Thank you for joining in the webinar. This one hour session is an introduction to inventory management. During this time, we'll be discussing why does inventory management matter to your practise?
Then moving into practical inventory management, helping you to take more small changes which will have a positive impact on your practise. We can then move on to implementing inventory management into the veterinary practise, looking at stock uptaking and an effective pharmacy management. And then we can move on to report so we know if we're winning.
Over the past few years, veterinary practise world has changed. The cost of goods, overhead expenses, and especially wages are increasing and unsustainable rate. The basic need for every veterinary practise is adequate inventory of drugs and supplies.
After staffing, drugs and supplies represent the 2nd largest expense in most practises. When costs go up, managers have 3 options increase fees, reduce profits, reduce expenses by becoming more efficient. If we look at all the options, the best value for your clients, patients, staff, and your business is option 3.
A major way to reduce your costs and become more efficient is by controlling your inventory. Managing inventory should be viewed the same as managing cash. Every item on your shelf represents cash.
If your cash is not working for you, it is wasted. Having spent many years working in different sized practises, I certainly understand how inventory can be neglected. Inventory management is really important, it increases profitability.
Even if you're not out to make a profit, inventory is still of revenue. Staff can easily forget this. Not only does inventory generate revenue, it represents a significant contribution to the practise relationship with clients.
Clients visit the bedroom practise to ensure treatment for their pet. If the clinic does not have the appropriate product in its inventory for whatever reason. The opportunity then exists for the clients to go elsewhere for these products, resulting in the loss of the client, which over years contributes to the overall revenue and profitability of the practise.
Inventory is mainly looked at by the veterinary staff as something that needs to be ordered a few times a week, or even more, and something that has to be painstakingly counted for the accountants every year. Better inventory management will result in having less money tied up in inventory and more money to reinvest in new equipment. If we look at efficiency, typically the inventory manager in the practise has inherited the responsibility of the pharmacy from their predecessor.
And I often find that they feel as if they are winging it. They have no idea if they're doing the right thing. By putting standard operating procedures in place and defining roles, it'll ensure that the staff follow the same protocols.
And this will therefore reduce the likelihood of expired goods. Overstocking and understocking and ultimately reduced human errors. Creating agility.
When we look at agility, we look at how quickly can you change to a different stock when a new product is launched or a product is then licenced. What is the value of the stock or profit that you have to give up in order to achieve a different product? By reducing brand variation and overall inventory level, the cost of switching goods will be lower and can happen quicker and more efficiently.
These are some of the challenges that are faced in veterinary practises. Many practise owners and practise managers are anxious as they have no traceability. Do you know what stock you have in and where it is going?
Do you have a clear record of all the movement to stop from the moment it arrives to when it's handed out to the client? But what happens if there's this batch number recall? How quickly can you re-recall the information?
When we look at stock being held, often practises say they have too much of this and never enough of that. It's easy to be overstocked on one product but unstocked on another product. How much time is spent sorting out stock levels, receiving orders, and making and making the orders?
So many inventory managers feel as if they spend so much time just trying to sort out stock levels. Are you frustrated that stock seems to be going out of date? Do you know how much stock is being wasted?
Most frustrating problem I hear from practises that the practise management system do not match up with the stock you actually have. Do you never seem to have the correct stock, it just seems to walk off the shelf, but then orders seem to arrive daily. When a product comes into the practise, do you know how often that practise that product leaves the practise without having a corresponding income or invoice?
It can occur at any time between the product being purchased and it being dispensed. In small animal, the average amount of lost can be as much as 25%. That means 25% of all the products that are bought from the wholesaler are just lost.
In large animals, this can easily be increased to 40%. The management of the management of inventory is simply knowing how much stock is held and how much is required over a defined period of time in the future. Ordering of drugs and supplies is just a small part.
This is just chewing up the levels. The goal is to have enough but not too much of the right products all of the time. This may seem obvious, yet what we tend to do is stop to visual fullness, by promotions, let practise management systems replenish on a one in, one out model.
These methods tend to suggest that stock levels are static and don't change, but the risk is they will generate replenishment orders too frequently and will mask decreasing demand. Wouldn't it be great if we could forecast what we need in the future? Using and understanding the correct terminology is really important when talking about stock.
By using the correct terminology, it will have a positive impact on the practise and also help you understand later on in the presentation. The average daily quantity of a product that is dispensed is called the day of inventory. It's, it is used based on previous demand from historical data.
