TABLE OF CONTENTS
10000 – Inventory Manager Position Agreement ....................................................................................... 1
10000.1 – Inventory Manager Job Description ........................................................................................... 3
10000.2 – Action Codes on Inventory Items ............................................................................................... 4
10000.3 – Alicam Ordering and Monitoring ................................................................................................ 5
10001 - Areas of Responsibility for Inventory ............................................................................................. 6
10001.1 – BUDGETING INVENTORY .......................................................................................................... 10
10002 - COUNTING INVENTORY................................................................................................................ 11
10002.1 – Controlling Inventory Guidelines .............................................................................................. 19
10003 – Dental Chews Included with Dental Cleanings ............................................................................ 23
10004 - “Hospital Use” items .................................................................................................................... 24
10004.1 - Inventory in a Nutshell .............................................................................................................. 26
10004.2 – New Product Requests ............................................................................................................. 28
10005 - ORDERING .................................................................................................................................... 30
1005.1 Pricing and Markup Guidelines ..................................................................................................... 33
1005.1 Pricing and Markup Guidelines .................................................................................................. 33
10006 - RECEIVING ORDERS ...................................................................................................................... 35
10006.1 – Retail Products ......................................................................................................................... 37
10006.2 – Returns ..................................................................................................................................... 39
10007 - Special Orders .............................................................................................................................. 40
10008 - Storeroom Organization Policy .................................................................................................... 46
10009 - Vendors ........................................................................................................................................ 47
10010 – Weekly Checklist for Inventory Manager .................................................................................... 49
10000 – Inventory Manager Position Agreement
POSITION TITLE: Inventory Manager
SUPERVISOR’S POSTION: Director of Administration
RESULTS STATEMENT: Assures the hospital is properly supplied and stocked with
supplies and inventory while following the proper written
protocol and staying within the budget.
PRIMARY STATS: 1. Inventory cost as percentage of gross revenue
EVIDENCE OF PROPER CONTROL: 1. Inventory and Supplies – accuracy and cost as
percentage of gross revenue is within the budgeted range
(Cost of Goods Sold between 18-23% of VSD). Following
inventory order points and order quantities will keep it in
2. We almost NEVER run out of products that regularly stocked.
3. Special order products for clients are ordered and supplied
to clients as in procedure.
4. METICULOUS organization and labeling of ALL inventory and
supplies throughout the hospital.
TACTICAL RESPONSIBILITIES: 1. Inventory procedures are all followed exactly as outlined in
2. Any required judgments needing to be made on special
pricing, new products, etc. are all ran through the director of
administration IN WRITING before decisions are made.
STANDARDS: 1. All work will be performed in accordance with Hospital
2. All work will be performed according to the General Hospital
3. Supervisor will be notified of any issues to be resolved or
deadlines that cannot be met well in advance of the due date.
Statement of the position holder:
I accept the accountabilities of this position and agree to produce the results, perform the
work, and meet the standards set forth in the Hospital Policies and General Procedures.
Date: _________Signature: __________________________Printed Name: _____________________
Statement of the position holder’s supervisor:
I agree to provide a working environment, necessary resources, and appropriate training to
enable the accountabilities of this position (result, work, standards) to be accomplished.
Date: _________Signature: __________________________ Printed Name: _________________
10000.1 – Inventory Manager Job Description
o Monitor Vendor Drug Prices.
o Properly change costs and client prices in AVImark
o Follows appropriate written ordering and receiving protocol
o Changing Item Prices Based on Invoices with Cost Changes using appropriate markups
o Inventory Binders: We have four inventory binders all kept in the exec office except when being
currently used by the inventory manager:
Orders – This binder is kept organized UP TO THE MINUTE WTIHOUT FAIL with working
with any of the four inventory binders.
Invoices – This is for invoices on received orders with documentation on each showing
the orders have been properly checked in with prices, expirations, etc.
Weekly Areas of Inventory: This is kept up to date all ALL TIMES showing clearly that
each area of the hospital has been counted properly, by the due date, and inventory is
Controlled Drug Invoices – This are for invoices on controlled drugs only.
Assures all areas of inventory have been counted by designated staff each Wednesday by 5pm.
Submits “Weekly Area of Inventory Checklist” to Director of Admin by 5 PM EVERY THURSDAY.
This form can be found under “forms” in hospital manual.
