A dispensing system, apparatus and associated method for dispensing individually packaged products includes maintaining positive physical control of the individual packages throughout the apparatus and may include different storage and dispensers for products having different frequencies of use as well as buffering of products. The system, apparatus and method described herein may be particularly useful for dispensing pharmaceutical products such as solid medications and nutritional supplements to be taken orally in health care settings, including but not limited to long term care (LTC) and assisted living settings.