Taking stock of inventory control
Case study highlights how outsourcing partnership may optimize dispensary management, patient conversion rate
As inventory was Luster’s most worrisome issue, the focus began there. Systems designed to bring about meaningful change to the practice’s inventory purchasing and benchmarking structure were incorporated.
“Lens refractions and their subsequent frame sales capture rates determine a dispensary’s size, as well as its income potential,” said Mary Walker, director of operations, Vision Associates Inc. “Ophthalmologists should strive to achieve capture-rate benchmarks. When these numbers underperform, the inventory a dispensary is presenting to its customers can be a significant factor.”
Determining whether the appropriate types of frames—as well as an ideal number of frames—are on display necessitates a bird’s-eye view of the dispensary. A major factor could be a shortage of appropriate products for the particular patient base. From there, the calculations are math-meets-metadata.
In this case, the inventory actually was not the primary reason in capture-rate underperformance.
After a review of operations, it became evident that patients were leaving due to extended wait times. Updated software, combined with onsite visits from the firm, determined the need for expansion.