MedEsthetics magazines offers business education and in-depth coverage of the latest noninvasive cosmetic procedures for physicians and practice managers working in the medical aesthetics industry.
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INVENTORY MANAGEMENT GETTING THE RIGHT PRICE An inventory control system not only helps you manage cash flow and keep the right amount of supplies on hand, it can be a tool for getting better prices on supplies. "Many vendors that provide injectible supplies give discounts for larger volume purchases, or rebates at a certain level of purchasing," says Lippner. "You want to take advantage of those discounts and rebates if you're able to purchase at those volume levels." Periodically review the prices you pay for supplies. The vendor who offered the best price last year may not give you the best deal this year. Review sales flyers and catalogs for better prices. If you have a supplier you prefer to do business with, but you find another supplier who's offering a better price, ask your current supplier to meet the competitor's price. 50 MAY/JUNE 2013 | MedEsthetics Taking Stock Practice management software systems often include inventory control tools that allow practices to track sales and supply usage and set reorder levels. Provista (provistaco.com), one of the largest healthcare group purchasing organizations, recommends asking the following questions when evaluating inventory management software: • Can you order all supplies from the system? • Does the system work with barcoding technology? (useful for large groups) • How easy is it to pull reports from the system and are the reports useful and actionable? • Does the system provide the data to assure you that you are paying the right price? • Can the system alert you when stock is low? • Does the existing system help you track back orders and open orders? Group practices can increase efficiency by centralizing inventory control. For example, Advanced Dermatology uses centralized purchasing, which makes purchases for all 12 offices and distributes supplies to the offices based on patterns of use. Individual offices can also requisition supplies as needed. Having one purchaser for all the offices allows them to purchase in quantity and take advantage of volume discounts and rebates. Solo practices can join a group-purchasing organization to take advantage of similar discounts, though Franklin notes that not every physician is comfortable with this set-up. "It takes negotiating out of your hands," he says. "You're relying on the group purchaser to negotiate prices." Setting up an inventory control system takes a little time initially, but once in place it pays off in efficiency and cost savings. In a busy aesthetic practice, an efficient inventory control system can help you eliminate waste and maximize profit, and frees you to focus on delivering patient services. ME Cindi Myers is a Colorado-based freelance writer covering healthcare and small business-related topics. THINKSTOCK make sure the order was received in full. This person is then responsible for putting the products away in the appropriate areas as soon as they arrive. In a busy practice, it's tempting to let boxes of supplies sit until someone gets around to putting them on the shelf. This makes it easy to lose track of what's coming in and what's on hand. Letting products expire before they're used is an expensive mistake that an inventory management system can help you avoid. While some companies will replace expired product, many won't. "Throwing away expired product is throwing away money," says Lippner. To prevent this, the simplest precaution is to train staff to always stock the oldest product on the front of the shelf, with newer product in the back. Additionally, provide space on your inventory form to note products that are within six months of their expiration dates. Some practices tag these products with a colored dot as a reminder to use them soon. Most software systems allow you to set reorder levels for the products you stock. The software will then alert you when you are approaching the reorder point. If you prefer a manual system, you can employ colored file cards or markers. When the person in charge of inventory sees that X number of boxes of a particular product are left on the shelf, he or she clips a card or marker to the shelf as a visual reminder that it's time to reorder. Having a single person in charge of supplies, and thus familiar with the reorder points for each product, makes this kind of system more effective. Keeping supplies organized and visible also makes inventory control easier. Clear plastic tubs or bins and labels on shelves help you see your products at a glance and can speed up the process of restocking. Some practices keep more expensive products in locked cabinets or closets for extra security.