VETERINARY TEAM UTILIZATION GUIDE

Chapter 7: Inventory Efficiencies

2

Team Roles & Group Purchasing Support

Strong inventory management is a team effort built on clearly defined roles, structured processes, and supportive relationships—both inside and outside the practice. Vendor relationships, purchasing systems, and team communication all play critical roles in controlling costs and maintaining consistent stock levels.

Recommended Inventory Roles in Small–Medium Practices

Successful programs begin with accurate job descriptions and shared expectations. Key roles include:

Vendor Lead (Inventory Manager, Technician, or Practice Manager)

  • Manages vendor relationships

  • Reviews counts, stock levels, and pricing

  • Compiles order lists and submits for approval

  • Places orders after DVM/Owner approval

  • Tracks backorders, substitutions, and discrepancies

DVM / Practice Owner

  • Reviews compiled order lists

  • Approves purchases

  • Advises on clinical need and product selection

Group Purchasing Organization (GPO)

  • Maintains vendor contracts

  • Supports price negotiation and benchmarking

  • Provides guidance on maximizing savings and incentives

Local Reps / Distributors

  • Assist with stockouts, shipping issues, and product support

  • Provide up-to-date promotions, rebates, and education

  • Serve as rapid-response contacts for supply emergencies

Group Purchasing Organizations

GPOs offer independent practices the ability to purchase at scale, often securing pricing and terms far better than a single hospital can negotiate independently. While not every agreement will be the perfect fit, a well-aligned GPO partnership can significantly reduce COGS and simplify vendor management. Clinics should still evaluate local pricing, service levels, and product fit to ensure agreements support their needs.

Working at the Local Level

Local distributor and manufacturer reps remain invaluable partners. Maintaining strong relationships ensures:

  • Rapid support during stockouts or emergencies

  • Training access for clinical and technical teams

  • Insight into rebates, promotions, and contract opportunities

Distribution Providers

Every practice should establish both a primary and secondary distributor. This protects the hospital during backorders and allows cost comparison. Remember: manufacturer rebates often apply even when ordering through a distributor.

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