A few months back, The Progressive Orthodontist ran a story about maximizing your practice’s profitability through inventory management.
I have identified many ways to manage inventory more effectively and reduce costs. And you can’t just focus on the big stuff. The little things add up very quickly in Orthodontic practices but are typically given little attention, which can cost you big. Following are five easy but effective tips to better manage your inventory.
There’s some good information in the story that every orthodontist should consider. However, there are two places the article comes up a little short.
The author suggests that practices “Know What’s Really Happening With Your Ordering”. The advice is spot on. But it glosses over a few key points, including how to take action on this information. The article reads:
Quite often offices fall into buying from local companies, or the person who walks in their door or calls on the phone, or the rep they’ve known for years, without a lot of careful thought or focused shopping and comparing. Delegation is necessary, but it’s important to have a solid inventory system in place that you can easily monitor and manage.
Yes, in a perfect world every practice would utilize an inventory system that’s easy to use, understand and analyze. One that doesn’t rely on episodic visits from a salesperson with motives that are misaligned with the best interest of the practice. But it’s not a perfect world and the story doesn’t offer up how to do this.
The other piece of advice that comes up short is regarding the timing of your orders. The article reads:
I have seen practices with the intention to order only monthly, but ineffective inventory control, with suddenly discovered low quantities, results in more frequent ordering. It’s important to create the space to order monthly and maintain sufficient stock levels.
Short of bending the laws of physics, how exactly are we supposed to “create the space”? With commercial real estate prices at an all-time high, most practices are already maxed out on space. Even if a practice has the luxury to create the space, that space still needs to be managed.
Don’t Bring Me Problems, Bring Me Solutions
Making your supply chain work for you is the exact reason we created MidAtlanticOrtho.com. Not only does it offer the robust inventory management system the article suggests, but it literally creates space by freeing you from the tyranny of bulk purchasing and deal chasing.
Click here to discover how our supply side solutions can help you find the time and space to do it right.