Inventory Management
Protecting your Investment
Learning Objectives
Learning Objectives
The Participant Will Be Able to: Review Their Current Inventory Identify means of maximizing inventory investment
Recognize Potential Billing and Inventory Control Problems
Identify the Right Inventory Control Strategy for Their Business The Participant Will Be Able to:
Review Their Current Inventory
Identify means of maximizing inventory investment
Recognize Potential Billing and Inventory Control Problems
Identify the Right Inventory Control Strategy for Their Businessde t y t e g t e to y Co t o St ategy o e us ess Determine Whether or not Bar Coding is Feasible for Their Business
Understand the Process Required to Implement Inventory Control and Bar Coding
de t y t e g t e to y Co t o St ategy o e us ess
Determine Whether or not Bar Coding is Feasible for Their Business
Understand the Process Required to Implement Inventory Control and Bar Coding
Presenters
Presenters
Bryan Hines
Sr. Implementation Consultant, Brightree
Bryan Hines
Sr. Implementation Consultant, Brightree
Inventory Control – Questions
Inventory Control – Questions
What Are the Benefits of Inventory Control? What Kind of Resources Will it Take?
Labor, Hardware, Software What Will it Cost if I Do?
What Are the Benefits of Inventory Control? What Kind of Resources Will it Take?
Labor, Hardware, Software What Will it Cost if I Do? What Will it Cost if I Do? What Are My Risks if I Don’t? What is the Impact to My Workflow? How Do I Get Started?
What Will it Cost if I Do? What Are My Risks if I Don’t? What is the Impact to My Workflow? How Do I Get Started?
What Condition is Your Inventory in Today?
What Condition is Your Inventory in Today?
The FOUR Quadrants of Inventory Control
o
st
High Cost / Low Control High Cost / High Control
C
o
Control
Quadrant Definitions
Quadrant Definitions
Cost Factors: Hardware, Software, and Labor Investments
Theft (loss), Compliance / Audit Risk, Loss of Future Sales
Control Factors: Cost Factors:
Hardware, Software, and Labor Investments
Theft (loss), Compliance / Audit Risk, Loss of Future Sales
Control Factors: Control Factors:
Exact Inventory Location
By Warehouse, by Truck, by Patient Location
Financial Reporting
COGS, Inventory Valuation, Asset Depreciation, Asset Utilization, Profitability / Product Mix, Managing Recalls, Maintenance and Service
Control Factors:
Exact Inventory Location
By Warehouse, by Truck, by Patient Location
Financial Reporting
COGS, Inventory Valuation, Asset Depreciation, Asset Utilization, Profitability / Product Mix, Managing Recalls, Maintenance and Service
What Condition is Your Inventory in Today?
What Condition is Your Inventory in Today?
The FOUR Quadrants of Inventory Control
t
High Cost / Low Control High Cost / High Control Sweet
spot
Cos
t
Control
Low Cost / Low Control Low Cost / High Control
What Condition is Your Inventory in Today?
What Condition is Your Inventory in Today?
Sweet t
The FOUR Quadrants of Inventory Control
High Cost / Low Control Low Cost / High ControlHigh Cost / High Control
Risk Benefit
spot
Cost
Low Cost / Low Control
• Limited Business Dev. opportunity – additional products require inventory control • Theft / Loss • Compliance • Simple workflow
What Condition is Your Inventory in Today?
What Condition is Your Inventory in Today?
The FOUR Quadrants of Inventory Control
High Cost / Low ControlLow Cost / Low Control High Cost / High Control Sweet
Cost
Control
Low Cost / High Control
Risk • Profitability • Theft/Loss • Compliance Benefit • Quick service to the customer Sweet spot
What Condition is Your Inventory in Today?
What Condition is Your Inventory in Today?
The FOUR Quadrants of Inventory Control
High Cost / High Control
High Cost / Low Control
Risk • Financial Investment Profitability Benefit • None Sweet Cost Control
Low Cost / High Control
Low Cost / Low Control • Profitability • Compliance • Theft / Loss • Financial Reporting • Customer Service Sweet spot
What Condition is Your Inventory in Today?
What Condition is Your Inventory in Today?
The FOUR Quadrants of Inventory Control
t
High Cost / Low Control
High Cost / High Control
Risk • Financial Investment •POD •POS Benefit • Growth / Profitability • Financial Reporting / Analysis • Purchasing / Sweet t Cos t Control
Low Cost / High Control
Low Cost / Low Control
•Printers – bar code •Warehouse Automation • Workflow changes • Purchasing / Negotiation power • Efficiencies in
delivery & retail operations
Inventory is an Investment?
