Standing Orders - Systematic Simplification for Savings

As a laboratory owner, I’m constantly looking for new ways to increase productivity and enhance profitability. Over the years, I’ve found many subtle ways to save money, some of which also enable my staff and me to concentrate our efforts on important moneymaking activities. Taking advantage of “Standing Order” processing is one way laboratories may be able to realize automatic efficiencies that can help boost their bottom line.

Time is Money

Receiving a standing order each month saves time and may be a smart idea for any laboratory looking to make necessary processes easier and more productive. Let’s face it: we’re very busy. When we need to place an order, that typically means that someone has to stop what he or she is doing, take an inventory, and then place the order and later track it. This could happen every time we run low on alloys, for example.

With a standing order, on the other hand, neither you nor your staff have to worry about it. Simply put, a standing order is helpful because it eliminates the time loss that laboratory technicians and their employers suffer when they have to place a supply order. Rather, the precious time spent checking the inventory to ensure that everything is accounted for, and then placing the order, is now a thing of the past.

And, if you’re working with a reputable company that offers value-added services along with its standing order processing, that “new-found time” could result in far more than just consistently reliable and accurate delivery of your supplies. At our laboratory, standing orders of our alloys have enabled us to increase our productivity, performance and profitability because we can now spend our time on income-earning activities, while at the same time taking advantage of other benefits.

Better Inventory Control

With standing orders, your inventory control is simplified and systematic. The guesswork of what to order and when is removed from your staff’s responsibilities, so they’ll have more time to concentrate on fabricating great money-making restorations. At our laboratory, because the same alloy amounts are delivered each month, we always know what we have on hand, so we’re always confident that we can satisfy any of our doctors’ alloy-based needs.

Subtle Savings

As I’ve mentioned previously, working with reputable and service-oriented companies is important. Because, when it comes to standing orders, not only can you save money indirectly from the pure convenience that the process provides, but you may also realize even greater savings if the company you work with offers free shipping of your orders. Think about it. If you won’t incur any shipping fees for your regular monthly order, that savings will add up over time and contribute to your laboratory’s overall profitability!

Better Returns on Your Investment

Now, I’ve written in the past about alloys and how to secure better returns on your scrap alloy processing. Well, what you might not be aware of is that some alloy suppliers may offer you free assay services when you participate in standing order delivery of your alloy supplies. Like free shipping, this is a benefit that pays off in the long run if you’re working with a company experienced in handling scrap alloy.

Our laboratory has invested substantially in our scrap recovery systems so that we can recoup as much of our alloy investment as possible. Now, without question, the assay process has to be completed by scrap metal management experts so that we know we’re getting the highest and most accurate settlement. Most assay companies charge a fee for this service. It’s a necessary evil.

But, if your standing alloy order is delivered from an expert company that will provide you with assay services free of charge, well, you’re ahead of the game. Not only will you get cash back for the refining of your extracted scrap, but also assay after assay there won’t be any fees attached. Again, and not to belabor the point, those savings add up over time. Remember, what you don’t spend is equally important to your bottom line as what you do.

Quality & Innovation

Without question, standing orders can save your laboratory time and money, but only if the alloys you’re ordering are of the quality you, your doctors, and their patients expect. Therefore, before agreeing to any standing order arrangement, be sure that your supplier can meet your demands for alloys that exceed safety and efficacy requirements and perform as expected both technically and clinically. Ask if the company’s alloys undergo corrosion, sensitivity, carcinogenic, and cytotoxicity testing. And, inquire about whether or not their innovative alloy formulations demonstrate the necessary physical, mechanical, and biocompatibility characteristics that will satisfy the needs of various indications. It’s also incumbent upon you to ensure that the alloys you order have been rigorously tested and conform to all ISO, ADA, and FDA criteria. Most reputable companies include Identalloy stickers in the package of alloy; send these with your cases to further reassure your clients that they are getting the alloy they are paying for.

Conclusion
What will work best for a given laboratory is obviously an individual thing. But, when it comes to improving efficiency and creating a systematic approach to inventory control, taking advantage of standing order processing may be beneficial. In this column I’ve explored some considerations worth thinking about when examining standing order programs, as well as some benefits that can be realized when working with different companies to fulfill your orders.

Do you have a question for Nelson Rego, CDT? E-mail jdt@nadl.org.

 

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