#900: Manage Your Inventory Like a Pro

Dental A Team Podcast

So much of practice profitability comes from tracking supplies and overhead. Kiera pulls back the curtain on how practices can keep track of supplies, avoid shortages, and stay within budget.

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Transcript:

Kiera Dent (00:00.59)

Hello, Dental A Team listeners. This is Kiera and welcome to the podcast. I hope you guys, it's crazy to think I've been doing this podcast for so long and I still get new ideas and that's thanks to you guys. So just so you know, the podcast is built for team members and teams, doctors and owners by team members and practice owners to give you guys the best tips and tricks to be able to share from hundreds of practices across the nation and across the globe to give you the shortcuts to success and to give you a community so you don't feel like you have to do this alone.

I was at my, my gosh, I'm going to say the words on the podcast. You guys, you're going to find out how old I am. I went to my 20 year high school reunion. I kid you not. And I was terrified to go. none of my friends from high school that I hung out with in high school were going. So I was going kind of solo and, and by like none of my friends, did know people, but they weren't like the close friends that I'd hung out with all the time. None of them were going. And I was super stressed and I didn't know if I wanted to go. And I almost bailed

about 20 times. And then I decided, you can always just leave. Just go say hello. You've already paid. It's right by my parents' house. It's not far away. And it was interesting because there was a girl that we weren't necessarily close in high school. I knew of her. She knew of me. But it was fun because she built a business. I built a business. And we were talking because when you're business owners, know there's not a lot of people you can actually geek out with all the time and talk to them about business strengths and weaknesses

She said to me, said, know, Kiera I'd really love to get with you more often because I feel like as business owners, we need that community and we need people that are like us to help us know that we're going through it. And I just thought, I am so lucky because my dentists do have a community and the dentist I consult have a community and they don't have to do this alone. And they're like, I've literally been there, done that and done it successfully. And our team has been there, done that and done it successfully. And we're able to share with you all the tips and all the tricks and all the things.

So that way you don't have to go through the hard things. If I could find somebody who has grown a consulting company, which I did, that's who I hired as my coach. but really just like leaning in. And then what I decided to do is our dentists, we actually meet the first Tuesday of every month. call that think tank Tuesday for our one -on -one clients. And then our group mastermind, which is so freaking fun. It's a really, really, really, really awesome community that I'm loving. And they get.

Kiera Dent (02:21.448)

way more access than they even do on one -on -one. But every single week they come together for Ask Consultants Everything. And then we also have a mastermind where they get to come together as well. And my biggest piece was I was thinking back to why did I join Tony Robbins? And I thought I joined it for Tony Robbins, but I realized I joined it for a community of people that push me, that I'm not the smartest one in the room, that people can help me run my business in ways that I don't even know because community is what we're all here for. And so for you guys,

to just think like how blessed are we to have this podcast community to be able to come and share from hundreds of practices and get best ideas and to really get out there. Because what I found is in today's world, we don't have to be alone unless we want to. We don't have to do this on our own unless we want to. And I will literally give you every single piece of knowledge that I have anywhere and everywhere to make sure that you succeed and that you've lived the life you want. My goal is to positively impact the world of dentistry in the greatest way possible.

Dentistry is my platform and life is my passion to give you guys the life that you deserve, to give you the team and the skills for doctors and teams to flourish. So today I really wanted to just go through a quick tactical for you about inventory management, which is not my typical podcast style. Normally I'm more about life, but today I thought, let me give you guys some quick tips on how to do supplies and to keep track of your supplies and make sure that we don't have shortages, make sure that we're within budget.

And kind of just helping you and your team get on that because what I found is so much of profitability comes from tracking our supplies, tracking our overhead. And if we can get that dialed in, that's one less thing that we have to worry about. So, Hey, who's for ease. I'm here for ease because at the end of the day, we can do it the hard way or we can do it the easy way. And I would love to share with you the fastest, easiest tips I've learned. And then also what I expect from you as the community is if you have ways that I'm not talking about on the podcast, please email me. Hello @ TheDentalATeam.com

I'll either bring you on as a guest or we can take some of your ideas if you don't want to be a guest and share it because I believe that yes, while you're consuming and receiving, it's also important for you to give back. And I believe that the secret to living a fulfilled life is giving back and serving as well. There's so much fulfillment in my life to serve you and to give you these tips and to give you resources from other practices, but I wouldn't be able to give it to you without their experiences as well.

