When it comes to running a small business, the assumed effectiveness of existing systems can be a real threat to the bottom line. Even systems developed a few years ago are being made obsolete by technological innovation. In orthodontics, the threat of assumed effectiveness often manifests itself in the ordering and inventory systems many practices currently employ.
There are many reasons for this. Between chasing promotions, the challenge of forecasting and, let’s face it, sales representatives who are by rewarded through commissions, it’s easy for the average size practice to wind up with tens of thousands of dollars of losses from inventory obsolescence. One prominent groups practice admitted (in confidence) that they wind up eating a quarter of a million dollars in unused inventory each year! The threat to the bottom line is real.
Of course, on the flip side of every threat is opportunity and this is no different. Continue reading “Are Antiquated Inventory Processes Bleeding Your Bottom Line Dry?”