Assures all areas of inventory have been counted and adjusted in AVImark by 10am on and
Orders must be placed before 11am on the Tuesdays and Thursdays.
Purchases all in-store needed supplies and inventory ONCE weekly by 5pm Thursday. Purchases
via clinic credit card or check, NOT through personal accounts. Ask ED or DOA for credit card.
Store purchases are to be made at Walmart or Costco.
Office supplies are to be ordered through OfficeMax when possible.
Inventory Manager should be scheduled off the floor for IM duties on Tuesday from 9-11am,
Wednesdays from 12-2pm and Thursdays from 6:45-10am
MONTHLY AND QUARTERLY:
o See inventory procedure 10002 for monthly and quarterly counts – completed by March 31st,
June 30th, Sept 30th and Dec 31
o Before the first day of each month, get Inventory Department Checklist form located in Forms in
the Procedures Manual. You will need to change the date at the top of the form and change the
weekly dates. To change the weekly dates,
1. Click on the first date in each column and department and change to the first due date
2. Repeat for each Department and Save.
3. The form will stay in the Inventory Binder until the end of the month.
4. Turn completed Inventory Department Checklist into Director of Administration by the last
day of the month.
10000.2 – Action Codes on Inventory Items
Every medication that has to be counted and put into a prescription bottle has a Rx Fee.
The Action Code is P.
Any liquid medication that is poured from the original bottle to a prescription bottle has a Handling Fee.
The Action Code is H.
Controlled medications have a Controlled Substance Fee.
The Action Code is C.
10000.3 – Alicam Ordering and Monitoring
We order the Alicam as needed on a patient-by-patient basis AFTER the client as paid for the service
with treatment code 2593 “Alicam Monitoring and Consult” in AVImark.
Paid by credit card or appropriate debit card AFTER approved by ED, D of A or owner.
Update vet that requested the order IN WRITING of when to expect the order to arrive.
To order an Alicam call:
Joshua Ahern with Infiniti Medical
10001 - Areas of Responsibility for Inventory:
Result Statement: All areas of the hospital with supplies, pet food, and vaccines are accurately counted
and adjusted in AVImark every week without fail. With supplies all purchase orders in AVImark is
accurate. The inventory manager never has to shop for supplies as an emergency.
1. Each staff member is responsible for turning in their updated INVENTORY REPORT
(AVImark>Inventory button > File > Print > Inventory Report. Select your category and click
Print) to Inventory Manager by 5 PM on Wednesday. There should be a cover page staple to
the front of this report stating date and time inventory has been ADJUSTED to show accurate
If it is not turned in by this time the employee will lose 5 hours per week for the next 4 weeks.
This happens by reporting the missing area to the director of Admin who will deduct the hours
and give a correction to the staff member in writing.
These should be complete BEFORE this time. Excuses such as vacation, busy week, sent home
early, etc. will not be accepted because they have a week to complete it and can turn it over to
someone else while they are on vacation. We have EIGHT areas of responsibility throughout the
hospital. You need to have all 8 sheets turned in every week.
1. Bathing Supplies – Bather
2. Cleaning Supplies – Kennel
3. Pet Foods – Kennel Manager (currently being handled by Executive Director)
4. Vaccines, Lab supplies, AND Client Info packets and brochures – Tech or TA
5. Surgery Supplies– Tech
6. Treatment Supplies AND Parasite Preventatives – Tech or Tech Assistant (TA)
7. Reception – Receptionist or lead receptionist
2. Each staff member should be aware of order points on the items we DO NOT SELL. It should
turn to red when we have at least a ONE WEEK SUPPLY, not less. This avoids the inventory
manager having to go buy something at the last minute. The order points on the items WE SELL
have already been set.
Example: If we have less than a week supply and it is NOT RED in AVImark, we have a
problem! Tell the inventory or hospital manager.
3. Each staff member should also be aware that the inventory sheet column that reads “AVImark
adjustment” (on the cover page listed in step 1 above) is the most critical part.
Example: We have 35 paper towels in stock. AVImark shows that we have 20. The
weekly sheet should have a +15 listed in to correct column.
4. To complete the weekly count and adjustment for that area(s):
The assigned staff member will print their assigned inventory list. Print the inventory list using the
Go to AVImark
At the top, go to RX
Go to “File”
Go to “Print”
Go to “Inventory Report”
Choose the category that pertains to you
Check “Fiscal Inventory Format”
Check “preview” and click print.
