GDA Plus+ Supplies provides tips on how to create an inventory management system.
Many offices know they’re paying higher prices for products, but continue buying from higher priced suppliers solely because they provide next-day delivery. When you buy a car, you wouldn’t tell the dealer you only care about the interest rate, or number of payments, or monthly payment—and not the purchase price. Similarly, you shouldn’t pay a premium on dental supplies because you need everything tomorrow. If your primary determinant in selecting a supplier is delivery time, you’re eliminating choice, and accepting you’ll pay much higher prices.
By having an inventory management system, lead time can be factored into a simple formula you control; not something you pay for. Control the variables associated with your order and system, and you’ll be less reliant on any individual supplier. Creating and refining an inventory management system isn’t the most exciting item on a dental office’s todo list. But it’s rewarding to have one—and well worth the effort.
Implement the following simple practices, and you’ll have an effective system that reduces the likelihood of your office running out of necessary products or overstocking, increases accountability among staff, and likely will save your practice thousands of dollars per year.
Identify what you need to control.
Identify all items you want to control. Include expensive items, items with a shelf life, or large high shelf-cost items, even if they are inexpensive (cases of gauze, paper towels, etc.).
Now, create a list of those items that’s accessible to anyone authorized to take out of inventory—whether it’s the dental assistant preparing a tray or restocking operatory inventory, or the doctor grabbing the just-ordered bonding kit. This list can be as simple as a printed inventory control log in your stock room, or it can be handled by a full-suite inventory management software.
Keep a log. Build accountability.
When someone takes a controlled item out of inventory, ensure it’s logged every time.
Practically, you need only a few pieces of information to be logged: item, quantity, date and initials of whoever is taking the product.
People feel more accountable when putting their name on something, and starting the act of taking an item out of inventory with an accountable mindset is a good thing. This can have the added benefit of reducing waste.
Know your usage.
Create order triggers.
Many practices order dental and office supplies using the “eyeball” method; or worse, the “oh no, we’re almost out” method. While usage of individual items varies, and exact monthly usage can’t always be predicted with great accuracy, certain items are used fairly consistently. They’re typically the items you use the most. Identify those first.
For everything else you don’t use as frequently, it’s imperative to know two things
1. How many days
from the moment you order (from your preferred supplier of the item) it will take to receive it. Build in room for vendor backorders, shipping delays, etc.
2. How many units you expect to use per day
. Be fairly liberal, but reasonable.
Multiply the days it takes to receive an order by the daily usage, and add any safety stock you think makes sense. This is your reorder point (ROP). Once stock gets to this quantity, it’s time to reorder. Make sure to factor in all of your inventory—from the stockroom to the operatory cabinets.
A simple system to let you know when to reorder.
Whether you keep inventory in a common stockroom, then fill operatory cabinets and
mobile carts; or grab on an as-needed basis, the critical element is to have a system that tells you what you have, and when you need to reorder.
A technique some offices use to build redundancy is keeping a simple card system. If your reorder point for A2 composite is 7 packs, in your primary stock, place an index card between the 7th and 8th packs. Once the 8th pack is taken out of inventory, the card will be the signal that it’s time to reorder the item, or add it to the soon-to-order list.
Keep a small basket next to the inventory-control log for these cards to be placed in as they’re exposed, and have whoever is responsible for reordering check the basket regularly.
Once you build an inventory management system that controls for the relevant variables, you can effortlessly and effectively take control and make whatever changes
you need to (e.g. who orders what, how often, what is ordered from which supplier[s]). You’ll have a just-in-time system that’s tailored to your office and preferred suppliers.
You may find that you prefer to place more frequent smaller orders, but be careful of extra shipping fees some suppliers charge for smaller orders. (GDA Plus+ Supplies
offers 100% free shipping for any order, regardless of quantity or dollar amount.)
GDA Plus+ Supplies is saving participating GDA members 30%+ on dental supplies by leveraging the group purchasing power of more than 3,300 GDA members. Fax your latest supply invoices to 844.852.4049 for a price comparison. For more information, and to read what members like you are saying, visit gadental.org/GetMore.