Inefficient Purchasing is Holding You Back: It’s Time to Implement a Universal Procurement Strategy

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Stephanie Schoenrock and Amy Bridger from Cavaretta Consulting Group share valuable insights on the transformative power of a well-aligned procurement strategy for Dental Service Organizations (DSOs). By syncing procurement with overall performance goals and standards of care, DSOs can experience significant cost savings and operational improvements across all locations.

Why a Universal Procurement Strategy Matters

Adopting a universal procurement strategy is one of the most effective ways for a DSO to manage operational costs and enhance profitability. A standardized approach allows DSOs to streamline purchasing, gain more control, and ultimately save time and money.

“Many DSOs rely on multiple vendors and systems for ordering, which often operate independently and lack integration,” says Stephanie Schoenrock. “These vendors may not have full visibility into where they can grow their sales in alignment with the DSO’s goals, whereas a procurement strategy aligns purchasing decisions with the organization’s objectives.”

When purchasing happens in isolation, DSOs miss opportunities to negotiate better prices, simplify product choices, reduce inventory, and establish stronger relationships with key partners. Additionally, one expense that is often overlooked is the time and effort dedicated to working with these multiple vendors day in and day out. Consolidation of supplies through a formulary or preferred product list will contribute to lower personnel costs dedicated to supply ordering.

Clinical and Operational Benefits

“There are both operational and clinical advantages to implementing a procurement strategy,” adds Amy Bridger. “Clinically, it helps maintain a consistent standard of care across locations, while operationally, it reduces costs and maximizes earnings.”

A universal procurement strategy offers the following essential components:

• A complete record of all purchases (products, equipment, software, etc.)
• Alignment with the DSO’s standard of care
• Integration of all purchases through unified software
• Streamlined product formularies
• Consolidation of purchases to boost buying power
• Metrics tracking to ensure achievement of spend goals
• Ongoing measurement, training and compliance reviews

The Role of Procurement Software

A critical tool in executing a procurement strategy is a robust procurement platform. “We advise DSOs to use procurement software,” Bridger states. “These platforms consolidate purchases, offer valuable insights into areas for improvement, and make ordering simpler and more transparent.”

Schoenrock provides an example: “If a DSO plans to introduce new procedures, they can partner with a manufacturer known for products that support those procedures. By negotiating for these items as a bundle, they can secure better pricing, integrate them into their formulary, and arrange for samples of the product and training at all locations. Finally, the DSO can monitor the purchases and spend through the procurement software to ensure compliance.”

Building Long-Term Vendor Relationships

Strategic partnerships with manufacturers and distributors are essential for a successful procurement strategy. Long-term relationships can result in lower prices, less time searching for products, and better access to training and support.

Key Benefits of a Universal Procurement Strategy:

• Cost Savings: Consolidating purchases lowers costs and enhances vendor partnerships.
• Operational Efficiency: A streamlined formulary reduces time spent on ordering and improves inventory management.
• Data-Driven Insights: Centralized data simplifies tracking, measuring, and analyzing procurement activities.
• Standardized Care: Product consistency across all locations ensures the same level of care for every patient.

For DSOs ready to implement a procurement strategy, partnering with Cavaretta Consulting Group’s fractional procurement team of experts can make the process smoother. “We assess a DSO’s specific goals and develop a realistic, customized procurement strategy to achieve a successful outcome for the DSO.” says Bridger. “We also provide ongoing support to ensure the plan is effective and that each practice adheres to the process.”

The team at Cavaretta Consulting Group is passionate about optimizing procurement processes to reduce costs and improve efficiency for DSOs, and they take pride in seeing their clients achieve success.

“We have experts from all areas of the dental industry,” Schoenrock notes. “It’s incredibly rewarding to help our DSO partners reach their goals through tailored procurement strategies.”

Conclusion

A universal procurement strategy isn’t just about cutting costs—it’s about aligning purchasing decisions with clinical and operational goals to create a more efficient and profitable organization. By consolidating purchases, streamlining formularies, and fostering vendor relationships, DSOs can achieve greater operational success and deliver consistent, high-quality patient care across all locations.

To learn more about how a universal procurement strategy could optimize the clinical and operational performance of your DSO, you can connect with Cavaretta Consulting Group online or by calling 414-688-0564.

If you would like to learn more about the resources available to you,
including connecting with industry leaders and cutting-edge
distribution partners to lower supply costs, Dental City can help.

Contact Jordan Lorenz at 800-353-9595 x 167 or jlorenz@dentalcity.com.

About Dental City

Dental City has been a trusted supply partner to dental offices across the country for 30 years. Offering an extensive selection of high-quality dental products from nearly 500 brands, and tens of thousands of products in stock and ready to ship with our same-day guarantee! When you order from Dental City you get exceptional customer service, deep product knowledge, the ability to track down hard-to-find products, competitive prices, and quick, accurate shipping.

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