Table of Contents

• Preface xv
• Acknowledgments xvii
• About the Companion Website xix
• 1 Introduction to Inventory Management 1
• 1.1 What No One Told You During Your "Training" as an Inventory Manager 3
• 1.2 Inventory Can Be Hard But It Matters. Here's Why 4
• 1.3 What is the Impact of Inventory Management on Our Practice? 4
• 1.4 When Do People Look to Reassess their Inventory System? 7
• 1.5 Inventory Goals 8
• 1.6 The Three Mindsets for Inventory Management 10
• 1.6.1 Mindset Exercise 11
• 1.7 The Role of an Inventory Manager 12
• 1.8 Qualities of an Inventory Manager 16
• 1.9 Creating an Inventory Team 18
• 1.10 Getting Your Team on Board 19
• 1.10.1 Co-creating an Inventory Improvement Plan 23
• 1.11 Best Practice Recap 23
• 2 Your Inventory Ecosystem and the Flow of Inventory Through your Practice 25
• 2.1 Your Inventory (and Practice) is an Ecosystem 27
• 2.2 Introduction to the Flow of Inventory in Your Practice 30
• 2.3 Communicating with Your Team 33
• 2.4 Inventory Manager Spotlight 34
• 3 Introduction to Demand Forecasting and Reorder Points, the Foundation of Our Ecosystem 35
• 3.1 Author's Note/Story 35
• 3.2 Introduction to Demand Forecasting 36
• 3.3 Demand Forecasting and Purchase Planning 37
• 3.4 Determining When an Item Needs to be Ordered 38
• 3.5 Utilizing Your Sales and Usage to Forecast Demand 39
• 3.6 Methods for Calculating Reorder Points 40
• 3.7 Reorder Point Exceptions 51
• 3.8 You've Calculated Your Order Points … Now What? 53
• 3.9 Calculating Reorder Quantity - How Much to Order? 63
• 3.10 Calculating the Minimum and Maximum Level 66
• 3.11 Calculating the Economic Order Quantity 69
• 3.12 Putting It all Together 70
• 3.13 A Quick Story from the Author 73
• 4 Efficient Ordering and Replenishment 75
• 4.1 The Ordering Process 75
• 4.2 Replenishment Techniques 76
• 4.3 Creating an Order Schedule 77
• 4.4 Ordering Workflow 78
• 4.5 Strategies for Navigating Backorders 81
• 4.6 Utilizing Purchase Orders in Your Practice Management System 84
• 4.7 Special Purchasing Considerations 84
• 4.8 It's More than Just the Cost of an Item 89
• 4.9 Choosing and Evaluating Vendors 91
• 4.10 Creating and Using a Budget 92
• 5 Receiving and Restocking Your Inventory 99
• 5.1 Author Note 99
• 5.2 Receiving Inventory 100
• 5.3 Guidelines for Receiving and Restocking 100
• 5.4 Setting up Your Software to Optimize this Process 106
• 5.6 Invoice and Statement Processing 108
• 5.7 Putting It into Practice 110
• 6 Organizing, Storing, and Protecting Your Inventory 111
• 6.1 Author's Note 111
• 6.2 Why a Tidy Inventory and Pharmacy Matters 111
• 6.3 Organizing Your Pharmacy 113
• 6.4 Creating a Central Storage or Hospital Supplies Storage Area 114
• 6.5 (Re)Organizing Areas of Your Practice 115
• 6.6 Integrating Physical Reorder Points and Inventory Organization 117
• 6.7 Protecting Your Inventory Investment 124
• 6.8 Strategies for Safeguarding Your Inventory 128
• 7 Strategic Pricing for Your Inventory 131
• 7.1 How Your Practice's Values and Pricing Intersect 131
• 7.2 Introduction to Pricing Your Inventory 132
• 7.3 Prescription and Dispensing Fees 134
• 7.4 Pricing Models 136
• 7.5 Pricing Formula Overview 142
• 7.6 Pricing Concept: Flat Fee or "Weight Bucket" Injections 147
• 7.7 Profit Goals 147
• 7.8 Pricing with Your Practice Management System 148
• 7.9 Increasing Prices as Your Costs Increase 149
• 7.10 Putting It into Practice 150
• 8 Selling and Consuming Your Inventory Appropriately 155
• 8.1 Why Selling Your Inventory Appropriately and Accurately Matters 155
• 8.2 Impact of Missed Charges 155
• 8.3 Leveraging Your Practice Management System 156
• 8.4 Auditing Medical Records 159
• 8.5 Using Barcodes in Your Inventory 161
• 8.6 Inventory Dispensing Cabinets 162
• 8.7 Using an Online Pharmacy 164
• 8.8 Tips for Keeping Your Practice Management System Accurate 164
• 8.9 Putting It all Together 166
• 9 Optimizing Your Inventory 169
• 9.1 What Does It Mean to Optimize Your Inventory? 169
• 9.2 Evaluating Your Products and Items 169
• 9.3 Adding New Products 175
• 9.4 Cycle Counting Your Inventory 176
• 9.5 Creating a Routine with Your Cycle Counts 182
• 9.6 Monitoring and Interpreting Discrepancies 183
• 9.7 End-of-year Counts 185
• 9.8 Prioritizing Your Inventory and Using an ABC Analysis 187
• 10 Why the Wheels Come off the Bus and How to Fix It 189
• 10.1 What is an "Out-of-control" Inventory? 189
• 10.2 Is "Fixing" Your Inventory Worth It? 190
• 10.3 Fixing Your Inventory 191
• 10.4 A Surefire Way to Keep Your Important Items in Stock 195
• 10.5 Why the Wheels Come off the Bus 197
• 11 You're Brand New… Now What? How to Set Up Your Inventory 201
• 11.1 You're a Brand New Inventory Manager … Now What? 201
• 11.2 Author's Note 203
• 11.3 You're a Veterinarian Starting a Brand New Practice …Now What? 204
• 11.4 Getting Your Inventory Started Overview 205
• 11.5 Example: Setting Up Your Inventory Action Plan 208
• 11.6 You Just Purchased an Existing Practice … Now What? 210
• 12 An Introduction to Controlled Substances 213
• 12.1 Author's Note 213
• 12.2 What is a Controlled Substance? 214
• 12.3 Controlled Substances and the Cycle of Inventory in Your Practice 215
• 12.4 Forecast and Purchase Planning 216
• 12.5 Ordering and Replenishment 217
• 12.6 Receive and Organize 218
• 12.7 Strategic Pricing 220
• 12.8 Appropriate Inventory Sales and Consumption 220
• 12.9 Biennial Inventory Requirements 222
• 12.10 Auditing and Reconciling Your Controlled Substance Logs 222
• 12.11 Other DEA Regulations 224
• 12.12 What Next Steps Should You Take? 224
• 12.13 Author's Note 225
• 13 Maintaining Your Inventory 227
• 13.1 Author's Note 227
• 13.2 How to Maintain your Inventory 227
• 13.3 Creating Standard Operating Procedures 228
• 13.4 Introduction to Key Performance Indicators 233
• 13.5 Inventory Key Performance Indicators: Cost of Goods Sold (as a Percentage of Revenue) 237
• 13.6 Inventory Key Performance Indicators: Inventory Turnover 241
• 13.7 Inventory Key Performance Indicators: Value of Inventory On Hand 245
• 13.8 Inventory Key Performance Indicators: Number of Adjustments or Variances in a Time Period 248
• 13.9 Putting It All Together 248
• Appendices 251
• References 265
• Index 267