Chapter 12: Inventory systems and supply ordering

Rate of use

Buying large quantities of infrequently used items is not cost efficient. However, buying bulk quantities of supplies that are used often is economical

Shelf-life

Certain materials, such as medicaments, cements, and some impression materials, begin to deteriorate after a certain period

back-order memo

A form accompanying an order that notifies the purchaser that an item ordered is not currently in stock at the supply house and will be sent at a later date

Back-order memo

A form that accompanies an order to notify the purchaser that an item ordered is not currently in stock at the supply house and will be sent at a later date.

Credit memo

A form that indicates that the dentist's account has been credited for the cost of a returned item; the amount appears as a credit on the statement at the end of the month.

Invoice

A list of the contents of a package, the price of each item enclosed, and the total charge.

Statement

A request for payment submitted by the dental supplier.

Purchase order

A standardized form for ordering supplies.

Packing slip

An enumeration of the items included in an order; this does not include the cost per item.

Each invoice should be checked against the entries on the statement to ensure

accuracy before payment is sent.

A business staff member may order

all the business supplies,

Current regulations require that all manufacturers provide

an SDS with each hazardous material.

Expendable supplies require more attention

an inventory of these items is important.

Safety Data Sheets (SDSs)

Forms supplied by the manufacturer that provide information about a hazardous material; these forms are required by the US government.

Amount of capital outlay

In addition to prices, the amount of cash available often determines whether an item is purchased in bulk amounts.

Amount of storage space

In some offices, storage space is a crucial factor, and a lack of space prohibits the purchase of large quantities of supplies. Consequently, a large storage space is a benefit economically, and it increases efficiency

Capital supplies

Large, costly items that are seldom replaced; these include equipment such as computers, sterilizers, and dental units.

Manufacturers' special offers

Manufacturers routinely offer special rates on various materials. However, a special price is not cost efficient if the item stays on the shelf and collects dust.

Nonexpendable supplies

Reusable items that do not constitute a major expense; this category generally includes most dental instruments.

Expendable supplies

Single-use items, such as dental cements, stationery, local anesthetics, and gypsum products.

There are benefits to building a relationship with a particular dental supply company

The company is more likely to notify the office when there are outstanding product offers or to expedite sending a product that has unexpectedly run in short supply.

Length of delivery time

This factor affects the minimum quantity desired to have in stock. If several days are required to receive an order for a frequently used item, increase the minimum amount on hand.

Alphabetical listlist includes

a code number for each supplier, the name of each product, and columns for the maximum on-hand level and the minimum reorder point.

Shopping locally promotes good relations and stimulates the local economy, but for economic reasons

a dentist may order supplies from a larger catalog or a discount house.

Inventory system is

a list of the stock and assets in the dental office

Medicaments, which are not specifically dental items, can be purchased from

a local pharmacy

The card system requires

a separate card for each product

When new materials are received, they should be stocked

behind older supplies so that the older supplies are used first.

All supplies should be stored in a

centralized area in an organized manner that allows for quick and easy retrieval.

Shopping Cart and Checkout allow the user to

check items in the cart, edit the item quantity, and add or delete items from the shopping list

The cards list complete information about

each product and its supplier, and they are placed in alphabetical order according to the product name.

When a product needs to be reordered, the tag is removed from the container and placed

in a location where the order can then be created from the various tags

When the product is low, there must be a communication system in place to

indicate that it is time to reorder the product

For stationery supplies, a paper tab can be

inserted into the stack of materials to indicate the reorder point

Most dental supply dealers provide

inventory management systems for their customers

Every order that arrives in the office should have an

invoice, a packing slip, or both

When the reorder point is reached, the product information is scanned with the reader and stored until

it can be uploaded from the office computer, via the Internet, to the appropriate dealer site.

For convenience, a file of the business addresses and telephone numbers of all of the companies patronized routinely can be

kept on the computer

Business materials are available from

local business office supply stores or online.

A clinical staff member may be responsible for

managing clinical supplies and hazardous materials

Purchasing from the dealers in a local area is convenient, but

many large wholesale supply houses provide quick service and special rates

Some supplies, such as cleaning materials,

must be purchased at local businesses or specialty companies.

