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Community pharmacy and the automation opportunity
Community pharmacy is increasingly central to the delivery of the NHS’s long-term ambitions, at a time of rising demand and limited system capacity. This article, authored by Lee Reeves, Head of Healthcare, Business & Commercial Banking, explores the role pharmacy can play in enabling healthcare transformation and what needs to change to fully unlock its potential.
Read time: 6 mins Added: 10/06/26
The role of community pharmacy is rapidly evolving
Pharmacists in 2026 are increasingly focused on delivering frontline patient care, making the most of their training and clinical skills to better serve their communities and boost revenues. At the same time, pharmacies dispensed a record 1.16 billion prescription items in 2024/25, a figure that has grown for four consecutive years1 as the ageing population means more people are living with long-term health conditions.2
While demand for services continues to rise, the sector faces mounting financial pressures and a challenging recruitment landscape. Community Pharmacy England's 2025 Pharmacy Pressures Survey reports that more than 60% of pharmacies reported staff shortages, with over half struggling to recruit permanent staff.3
The good news is that technology offers a practical path forward and investing in it is becoming increasingly achievable. According to the latest Pharmacy Market Review by Christie & Co, investing in automation and equipment is their primary growth opportunity for 2026, identified by 36% of the 7,000 pharmacy professionals surveyed for the report.4
It's not hard to see why. Automation can help make dispensing more efficient, reduce errors, free up clinical time, and ultimately improve pharmacists’ margins without compromising patient care.
Why automation matters now
Community pharmacy is fundamental to the NHS 10-year plan, Fit for the Future, which recognises pharmacists’ potential as a key enabler of healthcare transformation. Crucially, it also signals greater use of multi-year budgets, providing more certainty for pharmacies planning to invest in automation.
This alignment between sector needs and national strategy creates a genuine opportunity. Pharmacies that invest in the right technology now can not only address the immediate pressures they face, but position their business for the pharmacy landscape of the next decade.
Transformational technology
Robotic dispensing systems aren't just for large chains anymore. Modern robotic dispensing systems range from compact desktop units to larger modular systems more suited to high-volume hubs serving multiple branches. They use barcode recognition to identify and pick items, and can automatically prioritise medications with the shortest expiry date, reducing waste whilst ensuring patients receive the freshest stock.
The benefits are tangible; medicines are delivered more quickly and safely, eliminating human error while freeing up teams to focus on patient-facing activities. And for pharmacies struggling with recruitment and wage costs, automation can help maintain service levels even when staff numbers are stretched.
AI and inventory management
Stock management can consume hours of valuable time. AI-powered systems analyse dispensing patterns, seasonal variations and supplier lead times to optimise ordering. The result is reduced working capital tied up in stock, fewer out-of-stock situations and less time spent on manual ordering processes.
Full Electronic Prescribing Service (EPS) integration streamlines the dispensing process from the moment a prescription is written, creating a seamless workflow that reduces manual handling and speeds up the entire process.
Hub-and-spoke dispensing
A hub‑and‑spoke model can centralise dispensing in a single hub while retaining patient‑facing services in local spoke pharmacies. It is particularly relevant for small pharmacy groups looking to improve efficiency across multiple sites without duplicating costly technology investments.
This approach has proved transformational for Porter Pharmacy, which operates 10 branches across the Aberdeen area and is a Bank of Scotland customer within Lloyds Banking Group.
As community pharmacies take on more clinical services, Porter also experienced a 15–20% increase in prescription volumes, placing additional demands on its 115 employees. In response, the group invested in a dispensing robot in 2025.
Housed in a central warehouse, the robot can process up to 80,000 items each month. The system manages stock and dispenses repeat prescriptions, which account for around 75% of the group’s business and are delivered daily to branches for patient collection. The additional space at the hub also allows Porter to build up medicine stocks, helping to mitigate potential supply shortages.
By centralising dispensing, the investment has freed up time and space within branches, enabling pharmacists to focus on consultations and delivering additional services. The automation, alongside a fleet of four delivery vans, was supported through a Hire Purchase facility.
Making investment work
While the upfront cost of automation can seem daunting, particularly when margins are tight, flexible financing options become crucial.
Asset Finance arrangements, including Hire Purchase, help spread the cost of technology investments over time, aligning payments with revenue benefits and avoiding depleting working capital or disrupting cash flow. Hire Purchase can fund up to 90% of an investment with a repayment period between 12 and 60 months. At the end of your Hire Purchase agreement, you have the option to ‘purchase’ the asset to own it.
But when considering financing options for any technology investment, it’s important to consider the total cost of ownership, including maintenance and training, when calculating the Return on Investment. And pharmacies should also factor in the time savings, reduced errors and potential for additional services that automation can enable.
The investment case should start with a comprehensive audit of current processes to identify bottlenecks and inefficiencies, before consulting with technology providers to identify the solution that provides the best fit.
Fit for the future
The pharmacies that thrive in the coming years will be those that embrace technology strategically. With the NHS committing to a stronger role for community pharmacy and offering greater budget certainty, the case for investment in automation is as strong as it has ever been.
For those pharmacies who are ready to explore how automation could transform their operations, our healthcare specialists understand the sector and can help you find the right financing solution for your business.
You may also be interested in
- https://media.nhsbsa.nhs.uk/press-releases/b80b96aa-2533-4f5f-bbcf-2097f435b44b/nhsbsa-report-reveals-record-number-of-prescriptions-dispensed-by-community-pharmacies-in-england
- https://commonslibrary.parliament.uk/research-briefings/cbp-10338/
- https://cpe.org.uk/wp-content/uploads/2025/11/Pharmacy-Pressures-Survey-2025_Staffing-and-morale-report-Final.pdf (PDF, 806KB)
- https://assets-eu-01.kc-usercontent.com/6bb3df3c-b648-01ae-2357-22fa5c7d5f19/b307a3c9-9a93-4b17-bfa8-253063ff1a74/Pharmacy%20Market%20Review%202025.pdf (PDF, 4.65MB)
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