So, let’s dive into the importance of inventory accuracy and practical strategies to help you elevate your veterinary inventory management game.
The Importance of Inventory Accuracy
Patient Care Relies on It:
Ensuring the health and well-being of our animal patients hinges on having the right supplies at the right time. Accurate inventory levels are the lifeline of prompt and effective treatment. We don’t have to comprise patient care when we know we have the right product available to dispense.
Financial Health of Your Practice:
Inventory costs rank as the second-largest expense within veterinary practices, following closely behind labour costs. This highlights the importance of managing inventory costs effectively. Accurate inventory management safeguards the financial health of your practice by preventing overstocking or emergency purchases, ensuring a balanced budget, and assisting in capturing misbilling.
Streamlining Operations:
An accurate inventory acts as the backbone of streamlined operations, reducing time spent searching for supplies and minimising the risk of human error, fostering efficient and effective practices.
Regulatory Compliance:
Accurate inventory is a key component of regulatory compliance, assisting in your compliance with legislation and building trust among clients.
Customer Satisfaction:
Happy patients mean happy clients. Accurate inventory management instils confidence in clients, showcasing your commitment to their pets’ well-being and providing a competitive edge in the market. Having the product in stock when your client needs it is a crucial part of maximising the client experience and increasing the trust relationship.
10 Practical Ideas to Ensure Inventory Accuracy
1. Regular Audits and Stocktakes:
On a daily basis, integrate actions in each zone to identify discrepancies early. Also, make routine audits and stocktakes a habit. Be sure to action discrepancies with system or process a review to prevent the issue from escalating.
2. Utilise Technology:
Embrace inventory management software for real-time insights into stock levels, expiration dates, and order histories. Seek guidance from your PIMS provider to further explore your inventory accuracy opportunities. “We decided that Covetrus Ascend, with its cloud connectivity, was essential for how we wanted to operate. We needed a tool that could connect seamlessly for our inventory management, client comms, labs and diagnostics.” – Woofy’s on Kuhls, Chris Sourris. Modern cloud-based PIMS providers integrate directly with inventory distributors as well for saving time and ease of use.
3. Policy and Procedures (P&Ps):
Develop, review and enforce clear P&Ps for consistent inventory management processes across your team. (You might like to check out our pre-written templates here to save you some time!)
4. Barcode Scanning:
Integrate barcode scanning technology to streamline data entry and minimize the risk of manual errors. Utilise point of sale (POS) scanners for sale processing to increase accuracy.
5. Supplier Collaboration:
Maintain open communication with suppliers, staying well-informed and adapting inventory plans accordingly. This is a critical element when managing back orders – limiting your extension of inventory lines and deactivating superseded lines as needed.
6. Training and Education:
Invest in training programs to ensure all staff understand the importance of accuracy and are familiar with the tools and procedures. Need some help? Talk to us at Crampton Consulting Group about tailored training solutions designed specifically for the unique needs of your veterinary practice.
Our Business Consultant, Tania Gover, adds, “Comprehensive inventory training is more than just a process; it’s an investment in operational efficiency, cost control, and customer satisfaction. By arming your team with the right skills and knowledge, you transform them into adept custodians of your inventory. This not only prevents errors but also promotes strategic decision-making, ultimately safeguarding the financial health of your practice.”
7. FIFO (First In, First Out) Method:
Implement the First In, First Out (FIFO) method in your veterinary practice for efficient inventory management, particularly with perishable items. Arrange inventory chronologically, prioritising the use or sale of the oldest items first to minimise the risk of expiration and waste. Identify high-risk items with a short shelf life or those that have been opened, and kick-start the FIFO approach with these items.
8. Centralised Storage:
Designate a central storage area to simplify monitoring and reduce the chances of items being misplaced. If items need to be located in more than one area utilise signage to increase team knowledge and efficiency. This could be as simple as a shelf talker.
9. Set Reorder Points:
Establish reorder points for essential items to proactively restock and avoid sudden shortages. Your reorder points should take into account your “safety stock” – the minimum required to hold on hand with consideration of the supplier lead time, your ordering frequency and stock use.
10. Continuous Improvement:
Regularly review and adapt your inventory management processes for ongoing efficiency and effectiveness.
Ready to transform your veterinary practice’s inventory management? Crampton Consulting Group is your guiding light, offering tailored solutions designed to optimise efficiency, reduce costs, and enhance patient care. Our team is ready to collaborate with yours, providing expert insights, inventory audits, hands-on training, and cutting-edge strategies. Talk to us about how we can help you and your team navigate the path to impeccable inventory management. Together, let’s enhance and optimise your practice for success. Contact us today and let the journey to precision and success begin.