Your list will come up, verify that it is the list you need.
If your list is correct, go to the top left and click the printer icon.
Using the list, go to the area in the hospital where the inventory is kept and verify that the numbers on
the count list are correct.
Verify expiration dates, write the expiration date next to each item on the list (if it applies)
Check for any items not yet posted (in blue). They are still considered on-hand-
o For example: If you have six bags of Purina OM on all shelves and one bag up front
waiting for a client to pick up, it’s on their chart, but not sold yet, it is considered part of
the current inventory because it is still in the building and not paid for.
Write the count next to that item
Update the numbers in your area of AVImark using the following instructions:
Go to the area you need to change under RX
Pull up the item to update by highlighting it
Double click (left side of mouse)
The “Change” screen will come up.
Go to “On hand” and in order to measure the variance subtract by using – and add by using +.
Repeat as necessary, updating all of the areas of inventory that need to be updated.
Once all of your counts have been updated, initial your count sheets and put the sheet in the
Inventory Manager’s mail box by 8pm every Monday.
When conducting inventory under assigned sections, the assigned staff member must investigate
discrepancies (Quantity on hand versus actual count is short/over).
If short- make sure that stock has been counted in all regular storage areas
o Example: Prescription Diets are up front in the waiting area and in the Electric Room
If stock has been counted in all regular storage areas – research if inventory has been entered
o Check the variance against existing invoices
o Did we receive a delivery on the day of the count which has not been entered into
5. The Inventory Manager will make sure AVImark is adjusted weekly on Thursday by noon.
He/she will also make sure the order sheets are turned in weekly. The inventory manager turns
in the “Weekly Areas of Inventory Checklist” to Director of Admin by 5 PM every Thursday. This
form can be found in the hospital manual under “Forms” or “Inventory Manager” folders.
6. The Inventory Manager will place orders and do any needed shopping at least once weekly as
needed. There should never be a need for emergency shopping if the above procedures are
7. The Department Managers or Inventory Manager will train each employee correctly in counting
their areas of responsibility weekly, filling out the weekly form correctly, and monitoring the
quantities we use on a weekly basis.
Drill/Quiz for Weekly Areas of Responsibility Training (VERBAL answering and discussing):
1. Name the 7 areas of the hospital under “Weekly Areas of Responsibility”.
2. How many sheets should you get each week from the individuals? When are they due?
3. What would you do if you don’t have all _ sheets from the individuals? How are you going to
assure you will have all the sheets turned in each week?
4. What spreadsheet do you turn in every week about this? Where do you find it? Who do you
turn it in to? What is the deadline for YOU to turn it in each week?
5. When is inventory adjusted for the amount we actually have in stock? Who does it
6. Inventory items in AVImark turn red when we need them. How many days of a supply do we
need to have when it turns red? Why? Explain how it turns red.
7. Describe a couple of things that could happen if:
a. We don’t adjust AVImark for what we actually have in an area.
b. An item turns red when we only have two days of a product left.
10001.1 – BUDGETING INVENTORY
Result: Accurately counted and updated Cost of Goods Sold in AVImark will keep the hospital with
budgeted 18-23%.Error! Bookmark not defined.
Inventory is the second highest expense to the hospital behind payroll. It is CRITICAL that we
do not over-order, or under-order. If the inventory manager does the following well we should
always be within the budgeted range for Cost of Goods Sold (COGS) of 18-23%:
1. Inventory is accurate in AVImark at all times (10001, 10002)
2. Order points and order quantities are followed. Order book is organized (10005).
3. Orders are received, counted, and price/cost adjustments are made correctly (10006)
4. Exec director and/or director of admin are consulted on price specials, expired products,
changing order point/quantities, and new products (10004.1 item 2d).
Over-ordering costs too much, troubles making room for all products, and having products on
the shelf that will expire before they are sold. It also takes money away from the hospital that
is sitting on the shelves. This money could be used for pay raises, bonus programs, equipment,
more staff, etc.
Under-ordering causes us to be out of stock on certain products. This causes inconvenience for
the doctors, clients, and staff. It leads to a lack of confidence and loyalty of our clients. They
perceive that we are not well-managed. It wastes MANY hours of time for staff. In some cases
it can lead to improper treatment of pets. This can me more pain, sickness, or death in serious
1. Why is staying within budget so important?
2. What are somethings that can happen when there is too much product on
hand? Not enough product?
