Smarter Returns: How Datarithm’s Liquidation Engine Puts Pharmacies in Control
Datarithm, recognized for its innovations and services, is announcing a new return-to-manufacturer feature. PTMR’s Maggie Lockwood talks with company President David Belinski to learn more.
Liquidation Engine, a new return-to-manufacturer feature developed through a partnership between Datarithm and Rx Direct Solutions. The feature will provide pharmacies with unprecedented transparency and control over short-dated and expired returns, including the ability to select value thresholds for returns, determine eligibility and timing, view expected return credit values, and generate return authorizations (RAs) and shipping labels, as well as, optionally, insuring shipped packages — benefits not typically available through traditional reverse distributors.
PTMR: Tell us how you developed Liquidation Engine.
David Belinski: Historically, reverse distributors have withheld information about “depot” returns, maximizing their own profits at the expense of pharmacies. The goal was to develop a system that allows pharmacies to choose a threshold for what they considered “valuable” inventory, sending high-value items to a specific depot address and low-value items to a different address. We wanted the Liquidation Engine to provide a continuum beyond our Balancing Engine, in-date wholesaler returns and store-to-store transfers for chains. When dead stock, no dispensing in four-plus months, has been deemed ineligible for a wholesaler return and store-to-store transfers are not viable, the Liquidation Engine applies ongoing pressure to surplus inventory. This reduces expired-drug costs and future risk, through a simple, transparent workflow.
PTMR: How does this fit with Datarithm’s other solutions?
Belinski: The process integrates with Datarithm’s inventory management, automatically identifying “problem inventory” that can’t be returned to wholesalers or transferred within a chain, and moving it into a liquidation workflow. The system provides clear, real-time estimates of the value pharmacies will receive for returns, unlike the opaque practices of reverse distributors. Pharmacies can act quickly, returning eligible items up to six months before expiration, accelerating liquidation cash flow by six to nine months faster than reverse distributors and improving transparency.
PMTR: Can you share an example of how this works?
Belinski: The staff scans QR codes for items listed on a predefined listing, dead and ineligible for wholesaler return and transfer, and the system instantly populates the required data, denotes expected return credit values, and generates return authorizations and shipping labels. Eligible high-value items are prioritized for immediate return, while lower-value items can be accumulated and shipped together. There is also an integration with InStockRx, enabling pharmacies to list inventory on a marketplace if it can’t yet be returned — further maximizing value and reducing waste. We’re trying to be an ally to independent pharmacy in as many ways as possible.
PMTR: This gives pharmacists a lot of data — quickly — to make important business decisions.
Belinski: Yes. The system’s automation and future AI [artificial intelligence] enhancements will further streamline decision-making, making the process nearly hands-off for pharmacy staff. We’re providing tools that offer both financial and operational benefits. We see future enhancements that involve marketplace integrations and AI-driven automation for Rx inventory that isn’t ready for return. It’s the automation that’s key. This is done for the pharmacist. Basically, they scan that stock bottle, and then they get all that information. They can decide which way they want to go. It’s like throwing a life ring to pharmacy around those pieces of inventory. We want to make the business decision-making information available, and really make it automatic. PTMR