This article was first published in the Fountain Report on October 18, 2024. Subscribe to the Fountain Report.
Imagine a large corporate veterinary hospital. It offers competitive salaries, professional growth, and a strong client base. But veterinarians are still leaving. Investigating the issue, leadership conducts exit interviews and uncovers one common complaint: disorganized inventory management. Frequent stockouts and the stress of managing supplies had made the job unnecessarily difficult, contributing to frustration and burnout.
This is a true story, and it’s all too familiar for many practices. Poor inventory management not only impacts patient care and the bottom line but also drives away valuable staff – something no veterinary hospital can afford in today’s competitive market.
Beyond employee experience, optimizing inventory brings tangible financial benefits. For example, many hospitals carry between $10,000 and $50,000 in excess inventory. Just imagine what that money could do if it were freed up to reinvest in the practice: hiring more staff, upgrading equipment, or even opening a new location.
Here’s how three hospitals – Todd County Animal Clinic, Summit Veterinary Referral Center, and East Poplarville Veterinary Clinic – made this transformation with Inventory Ally and saw substantial improvements.
Reinvesting in Growth
For Todd County Animal Clinic, a mixed-animal practice in rural Kentucky, inventory inefficiencies cost the practice two team members over two years and became a major roadblock to growth. At one point, their cost of goods sold (COGS) hit a staggering 47%.
Within just one month with Inventory Ally, their COGS dropped to 31.9%, resulting in a savings of $363,000 annually. Inventory carry alone was reduced by $23,000. With improved ordering practices and automated inventory management, Todd County reduced their inventory time from 40 hours a week to just 4. Thanks to these newfound savings, opening a second location has now become a tangible reality for the clinic.
Opportunity Cost
At Summit Veterinary Referral Center, one of the largest hospitals in the Ethos Veterinary Health network, the issue wasn’t just about inventory costs – it was also about labor. Their old pull-tag system required time-consuming manual counts, with inventory captains in each department cumulatively spending up to 120 hours per week managing stock.
By introducing automated inventory management with Inventory Ally, Summit reduced inventory on hand by $100,000 in just three months. For a large facility like Summit, the opportunity cost of inefficient inventory management was enormous. With the right system in place, the hospital was able to turn those lost hours into productive, revenue-generating time.
Time Savings and Job Satisfaction
At East Poplarville Veterinary Clinic, managing inventory was a constant struggle. Staff relied on jotting down supply needs in notebooks and scrambling to keep up with manual counts to prevent stockouts. This reactive approach consumed a significant amount of time, forcing the office manager to take work home, leading to stress and affecting her personal life.
After implementing Inventory Ally, the clinic cut its inventory time in half. Instead of placing orders every day, they now enjoy the predictability of an automated system that ensures they always have the right supplies on hand. This change brought an immediate improvement in job satisfaction and work-life balance for the entire team.
The Impact of Smarter Inventory Management
These stories showcase how smarter inventory management can free up valuable time, capital, and resources for veterinary hospitals. Practices that take control of their inventory often find themselves with tens of thousands of dollars they can reinvest in their business. Whether it’s expanding services, improving facilities, or providing better pay for their hardworking staff, the opportunities are endless once inventory stops being a headache.
In the end, improving inventory management isn’t just about reducing costs – it’s about creating a more sustainable, thriving practice that can invest in growth, take care of its people, and provide the best possible care for its patients.