Inventory is an Investment?
Value of Inventory
Just in Time Inventory Overstock pitfalls Inventory utilization
Value of Inventory
Just in Time Inventory Overstock pitfalls Inventory utilization Inventory utilization Drop ship Inventory utilization Drop ship
Strategic Process
Step 1: Get on the Same Page
Strategic Process
Step 1: Get on the Same Page
Get Rid of the Language Barrier Invacare K0001 example:
Four Perspectives on One Product: CS 8” S d d h l h
Get Rid of the Language Barrier Invacare K0001 example:
Four Perspectives on One Product: CS 8” S d d h l h CSR - 18” Standard Wheelchair Biller – K0001 (18”) Purchasing – A18PLR
Warehouse/Driver – 18” Wheelchair – Serial Number
Establish Common Name and Numbering Convention Considering all 4 Operational Areas
CSR - 18” Standard Wheelchair Biller – K0001 (18”) Purchasing – A18PLR
Warehouse/Driver – 18” Wheelchair – Serial Number
Establish Common Name and Numbering Convention Considering all 4 Operational Areas
Strategic Process
Step 2: Move Toward the “Sweet Spot”
Strategic Process
Step 2: Move Toward the “Sweet Spot”
Simple Inventory Control:
Basic Name/Number scheme
Track Serial # with Recurring Rentals
Simple Inventory Control:
Basic Name/Number scheme
Track Serial # with Recurring Rentals
Track Serial # with Recurring Rentals
Next Step: Moving to Moderate control
Begin purchasing through your billing system Move beyond “eyeball” quantity tracking
Begin tracking cost and quantity
Track Serial # with Recurring Rentals
Next Step: Moving to Moderate control
Begin purchasing through your billing system Move beyond “eyeball” quantity tracking
Strategic Process
Step 3: The “Sweet Spot”
Strategic Process
Step 3: The “Sweet Spot”
Moderate:
Purchasing Through Billing System
Tracking Cost, Quantities, Ordering with Organized
M th d (PAR l l )
Moderate:
Purchasing Through Billing System
Tracking Cost, Quantities, Ordering with Organized
M th d (PAR l l ) Method (PAR levels)
Next Steps: Moving to Advanced Control
Incrementally Implement Point of Sale, Point Delivery,
Bar Code Labels
Begin Using Data to Make Important Business Decisions Manage True Cost, Utilization, Vendor Relationships /
Purchasing
Add Cycle Counting to Workflow
Method (PAR levels)
Next Steps: Moving to Advanced Control
Incrementally Implement Point of Sale, Point Delivery,
Bar Code Labels
Begin Using Data to Make Important Business Decisions Manage True Cost, Utilization, Vendor Relationships /
Purchasing
Add Cycle Counting to Workflow
Is Inventory Control for Me?
Is Inventory Control for Me?
If your goal is to thrive in this current
reimbursement climate…
If your goal is to thrive in this current
reimbursement climate…
Inventory Control Best Practices
Inventory Control Best Practices
Take it one step at a time
Make intentional moves toward the “sweet spot” Prepare as soon as possible so that growth or
unforeseen changes do not drive you into the Take it one step at a time
Make intentional moves toward the “sweet spot” Prepare as soon as possible so that growth or
unforeseen changes do not drive you into the unforeseen changes do not drive you into the High Cost / Low Control quadrant
Choose systems and partners that can support your efforts
unforeseen changes do not drive you into the High Cost / Low Control quadrant
Choose systems and partners that can support your efforts
Tactical Process
Inventory Management
Tactical Process
Inventory Management
Organize the warehouse, put like items together, label shelves Enforce inventory management Organize the warehouse, put like
items together, label shelves Enforce inventory management y g
“rules” (Noone can just “take” items anymore)
Utilize bar codes as much as possible
Conduct Physical inventory counts
y g
“rules” (Noone can just “take” items anymore)
Utilize bar codes as much as possible
Conduct Physical inventory counts
Is Bar Coding for Me?
Is Bar Coding for Me?
If your goal is to capture every
efficiency available to position your
business for growth and compliance
If your goal is to capture every
efficiency available to position your
business for growth and compliance
business for growth and compliance…
business for growth and compliance…
Bar Coding Best Practices
Bar Coding Best Practices
Implement slowly
Utilize the bar codes already available
As equipment comes in for cleaning
Implement slowly
Utilize the bar codes already available
As equipment comes in for cleaning
As equipment comes in for cleaning
print and apply bar code when equipment is available
As new products are ordered
As equipment comes in for cleaning
print and apply bar code when equipment is available