Nobody wants to reach for a box for a crucial supply only to find an empty or expired box.
Inventory management is one of those subtle points of friction that many dental practices struggle with inventory management, but it doesn't have to be this way.
In this blog, we’ll talk about 12 common inventory mistakes your practice might be making and how to avoid them.
Before we jump into the common pitfalls, let's talk about why inventory management is such a big deal. Keeping your shelves stocked isn’t meant to be just busy work. Having the correct supplies on hand is important when you’re looking to optimize your entire practice's operations. If (or rather, when) things go awry, it is helpful to have everything you can control behind the scenes working smoothly.
First and foremost, proper inventory management translates directly to your bottom line. Studies show that dental practices can tie up as much as 30% of their annual revenue in inventory. If you’re ordering too much or not enough, you’re wasting capital that could otherwise be invested back into the practice with technology, staff training, or marketing efforts.
But the benefits don't stop at cost savings. Efficient inventory management means being more productive. Consider this: how much time do you and your staff spend hunting down supplies, placing emergency orders, or dealing with stockouts? Now, imagine redirecting all that time and energy towards patient care. The result is a more efficient practice, happier patients, and a team that can focus on providing the best dental care possible.
On the flip side, poor inventory management can have far-reaching consequences that extend beyond just running out of supplies. It's like a domino effect that can impact every aspect of your practice.
First and foremost, there's the potential risk to patient care. Nobody wants to reschedule a patient's procedure because you're missing a critical item. Not only does this disrupt your schedule, but it also erodes patient trust and satisfaction. Patient reviews can make or break a practice and these seemingly small hiccups can have a significant impact on your reputation.
Then there's the financial toll. Overstocking ties up your capital in unused inventory, while understocking can lead to rush orders and higher shipping costs. It's a delicate balance, and getting it wrong can eat into your profitability faster than you might think. Going by the figure we talked about earlier, if you’re spending over 30% of your annual revenue on supplies, you could be costing the practice money!
Now that we understand the stakes, let's talk through common inventory management mistakes that could be holding your practice back – and more importantly, how to fix them.
One of the biggest inventory management blunders is failing to accurately forecast your supply needs. Many practices rely on gut feeling or last-minute checks, leading to either overstocking (tying up capital) or understocking (causing stockouts).
The solution is in your hands: your own data. Modern inventory management systems can analyze your historical usage patterns, seasonal trends, and even upcoming appointments to predict your supply needs with incredible accuracy. Consider it your crystal ball for the stockroom, only this one can help save tens of thousands of dollars. By using your own production trends, you can optimize your ordering process and ensure you always have the right supplies on hand without unnecessary excess.
How often do you actually check your inventory? If you're like many practices, it's probably not as often as you should. Infrequent checks can lead to surprises–and not the good kind. You might suddenly realize you're out of a critical item or find expired products taking up valuable shelf space.
The solution is to implement a regular inventory check schedule. Set a weekly or bi-weekly schedule for a full inventory review, and you'll always have an accurate picture of your supplies. Like with any sort of maintenance, prevention is always better than cure!
If you're still managing your inventory with spreadsheets or pen and paper records, it's long past time for an upgrade. Manual systems are not only time-consuming but also prone to errors. It's like trying to perform a root canal with a hand drill.
The fix is simple: invest in a digital inventory management system. These cutting-edge solutions automate much of the process, from tracking usage to generating purchase orders. They provide real-time visibility into your stock levels, send alerts when it's time to reorder, and even integrate with your practice management software.
It's tempting to always go for the lowest price when ordering supplies. After all, who doesn't love a good deal? But focusing solely on purchase price can be a costly mistake. It's like choosing a dental chair based only on price without considering comfort, durability, or features. That won’t be just a one-time regret but one you'd likely sit with every day.
Instead, take a holistic view of your inventory costs, especially when it comes to clinical supplies. Consider factors like lead times, minimum order quantities, and supplier reliability. But don't stop there, factor in your doctors' preferences and clinical requirements too. After all, a bargain composite that doesn't meet your dentist's standards for handling or aesthetics isn't really a bargain at all.
A slightly higher price from a vendor who offers faster shipping, better customer service, and consistently high-quality products might actually save you money in the long run. It can reduce the chance of running out of items, minimize rush orders, and ensure your clinical team has the tools they need to deliver exceptional care.
