feature // practice management
by John O’Brien
V
arious models have been depicted over the years to show that your clinical
supplies spend should equate to approximately six percent of your total
revenue for optimum efficiency. I have reviewed many of these studies, and
have witnessed very efficient practices running at the six percent target. This
metric is a good bar to measure your purchasing efficiency, and most importantly, raise
the red flag if your variance is too far above or below this six percent metric. A large
variance is a sure sign that you have a process breakdown. With this metric in mind, the
following article is intended to give you common sense purchasing tips on how to positively impact your supply spending, thus, keeping more money in your pocket.
The purchasing process should be just that, a process. To the extent you understand
your activity well enough, establish a monthly ordering process and budget.
Take into consideration the following:
• Order no more than twice a month.
• Create a routine, working the process at the same time every month.
• Attempt to keep the number of suppliers from which you purchase to a minimum.
The benefit of this strategy is multifold. It leverages your spending with minimal
sales representatives/companies. This will allow you to negotiate for better pricing from a
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Table of Contents for the Digital Edition of Orthotown October 2013