When looking at the stock on a shelf, the only way to determine if that is enough is to know what a day of inventory is for each product and convert that to the amount you have on the shelves into the number of days that stock will likely to cover. Imagine walking to a practise with 3000 pounds worth of advocate large dog on the shelf. The only way to determine if this is an appropriate amount is by asking how many days' worth of inventory is this.
3000 pounds might be a month's worth of stock, or that same amount might only be two average days' worth of stock depending on your practise. Demand refers to the quantity of a product desired by all end users. If demand is high, you will need a corresponding high quantity in stock.
If demand for that product decreases over time, you might become overstocked unless you decrease the product amount by letting the stock run a bit lower as time passes. If demand is volatile product or seasonal, you're at risk of going out of stock during demand periods unless you balance safety stock with a good replenishment process. We'll talk about this later on.
Product value, this refers to the value of the product. It is not only defined in monetary worth, but also how important it is within the practise. The potential potential for revenue and also the demand in practise.
Inventory term refers to the amount of times each product in the inventory is sold or used over a defined period of time. This is usually given as a number of inventory turns in a year. Some products will turn quickly and some will turn slowly.
On average, inventory should should turn no lower than 12 to 3013 times per year. Slow turns will lead to expiry or lessons and cash flow issues. Cash flow is the real or virtual movement of money in and out of practises.
In very basic terms, cash tied up in stock is not flowing and therefore not available to pay for equipment, investments, other stock and payroll. Inventory shrink, also known as shrinkage. This is when a product that is no longer available for sale or use or when there is no corresponding invoice or income.
This is gonna happen at any point during purchase and leaving the practise. Most practise will have some inventory shrinkage. As I've already mentioned before, some animals, small animals.
This could be as high as 25%. A large animal as high as 40%. This means about 25% of the products received in the practise will not be invoiced appropriately.
Instead, these products will have been used in-house, forgotten to be charged, wrong pack size dispensed, incorrect item invoiced, as well as stock going out of date and wastage. It can also occur when we fail to record products that have been invoiced to the practise, but not arrived from the wholesaler. Often, if you don't request the credit, the supplier won't know that you didn't receive the product.
This means you pay for it, but you don't get it. The count frequency refers to the amount of time, how often the count, the stock is counted. This is listed in days, so it can be used in the calculation of stock levels.
The key here is the defined period of time and being constant in the time between counts. We'll discuss this later. Safety stock is inventory that is carried to prevent a stock out.
This is excess inventory held beyond the estimated demand and acts as a buffer for spikes in demand. Lead time is the worst case scenario for the difference in time between realising that you need to place an order. To placing the product in usable stock.
Lead time includes the time it takes to order a product for a supplier to deliver the product and the product to be received into stock. This is usually list in days. For example, lead time from MWI Animal Health is one day most of the time, next day delivery.
However, because an order is placed on a Friday, it will be delivered on a Monday. If your practise is open on both Saturdays and Sunday, your lead time from MWI Animal Health would be listed as 3 days. If you only place an order once a week, your lead time will be 7 days.
By using this worst case scenario, you better cover yourself when working out the stock levels. Appropriate stock levels, also known as par levels. The quantity of stock suggested to be kept in practise based on demand from historical data.
This is stated in minimums and maximum levels because stock is not static. It flows in and out constantly. By using a single numerical goal for stock replenishment orders, it will generate replenishments too quickly and will mask decreasing demand.
By setting minimum and maximum stock levels, we know that when stock levels fall below minimum, a replacement replenishment order for that product will be generated to replenish the product up to at least the maximum following receipt of the order. For example, if the minimum is 5 and the maximum is 8, and you have 4 on hand. You should place an order for 4 additional units.
However, if you can only order the product in quantities of 5, you should place an order for 5, and you will have 9 in stock following the receipt of the order. Economic ordering quantities is the most cost effective quantity for a particular product, and it balances all logistic costs ordering, shipping, your receiving process. Against holding costs, storage, cash flow, opportunity costs and risk of loss.
In this section, we'll be discussing implementing procedures and processes. With all these changes, they need to be specific to your practise, and we will discuss through how to possibly make these changes and some of the obstacles you may feel that you face. By having clear standard operators procedures written out for every area of inventory management, it will make sure there is a constant approach.
Everyone will know what is expected. These will also provide guides if new people start or when somebody is off sick. The person writing the SOP should be the person who performs the task regularly.
