Mastering Your Dental Supply Budget
Supply costs typically represent 5-7% of production for well-managed practices. Here's how to build a budget that keeps you in that range.
Step 1: Establish Your Baseline
Gather 12 months of data:- Total supply spending
- Spending by category
- Spending by supplier
- Monthly variations
- Supply cost as % of production
- Cost per patient visit
- Cost per procedure type
Step 2: Set Category Budgets
Typical allocation:- Restorative materials: 25-30%
- Preventive supplies: 15-20%
- Disposables/PPE: 20-25%
- Lab costs: 15-20%
- Equipment/small items: 10-15%
Step 3: Build in Flexibility
- 5-10% contingency buffer
- Seasonal adjustment factors
- Growth projections
- Price increase assumptions
Step 4: Monitor and Adjust
Weekly:- Review pending orders
- Check inventory levels
- Compare actual vs. budget
- Investigate variances
- Adjust upcoming orders
- Full budget review
- Supplier performance assessment
- Contract renegotiation opportunities
Budget-Busting Red Flags
- Sudden spikes in any category
- Increasing cost per patient
- Growing backorder frequency
- Rising shipping costs
Technology Tools
TGP+ provides members with:
- Real-time spend tracking
- Budget vs. actual reporting
- Category breakdowns
- Trend analysis
- Alerts for unusual spending
Expert Support
TGP procurement specialists help members:
- Establish appropriate benchmarks
- Identify savings opportunities
- Negotiate better contracts
- Optimize ordering patterns