Operational Efficiencies

Operational Efficiencies for Equine Vets Mike Pownall, DVM McKee-Pownall Equine Services www.mpequine.com www.slideshare.net/mpownall

Expenses People Product Getting Paid

Processes Need excellent software ,[object Object],Need systems Need leadership Need to measure ,[object Object],[object Object]

Pay on Collected Base + Percentage

Pay on Net Example = DR What are the costs involved? Machinery – spread over 5-7 yrs Service agreements Repair People Archiving

Pay on Net Example = DR What are the costs involved? Charge - $46 Costs - $10 Pay commission on $36

Pay on Net Example = Bute Powder What are the costs involved? Charge - $15 Costs - $8 Holding cost – 20% or $1.60 15-9.60= 10.40 to pay commission

Accounts Receivables Easy to do….. If you have the resolve. We are not bankers. Easy to implement

Accounts Receivables 4 Tiers Great accounts On the fence – COD New clients – COD Pond Scum

Accounts Receivables Ave Day AR Gross Receivables Net Sales/365

Accounts Receivables Ave Day AR 75,000 500,000/365 54.75 30 or less

Inventory 2nd largest expense in a practice

Inventory Closed pharmacy Requisitions Electronic ordering Min/Max Uniformity Bulk purchasing?

Inventory Regular counts AA = > 5% sales weekly A = 5-15 % sales quarterly/monthly B = 20-40% sales 6 months Everything else = yearly

Inventory Inventory Turns COGS Ave Inventory Ave Inventory = Beg Inv + End Inv 2

Inventory Inventory Turns 300,000 = 7.5 40,000 Ave Inventory = 30,000+ 50,000 2 Want 12 or more

Inventory & AR Typical Pay for meds in 30 days Get paid in 50+ days Takes us over 30 days to sell inventory Taking a hit 2 times.

Inventory & AR Goal Pay for goods in 30 days Get paid in < 30 days Sell inventory in <30 days

Summary Marketing Brand Social Media Operational Efficiencies

Recommended