If too much of certain products is ordered at one time (ex:certain dental impression materials)

not all of that item may be used before the expiration date

The administrative assistant should have the order prepared or information available about what is needed in

one of the inventory management systems

Cubex can track

operative, hygiene, prosthodontic, endodontic, implant, and other similar supplies.

One person should be in charge of

ordering, receiving, and storing supplies; managing hazardous waste; and maintaining Safety Data Sheets (SDSs

An important issue in inventory control is

organization

An automated system will have some form of

reorder point built into the program

Nonexpendable supplies are

reusable items that do not constitute a major expense; this category includes most dental instruments.

Just as ordering supplies on a timely basis can save shipping costs, maintaining an accurate inventory of products can also

save money by avoiding the purchase of too many items with short shelf-lives

They are kept in a file drawer or notebook. As it becomes necessary to order an item, the card is placed in a

section of the file marked tTo be ordered

Capital supplies are large, costly items that are

seldom replaced, such as computers, sterilizers, and dental units.

Packing slip is

simply an enumeration of the enclosed items

Expendable supplies are

single-use items such as dental cements, stationery, local anesthetics, and gypsum products

An office that uses an automated system will find that it is relatively easy to place orders and that the

staff can be assured that products will always be available

The first step in inventory control organization is to

streamline inventory management

The check is made payable to the

supplier

Shopping List is a

tab that enables the user to create a new shopping list or to add or remove items from an existing shopping list

one manual system involves products being placed in bins or containers with

tags that identify the product, the quantity to order, and the reorder point for the product

When all products have been entered into the system, a total value of the inventory can be provided; this is helpful for

tax returns, financial management, and budgeting.

Credit memo indicates

that the dentist's account has been credited for the cost of the returned item

The person in charge of ordering supplies should assess the "want" of ordering a product versus

the "need" of ordering a product

When the reorder point is reached,

the assistant simply places a red checkmark in the appropriate space with a wax pencil

Other dealers provide systems that reference bar codes on products so that, when a product is used,

the bar code is scanned and the information goes directly to the supply house through the database that is linked to the office (internet based)

A dental supply house can provide all

the basic dental supplies, both brand name and generic

Once the item has been ordered,

the card is moved to the On order section of the file

When the item arrives from the supplier,

the card is replaced in its original alphabetical position in the file

The information on these sheets includes

the manufacturer's name, address, and emergency telephone numbers as well as specific information about the ingredients of the product

An invoice is a list of the contents of the package,

the price of each item enclosed, and the total charge

Needed items should of course be ordered, but excessive purchase of new products and materials can reduce

the profit margin of the practice.

Inventory management helps determine

the rate of use of items and to identify items that are seldom used.

manual system, colored tape may be used to indicate

the reorder point on small items, or a tag can be placed on the item

A spreadsheet system can save much time and guesswork regarding

the servicing of equipment, and it can be helpful to the accountant for determining depreciation.

At the end of the month, a statement or request for payment will be received from

the supplier

The administrative assistant must be aware of the federal (OSHA) guidelines regarding

the use and storage of materials in the dental office. SDSs provided by OSHA should be maintained for any hazardous materials

Surgical supply companies sell materials such as

thermometers, surgical scissors, and hemostats

Make sure that each item listed coincides with the original order, that each item on the invoice is in the package, and that the

total amount listed on the invoice is accurate

Invoices can be kept in a binder or a file

until the end of the month.

A computer system, a formulary can be set up to identify all of the products commonly

used in the office

Reports is an area where the

user can view and print purchase summaries for the month or the year as well as comparisons with another year. It is possible to obtain a graph-type report from this area

My Account allows the

user to review subaccounts, to search orders and invoices, and to filter through records by item, description, or manufacturer.

The Cubex system enables

users to efficiently manage the ordering, tracking, and costs associated with inventor

The administrative assistant can track all of the major categories of capital supplies and have

vital purchase and warranty information at his or her fingertips.

Purchase order,

which is a standardized order form for supplies

Each purchase order is given a number and sent to the appropriate supplier,

who in turn enters this number on all invoices when shipping the supplies