10 Initiatives to consider in your Supply Management execution
Business trends come and go, but the following basic initiatives will help your supply management become more effective through clixon.
Whether you are a private practice or have multiple practices within your group it only makes sense to get everyone on the same page. Provide your team with an internal catalog, identify formulary, work within one budgeting structure, have oversight on the ordering process, achieve accountability in the order receiving process, reconcile orders against vendor invoices. These are the basic steps to a sound approach to managing the flow of your supplies..
Know your formulary
What products do you want your staff to buy? An internal catalog offers you a platform to identify products with negotiated pricing and those go-to products used everyday. Identifying these products as formulary will help guide your staff to the products you want them to be ordering.
Through budgeting you have the ability to decide what percent of your production you would like to allocate to consumable supplies. Calculate that number against production to create your budget. Available budget value displayed on orders allows your staff to know what they have to spend this month.
Transition ordering from multiple vendors web sites onto one platform. Ordering from multiple sites has been a common approach for some time. There are time and effort shortcomings to this approach. With this approach your staff has multiple budgets to manage, multiple passwords to manage, multiple sites to learn and understand, multiple approval processes to manage, and other additional baggage to consider. Consolidating all ordering processes, budgeting, approval process, formulary management, etc. to one platform offers you a systematic approach that will save your team time and effort.
Organize your ordering processes
With the advancements technologies offer us today it is time to get ride of sticky notes as a method of reminders for what needs to be ordered and who you order those products from. If you are not ready take on inventory control and manage stock levels start by organizing your ordering process through internal order forms. Customize and organize your forms to fit your practice. Know the basics before it’s time to order; when was the last time you ordered a product, how many did you order, how many are you going to order this time?
Having an excess of products in stock can negatively effect cash flow and erode profits. While the concept of inventory control and managing stock levels is a paradigm shift for many dental practices and may be a challenge to achieve. Ultimately it is worth the effort especially for group practices.
Managing stock levels
Done successfully this process not only save money it creates opportunities to further streamline ordering by allowing software to prompt you when it is time to reorder. If you are willing to put the effort into recording when you remove products from your stock room it is amazing how streamlined and accurate the reordering process can become.
Properly expense products
This does not have to be a daunting task for your or your team. You also should not have to rely on your accountant to allocate your expenses. You and your staff are the only one who know what you are buying a product for. Predictable results can easily be achieved, technology offers us the ability to achieve these type of results with minimal effort.
Big data analytics improves in sophistication every year, allowing managers to derive knowledge and insights from huge amounts of data. This type of insight helps managers make more cost-effective decisions at both a corporate and practice level. Working with your sales representative to analyze your spending and evaluating product options could potentially result in higher quality products at a better value.
Results outweigh effort
If you are willing to organize your team, track spending and utilize data to analyze your spending the benefits are endless.