How clinics can cut inventory costs without risking stockouts

Veterinary Practice News has published a practice management piece focused on a familiar pressure point for clinics: inventory costs. The article, by Therese Castillo, draws on guidance from veterinary business consultants including Wendy S. Clausen, CVPM, and argues that technology, tighter workflows, and clearer accountability can help practices reduce waste without risking stockouts. The piece says a general small animal clinic typically spends about 18% to 22% of annual revenue on inventory, while inefficient practices can run as high as 30%, making inventory one of the biggest controllable expense lines in the hospital. (veterinarypracticenews.com)

Why it matters: For veterinary professionals, the takeaway isn’t simply “buy less.” Industry guidance from AAHA, VHMA, AVMA education materials, and distribution partners consistently points to the same operational levers: assign one accountable inventory lead, standardize formularies and supplies, use practice management software to set reorder points and track receipts, and monitor carrying costs, shrinkage, and expirations. Holding costs alone can add roughly 8% to 15% to an item’s total cost, and AVMA education content indicates fewer than half of practices currently use a digital inventory system, suggesting there’s still meaningful room for operational improvement. (aaha.org)

What to watch: Expect more clinics to revisit inventory workflows, software adoption, and product standardization as they look for margin relief without adding appointment volume. (aaha.org)