10002 - COUNTING INVENTORY
1. To assure we have:
a. Have accurate inventory counts
b. Have accurate expiration dates
c. Return (those we can get credit on) or handle (keep on hand, if safe based on
doctors decision, or dispose) any expired medication/supplies.
2. To assure our TOP 50 SOLD items are counted and corrected monthly by the 15 of each
3. To assure ALL ITEMS/SUPPLIES are counted and corrected Quarterly by Jan. 2, Apr. 1,
July 1, and Oct. 1. Note: Only the items WE SELL need to be counted Quarterly. The
other items are counted and adjusted weekly based on the “weekly areas of inventory”.
Top 50 Items – by the first of each month:
Monthly Inventory counts are done using the “Top 50” list and turned in to the Director of
Administration before the 21 of the month and updated under the Inventory tab in Avimark.
1. Go to Avimark
2. Choose Work With
3. Choose Practice Analysis (a new window will pop up)
4. In new window choose:
5. Choose Reports
6. Highlight Top 50 items sold
7. Change Date Value to reflect 1 month (previous month’s sales)
8. Choose printer
10. Sign off and give list to Director of Administration
Weekly Inventory Counts – due by 8pm every Monday
Weekly inventory counts in the following categories are done by assigned staff members
6. Rx/Retail Food
10. Flea & HW Preventatives
11. Client Info Packets
The assigned staff member will print their assigned inventory list. In AVImark:
i. Choose Work With
ii. Choose Inventory Lists
iii. Choose File, then Print, then Inventory Report
iv. Organize by Category
v. Under options, choose Sort by Fiscal format, then Print
The assigned staff member will count the pills, check the expiration date, write the count, and
expiration date next to each item they are in charge of. They make the changes/corrections in
AVImark, sign the inventory pages, and turn them into the Inventory Manager by close of business
When conducting inventory under assigned sections, the assigned staff member must investigate
discrepancies (Quantity on hand versus actual count is short/over)
1. If short – make sure that stock has been counted in all regular storage areas
a. Example: Prescription Diets are up front in the waiting area and in the Electric Room
2. If stock has been counted in all regular storage areas – research if inventory has been inputted
a. Check the variance against existing invoices
i. Btl count
ii. Amt received
b. Did we receive a delivery on the day of the count which has not been inputted into
c. Do we have stock up front that has not been picked up and paid by client yet – Food &
d. Did we charge the client appropriately for amount or size dispensed?
e. Worst Case Scenario would be an Act of Pilverage for missing stock – Research and
speak with Upper Management.
Quarterly Inventory Counts – by Jan. 2, Apr. 1, July 1, and Oct. 1
1. Scheduling the count. Hint: Your weekly checklist will be reminder for you not to forget.
a. Schedule with appropriate managers every quarter to be completed by Jan. 2, April. 1,
July 1, and Oct 1 each year
b. The date must be chosen BEFORE the 5 of the month PRIOR and a note given to each
department manager. The department manager will schedule each staff member for
inventory counting on the staff schedule that is due to the Director of Administration by
the 10 .
c. A note is given to Dept Heads (or those making staff schedule) by Nov. 5, Feb. 5, May 5,
Aug. 5 to SCHEDULE appropriate quarterly inventory counts by the dates above.
i. The note will state WHO is scheduled (those with weekly areas of inventory counts that
have been here over 90 days). You will have up to 8 people which should make it go quickly
ii. The note will state WHEN they are to be scheduled (4:30-7:30 on a Sat, or 2:30-8:30 or 7-
10am on a Sun)
iii. The note will state that this count should be scheduled in a way that we are NOT
d. It must be 100% completed before leaving.
e. The Lead Tech or Inventory Manager must count the lock box/controlled drugs while the
doctor is present (to get drug box keys). The Lead Tech or Inventory Manager must be
scheduled off the floor while counting.
2. Completing the count:
a. Only the pharmacy, injectables, and the lock box will be counted. The other areas of
inventory are counted weekly
b. The Inventory Manager will print the inventory lists and assign for each staff member to
count. In AVImark:
i. Choose Work With
ii. Choose Inventory Lists
iii. Choose File, then Print, then Inventory Report
iv. Sort by Fiscal format, then Print
c. The staff member will count the pills, check the expiration date, write the count, and
expiration date next to each item they are in charge of. They make the
changes/corrections in AVImark, sign the inventory pages, and turn them into the
d. Double check any counted items that may still be in the reception area to picked up, or
with a patient still in the hospital. Basically any meds that are IN BLUE still in AVImark
are counted STILL IN THE HOSPITAL.
e. If a staff member finishes their list, the Inventory Manager will give them another list or
have them help another staff member.
f. The Inventory Manager will review all counts and sign off that inventory is complete and
turn lists into Director of Administration.
