Ep. 83 | Quantifying Your Value as an Inventory Manager

Ever wondered how to showcase the value you bring as an inventory manager? Or wanted to truly shine during a salary negotiation or on your latest resume? Host Nicole Clausen devotes this episode of The Inventory Nation Podcast to giving you strategies to demonstrate – in very concrete ways – the huge benefits this work bring to to veterinary practices. And there’s nothing squishy about it since metrics are of course at the heart of great inventory management! You’ll learn how to quantify clearly for clinic owners (or perhaps prospective employers in other industries) the impacts you make in reducing expenses, saving time and boosting efficiencies throughout the operation. To put it another way: If you’re saving a $1.5 million practice just 2% annually on cost of goods, that represents a savings of $30,000. Add in all the other reductions in waste, inefficiency and over-stocking and a skilled inventory manager’s impacts to the business’s bottom line are easily in the tens of thousands of dollars. In fact, what you’re running is a business within a business! So, Nicole reminds us, never doubt the valuable role you’re playing and skill set you bring! Whether you’re negotiating a raise or looking to move into an entirely different line of work, the ROI you represent is demonstrable and real!

In the mood for love? Nicole has just released a new five-day minicourse – Falling in Love with Your Inventory – that you can find for free at this link.

 Would you like to learn more about Inventory 911 Toolkit, our step-by-step blueprint to help inventory managers optimize knowledge, strategy and confidence? Click here!

You can also join the Inventory Strategy Network – our free virtual neighborhood for inventory managers and other veterinary professionals – by visiting this link.

EPISODE HIGHLIGHTS

  • Don’t Doubt Your Value: Your role as an inventory manager is critical to the practice. You’re the foundation that makes quality patient care happen!
  • Even if inventory management has historically been a role to avoid, it’s pivotal since veterinary practices can’t provide optimal services without the smooth flow of supplies.
  • When you take control of inventory operations, you are improving the quality of life for animals and their parents as well as colleagues.
  • Thriving veterinary practices are an ecosystem in which everyone plays a significant role. You’re NOT just an “order person in everyone’s way. You are at the heart of everything – equipment, hospital supplies, treatments, vaccines, lab tests.
  • Quantifying your ROI as an inventory manager:
    • A practice doing $5 million in revenue is likely going to purchase somewhere around $1 million worth of inventory a year.
    • A practice doing $1 million in revenue is likely going to purchase somewhere around $250,000 annually – or more.
    • The inventory manager’s role makes them directly responsible for hundreds of thousands of dollars a year – a business within a business.
  • More elements of value-add that inventory managers bring to the equation:
    • Managing proper stock levels.
    • Ensuring that supplies don’t run out.
    • Auditing expenditures and waste.
  • Remember This: An experienced inventory manager has skills sets that are highly sought-after and easily transferrable among practices – and other industries.
  • Talking Points: If you’re preparing for a salary negotiation or otherwise want to quantify the value you bring as an inventory manager, metrics to highlight might include:
    • Reductions in cost of goods. For example: A $1.5 million practice that reduces cost of goods by 2% saves $30,000 annually.
    • Reductions in the amount of waste and expired products compared with before proper inventory management practices were in place.
    • Reduction in overall stock on-hand (without reducing quality of care for patients) frees cash previously locked up for other areas of the practice’s growth.
    • Increased inventory management efficiencies and minimized wasted staff time.
  • If you want to take your concrete ROI to a next level, present a go-forward plan (leveraging your numbers and spreadsheets) to demonstrate what you can further do to enhance the practice’s productivity, profitability and morale.
  • Feeling inspired to up your inventory game? Don’t miss Vet Care Logistics’ newly released five-day mini-course: Fall in Love with Your Inventory. It’s free!
  • Recapping Ways to Demonstrate Your Value-Add with Key Before- and-After Metrics:
    • How many hours of labor saved per week?
    • How many dollars saved in a month or year?
    • How much has been trimmed from the budget?
    • How much less frequently is the practice running out of or wasting supplies?
    • How many rebates and promotions have benefited bottom-line savings?
    • How many back orders have been mitigated?
    • How many important processes and SOPs have been put in place?

MEET NICOLE CLAUSEN

Hi, I’m Nicole Clausen and I started Veterinary Care Logistics with the dream of changing the way we manage inventory together.

With 14+ years of experience in the veterinary industry, I have worked in several positions from receptionist to operations manager for several different hospitals.

While no two practices are ever just alike, I noticed one common problem: a lack of inventory management and control.

If you are tasked with managing inventory, I understand first-hand the challenges you face.

When I first started managing inventory, I struggled with the same things that many of my client’s experience: a to-do list up my chin and a pretty persistent case of imposter syndrome. But jolting awake in the middle of the night, wondering if you remembered to order rabies vaccines is no way to live.

I knew something had to change.

Veterinary Care Logistics was born out of the demand by several industry leaders to utilize my inventory system as a model throughout the country. Whenever I tell people what I do, I usually get a puzzled reaction: “Why would you want to do that? I hate inventory!” Truthfully, I love the puzzles, the numbers, and the strategies of inventory. But what really sets my soul on fire is creating lightbulb moments.

New clients who often come to me tell me that they feel like they’re drowning or that they think they’re just not cut out for this. Then once we start working together, putting systems in place, there’s always, always an “ah-ha” moment.

And at that moment, a shift occurs. You know exactly what you need to do. Your confidence rises. And the confusion, overwhelm, worry all begin to melt away like a bad, backordered-rabies-vaccine dream.

These are the moments I live for.

LINKS + RESOURCES MENTIONED IN THE EPISODE

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