Kiera Dent (04:36.354)

Whether that's you join us and become one of our ambassadors who actually get to help coach some of our doctors. Whether it's you become a client, we're able to help with that. Or you just email me in and share some of your greatest ideas. I would love that. I would love it so much and it will make you feel good because then you were able to share an idea. And everyone thinks their ideas are dumb and guess what? Going from hundreds of practices, most practices are actually not doing it. And some of my best ideas are the simplest things like an office had standup desk for their front office and I thought, gosh.

I wish so many other offices knew that. So no idea is dumb. And I just want you to not feel scared to share. And don't worry, I will always polish it up and make you sound like a million bucks. So you never, ever, ever, ever have to worry. Just email me Hello @ TheDentalATeam .com and be sure to give back. Cause I think that that's a great way for you to also feel fulfilled. So with supplies, number one, I like supplies to be at a four or a 5 % of total collections. So a great thing, there's a supply spreadsheet that I've given to a lot of our offices that we consult.

where it literally is just what are they doing for their ordering and then what is the budget? Because so often, like I was a dental assistant, I would just order what we had always ordered in the past. And that's actually not the best way to do inventory management and that we don't need to. So if we give them a 4%, so let's just make our math super simple. If we're collecting 100 ,000, 4 % is four grand, 5 % would be 5 ,000. And then what they do is, whoever's ordering, they just put it on a spreadsheet, they just deduct it down, and that's our budget for the month.

Now, something else that I love are clear tip out bins. I'm obsessed with going into offices and finding this beautiful blank wall and I found it in every practice. So don't think that your practice can't do it. Sometimes you have to get a little creative, but there's always space for it. But the clear bins, when I worked at Midwestern University's dental college in Arizona, we bought so much extra inventory because we couldn't see things. And think about our houses. Like, yes, we can tuck it in drawers, but we can't see things. And for inventory, we want to be able to see things.

to know how much do we actually have of things. And so even at the dental college, students would stock their drawers and we would go through so much composite because people would be hoarding composite. And so I'm also not obsessed with stocking rooms a ton, especially if you wanna get your inventory down and get your supplies lower, which you can absolutely do. And so what I love to do is have one, the spreadsheet and the budget. So whomever's ordering knows exactly how much they can spend.

Kiera Dent (06:54.83)

Let's not have it be free reign. You can also do it for the front office. I know Amazon can really run quickly on us, but make them just track it on a quick, simple spreadsheet. That way we can always watch that and get that in control. I understand that if you order implants, you might need to go higher. If an office is doing implants, usually add together the supplies and the labs. I do about between 12 and 14%, again, depending upon the rest of your practice. I'm aiming for a 50 % overhead, excluding Dr. Pay. So you can kind of play with the numbers and figure

but a good like overall supply budget is like four to 5%. That does include hygiene supplies as well. And front office, I usually give them a half a percentage to 1 % for front office supplies. Again, look at your overhead, look at the percentages. We have an incredible overhead calculator that has it all broken down into the percentages of what we recommend for each category. And then you can use your P &L and plug it in and it's really awesome. So with that said, I love to get that budget set up. And then if we can, let's get those clear,

Clear bins set up so that way we can see. Some offices will draw a line on the bin of like when it gets down to here, this is when we order. So we can visually see and it becomes so fast. You can put tags, there's some inventory management where some people will tag it and then just scan it. Other people have the tags on the bin so it's very quick when we need to reorder, cuts down the time for us. I do really love some buying GPOs. Synergy is one, so be sure to let them know Dental A Team sent you.

I think they're great because they have a whole buying group. It's kind of like Costco where we get cheaper items because we're with the group of multiples. And I think Synergy is one of the best that allows you to still work with your preferred vendors. They do work primarily with Darby. However, with that said, you can still work with most of them and still get discounts. So yes, it might take a little bit of time to get up to date, but hey, if we can buy the same stuff and actually just save ourselves a couple hundred bucks a month or a couple thousand, isn't that worth it? I always say yes.