3. The inventory manager completes the vaccines tables steps while the staff is completing the
above counting (see below)
4. Day/Time stamp the current quarterly inventory count follow-up in AVImark under the patient
5. Sign off on the bottom of each page of the entire list and submit list to Director of
6. No one leaves until this entire process is complete.
7. Expired Medications:
a. Fill out the left side of the form “Expired Medications List and Action Plan” found in the
manual under “Forms – Misc”.
b. E-mail this completed form to the owner or DVM medical director.
c. The owner or DVM medical director will decide what actions to take for each
medication, fill out the right side of the form, and e-mail it back to the executive
director. The ED will create a project and deadline for the inv. Mgr to complete these
1. Schedule to be completed by Jan. 2, April. 1, July 1, and Oct 1 each year
2. Go to “Work With”
3. Choose “System Tables”
4. Choose “Vaccine Tables”
5. Enter Quarterly expiration dates and lot #’s for vaccines
6. Once completed…time stamp follow-up and post
1. Why do we do quarterly inventory counts? What would happen if we didn’t? If we were late
2. When are quarterly inventory counts done?
3. When are they scheduled?
4. Who needs to be given a note of when inventory is scheduled? When? How will you remember
to do this?
5. Who is required to be scheduled?
6. Who counts the lock box and when?
7. Who are the inventory list given to after the Inventory Manager signs off that inventory is
8. Demonstrate to your trainer by doing a “Print Preview” in AVImark for the inventory for both
the complete list to count (without areas on weekly areas of inv) and vaccine tables. Print only
9. Take page one, pick ONE item, go count it, check expiration date, write the differences on the
list, adjust both in AVImark. Sign the bottom of the page. Turn in to D of A inbox. This is what
everyone will do over and over again until it’s done that evening.
10002.1 – Controlling Inventory Guidelines
Inventory is best kept at a level where running out is always imminent, but rarely happens. This will
afford the hospital the best return on the inventory carried.
Stock Levels – this is the best level of inventory to keep. Typically you will want to keep anywhere from
a 2 to 4 weeks (.5 to 1 month) on hand. The lower the better. To determine how much you sell of a
particular item, you would.
1. Run a report in AVImark to find out how much you sold
during a certain period.
a. If you will be using this info off-hand, it is best to go
with 10 months. Then all you have to do is move
b. If it will be input into a spreadsheet, then choose
the most recent 12 months
2. Divide the amount sold by the time period: Sold / time =
3. Once you have the use per month, you can then decide on
how much you need to keep.
a. Max - should be set at 1 month supply
b. Min – should be set at 2 weeks or 1 unit depending
on the need or pack size
4. Use these numbers to set stock levels and reorder points
5. When you reorder, you should not push your stock level
above a 1 month supply (if possible)
Reorder Point: The stock level which triggers an order. (Usually, 1 unit or a 1 – 2 week supply)
Reorder Amount: The amount that, when added to the supply on hand leads to the desired stock level
Inventory levels and use can vary seasonally, but also can vary based on new introductions to the
market or a new associate joining the practice.
Overstock and overlapping drugs
Overstock should be returned as soon as possible
Look for drugs that may be used in the same circumstances and work with the doctors to remove one of
the drugs from the list of what you carry.
