Week 3 – Planning and Prioritising

In weeks one and two we explored both the Why and the How of managing inventory. This edition is about implementation. A plan without action is just a wish!

We outlined the benefits and expected outcomes of implementing a system. You self-assessed your current Inventory health and we introduced you to the Inventory Management guide, a toolbox full of guides on how to approach this vital topic. If you missed last week’s update, click below to view. 

What, How, Who, When

We suggest you create an Action Plan that lays out steps to achieve results. (Remember, Progress not Perfection). Here are some tips to help create your action plan: 

• Make SMART goals – Specific, Measurable, Achievable, Relevant and Timely
  • An example of a SMART goal for the merchandising goal above could be: Review and improve how the product is merchandised in the practice to increase the conversion rate from 65% to 70% by June 30 2022.
• Identify steps that make logical and orderly progress toward your goal
  • Prioritising what steps need to be taken in what specific order will prevent unnecessary hold-ups and make the process more efficient
• Ensure ownership of responsibility is clear and that the right tools and knowledge is available to the owner. To delegate effectively, you must ensure that you:
  • Choose the right person for the task
  • Make sure they understand WHY they are doing the task
  • Set clear and achievable expectations
  • Provide support with resources, knowledge, and positive communication
  • Follow up
• Have regular updates with the team to track progress and identify barriers
  • Set review dates to celebrate and identify further improvement opportunities

Ensuring you remain Profitable

One vital aspect of Inventory control is ensuring you have a sustainable model that is profitable. The whole process from buying stock to pricing, merchandising, and selling it should be carefully considered in terms of making sound financial decisions. The key area to focus on in terms of profitability are:

Buying arrangements

• Supplier Relationships – foster and build long term to benefit both parties
• Provision Supplier agreements 
• Buying Plan 

Freight

• While simply a cost to do business, there are ways to minimize freight costs by smarter ordering

Cost to process

• ProAccounts 2 (coming soon) will help reduce the time it takes to mark stock in
• ProSupply’s Supply & Fit can heavily reduce the administration time to get the product on shelves

Pricing Strategy

• By careful management, margin can be maximised while still providing value to every patient 

Aged Stock and Over Stock

• Introducing an Aged Stock Plan can help manage cash flow and overstocks. 

Click on the button below to explore the ProVision Inventory Management Guide, your toolbox created to help you take charge of your stock.

Do you want to manage your stock to improve your cash flow and bank balance? Click on the video link to listen to ProVision Finance Manager Leigh-Anne Stratford’s helpful tips.

What to expect from week 4?

Now that you understand the Why, the How and Planning and Prioritising, next week will dig deeper into maximising your buying power.

0.2 WOW Me! – My First Impression

As previously communicated, with the generous support of Cooper Vision, we have been working with Tom Bowen from Thrive Practice & Life Development in the USA, to create a series of videos that are designed to help you to deliver the most compelling experience for your patients when they visit your practice.

WHY BOTHER? Because we know that Independent optometry practices will ensure your long term success by doing exactly what the corporates cannot do – create something unique, customised and personal that makes the patient say “WOW – I have never felt so special!”

Tom is creating a different video each month using the 8 steps identified in our Patient Journey to uncover new ways to help you to deliver WOW! The first video explores “My First Impression”. My First Impression will be formed BEFORE I even get to your practice, so Tom explores some really important topics to get that piece right by design.

Along with 10 different strategies for you to consider, Tom starts by asking you and your team to describe what you want your patients to feel when they come to your practice, and then make sure that everything you do thereafter aligns with the delivery of that feeling.

The video is broken into 3 sections to enable you to digest the content gradually and workshop ideas as a team. With lockdowns affecting many of our practices, right now would be a great time to work on your patient experience – so jump to it and start the journey. You don’t have to execute every strategy – just the ones that will make a real difference.

And remember,  0.3 WOW Me! – Welcome Me will be released in mid-September.

Was this week's content helpful? Let us know at feedback@provision.com.au