If a supplier's payment terms are thirty days net, what is the recommended turnover period?

The recommended turnover period being less than 30 days aligns with efficient inventory management practices in retail pharmacy. If a supplier's payment terms are net thirty days, it indicates that payment for goods is due in thirty days. To maintain a healthy cash flow and ensure that the pharmacy can pay its suppliers on time, it is beneficial for the pharmacy to turn over its inventory more quickly than the payment period.

By achieving a turnover period of less than thirty days, the pharmacy can generate revenue from its inventory before the payment is due. This approach minimizes the risk of cash flow issues and can help in maintaining good relationships with suppliers, as timely payment becomes easier to manage.

In summary, a turnover period that is less than thirty days supports better financial health and operational efficiency for the pharmacy.