As the Frame Turns

Why electronic inventory control systems can save you money—plus, how to select the best one for your office

By Erinn Morgan

Keeping track of the frames gracing your boards and displays is often no easy task. Since 63 percent of eyecare professionals boast more than 500 frames on display at any one time, according to the Eyecare Business Market Study, manual inventory tracking has become an increasingly antiquated concept—especially in the age of increased competition.

Enter the electronic inventory control system, featuring software designed to track frames, lenses, and more with an eye to optimizing sell-through and efficiency. Most of these useful programs are delivered as part of a larger practice management system that also runs scheduling, patient records, billing, and insurance filing functions. That makes picking the right one for your particular practice even more important.

Some ECPs also say these systems can be cumbersome for smaller dispensaries. "We use the old visual method for inventory tracking," says Terry Roberts of Advanced Eyecare in Hellertown, Pa. "What else am I going to do until they come up with a secure inventory system that I think is easy to manage?"

Recent data does, however, suggest that a large number of optical businesses are using some type of electronic inventory management system.

Manual inventory systems are losing ground to computer-based systems. Image courtesy of MaximEyes

In fact, according to The Vision Council's 2008 ECP Demographics and Trends Survey, a full 80 percent of all independent practices use some type of practice management software. In addition, about one-half of those practices use these hightech systems for "inventory management and control."

LOOKING AT COSTS

The main challenge in buying an automated inventory system is typically the cost involved. Most systems are part of a larger practice management software package, which can weigh in with a high initial price tag plus yearly maintenance fees.

Purchase prices can range anywhere from $2,750 to $17,000, depending on a practice's number of locations and user stations. Some software suppliers offer monthly rental rates in lieu of a system purchase price, which makes the software much more affordable in the short term. Also, one inventory-specific software package (without the practice management side) is available from FlexSys with a purchase price of $1,795 and an annual maintenance fee of $255.

Yearly maintenance fees for practice management systems, which include things like software updates and support, can range from 20 percent of the initial purchase price up to $3,500. The good news is that software is always improving. All practices don't need the same support, however, so weigh your options.

"Good practice management software will really help your business out, but the whole software thing [can be] a quagmire," says Travis Adlington, OD, owner of Adlington Eye Center in Reno, Nev.

He adds: "All of the systems have their little foibles." Though the support fees can seem high, he adds, "a lot of the necessary software updates are tied into it."

FlexSys Vision Care Software is dedicated solely to inventory management, and is not part of a practice management program

QUANTIFYING THE SAVINGS

Some ECPs say the costs and fees involved are reasonable, especially when factoring in the time and money savings they realize.

Here are a few specifics on how inventory management software (plus the bigger package of a practice management system) has helped ECPs save time and staffing, while increasing business:

■ "We've been able to increase patient flow and expand our schedule on certain days by about 15 percent because of the functionality and time savings the software has allowed us," says Mitch Albers, OD, with Eye Care Center, which has two offices located in the suburbs of Minneapolis.

Albers also notes that his system now saves more than a full day in staff time when it comes to inventory.

"We used to do physical counts at the end of the year and the inventory days would take 10 hours," he says. "That's a long time, but now it's down to one and a half hours. From a time-saving standpoint, inventory software is a key and wonderful asset."

■ At Adlington Eye Center, Adlington says that having inventory and practice management software in place has saved this business from hiring two additional staff members.

■ System users can also eliminate pricing errors that can occur with a manually entered inventory. "The optician could type in $102 instead of $120 and you just lost $18," says Charles Bujold, director of Filopto Eye Care Practice Management Software. "With electronic inventory, you are ensuring the pricing is correct."

■ Rob Swanland, chief technical officer of FlexSys Vision Care Software notes, "Most clients discover that they are carrying $5,000 to $10,000 in excess inventory as soon as they have a true inventory count and valuation." EB