As we face a new year, it is a great time to assess and set goals to make improvements for the coming year. One area that can always provide opportunities for improvement is inventory management. Inventory is the second highest expense area for most practices, second only to labor. In the healthiest practices, inventory and related costs such as laboratory, radiology, food, and bedding make up about 18% to 20% of revenue. If yours is higher, then make this a target for your efforts to improve for the new year.
Review your supplier agreements. Ask your primary distributor for help in implementing better inventory management. Ask them for resources to train your team so that they know exactly what to look for to contain inventory costs. Identify the right person in your practice who has the right skill set, and empower them to help your practice reach your inventory goals.
This process, when successful, will return significant profits to your practice, which make your practice more valuable and provides more resources to improve compensation, equipment, and to provide better medicine. Good luck with your new goals in 2017!
