If you want your business to flourish, then keeping the supply costs in dental practice reasonable is often the bottom line. Looking for reasonable dental consumable suppliers is the first-hand priority if you don’t want to poke a hole in your pocket. However, it is often easier said than done. There are some practical guidelines, which will keep the supply costs towards the minimum rate.

Recent studies have shown that an average dentist spends somewhat around 6% to 6.5% of the total expense on supplies. It might seem to be a small percentage. But, it is quite surprising how quickly this percentage will creep into double digits and impact the practice’s bottom line.

Managing practice supplies effectively will help in reducing waste, lowering costs and then increasing the profitability rate at the same time. Whether you own a small, medium or even a large practice, getting the best prices for quality supplies from reputed dental consumable suppliers can be quite challenging to cover.

Listed below, are some of the practical strategies, which will help you to manage the practice supplies and negotiate the right price.

Focusing on the 80-20 rule:

This 80-20 rule is one economic principle that states that 80% of the outcome results from 20% of the causes. It is also considered the Pareto principle, which will help businesses to allocate necessary resources to most major factors.

  • Dentists will use 20% of the purchased dental supplies 80% of the time.
  • For general dentistry practice, these supplies will include composites, cement, anaesthetics and impression materials.
  • When you craft a formula based on the frequency of practice procedures, it helps in reducing waste, limits supply variations and will build purchasing power.
  • Limiting the supply selection to a few options will help in building up volume and lowering the price of the final unit.
  • For the infrequently performed processes, it really does not make sense to purchase required supplies in volume from dental consumable suppliers.
  • For streamlining the supply orders and optimizing the volume discounts, you have to review the supply orders of the previous years and their inventories properly to identify the under ages, overages and usage changes.

Dealing with the regular review process:

Once you have crafted a formula based on the 80-20 rule, it is time to add a monthly or quarterly review session after working with the dental consumable suppliers for some time.

  • The main goal is to identify the issues and then come up with the right adjustment plans.
  • There are going to be fluctuations or changes during a given quarter because of staff changes, patient needs, technology or compliance requirements.
  • With a regular review process in place, you get to fine-tune the supply needs and control unwanted spending at the same time.

It will act out like a built-in due diligence to help manage supply inventories from dental consumable suppliers and orders. It can also help in eliminating redundancy, reduce the amount of waste and increase the current purchase power.