The SOP should be checked by someone new to the task to make sure the information is clear and detailed enough. It should also be checked by someone who knows the task well, so they are able to point out anything that might be missed. Once the SOP is completed, it should be put into circulation.
One way of making sure all the staff have read the document is by asking staff to sign to say they have understood it. It needs to include the method of carrying out the procedure in sufficient and in logical steps. A list of personnel by job description who can carry out the procedure.
They should also include the person in overall control and who any issues should be reported to. The date that the SAP has been implemented. And also a date for review.
If something goes wrong when a member of staff performs an activity. The SAP is not detailed enough and should be re-reviewed. If you think about your own practise, it's a good idea to draw a map and look at where stock is being held.
Think about how many locations multiple items are in consulting rooms, the prep area. The area that many people forget about and where a lot of stock is held is the waiting room. But don't forget about the kennels.
How many open bottles of meticam and antibiotics are there within your practise? By having a primary location and then secondary locations benefit the practise in the sense of knowing exactly how many and of which product. It keeps an eye on the 28 broached bottle rule.
Reduces products having no traceability and therefore stops shrinkage. When stock is transferred to a secondary location within the practise, use a solid stock transfer system. Make sure there are adequate SOPs in place and everyone involved knows about the process.
Having one primary location also allows for efficient grouping. Orders. This just shows how we can start with the primary location, and then it feeds in the demands of the consulting room, cars, theatre, client orders and prescriptions.
Although you cannot rebuild your practise, having one central location for stock. Where everything can be dispensed from will prevent having 3 open bottles of Meticam, 3 open bottles of other of antibiotics, as well as having multiple locations that stock is stored in and can easily go out of date, as it is not rotated enough. The aim is to free up time managing stock.
And allowing a nurse or a person in charge more time to complete other areas of their job. It also means that bigger orders are being placed rather than several daily orders from several locations. One delivery to one area to be received.
We suggest only one order from the primary location is placed and secondary locations feedback products requests needs to the primary location. This will reduce multiple or excessive orders and the risk of inventory shrink. Stock transfers.
This is a very important concept of inventory management and one where the procedure should be well refined and understood by everybody in the practise. We suggest the use of logbooks to record all stock transferred. Often practised are only managing stock transfers on computer systems.
This will then rely on the person transferring the item to be able to find a computer to log on, transfer the correct item. And quantity to the correct location. By going back to using a book, it can make sure that the stock is that it can be easy and quick for someone to write down the items and batch numbers and where the stock is being moved to.
And then the item can be transferred onto the computer system by a specific role. If a practise management system is being used to move stock, this process should be done regularly so the items are in the correct location ready to be used. The best practise would for staff to be sending an email with this, with what they would like to order.
It can then be put ready and the stock transfers already taken place. We typically hear in practises, particularly large animals, that vets come in and do a shelf sweep of all the products that they think they might need and never keep a record. So when you come to get the product, it's all gone because the vets have taken them.
We also frequently get told that vets forget about these products in their cars and consulting rooms and they end up going out of date. We believe that the more you can increase the traceability of the product, the less likely it is to have increased shrinkage. We also think the emphasis on products being returned back into stock needs to be increased.
Whoever is in charge of stock needs to know exactly what is stored in their locations, so that ultimately they are responsible for the stock. Products being brought out of cars and left on the side and put back on the shelf is not good practise, and not knowing the saleability of the products will also cause inventory shrink. This is an example of having a logbook.
Make sure all the lines are clearly drawn in. So that everybody puts the detail in the correct location. It should also be used for internal usage and usage during the hospital, so every every item is deocked correctly.
When returning stock back into the pharmacy, have clear guidelines about the product expiry, how much time you would like to have left on the product without before it is returned. It's better to have a product back with more than just a few days left. Ras than responsibilities which will suggest who has access, but ultimately the reason for this is having multiple people involved in each role increases the risk of human error with duplicating orders.
Limiting the access to this process will increase the traceability of a product and over overall reduces inventory shrink potential. One practise that we've been working with used to have 4 to 5 people involved in their ordering. Because of the size and layout of their practises is now limited to 3 people.
Who look after only their location, pharmacy, theatre and reception. Errors and duplicate orders have decreased dramatically, as have stock levels and out of dates. Before we get into the specifics, it is really important that we discuss empowering the right person into the right role.
And I'm sure you all know, having someone take ownership of a responsibility or a process will empower that person by taking the initiative to drive the success of the task in hand. Typically, the infantry manager in a practise will have inherited the responsibility of the pharmacy from their predecessor. And they feel as if they're just winging it.
