Procurement in the dental industry is at a crossroads.
For many practice owners, they don’t think they need to label “buying supplies” with a term like procurement.
That’s just a formal label, best relegated to the white collar business world.
Unfortunately, this mindset has led to significant waste in dental practices across the country. While practices focus intensely on patient care, scheduling efficiency, and revenue optimization, they often overlook the systematic management of their supply chain.
The result? Expired products sitting on shelves, inconsistent pricing across locations, missed volume discounts, and hours spent reconciling invoices that could have been automated.
The good news is that modern procurement solutions have evolved to match the unique needs of dental practices. They're no longer the complex, enterprise-only systems of the past.
Procurement platforms made specifically for dental practices can help both single-location practices and large DSOs alike take control of their spending while maintaining the flexibility needed in a clinical environment.
You’ve got to find the right balance and that’s exactly what we’ll cover in this blog.
On the balance, dental practices—particularly single-location operations—have historically approached procurement with minimal formal processes. A credit card, a trusted staff member, and a collection of supplier relationships might seem sufficient. However, this approach carries hidden costs that impact both operations and profitability.
Price creep represents one of the most insidious effects of under-managed procurement. When practices lack systematic monitoring of their spending patterns, suppliers can (and likely will) gradually increase prices without detection.
These small increases may add up to perhaps just cents on individual items. However, much like the plot of Superman III, these tiny amounts can accumulate to significant amounts across thousands of transactions. Some practices experience double-digit percentage increases in costs simply because they lack visibility into their spending patterns.
Security concerns also arise with informal procurement processes. Consider many cautionary tales in business where a staff member uses the company credit card for personal purchases.
Without proper controls and oversight, such incidents can go undetected until significant damage is done.
Overall, under-management often leads to missed opportunities for cost savings. When practices don't have clear visibility into their spending patterns, they can't effectively negotiate with suppliers or identify opportunities to consolidate purchases.
They might be paying premium prices for items available at significant discounts through alternative suppliers or private label options.
On the opposite end of the spectrum, some practices (especially growing DSOs) fall into the trap of implementing too many procurement solutions. This often results in a sort of process overload where staff members must juggle multiple systems, passwords, and myriad multi-step processes just to complete basic purchasing tasks.
Consider the front desk staff member who needs to open five or six different websites just to manage basic procurement tasks. This complexity not only slows down operations but also increases the likelihood of errors and staff frustration.
When processes become too complicated, staff members might seek workarounds, defeating the purpose of having robust systems in place.
Over-complexity can also manifest in supplier relationships. While having multiple suppliers can provide competitive advantages, managing more than four suppliers often creates diminishing returns.
The administrative burden of processing multiple invoices, managing various delivery schedules, and reconciling different payment terms can outweigh any cost savings from split purchasing.
Several indicators can suggest your procurement strategy has veered toward either extreme:
Under-management warning signs
Over-complexity warning signs
Finding the right balance for your practice starts with an honest assessment of your current state.
Your goal shouldn’t be to eliminate all complexity. That’s not only impossible but some level of structure is necessary for effective procurement management.
Rather, aim for systems and processes that provide meaningful control and visibility while supporting efficient operations. This balance typically includes several key elements:
1. Streamlined approval processes
Implement workflows that automate routine purchases while maintaining oversight for significant expenditures. For example, orders under $500 from approved suppliers might proceed automatically if within budget, while larger purchases require specific approvals.
2. Formulary management
Maintain a clear, well-organized formulary that balances standardization with flexibility.
This might include:
3. Supplier relationships
Work with two to four primary suppliers to maintain competitive pricing while keeping administrative overhead manageable. Having a multi-vendor approach provides leverage for negotiations while avoiding the complexity of managing too many vendor relationships.
4. Data-driven decision making
Implement systems that provide clear visibility into spending patterns without creating information overload. Focus on key metrics such as:
Successful procurement lies in finding solutions that enhance rather than complicate your practice's operations.
For many practices, this means implementing a single, comprehensive procurement platform that can:
Smart practices are discovering that the right platform can transform procurement from a necessary evil into a strategic advantage.
Method offers dental practices a comprehensive yet intuitive solution to procurement. After all, dental practices have enough on their plate without yet another software to use. Our simple, intuitive platform allows your staff access to the information they need, when they need it—all without a steep learning curve.