A disorganized stockroom is another major efficiency killer and a source of waste. If your staff is afraid to pull out a box at risk of upsetting a Jenga-like stack of boxes, it's time for a change. Poor organization can lead to overlooked items, difficulty in finding supplies, and even expired products.
Instead, implement a logical organization system. Use clear, labeled bins for smaller items. Arrange products by category or frequency of use. And most importantly, follow a FIFO (First In, First Out) principle to ensure older stock gets used before it expires. A well-organized stockroom sets the stage for a well-organized practice.
We've all been there – ordering a large quantity of an item "just in case" we need it. But this approach can lead to unnecessary costs and wasted storage space. It's particularly common with items like specialized composite shades or rarely used instruments.
Instead of overordering, use your inventory management system to set appropriate par levels for each item based on actual usage. For infrequently used items, consider partnering with suppliers who offer quick shipping on small orders. This way, you can keep your inventory lean without sacrificing the ability to meet unexpected needs.
Even the best inventory system won't work if your team doesn't know how to use it properly. Lack of training can lead to inconsistent practices, data entry errors, and missed reorder points.
The solution is simple: make sure everyone understands the importance of accurate data entry, proper storage procedures, and how to use your inventory management software. Regular refresher sessions can help reinforce best practices and introduce new features or processes.
Storing supplies in multiple locations throughout your practice might be a matter of necessity but can easily lead to confusion, overstocking, and lost items. Centralize your inventory storage as much as possible. Designate a primary stockroom where the bulk of your supplies are kept.
If you need to keep some items in treatment rooms for immediate access, treat these as mini-stockrooms with their own par levels and regular restocking schedule. This centralized approach gives you a clearer picture of your overall inventory and makes management much more straightforward.
If you're not regularly generating and reviewing data on your inventory levels, you're missing out on valuable insights that could help optimize your supply chain and budget.
Regularly look at usage trends, spending by category, and supplier performance. Many modern inventory systems can generate these reports automatically and even provide actionable insights. Use this data to make informed decisions about your ordering patterns, negotiate better deals with suppliers, and identify areas for cost savings.
In many practices, inventory management is a shared responsibility which often means it's no one's primary focus. This can lead to oversights, inconsistencies, and a general lack of accountability. The solution is to designate a primary inventory manager. This doesn't mean this person has to do everything related to inventory, but they should be responsible for overseeing the process, ensuring consistency, and being the go-to person for inventory-related questions. In smaller practices, this might be the office manager, while larger practices might have a dedicated inventory coordinator.
In the excitement of trying new products, it's tempting to place a large order right away. But this can lead to wasted money and storage space if the product doesn't meet your needs. It's like changing your entire restorative protocol based on a single CE course without trying it in your own practice first.
Instead, start small. Many suppliers offer sample sizes or trial periods for new products. Take advantage of these opportunities to test new items in your practice before committing to a large order. This is especially important when it comes to clinical supplies. By starting small, you can assess the product's effectiveness, ease of use, and patient acceptance before making a significant investment.
Last but certainly not least, failing to track and manage product expiration dates can lead to significant waste and potential patient safety issues. It's easy to lose track of expiration dates, especially for less frequently used items. But using expired products is not only financially wasteful – it could compromise patient care.
Implement a system for tracking expiration dates as part of your regular inventory management process. Many digital inventory systems can send alerts when products are approaching their expiration date. For items with shorter shelf lives, consider implementing a color-coded system in your stockroom to visually flag products that need to be used soon.
Effective inventory management is paramount for dental practices, offering benefits that range from increased efficiency and profitability to improved patient care. As practices grow, the challenges of managing inventory can become more complex.
Fortunately, these challenges also present an opportunity to optimize your operations.
The secret to unlocking the benefits we discussed in this blog lies in selecting the right dental procurement platform with built-in inventory management capabilities. A well-designed system can transform inventory management from a time-consuming chore into a powerful driver of practice success.
Method is one such platform that stands out in addressing these needs. By integrating seamlessly with your practice's workflow, Method can help you streamline your inventory processes, reduce errors, and free up valuable time for patient care.
Book a free demo with a Method expert today and discover how the right platform can revolutionize your inventory management, setting your practice on the path to greater efficiency and success.
