The demand for veterinary services has remained strong over the last five years. It doesn’t come across as a surprise as sixty-seven percent of U.S. households own a pet.
The veterinary industry is very competitive. According to AAHA and the American Veterinary Medical Association, there are more than 26,000 veterinary practices in the United States.
Therefore, veterinary practices are always looking for ways to improve their services and deliver the best quality services to maximize their market share.
Effective inventory management is critical to the success of a veterinary practice. It’s a complex task, but can be simplified by utilizing the benefits of the latest technology.
Here are three common misconceptions about vet practice inventory management that every veterinary clinic should know:
Misconception #1: veterinary practice inventory management is simple
The inventory management of the veterinary practice is simple… than large superstores like Costco and Walmart, but it’s certainly not as straightforward as many people might think.
A vet clinic must stock pharmaceutical drugs, medicines and ointments, pet food, collars, leashes, pet clothing, and other over-the-counter products like shampoos.
If a veterinary practice doesn’t have a streamlined process to manage inventory, it can lead to overstocking or understocking, both of which can cost them money.
Excessive inventory leads to unnecessary storage costs and wastage, while a lack of inventory can affect services and lead to unhappy clients.
Misconception #2: Ordering supplies in large volume is the most cost-effective strategy
Many practices prefer ordering large volumes of supplies to enjoy the bulk discount and avoid the risk of running out of supplies, but this approach isn’t always cost-effective.
In many instances, it can prove to be more counter-intuitive. For instance, the supplies not used within the expiry date are wasted, which can hurt the profitability of the vet practice.
Therefore, a more logical approach to optimize inventory levels using the reorder point, i.e., only replenish inventory when the existing stock reaches a certain threshold.
The company can factor safety stock into the replenishment calculations to avoid running out of products and effectively manage current inventory and future orders.
Misconception #3: Veterinary practice management software is an unnecessary expense
It cannot be farther from the truth. A robust veterinary practice management software is critical for veterinary clinics for effective inventory management.
Keeping track of inventory using a spreadsheet can cost veterinary practices thousands of dollars due to inefficient inventory management.
A reliable veterinary practice management software provides better control and accountability of all inventory, eliminating the costs associated with excess inventory.
It also keeps an accurate record of what inventory comes in and what goes out and notifies when stock is running low and needs to be replenished.
What’s more?
In addition to efficient inventory management, the practice management software comes with a bundle of features, including financial reporting, invoicing, card processing, DICOM, etc.
These extra features can improve and streamline administrative tasks and improve the bottom line of the veterinary practice.
If you’re looking for advanced veterinary practice management software, get in touch with us today! At Animal Intelligence Software, Inc., we offer top-quality cloud-based veterinary practice management software that can help in effective inventory management of your vet practice. Call 1-877-876-7123 to get started!