They have no idea if they're doing the right thing or not. This is because the key thing they lack is handover in the correct terminology. It's difficult to run a handover on a process without defining the processes, hence why we ran through terminology earlier.
Now it's important to note that just because a person has a role, it doesn't mean that they want to continue doing it, or are right for that role as it develops. I've spoken with many practises where the wrong person was in the role, and none of these practises have had any significant success. So it is really important that we focus on and discuss with the person in question, are they right for that role.
When we look at the different areas of inventory management, receiving, counting, ordering, and dispensing, we suggest a different person for each role. We understand that this isn't always viable in every practise. For each of the roles, an SAP should be written out incorporating the basic who, what, when and where details.
It should include the practise procedure from when an order is received, the control of inventory all the way until it is sold and when an order is made. This allows for inventory system to run constantly and efficiently and with accountability. You'll also play a role in the event of someone being off sick or on holiday, or if a new person steps into a role, there's a foolproof guide of how to do it.
The SOPs need to be reinforced over time. Compliance levels will start high and then dip down. This is just human nature.
By empowering people with responsibility, we would create accountability. If you're unable to get different people for every single role, we would suggest that at least receiving and ordering are undertaken by totally different people. The overall purpose of the receiving role is to decrease the likelihood of human error.
Receiving an order is the first point of contact the product has with the practise, and it is therefore critically important that no errors are made here, as it will have effect right through to dispensation. Only when a product has been fully assessed and checked from the invoice can the shelves be replenished. When replenishing the shelves, the first expired first out method should always be adopted.
This means that the oldest stock and the stock most likely to expire first or be used first, while newer stock is only dispensed or used earlier when earlier stock has been depleted. This method of stock rotation reduces the risk of expired product. It is best practise if all receiving should be done blind.
Blind receiving is when a different product receives an order to the person who places it. When we look at this slide, we realise it does not make sense. But very quickly our eyes and brains allow us to read it.
This study was done at Cambridge University. Your eyes see what your brain expects to see. The reason for this is that we do not know what to expect.
You are more likely to thoroughly check products resulting in human errors. Let's put that into context. If you know you've ordered 5 bottles of metal and 32 mLs.
The next day you come to receive the order, see the Metacomam in the tote without thinking about what you've discussed. What do you expect to happen? Counting is not just counting the stock on the shelf, but it's also assessing the sailability of each item.
Is it damaged, still in date? Has it been stored correctly? Counting should always be done after the shelves have been replenished and the order received.
I will discuss a way of making counter quicker later on in the presentation. An NHS study shows errors made during dispensing drugs in hospitals are increased if 2 or more people are involved. Why?
Because people will often check mistakes. Have a checklist, right quantity, right dosage, correct pack size. This can be one of the reasons why your practise management system never matches up.
Make sure the points of sale for each item is clear and correct. If you have 4 times wormer in a packet, is this charged per packet or per tablet? If you have no 6 packs of advocate, will somebody dispense 2 by 3 packets, but dispense on the practise management system, 1 by 6 packet?
1 tray of food or 1 tin? It's so easy to make mistakes. Packaging of pack sizes are very similar.
How often is the wrong pack size given out? Customers only normally let you know if it is not in their favour. Make sure that sizes are in different places and not next to each other.
Perhaps making sure that large sizes are highlighted so everybody knows that they're giving out a 6 pack over a free pack. Ordering is simply a way of chewing up what products you have in stock right now. To what you're going to need in the future.
The only way to complete this should only be completed once the shelves have been replenished and a count has taken place. How do we know what to order without understanding where the stock levels are now? Knowing stock levels empowers practise to make an educated decision around order quantities, so they don't become overstocked or risk going out of stock.
This is so critically important within the practise. Everybody in the practise is associated with stock somehow. But so often we hear it wasn't me or it was not my responsibility.
Lots of practises we work with currently are having ongoing issues. With staff not following transfer procedures, especially around vet's cars, resulting in massive losses, massive losses. Which is a shame as the inventory managers are working so hard to make improvements in the areas they can control.
Well, I wouldn't expect everybody in the practise to remember all the details of why we were, why. We as a team are making changes. We do expect that everybody to be on board and work in line with the new processes that are being implemented.
If it doesn't happen. The process will fail and the wrong people will get blamed. The key here is reinforcements, have practise meetings and your run frees.
