Inventory Management. Protecting your Investment 4/8/2011
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- Priscilla Summers
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1 Inventory Management Protecting your Investment Learning Objectives The Participant Will Be Able to: Review Their Current Inventory Identify means of maximizing inventory investment Recognize Potential Billing and Inventory Problems Identify the Right Inventory o Strategy for Their Business Determine Whether or not Bar Coding is Feasible for Their Business Understand the Process Required to Implement Inventory and Bar Coding 1
2 Presenters Bryan Hines Sr. Implementation Consultant, Brightree Inventory Questions What Are the Benefits of Inventory? What Kind of Resources Will it Take? Labor, Hardware, Software What Will it if I Do? What Are My Risks if I Don t? What is the Impact to My Workflow? How Do I Get Started? The FOUR Quadrants of Inventory Co ost High / Low High / High Low / Low Low / High 2
3 Quadrant Definitions Factors: Hardware, Software, and Labor Investments Theft (loss), Compliance / Audit Risk, Loss of Future Sales 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 The FOUR Quadrants of Inventory High / Low High / High t Low / Low Low / High The FOUR Quadrants of Inventory High / Low Risk Low / Low Theft / Loss Compliance Low High / High / High Limited Business Dev. opportunity additional products require inventory control Benefit Simple workflow 3
4 The FOUR Quadrants of Inventory High Low / Low / Low High / High Risk Profitability Theft/Loss Compliance Benefit Quick service to the customer Low / High The FOUR Quadrants of Inventory High / Low Risk Benefit Financial Investment None Profitability Compliance Theft / Loss Financial Reporting Low / Low Customer Service High / High Low / High The FOUR Quadrants of Inventory High / High t High / Low Risk Financial Investment POD POS Printers bar code Warehouse Automation Workflow changes Low / Low Benefit Growth / Profitability Financial Reporting / Analysis Purchasing / Negotiation power Efficiencies in delivery & retail operations Low / High 4
5 Inventory is an Investment? Value of Inventory Just in Time Inventory Overstock pitfalls Inventory utilization Drop ship Strategic Process Step 1: Get on the Same Page Get Rid of the Language Barrier Invacare K0001 example: Four Perspectives on One Product: CSR - 18 Standard d Wheelchair h 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 Spot Simple Inventory : Basic Name/Number scheme 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 Begin annual physical inventory 5
6 Strategic Process Step 3: The Spot Moderate: Purchasing Through Billing System Tracking, Quantities, Ordering with Organized Method (PAR levels) l Next Steps: Moving to Advanced Incrementally Implement Point of Sale, Point Delivery, Bar Code Labels Begin Using Data to Make Important Business Decisions Manage True, Utilization, Vendor Relationships / Purchasing Add Cycle Counting to Workflow Is Inventory for Me? If your goal is to thrive in this current reimbursement climate Inventory Best Practices Take it one step at a time Make intentional moves toward the sweet Prepare as soon as possible so that growth or unforeseen changes do not drive you into the High / Low quadrant Choose systems and partners that can support your efforts 6
7 Tactical Process Inventory Management Organize the warehouse, put like items together, label shelves Enforce inventory management rules (Noone can just take items anymore) Utilize bar codes as much as possible Conduct Physical inventory counts Is Bar Coding for Me? If your goal is to capture every efficiency available to position your business for growth and compliance Bar Coding Best Practices Implement slowly Utilize the bar codes already available As equipment comes in for cleaning print and apply bar code when equipment is available As new products are ordered print and apply bar codes as items are received 7
8 Questions? 8
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