- NSAIDs and FOOD are great examples
10003 - Food Rack (Front)
EN OM PD PV NF LP OM
Case Case Case Case
Canine Canine Feline Feline
EN NF OM SO PD/PV DM EN K/D LP NF SO A/D OM W/D
Single Cans Single Cans Single Cans K9 W/D
Canine Canine Feline Single Cans
EN x2 EN x2 RC Dental Urinary SO K/D NF Pro Plan
6 lb bags PV & PD 6 lb bags Adult C&R
Canine 7 lb bags LP 12oz bags Adult Salmon& Rice
Canine Feline 6 lb bags
OM NF PD PV EN DM OM ProPlan 6 lb bags
6 lbs bags SO Dental 6 lb bags Puppy Chk & Rice
Canine 7 lb bags EN 10 lb bags Small Breed
Feline Feline Adult Chk & Rice
OM SO NF OM ProPlan
16 + 32 lb bags 17.6 lb bag 16 lb bags Grain Free
Canine Feline Feline 24 lb bag
EN PV W/D TD
16 + 32 lb bag 17 + 27.5 lb bag 16 lb bag 25 bag
Canine Canine Feline Canine
10003 – Dental Chews Included with Dental Cleanings
Result Statement: To ensure great patient dental health and client satisfaction by assuring
we are always stocked with complimentary sample chews for dental
Primary Responsible Position: Inventory Manager
When: When the inventory order point is at or below the required quantity,
the chews will be ordered.
Specific Bags to hold the Sample Chews
Pull the needed chews from the retail stock
Adjust the inventory item in AVImark
o REMOVE the correct amount from the retail on-hand qty.
o ADD the correct amount TO the sample on-hand qty.
Fill the bags with 5 of the (same size) chews and label with the
correct branded sticker.
Place the filled bags and leftover supplies in the ICU cabinet labeled
“Oravet Sample Bags”
Quiz/Drill Questions for “Dental Chews Included with Dental Cleanings”
1. Where do you pull the Oravets when needed for the samples?
2. How many go in a bag?
3. What goes on the bag?
4. Pretend you need more sample bags of the smallest sized chews for dental cleanings. Show
your trainer what you would do in AVImark.
5. Where do you put the samples and leftover supplies?
6. How will you know when you need to make sample bags?
10004 - “Hospital Use” items
Result: To keep accurate count of inventory
Any items being used internally (items we also sell to clients) are to be accounted for inventory and
This form must be completed by the staff member who takes the item off the shelf for hospital use. The
completed form is put in the Inventory Manager’s box. The Inventory Manager will enter the item in
Reason : ________________________________________________________________
For Inventory Manager:
Entered in Avimark: Yes or No Date: ________________________
Inventory Manager Signature: ______________________________________
1. Enter “Julius” into client selection field
2. Choose “Kent Julius”
3. At bottom of account choose “Hospital Use”
4. Hit “F2” and then type either the item # or item description and choose from list
5. Enter quantity used and “DO” for doctor
6. Hit “Done”
7. Highlight the item and choose “Notes” from side column
8. Time stamp and then notate the manager that approved and what the item is
being used for
9. Put completed forms into Director of Administration’s box weekly on Monday by
Continued on next page
Examples of Hospital Use items are:
E/N dog food bought for kennel use
Pill Pockets for exam room use
Treats for exam room use
Drill: Why do we need to account for hospital use items?
What would happen if items were used and not entered in AVImark as hospital use?
Who completes the Hospital Use form?
………Who enters in item in AVImark?
………When and where are the forms given to the Director of Administration?
10004.1 - Inventory in a Nutshell
Result: An accurately stocked and organized hospital. Clients and pets receiving
high quality customer service and care.
1. Accurate and Organized at ALL TIMES
a. Accurate – staff can see what we have in less than two minutes
i. Items are listed in AVImark….or
ii. In the area labeled to be checked in.
i. Storeroom Organization: back-stock and orders received (10008)
ii. EVERY SINGLE ITEM HAS A PLACE (hospital policies priority #3)
iii. EVERY ITIME HAS A LABELED PLACE
iv. Even items needing action or answers have a labeled place (I don’t
v. Order Book is meticulously neat and accurate every MINUTE of every DAY.
2. Placing Orders
a. Twice weekly, additions to this procedure including order book details (10005)
b. Based on order points and quantities set in AVImark by Execs
c. Order book meticulously accurate and organized
d. Orders needing JUDGMENT are approved by execs IN WRITING and in book.
3. Receiving Orders
a. Storeroom organization procedure (10008)
b. Order Receiving procedure (10006)
4. Counting Inventory
i. client purchases accurately entered in AVImark and automatically adjusted
ii. Order Receiving procedure – Daily (10006)
b. Weekly areas of inventory – adjusted in AVImark and turned in on time (10001)
c. Monthly – Execs and CPA office monitors all inventory numbers to assure it is within
COGS budget of 18-23% of VSD.
d. Quarterly Counts – Hospital-wide inventory accurately counted and adjusted including
expiration dates (10002)
Drill: 1. Why is it so important the inventory counts are accurate in AVImark?