Before we start, it's really important for me to state that we're not suggesting that your choice of products and availability is being restricted. This is simply an area that is very important to cover and discuss to show potential benefits of reducing the amount of similar products within a practise, if at all possible. We understand that everything we suggest needs to work with your practise, so please don't think we're trying to tell you what you can and can't have on your shelf.
This section is a way of us suggesting different ideas and ways of doing things to help you in your practise. Number one, consolidate your purchases of the same product. We typically find that practises have 8 to 9 different flea and tick products, 5 to 6 different NSAIDs.
While we understand this is a common way of doing things, weigh up all the benefits of having all of these products in the practise. If you had 5, what would the implications be? Bearing in mind that you can get products the next day if someone requests it.
9 different flea treatments means that you have 9 times the amount on your shelves. You need to work as a team and decide what you do and don't want on your shelves. Implement a box per patient on special orders and products.
So if Mrs. Jones wants 1% per pet. Of a certain flea treatment and it only comes in a pack of 3, she will have to buy the whole box.
Don't expense that one per pet. You will need to educate your patients, and if there is a particular product they want or need. And that you don't actively stock, you will need to give you adequate time to get that product in.
How many practises have a 24 hour lead time on prescription? Does this actually give you enough time to actually order the product and get it in? By changing your prescription lead time.
For pet foods and drugs. It is a bit hard, and it will take a lot of effort, but it's worth it in the end. You may have more space overall and then there'll be less hazards.
By consolidating the amount of variations in the physical amount of each product on your shelf, you're enabled to reduce the chance of a product running at the risk of going out of date or being unsalable. If you only have a small variety and amount of products in stock, opportunity costs are decreased. If you get another product or brand variation.
You are able to quickly sell and shift the ones on the shelves to the new product, meaning none of you. None of the ones you want to run down and discontinued are likely to be wasted because you've been strict with your levels of variations. You're able to quickly adapt to this change.
Effective pharmacy management is also stocktaking as well. Having less money tied up in products means more cash available for the product practise to use or reinvest. The aim is to improve the cash flow by keeping in less of the high value stocks, but ordering more, but ordering it more often and keeping in more of the low value stocks and ordering it less often.
If demand is high, you will need a corresponding high quantity in stock. If demand for a product decreases over the time, you don't become overstocked unless you decrease the inventory of that product. If demand is volatile, sporadic or seasonal, you're at risk of going out of stock during demand peaks.
By using historical data, we are able to determine future trends. The reason why we forecast is to reduce excess stock. Ensures we have enough stock to meet our demands, reduces out of dates, increases agility.
And reduces wastage. By developing this analysis allows you to categorise your inventory based on its value to the practise. This analysis is a great prioritisation tool for time management.
When we were discussing demand, we touched on the fact that most practises do not have a clear understanding of how much products they keep in and their importance and value within the practise. This means that they may have products which dispose them to shrink. They don't know the demand of these products and if they are appropriate.
Of the lines purchased within a veterinary practise, only 2 to 3% make up 30 to 40% of the total spend within a small animal practise. In large animal practise, 4 to 5% of the lines purchased make up to 40 to 50%. So this means that we're actually ordering much the same stock each week.
Beginner developing a system for items that account for the top 20% of revenue, value, or consumption within your practise. Once you have the top 20% under control, you can work your way through the remaining 80%. We recommend doing this in stages.
The A products are high value, high volume pharmaceuticals, for example, vaccines, fleas, products, wormers. The be product are mid value, mid volume pharmaceuticals. Or high volume consumables, for example, prescription diets, flimazole, theta.
That I did. The seed products and most consumables, low value, low volume pharmaceuticals. These are things like cotton wool, syringes, random drug products you just keep in stock, blood transfusion sets, urine sampling kits, barium, those sort of things.
Once we've set our ABC analysis, we can then work out the count frequencies and set up par levels based on these. When we went through the terminology earlier, I've already just about power levels. We use the minimum maximum because this will allow for fluctuation in demand, allows demand to be tracked.
Remember what happens with a single numerical goal. Avoids going out of stock and avoids becoming overstocked. And therefore increasing the amount of out of date, the risks of out of date.
To work out the minimum, we suggest the number of days between the accounts. Add this to the safety stock and lead time and times this by the daily average for each product to work out the minimum. For the maximum, again, it's the number of days between the count, add to the safety stock.
Plus count frequency times by the daily average. You'll find that with seasonal products, you will need to change your par levels in accordance to how often they're used. So things like Apaquil, you're more likely to use this in the summer, so you'll need to increase your par levels and also the vaccines that are used for the lambs as well.
