CUBEX SUCCESS STORIES

Veterinary Case Studies

WellHaven Case Study

Profitability Through Inventory Automation

Practice owners and managers know that their second largest expense is inventory. Labour is number one, then Cost of Goods Sold is next. Anecdotal evidence suggests inventory management is lacking, that inventory is not generally professionally monitored and managed. Abundant opportunities for bottom line improvement exist.

Inventory management goals include:

  • Protecting your employees
  • Physically safeguarding your inventory
  • Ensuring appropriate on-hand quantities (not too much, nor too little)
  • Accurately invoicing clients for purchases/usage, and
  • Timely and compliant completion of essential record keeping

Logic, reason and now evidence argue for automating inventory at some level to accomplish these goals.

The Evidence

WellHaven Pet Health has 42 industry leading practices in the United States. This case study examines data from five WellHaven practices averaging $1M to $2M in revenue, for the six-month period ending February 29, 2020.

Practice areas automated include:

  1. Pharmacy
  2. Treatment (including Controlled Substances)
  3. Supply Room
Less On-Hand Inventory and Enhanced Cash Flow

For the five practices, on-hand inventory decreased by $13,438 – or 8.1%, from $165,538 down to $152,100 – for the 60-days ending February 2020. Cash flow increased by the same $13,438 over the same 60-day period. Depleting excess inventory is a cash flow bonanza.

When targeted minimum inventory levels are reached over time, on-hand inventory will have declined by more than $60,000, or 36%. Imagine your inventory shrinking by over one-third and having found an extra $60,000!

When on-hand inventory is reduced, significant improvement is created in two Key Performance Indicators (KPIs):

  1. Decrease in number of days inventory on-hand, and
  2. Increase in inventory turnover rate
Reduction In Cost Of Goods Sold (COGS) and Higher Profits

For the five practices, revenue and COGS for the 6 months after Cubex installation (September 2019 through February 2020) were compared to the same period before the Cubex installation. COGS declined and profit improved by 3.6%. COGS declined from 27.1% to 23.5%.

Over the 6 months, the 3.6% COGS decline and profit improvement totaled $95,206.

Workplace Safety, Efficiency and Regulatory Compliance

We can’t always measure or quantify everything that matters. For example, an extraordinarily positive (but nonquantifiable) by product of Cubex solutions is increased workplace safety. Bio-metric fingerprint ID and automated, electronic logging make narcotics more secure and less accessible. Automated logging keeps detailed reports of who dispensed medication and in what quantity, reducing the amount of manual labor needed for tracking DEA logs, inventory logs, and ordering.

Does it cost, or does it pay?

Automation isn’t free, but it should produce a handsome return. The evidence in this five- practice case study is abundantly clear – the benefits of automated inventory far outweigh the costs:

It’s self-evident that a rational person would be wildly eager to spend $1 to produce revenue of $6.55.

36 %

REDUCTION IN INVENTORY
ON-HAND PROJECTED IN 6 MONTHS

13.3 %

REDUCTION IN COST OF GOODS SOLD
FROM 27.1% to 23.5% IN 6 MONTHS
TOTALLING $95,206 IN PROFIT IMPROVEMENT

Download Case Study

The initial Cubex implementation was such a huge success in our main office that we immediately implemented Cubex at our other three Arizona locations.

Dr. Chris Visser
Arizona Veterinary Dental Specialists, Inc.

The initial Cubex implementation was such a huge success in our main office that we immediately implemented Cubex at our other three Arizona locations.

Dr. Chris Visser
Arizona Veterinary Dental Specialists, Inc.
31 %

REDUCTION IN
INVENTORY ON-HAND

75 %

REDUCTION IN SUPPLY
MANAGEMENT STAFF TIME

12 %

REDUCTION IN SUPPLY &
MEDICATION CONSUMPTION

$0

TOTAL
SAVINGS

Download Case Study

Having the Cubex system installed has made a huge difference for us. We have been able to get the finances back under control and it has put us back on the path to continued growth.

Dr. Michael Palescandolo
Animal Emergency & Referral Associates (AERA)

Having the Cubex system installed has made a huge difference for us. We have been able to get the finances back under control and it has put us back on the path to continued growth.

Dr. Michael Palescandolo
Animal Emergency & Referral Associates (AERA)
56 %

REDUCTION IN
INVENTORY ON-HAND

63 %

REDUCTION IN SUPPLY
MANAGEMENT STAFF TIME

10 %

REDUCTION IN SUPPLY &
MEDICATION CONSUMPTION

0months

RETURN ON INVESTMENT
RECOGNISED

Download Case Study

After installing the Cubex system, the amount of time I spend managing drugs and supplies has dropped precipitously. On top of that, I’ve been able to reduce my on hand inventory without the risk of running out of anything at an inopportune time.

Dr. Will Leone
DVM, Legacy Farms, Plainview, TX

After installing the Cubex system, the amount of time I spend managing drugs and supplies has dropped precipitously. On top of that, I’ve been able to reduce my on hand inventory without the risk of running out of anything at an inopportune time.

Dr. Will Leone
DVM, Legacy Farms, Plainview, TX
13 %

REDUCTION IN
INVENTORY ON-HAND

60 %

REDUCTION IN SUPPLY
MANAGEMENT STAFF TIME

$0

SAVINGS IN SUPPLY
PURCHASES ANNUALLY

0months

RETURN ON INVESTMENT
RECOGNISED

Download Case Study

BUILDING POSITIVE RELATIONSHIPS

Veterinary Client Testimonials

previous arrowprevious arrow
next arrownext arrow
Shadow
Slider