2. Explain the importance of the weekly and quarterly inventory counts.
3. What is the budgeted % of COGS?
10004.2 – New Product Requests
All NEW items or supplies requested are only ordered after it improves patient care, client service, or
employee efficiency…..AND IMPROVES the financial condition of the hospital.
All financials on the new product and any existing product it is replacing
New Product Request Form Completely Filled out and approved
Primary Responsible Position: Inventory Manager
1. Gather all financial information (cost, price, order pack, order quantity) on the new product
2. Gather all financial information on the product that this new product REPLACES if applicable.
3. Gather all the vendor information including how long it takes to get this product routinely
4. Gather all financial information on the AMOUNT of this product we will use and how it helps the
5. Completely fill out the “New Product Requests” form found in the hospital manual under
“Forms – Misc”.
6. Turn in the form to both the Director of Admin AND ED for approval within 5 days
7. If approved by BOTH ED and D of A:
a. Enter all the information into AVImark (order qty, order pack, cost, price, etc)
b. Create a proper place for the new product and label this space.
c. If applicable create a labeled space for the back stock.
d. If applicable create a WRITTEN plan for how will any existing product will be replaced
BEFORE using this new product.
e. Order the product per procedure
f. Receive the product per procedure
g. If applicable follow the WRITTEN plan above in how you will REPLACE the other product
before using this new one.
8. File the completed “New Products Requests” from in the inventory binder kept in the
1. Why do we have this procedure for new products?
2. What would happen if we didn’t?
3. How does this procedure help YOU?
4. Drill through at least one pretend new product will all steps filling out the “New Product
Request” form, demo pieces, pretend area for new product, etc.
a. Example: Current eye med costs $12 a bottle. We can get the exact same one as a
generic for $4 a bottle and sell the same number per month. We cannot return the
name brand one. (Hint: We should make MORE net profit using this product and ALSO
save our clients’ money. WIN-WIN!)
10005 - ORDERING
COMPLETE and ACCURATE orders are placed without fail every Tuesday and Thursday assuring
we don’t double order or MISS anything needing to be ordered.
HIGHLIGHTS AND GUIDELINES:
Routine orders are placed twice weekly on Tuesdays and
Thursdays during scheduled inventory management time.
Order list is printed through AVImark – see below
Items on order list that must be purchased in person are all
purchased EVERY THURSDAY with a shopping trip by the
inventory manager during scheduled inventory management
Items on the purchase order that are already on order are
notated on the line with the date it was ordered and the
company ordered from.
Before ordering look in binder at the LAST placed “ORDER
LIST”. Highlight and notate items already ordered.
How to print the “Order List”
1. Go to “Work With” in AVImark
2. Click on “Inventory List”
3. Click on “File” on the top left corner
4. Click on “Order”
5. Click on “New”
6. Click on “Items from all categories”
7. Click on “Continue”
8. Click “Order “ on the top left corner
9. Click “Print”
10. Click “Done”
How to place an order
Vendors to call to place orders:
The vendor phone numbers are in AVImark in QA.
As each item is ordered BY PHONE on the purchase order the
line item on the purchase order is highlighted in BLUE.
The original is 3-hole punched and placed in the “Inventory
Binder” in reverse chronological order.
If out of stock or on back order write in the date the order was
placed to the right of the line item.
If item has already been ordered but not received – write in
the date it was ordered to the right of the line item.
Zoetis Vaccines and Revolution are ordered directly from
Zoetis, NOT MWI! Assure we get the VGP Discount!
o Roadrunner (Oti-Pak E)……..1-877-518-4589
o Henry Schein……..1-631-843-5500
o Specialty Pet Products (Candles)……..1-866-540-7457
o Pet Detect (hospital collars)……..1-888-224-4408
o Vet Apparel (Rx labels)………1-800-922-1456 (item # 997)
o NovaCopy……..214-276-0730 (DAL00738)
o Patterson (Kennel Kare cleaner)……..1-978-353-6000
o Don’t Let It Break…….214-587-9401
Vendors to order online:
Log into vendor website using username and password.
Items ordered online are highlighted on the “order list” in YELLOW.
