Since many of Silkin Management Group’s clients are optometrists, we thought we’d present some information on inventory control to Silkin clients and readers of our various Silkin Management Group blog sites.
Inventory control is a highly effective means to gain control of a significant aspect of any optometry practice. Given that a lot of money can be tied up in frame inventory it behooves any practice to properly manage this aspect of their operation. If properly controlled, potential overstock and under-stock can be avoided, thereby increasing the practice’s ability to minimize overhead and maximize profits.
To properly implement and maintain a frame inventory management system requires careful analysis, organization and, above all, a commitment to see it through. While effort will be required to implement a system, the result should be well worth the investment.
Inventory control is simply a method to gain more control by limiting the number of vendors by determining, through analysis, which vendors to use based upon your market and demographics. You will also be able to precisely allocate your board space.
Below is the first part of a series of questions and answers on this subject that we will present on our Silkin Management Group blog sites.
How many frames should one have in their inventor?:
Enough to service the market that you intend to serve. The national average is between 600 and 800 frames. This would also depend upon your volume of sales and the service provided by your competition.
How many vendors should one have?
Normally about five major frame vendors should make up about 80% of your board space. The other 20% should be dedicated to no more than 5 specialty vendors or niche products that would include trendy styles that are subject to frequent change.
Gary Crawshaw
Silkin Management Group Consultant
For more information about Silkin Management Group and how we can help your practice, call us at 800-695-0257 or visit our website at www.silkinmanagementgroup.com
