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In a recent post, Nicole Clausen, CSSGB, CCFP, CVBL, takes a non-traditional approach to calculating cost per SKU when replenishing inventory in an animal hospital. Using a loaded cost of $23 per hour for inventory personnel, she estimates 45 minutes to order, unpack, receive, record, pay the invoice and keep track of an item each time it is ordered resulting in $17.25 per item ordered.
Replenishment efficiency is critical to industry cost containment!” – Kirk Augustine
There are efficiencies when ordering more than one item when receiving, recording and paying an invoice. However, individual SKU management remains time consuming especially when the item is stored in more than one location.
Source: Veterinary Care Logistics, Linked In, August 29, 2022. Link. Clausen shares an example of 30 different products being ordered six times per month rather than twice per month:
- Twice per month ordering cost = $1,035
- Six times per month order cost = $3,105
INSIGHTS: Kudos to Clausen who is helping veterinary inventory managers understand and advance inventory management with a total cost mindset.
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