So that's another thing is to look into that synergy or a buying group such as that. If you have a buying group you love, please be sure to reach out, let me know. Hello @ TheDentalATeam .com. will happily vet them, find out about them and see if it's someone I would recommend to our community. But with that, then what we wanna do is we also wanna make sure that our team knows what our supplies need to be. And then everybody, I really am not obsessed with having things in operatories because if I have to stock.

Kiera Dent (09:11.724)

six operatories with composite that can get very costly. And so also having tubs or those carts, if you don't know what I'm talking about, be sure to reach out. I'm happy to share pictures with you. But cart parking, and so we have like two carts for implants. We've got a cart for endo. We've got our composite, and you can have little tubs or bins. It just has everything in it. And think about how many doctors we have, how many providers. But then we just basically take it from sterile on our tray setup, take it to the room, we clean it all

put it away and off it goes. And then all I have to do is just stock the carts or the bins rather than stocking all the rooms. And I had a practice that we were actually able to cut down their supply costs exponentially due to the fact that we, all we had to do was literally just take it out of the operatories. And we were able to save so much because stocking each room was so costly and I'm having to stock basically six offices versus just having to stock those bins. The bins are also faster because I can look for it. We can fill it. And then it's all in sterile. Everything's there.

You can have drop downs. saw an office that actually had drop down bins. It's like a, I guess a clothing pull down, you know, like in closets where they're really tall. They did that for their sterile and it was amazing because they were able to have all their supplies right there. People were able to then just like restock the bins. And I did this at Midwestern when I was at the college. And what I found was I didn't have to have as many supplies because I was able to see everything. And also we had the tubs and the bins, so not as many things had to go.

And I think that's just a good way for you guys to get the supplies down to keep track the supplies to not have the supply shortages But again visually getting everything out. So if you were starting this sometimes even just in the operatories I do keep my disposables like cotton gauze floss things that we're using all the time that are very minimal cost Those stick in the operatories. You can also get the clear bins and stick them right behind your 12 o 'clock cabinet That way all those things are very easy. You can see them They're not very minimal things that we've got a stock, but really the bins are so easy

Offices love them. It might seem like a little bit change, but it makes it very, very, very simple for it. So a lot of those things, yes, I keep my disposables, my sections in the room. So those things are very simple. We use them all the time. Keep those there and they're not very costly, but the composite, the matrices bands, the impression material, all those things do become a little more costly. And so being able to cut those down really can save and then empower someone, empower them to be your supply champion, empower them

Kiera Dent (11:37.538)

really be able to grow this and to, and get the person who's obsessed with like winning and figuring out how they can make ends meet. They're usually the person who really loves to be over supplies. And then they know their budget, they save the money and they're able to get it. Oftentimes buying deals when like a company has like buy two, get one free, run the numbers and make sure it's actually a good deal. Cause sometimes they're not that good of a deal. So there's my quick tactical practical for you of inventory management. Like I said,

Set up the spreadsheet with the budget, make sure we're tracking it, give the budgets to them, look at your overhead. Then the clear bins are a great thing. You can just Google them. There's a lot of them, like Z -Line, I think, is a company that has them. But just Google clear tip -out bins. They come in multiple sizes. You'll want a nice big wall. You can also put them in the operatories. Take things out of the operatory so it's all in one place. It's easier for people to track and manage. And then give someone the empowerment to just rock it and to make sure that we're never out of things.

I usually used to check my supplies like every week. My supply person usually gets one hour. It can be per week or every other week, depending upon how much you guys need to order. And that usually can keep the order going consistently. Yes, when we run this lien, we do have to order more often. But it's a great way to keep it to where we're not over bulking, over stocking, because we don't want to order as much. And then get into that GPO group buying. like Synergy, like I mentioned, can actually save you a lot of money.

for buying the exact same things you're already doing and you don't have to change. So check them out. Be sure to tell them, Dental A Team sent to you, if we can help you guys with this, get it set up, talk to your clinical team, get them excited and on board. That's what we're here for. And as always, thanks for listening. I'll catch you next time on the Dental A Team podcast.