When it comes to the managing of a dental office, dental procurement continues to fall under the radar. Failing to get the attention of Dental Practitioners and DSOs, procurement remains mainly a clerical task paid little mind. However, as organizations worldwide begin to realize the impacts of procurement on their bottom line and strengthen their procurement efforts, dental practices should be quick to follow suit.
Like any business, dental production requires a myriad of dental supplies and services to operate effectively. A well-developed Procure-to-Pay (P2P) process (the process that begins with the knowledge that you require a good or service to the payment of the invoice), ensures you have what you need when you need it, and is the backbone of organizational health and improved profitability.
Data-driven decision-making ensures you make fact-based decisions that are best for your business and drive impactful results. In fact, we’ve estimated that for every dollar you save in procurement, you would need to generate nearly three dollars ($2.94) in production revenue to net the same effect to your bottom line.
An electronic bidding process combined with a spend analysis means you can buy what you need while leveraging your volumes to get you the best possible price and service. It makes for an efficient and highly effective way to procure.
Most importantly, standard procurement and inventory control practices ensure you buy what you need, when you need, in the quantities that make sense for your business. Running low puts production at risk of running, affecting your ability to service your patients, while overstocking ties up valuable cash flow. Buying the right products in the right quantities just makes good business sense.
Your suppliers should be fighting for your business, and if you’re procuring right, that means more than just aggressive pricing. Top suppliers should be continuously in search of leading industry trends and new product developments. They should be on the industry’s cusp, bringing you competitive advantages by offering you the latest items on the market, or lower-cost alternative sources such as private label products.
Furthermore, competitively sourcing and negotiating can bring you other benefits such as improved payment terms and shorter lead-times (which equates to lower inventory levels, and better cash flow.)
Lessen Frustrations. Improve Efficiencies.
In most dental practices, the office staff responsible for purchasing supplies and services have a host of other responsibilities demanding their attention. Procurement is typically rushed and often frustrating. A lack of an established process combined with high usage volumes and a long list of supplies, it can be cumbersome and overwhelming to deal with.
Poor inventory practices frustrate employees as they fail to locate supplies or know what needs to be purchased, wasting both time and money. Reliable inventory control alleviates these pain points while also affording you more accurate financial reporting.
Additionally, streamlining your procurement processes frees up your employees for other tasks. In contrast, standards-based procedures make it easier for new employees to be trained in procurement while ensuring all valuable information is retained and easily accessible, regardless of turnover.
Reduce Your Risk
Price creep is the increasing of prices, often without written notification, and in small enough increments that they are likely to go unnoticed. However, they are implemented regularly enough that when gone unchecked, they can end up making a significant difference to your bottom line.
Suppliers understand your industry, know just how busy your employees are, and are aware that prices often go unmonitored and even more often, unchallenged. This leaves the door open for price creep to run rampant, eating away at your returns. Establishing a robust procurement process signals to your suppliers that you are a standards-based business, and that they should expect you will do your due diligence both in verifying and challenging their prices. This should motivate them to put their best foot forward.
Poor delivery performance can cause production issues if supplies do not arrive when needed, while vendor solvency can leave you hanging out to dry. A robust vendor selection process ensures you work with reliable vendors that have been predetermined as having the ability to meet your requirements.
Solid P2P processes further mitigate your risks, ensuring you pay the price you committed to, for the items you received, no more and no less. The automation of processes allows you to scale your practice with no need for additional resources while driving maximum value from your suppliers, saving you money, and making for good business.
The Advantages of Going Digital
The results of Dell’s second annual Global Technology Adoption Index (GTAI) reveal that organizations actively investing in big data, cloud, and mobility have up to 53 percent higher growth rates compared to those who aren’t using the technologies.
An electronic procurement program allows you to streamline processes and build efficiencies while maximizing results. Simply put, digital methods uncomplicate the complicated, leaving less room for error and more time for you to focus on making strategic cost-saving procurement decisions. In the end, it’s really about being smart with your money, and that’s just smart business.
Integrate Your Entire Dental Procurement Process
We developed the Method platform as a comprehensive procurement system for dental practices. At each of these critical steps, Method makes it easy to control your spend and drive results to your bottom line. From digital inventory management to easy, price comparison, and streamlined ordering, Method takes the guesswork out of procurement. Learn how we can improve your practice with our proven procurement process today.