How to effectively manage inventory

Successful inventory management is important for developing an efficient, productive dental practice. With a thoughtfully designed system in place, you can take the guesswork out of product ordering, save money on supplies, avoid over ordering, eliminate waste, and ensure you never run out of the things you need.

Here are six pointers to help you get more out of your stockroom.

1. Identify frequent stock concerns

Inventory issues are often dominated by just a handful of products. Start off by finding and fixing this low-hanging fruit. Think about stock concerns that have popped up over the last six months:

• Did you run out of any products?
• Which supplies expired?
• Did any of your orders arrive late or incomplete?

2. Build out a detailed supply list

An effective supply list goes beyond listing every product your practice needs to operate. You need a spreadsheet that includes details required for effective ordering, including information such as:

• Supplier information
• Physical location of supply to confirm inventory
• Maximum order quantity
• Pricing
• Expiration ranges
• Special storage requirements
• Estimated monthly usage

3. Optimize your stockroom

Organize your stockroom to make it easier to conduct stockroom audits quickly and accurately. Periodically look for small efficiency tweaks. Simple changes, like making your most used supplies more accessible, can make a real difference.

4. Don’t wait to stock new arrivals

The best time to remedy damaged or missing product issues is immediately after the order has arrived. Take the time to carefully account for every item ordered and compare the packing slip to your original order documentation.

5. Send purchase orders

Making informal orders with a vendor leaves the door open for surprises. A purchase order acts as a contract with your supplier, keeping the vendor accountable for honoring prices and deliverables.

6. Consider inventory management software

Purchasing an inventory management solution instead of building your own can save you time and potentially pays for itself. Inventory management software:

• Simplifies inventory tracking
• Quickly and easily reorders supplies
• Streamlines product receiving
• Pays invoices accurately

Supplies make up a sizable percentage of a practice’s overall overhead. Don’t let small inefficiencies add up to big expenses over the long haul.