With the invention of Amazon Prime, DoorDash, and same-day shipping, most of us have become accustomed to conveniently ordering what we need. That shouldn’t always apply to dental supplies though.
Dental supplies are essential for running a successful practice, and managing your supply chain is crucial for ensuring that you always have the necessary products and equipment on hand. However, determining how far ahead of time you should purchase your supplies can be a tricky task.
If you’re just starting out your practice or are a seasoned professional, it’s important to recognize delivery times for your supplies. While it’s not a one size fits all method, don’t wait until the last minute.
Purchasing from a Marketplace
If you purchase dental supplies from a marketplace, it’s essential to have a clear understanding of your practice’s needs and the lead times required for your suppliers to fulfill your orders. Typically, most dental suppliers require a lead time of 2-4 days to deliver orders, so it’s essential to keep this in mind when planning your supply purchases.
To always have sufficient supplies on hand, you should aim to place orders for non-perishable items at least 2 weeks in advance. For things that have a shorter shelf life or that are in high demand, you may need to place orders even further in advance.
In addition to planning ahead, make sure you monitor your inventory levels regularly so that you don’t run out of essential items. By managing your inventory, you can better keep track of the supply levels and alert you when it’s time to reorder certain things.
If you aren’t tracking inventory, when it’s used and when it’s low, how do you know when and what to order?
Purchasing through a GPO
Group purchasing organizations (GPOs) are becoming increasingly popular among dental practices as they offer a way to reduce costs by leveraging the collective purchasing power of multiple practices. GPOs can negotiate better prices with suppliers, making it possible for dental practices to save money on their supply purchases.
If you buy through a GPO, the ideal timeline for ordering supplies is similar to purchasing from the marketplace. However, GPOs may have longer lead times for orders due to the need to consolidate orders from multiple practices.
To ensure that you always have the supplies you need, it’s recommended to place orders through your GPO at least 2-4 weeks in advance. Keep in mind that some GPOs may require longer lead times, so it’s essential to check with yours regarding their order fulfillment timelines.
GPOs can also offer their members procurement softwares. These help keep tabs on what supplies are being used and what needs to be ordered.
Your procurement goal should be to buy the correct products, at the right time, for the right price.
Knowing Your Reorder Point
Running out of essential items like gloves, masks, or dental instruments can disrupt your practice’s workflow and compromise patient care. To avoid this, it’s important to establish a reordering point for your dental supplies.
At SourceClub, we recommend offices order two times a month, which reduces the liability of shipping charges and small order fees. Orders tend to be larger if placed every two weeks instead of every week (or multiple times throughout the week).
What is a reordering point?
A reordering point is the minimum quantity of a particular item that you need to have on hand before you reorder it. It is the level at which you trigger a purchase order to replenish your stock. By establishing a reordering point, you can ensure that you always have enough of the supplies you need without overstocking.
How to determine your reordering point
To establish a reordering point for your dental supplies, you’ll need to consider a few factors:
- Lead time is the amount of time it takes for your supplier to deliver your order once you place it. Evaluate the lead time for each item you order and factor it into your reordering point calculation.
- Usage rate is the rate at which you use a particular item. Consider how often you use each item and how quickly you go through it.
Safety stock is the extra inventory you keep on hand as a buffer in case of unexpected demand or delivery delays. It’s usually a percentage of your average usage rate.
To calculate your reordering point, use the following formula:
Reordering Point = (Lead Time x Usage Rate) + Safety Stock
For example, let’s say you use 10 boxes of gloves per week, and it takes your supplier five days to deliver a new order. You decide to keep a safety stock of 20% of your average weekly usage rate.
Using the formula above, your reordering point would be:
Reordering Point = (5 days x 10 boxes/day) + (0.2 x 10 boxes/week x 5 days) = 50 + 10 = 60 boxes.
So, when you have 60 boxes of gloves left in your stock, it’s time to place a new order.
Benefits of establishing a reordering point
Establishing a reordering point for your dental supplies has several benefits, including:
- Avoiding stock outs: You’ll always have enough supplies on hand to meet your needs, so you won’t have to worry about running out of essential items.
- Reducing waste: No overstock on items you don’t need, which can save you money and reduce waste.
- Saving time: You won’t have to constantly monitor your inventory levels or rush to place emergency orders. This will save you time and reduce stress.
Best Practices When Buying Supplies
SourceClub experts recommend dental practices order supplies every two weeks. This will give you enough volume to avoid paying shipping fees. Additionally, ordering every two weeks is a good key performance indicator to keep your expenses down. The more often you order the more likely you are to buy other things. All this leads to increased overhead. Therefore, by organizing your purchasing habits to only order every two weeks you should be able to save a significant amount of money.
While sticking to one brand and one company is great, be realistic when it comes to ordering dental supplies. If you’re ordering through a distributor, you may not be able to find the exact same brands you previously ordered. If this happens you may be tempted to place a smaller order. Don’t do that. You don’t want to risk your office running out of the supplies you need just because they didn’t have the brand you wanted. While distributors usually ship quickly, you need to ensure you’re getting the supplies you want.
If you find yourself in this situation, ask your representative for recommendations on other brands. You can also read the online reviews. Be careful to stay off of the Gray Market though. This is where some sellers promote products that could be counterfeit or expired as brand new, but at low prices. This doesn’t apply to all of the market though. Usually the products sold on the Gray Market were sold overseas and then brought back to the US.
For those of you who still choose to buy from the open marketplace, don’t fall for the “lowest prices is the best” mindset. If a product costs you more, it may be because the vendor is offsetting it with discounts or free shipping.
Order Sooner Than Later
Dental practices should aim to buy dental supplies at regular intervals and maintain a par level of stock. To maximize your savings and also run your practice you should strike a balance between ordering just in time and overstocking to be safe.
By planning ahead and monitoring inventory levels regularly, you can ensure that you always have the necessary supplies on hand to provide high-quality care to your patients.
Stop overpaying for dental supplies. Let the professionals at SourceClub negotiate for your practices to secure the best prices on the products you need.
