Key takeaways:
- Poor inventory management is costly for veterinary practices
Inefficiencies such as daily ordering, wasted staff time, margin leakage, and holding excess backstock can cost practices up to $84,000 per vet per year1. Beyond financial loss, poor inventory management reduces time available for patient care and client service, clinics see 3-5 hours per week wasted. If your team are spending time four days a week ordering and unboxing orders, this is time wasted that could have been better spent on revenue-generating activities and looking after patients.
- Tracking the right metrics is critical
Understanding key metrics such as stock turns, slow-moving/obsolete/backstock (SLOB) items, and the true cost of goods (including rebates and discounts) is critical. Practices should develop clear procurement guidelines and review their top 100 items regularly to stay efficient and profitable.
- Use cyclical stock takes instead of big annual counts
Rather than doing bulk end-of-year stock takes, small daily or weekly cycle counts (5–10 items at a time) are more effective. This approach improves data accuracy, picks up missed billing early, and helps move practices toward automated ordering.
- Leverage your practice management software to reduce errors
Veterinary teams often underutilise their practice management system (PMS) and related tech tools. Using barcode scanners, stocktake apps such as the upcoming Covetrus Ascend Extend app, and pill-counting tools reduces human error, while regularly running PMS reports (e.g., stock turns, negative stock) helps detect problems early and protect margins. The integrity of the data inside your PMS is critical and should be reviewed regularly.
- Share responsibility and keep training the team
Inventory management should be a team effort, not just one person’s job. Training staff on both the fundamentals of inventory and how to apply them in the PMS builds resilience if key staff leave. Provet’s Cramton Consulting Group (CCG) also have deep experience in supporting practices with inventory management best practice and audits. Practices should also stay proactive by maintaining strong supplier relationships and keeping up with evolving technologies.
Source1 Crampton Consulting Group.
Resources:
CCG inventory management audit and training
CCG’s top 10 recommended inventory management strategies
Covetrus Ascend, the modern cloud-based veterinary practice management software with a dedicated stock control app