Now each product has appropriate minimum or maximum levels, the category and category selected for each product. We can determine, this would determine your count frequency, so we can now start the cycle counting. Remember, we define counting as confirmation of what you have in stock, including assessor assessing the quantity, dating, efficiency and saleability of each item within the practise.
We've included AA products. These are products that are vital to the practise. We would only recommend that you have about 10 of these in practise.
By dividing the products in your inventory into weekly tasks, you're able to develop count sheets. On a weekly basis, you will count all of your AAs, half your A's, quarter of your B's, and 1/12 of your C's. Over a 12 week period, all of your AA's will have been counted 12 times.
All of your A's 6 times. All of your B's 3 times. All of your C's will have only been counted once.
At the end of the 12 weeks, we then cast out the cycle again. All of your inventory will have been counted once, at least once during that 12 week period. Count sheets can be developed in for for the different locations.
So one day a week, each each location can be counted. For example, to count the cars can be. Cars can also have their products checked based on the ABC analysis.
If you decide from your 9 different flea products you only want to keep 1 spot on and 1 tablet, there should be a plan to sell and use these products before they go out of date. These all need to be reviewed regularly. Make sure you have time allocated.
So it is always done on the same day. If someone is on the phone and it is non-urgent, they should be told by the receptionist to call back once the count has can be completed. Vets shouldn't be hassling nurses to get things done.
This is one of the principal things that many practises struggle to believe will happen. However, every one of our existing customers doing inventory management have this protocol in place. It becomes set in a way of life and interestingly, the practises recognise that time and efficiently saved by doing it.
To begin with, the account will be slow and very, but very quickly because it's done regularly. We know that the staff are able to process it very quickly. If you're now counting your stock on a regular basis, there is now full traceability.
You will have two points in time where there have been physical counts of stocks. You can see between those dates, how many have been invoiced and used and how many have been purchased. If the practise management system is being used to manage stock, this should be reconciled against the count.
Remember that the count is only correct at the point of time that it has taken place. Stock should not just be altered. A reason why there is a difference should be discovered.
As stock is not only being counted, it is also being checked on a regular basis. This will highlight any stock that is short dated, so a plan can be developed to use it. Stock that goes out of date needs to be assessed as to should it be restocked.
Due to the ABC analysis, we are able to now stock the correct levels of stock. We know which products create the most revenue, and we know which items to sell. By cycle counting and setting par levels based on minimum maximum, you will no longer be replenishing on a one in, one out system.
Larger orders can be placed once or twice a weekly. If the order is generated by a system, remember that this is just a suggested order. There may be a reason why you've suddenly had spike in demands, but equally, if you are altering an order, make sure the amount being received or carried through to the next count.
By placing larger orders, it will mean that orders are being received into the practise list. The receiving process, I've already said, is one of the most important parts of the process, and time should be set aside to make sure that the order is checked, unpacked and received into the practise correctly. It is really important that items received into the practise are correct.
How do we know if we need to improve if we don't know where we are now? We're gonna look at the cost of goods as a percentage of the revenue, monthly versus budgeted spend, purchases. Versus retail sales.
For example, if a weekly cost of goods for a practise is 5000 pounds and the overall weekly revenue is 10,000 pounds, this would mean the cost of goods from revenue is 50%. Essentially, the practise only has 5000 pounds left to put towards other overheads, gas, electricity and payroll. This often means that the practises were left with little profit or revenue and can sometimes even be at a loss.
As we discussed earlier, good profitability allows practises to reinvest in other areas of business. In a veterinary practise with a good good mix of services. A good goal is 15 to 20%.
As we discussed earlier by categorising your goods and concentrating on the top 20% and working on these products, this will help you increase your cost of goods as a revenue. Budgets are there for a reason and will enable a practise to remain profitable and help to limit costs. Budgets give you a guide of how to behave in the future.
This works the same for your personal finances. This is a simple way to monitor practises spend and will highlight areas of improvement. Retail products have a tendency to stay on the shelves a little longer.
Changes in demand, popularity, or offers will have will have an effect. This helps to analyse which products are being kept in stock and in the right product quantities. Retail items are unaccounted for most commonly than pharmaceuticals.
If purchases are increased, sales are decreasing and the products are in not physical view of the practise, where are they? Thank you very much for listening. If you have any questions at all, please feel free to contact me.
My email there is on the shelf and I can happily answer any questions that you may have.
