offer more Medicines Use Reviews, flu jabs, or medication consultations. If each additional clinical service generates £20–30 and one pharmacist gains an hour daily, monthly revenue can increase by hundreds.
With all these inputs, pharmacies can calculate a break-even point, typically within 12–24 months. ROI is then measured as cumulative savings and new revenue beyond that point. Tools like ROI calculators or spreadsheets can model best- and worst-case scenarios for conservative forecasting.
By using a structured approach to ROI modelling, pharmacy owners gain clarity, and confidence. Automation is no longer a speculative leap; it becomes a data-backed business case with measurable return and strategic upside.
Many vendors, including Omnicell, provide ROI calculators (for VBM 200F or JVM) or implementation planning templates that simplify projections. Additionally, certain capital investments in healthcare technology may qualify for tax relief under local incentive schemes, further shortening the time to ROI.
5. Case Example: Savages Pharmacy’s Efficiency Gains
Savages Pharmacy, a well-established community pharmacy in the UK, faced a familiar challenge: rising prescription volumes, increasing demand for monitored dosage systems (MDS), and a workforce stretched thin by manual dispensing workflows. Their reliance on manual blister pack preparation was creating inefficiencies, bottlenecks, and staff burnout, all while limiting capacity to take on new patients.
In response, the pharmacy adopted the VBM 200F automated blister pack system from Omnicell. The decision was driven by a desire to improve operational consistency, reduce manual handling, and free up time for value-added clinical services. Within the first few weeks of implementation, the team reported immediate time savings and a smoother workflow.
The most measurable gain came from technician hours. Staff who previously spent 4–6 hours per day on pack filling were now reallocating that time toward face-to-face patient services and training. The pharmacy also experienced a drop in dispensing errors and near-miss events, reinforcing confidence in the system’s safety and accuracy.
Operationally, Savages Pharmacy saw its MDS throughput increase without the need to hire additional staff. Packs were delivered on time, and team morale improved as repetitive tasks were reduced. Patients noticed the difference too, with more reliable pack delivery and clearer labelling, adherence improved and satisfaction rose.
The business case became clearer with each passing month. What began as a risk soon revealed itself to be a competitive advantage. Savages Pharmacy not only improved its bottom line through greater efficiency, but also expanded its capacity to offer NHS-supported clinical services.
The Savages Pharmacy case shows that even small, independent pharmacies can realise strong returns on automation investment. By addressing time, accuracy, and growth challenges in one move, the decision to automate became less about technology, and more about transformation¹.
6. How to Justify Automation to Stakeholders
Convincing stakeholders, whether partners, team members, or financial backers, that pharmacy automation is a smart investment requires more than just technical specifications. It requires a well-framed narrative grounded in business performance, staff well-being, and patient care.
Start by highlighting time recovery. Quantify how many hours per day or week are lost to manual tasks like blister pack filling, double-checking trays, and managing inventory manually. Then translate that time into potential revenue. Could those hours be used for patient consultations, vaccinations, or service expansion? These are tangible outcomes that stakeholders can connect with.
Next, discuss risk mitigation. Explain how automation reduces the frequency and severity of dispensing errors, events that not only cost time but can also harm reputation or lead to regulatory penalties. With digital tracking and barcode verification, the system introduces a layer of quality assurance that manual workflows can't consistently provide.
It’s also crucial to position automation as a staff empowerment tool. Rather than replacing jobs, it relieves skilled technicians of tedious, repetitive tasks, freeing them to focus on higher-value work and improving morale. This is especially relevant in today’s workforce climate, where burnout and retention are ongoing concerns.
From a financial standpoint, present both the upfront investment and long-term return clearly. Use examples like Savages Pharmacy to show how others have achieved real outcomes, such as reduced overtime, increased throughput, and better patient satisfaction, without increasing headcount.
Finally, appeal to strategic alignment. Automation isn’t just a tech upgrade, it’s a move toward operational resilience, clinical excellence, and long-term sustainability. For stakeholders focused on growth, safety, or regulatory readiness, that argument carries weight.
Framing automation through the lenses of efficiency, safety, and staff development helps convert perceived cost into recognised value. When the narrative is evidence-based and aligned with strategic goals, buy-in is not only possible, it’s likely.
7. Conclusion + Actionable Steps
Pharmacy automation is no longer the domain of large retail chains or hospital systems—it’s a strategic, accessible tool for small community pharmacies aiming to compete, grow, and sustain high-quality patient care. By reducing labour-intensive workflows, minimising errors, and opening the door to more clinical services, automation delivers tangible ROI within a relatively short timeframe.
The key is reframing the conversation. Rather than asking “Can we afford to automate?”, the more strategic question is “Can we afford not to?” As shown through the Savages Pharmacy case, even modest implementations can drive measurable improvements in efficiency, staff morale, and patient satisfaction.
For pharmacy owners ready to explore automation, the next steps are clear:
- Audit current manual workflows to identify bottlenecks and opportunity costs.
- Consult with vendors to understand available systems and financing models.
- Model ROI based on real numbers, labour time saved, error reduction, and revenue gains.
- Involve staff early to ensure adoption, training, and morale.
Automation isn’t just a purchase decision; it’s an operational transformation. With the right data, leadership mindset, and vendor support, small pharmacies can modernise without compromise, and unlock new levels of service, safety, and sustainability in the process.
FAQ
What is pharmacy automation?
Pharmacy automation refers to technologies that streamline and enhance dispensing, inventory, and patient service processes. This includes systems like automated blister pack machines and digital inventory solutions.
How much does automation cost for a small pharmacy?
Costs vary, but entry-level systems like the VBM 200F are scalable and often available through leasing or finance plans. The long-term ROI often offsets the upfront investment within 12–24 months.
Can automation really reduce dispensing errors?
Yes. Automation standardises workflows and introduces barcode checks and digital logs, significantly reducing human error and improving patient safety.
Will I need to hire more staff to run automated systems?
Not typically. In most cases, automation reduces manual workload and frees up existing staff to focus on clinical or patient-facing services.
Is pharmacy automation only for chains?
No. Independent community pharmacies across the UK are increasingly adopting automation to improve efficiency and expand service capacity.
