By implementing these strategies and continuously improving our processes, we can ensure that our inventory management is efficient, cost-effective, and responsive to the needs of our clinics and patients.

Managing and Optimizing Inventory:

• Managing inventory across multiple locations is a complex and ongoing task that demands significant effort and attention. It's an area where we acknowledge the need for continuous improvement to ensure efficiency and accuracy.

Weekly Inventory Checks:

• Our current process involves conducting inventory checks at least once a week. This consistency is crucial to maintain stock levels and ensure that necessary supplies are always available. Despite its challenges, this weekly routine helps prevent shortages and keeps our operations running smoothly.

Role of the Clinic Director:

• The clinic director is responsible for ordering inventory every week. This centralized approach ensures accountability and consistency. Regardless of who performs the inventory count, the same inventory sheet is used across all locations. This uniformity simplifies the process and minimizes errors.

Use of Google Drive:

• We use Google Drive to manage our inventory sheets, allowing all locations to access and share information easily. Each clinic has its own sheet, but everyone can see and update inventory levels, facilitating collaboration and transparency.

Minimum Quantity Management:

• We focus on maintaining minimum quantities of essential supplies on the shelf, such as Botox, fillers, threads, and PRP tubes. This strategy ensures that we have enough stock to meet demand without overburdening staff with excessive counting.

Avoiding Overcounting:

• To save time and allow staff to focus on patient care and revenue-generating activities, we avoid overcounting inventory. Excessive counting is time-consuming and detracts from more critical tasks.

Consistent Ordering:

• Every week, the clinic director places orders for supplies. This regularity ensures that we always have a designated person responsible for ordering, maintaining continuity, and preventing lapses in inventory management.

Monthly P&L Reviews:

• We review our profit and loss statements (P&Ls) monthly to monitor the cost of goods. This practice allows us to detect any anomalies in supply costs and investigate their causes promptly, ensuring financial stability.

Vendor Relationships:

• Treating vendors as business partners is crucial. Recognizing that our success is intertwined, we maintain open communication and explore additional services that vendors can provide. This partnership approach often results in better pricing and access to samples and other benefits.

Negotiating Costs:

• For large volume orders, we negotiate costs with vendors. Our significant purchasing power, due to having over 20 locations, often allows us to secure better prices. In most cases, vendors prefer to retain our business at a lower price rather than lose it entirely.

Drop Shipping and In-Office Administration:

• We utilize drop shipping for 503A medications, which are patient-specific and sent directly from the pharmacy to the patient. For 503B medications, we stock them in-office and administer them on-site. This approach ensures compliance with legal regulations and simplifies inventory management.

Legal Compliance:

• Direct shipping of medications from our clinics to patients is avoided to comply with distribution laws. We work closely with our pharmacy board and legal representatives to ensure all practices are legal and proper.

Backup Vendors:

• Having backup vendors is critical. We maintain multiple accounts with different vendors to ensure continuity in case of supply disruptions. This strategy was reinforced by an incident where a major pharmacy closed unexpectedly, underscoring the importance of vendor redundancy.

Lesson from Pharmacy Closure:

• A significant lesson was learned when one of our largest pharmacies closed due to the unexpected death of the head pharmacist. This event highlighted the need for having multiple vendor accounts to ensure seamless transitions during crises.

Electronic Inventory Monitoring:

• Our future plans involve implementing electronic inventory monitoring via our EMR system. This capability will allow us to track inventory in real time across all locations, streamlining the ordering process and enhancing accuracy.

Corporate-Level Ordering:

• By shifting the ordering responsibility to the corporate level, clinic directors will be relieved of this task, allowing them to focus more on patient care. Corporate ordering will anticipate supply needs based on usage patterns, ensuring timely replenishment.

Consistent Roles and Cross-Training:

• It's essential to have designated individuals for specific tasks, such as inventory management and ordering. Cross-training ensures that staff can cover for each other, maintaining continuity in operations.

Vendor as Partners:

• Treat vendors as business partners, fostering a relationship that benefits both parties. Communicate regularly, negotiate prices, and explore additional services they can provide. This partnership often results in better deals and additional perks.

Redundancy and Preparation:

• Ensure redundancy in your vendor list. Having multiple vendors for the same service provides security and flexibility. This redundancy was crucial during the pharmacy closure incident, allowing us to switch vendors quickly and maintain our operations.

EMR System for Inventory:

• The next step in inventory management is utilizing our EMR system to monitor and track inventory electronically. This will allow for more efficient corporate-level ordering and better anticipation of supply needs.

Focus on Efficiency:

• Efficient inventory management involves minimizing the time spent on counting and ordering, freeing up staff to focus on patient care. Consistent processes, electronic monitoring, and vendor partnerships all contribute to a streamlined and effective inventory system.

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