How clinics can cut inventory costs without risking stockouts
Bottom line
Veterinary Practice News is highlighting a familiar pressure point for clinics: inventory. In a new practice management article, Therese Castillo reports that inventory is typically the second-largest expense category in a veterinary practice, and that clinics can lower costs by pairing tighter workflows with better use of practice management and ordering technology. The piece points to practical steps such as assigning clear inventory responsibility, setting reorder points and maximum levels, tracking usage and turnover, auditing for duplicate or slow-moving products, and using software tools to reduce manual ordering and overstocking. (veterinarypracticenews.com)
Why it matters: For veterinary professionals, inventory discipline affects far more than shelf organization. Overstock ties up cash and raises the risk of expiration and waste, while understocking can disrupt care, frustrate teams, and force costly last-minute purchasing. Industry guidance from AAHA and other veterinary management sources consistently points to the same levers: one accountable point person, data-driven reorder points, regular review of turnover and purchasing patterns, and stronger use of software rather than ad hoc manual systems. (aaha.org)
What to watch: Expect more practices to revisit inventory workflows as margin pressure persists and clinics look for operational savings that don’t compromise patient care. (veterinarypracticenews.com)
Inventory management is back in focus as veterinary practices search for margin relief without cutting care. In a new Veterinary Practice News article, Therese Castillo argues that clinics can trim one of their biggest expense lines by combining technology with tighter inventory habits, framing inventory as the second-largest expense bucket for many practices. (veterinarypracticenews.com)
That message builds on a long-running concern in veterinary practice management. Across AAHA and other industry resources, inventory has repeatedly been described as a major driver of cost of goods sold, with persistent problems including duplicate product lines, weak oversight, inconsistent reordering, and excess stock that expires before it’s used. Earlier Veterinary Practice News coverage has also emphasized quarterly review of inventory budgets, identifying duplicate items, and using software cost reports to understand purchasing patterns. (aaha.org)
The current article’s core recommendation is straightforward: clinics should move away from reactive, manual ordering and toward structured systems. Supporting guidance from AAHA says practices should designate a clear inventory lead, use practice management software to establish reorder points and want lists, and rely on sales and usage data to decide what to stock. Other industry sources add that receiving workflows, reorder tags, and online ordering lists can cut staff time and reduce errors, while regular review of slow-moving products can help free up cash. (veterinarypracticenews.com)
Expert commentary across the sector is notably consistent. AAHA sources say practices that assign a point person tend to manage inventory more successfully, and inventory specialists cited by AAHA describe software-based reorder points as an “absolute best practice.” AAHA’s inventory coverage also stresses that some products may not make sense to stock in-house if the clinic can’t sell them competitively, a reminder that good inventory management is as much about strategic selection as it is about counting shelves. (aaha.org)
Why it matters: For veterinary teams, inventory is one of the few expense categories where operational changes can quickly improve financial performance. Better controls can reduce expired drugs and supplies, lower emergency ordering costs, and improve cash flow, while also helping ensure medications and consumables are available when clinicians need them. That matters in an environment where hospitals are balancing staffing costs, client price sensitivity, and pressure to preserve service quality for pet parents. (veterinarypracticenews.com)
There’s also a labor angle. Manual inventory systems consume technician and manager time that could be spent on patient care, client communication, or revenue-generating work. Industry sources describe technology, including inventory modules inside practice management systems, as a way to reduce those hidden administrative costs, not just the direct cost of supplies. (aaha.org)
What to watch: The next step for many practices will likely be less about buying entirely new tools and more about fully using the systems they already have, including reorder settings, usage reports, receiving workflows, and routine audits. If clinics continue to face margin pressure in 2026, inventory optimization will remain a practical target for improvement because it offers measurable savings without requiring changes to medical standards or client-facing care. This last point is an inference based on the consistency of current industry guidance and the emphasis on inventory as a major controllable expense. (veterinarypracticenews.com)