After order is complete, print order 3 hole punch, and place in binder under correct
“Order Lists” are fully highlighted with notations and place in binder under section
labeled “order Lists”
Vendor List: (username for all id [email protected])
o DO NOT ORDER ZOETIS VACCINES OR REVOLUTION THROUGH MWI. ORDER
THEM DIRECTLY THROUH ZOETIS. We get a discount this way!
o ORDER REVOLUTION VACCINES AND REVOLUTION DIRECTLY THROUGH ZOETIS,
not from MWI. Make sure we get the VGP Discount!
1. How do you know what to order?
2. What days do you order?
3. Where do you find the vendor phone numbers?
4. Why do you order twice a week? Why not once a week? Why not 4 times a week?
5. Why not wait until ALL areas of weekly inventory are turned in to place an order?
6. Who do you order Zoetis Vaccines and Revolution from?
10005.1 Pricing and Markup Guidelines
Result Statement: The fee schedule reflects our medical standard of care and target client
demographic, it also represents the value of our services and products. Setting fees appropriately
and charging for all of the services we provide is critical to our practice's financial success and gives
us the resources we need to continue to providing quality patient care and excellent client service.
General Prescription Markups –
3X cost which is listed in AVImark under the “general” tab for each item listed as “markup percent”.
Example: 3X our cost would be 170 (100 +170 = 270% total).
As a general rule: Prescription markups are typically 3 X cost. The special circumstances where this
does not apply are listed below. There will be instances where we have to make judgment calls based
on the market demand, internet pharmacies, competition, etc. In cases requiring judgment or analysis
the executive director or owner needs to be involved in deciding the markup and listing it below and e-
mailing the new list to the owner for the master copy of the manual.
Prescription Fees “P” and Handling Fees “H”:
P – in general pills that are counted, or meds that are handled outside of the original packaging gets a
prescription fee (P code in AVImark) in addition to the markup.
H – In general medications that need to be mixed up or compounded by us gets the handling fee (H code
in AVImark) in ADDITION to the Prescription code (P) and markup in AVImark.
Outside Labs (under treatment list):
Typically 2.5 X cost with certain exceptions for special pricing, fecal tests, heartworms tests, etc.
Prepackaged shoppable (proin, rimadyl, metacam) – varies depending on internet pharmacy costs but
typically is about 100% markup.
The affordability of veterinary generic drugs provides multiple benefits for our practice. Our profitability
improves because veterinary generic drugs cost less than brand-name drugs, stocking our pharmacy
with veterinary generics reduces overhead costs and lets us price drugs competitively with local big-box
commercial pharmacies (Shoppable) and online retailers so that fewer of our clients’ prescriptions walk
out the door.
By offering veterinary generic drugs, we can provide affordable pet medicines conveniently for our
clients and retain the benefits of those sales in our practice. With affordable veterinary generics, we can
continue to provide our clients with one-stop service—individualized pet healthcare recommendations,
high-quality patient care, and a convenient hospital pharmacy
Pricing Shoppable Items: When switching from a name brand to Generic product, price the generic so
that the client price and markup percentage equates to 10% more net profit than the name brand per
Bulk Shoppable Purchases (Unopened Bottles: 60 Count, 100 Count, etc) are priced with
appropriate price breaks without the current Rx Fee. To do this go under the Inventory Item,
General Tab, Break Qty Section.
Compare On-Line Pharmacy prices for that item and select the bulk quantity price to be within $ 10.00
of the On-Line Price
Generic Human Label Markups:
ALL are 3X cost which is listed in AVImark under the “general” tab for each item listed as “markup
Typically around 100% markup but depends also on internet pharmacies
As of Aug 2014 markup is 100% without a prescription fee. Generic is no longer available through
MWI. Client price cheaper through VFC or other online pharmacies.
10006 - RECEIVING ORDERS
Result Statement: Orders are regularly received (up to 7 days a week), are placed in the correct
labeled area, and are processed and checked-in the same day (or by noon the next day). This
happens even if the inventory manager is off for multiple days. AVImark accurately reflects all
received orders. All products and supplies are kept in the correct labeled areas at all times,
even before, during, and after checked-in.
Orders Received: All received orders are placed within taped section on floor of storeroom
labeled with “Orders Received”. This includes pet food, MWI plastic bins, paper towels, etc.
They STAY in this area until they are checked into AVImark and stocked in the appropriate area.
Order check-in: Received orders are checked in and stocked DAILY by 4pm by either the
Inventory Manager, Assistant Inventory Manager, Dir of Admin, or ED.
Inventory Receiving Protocol
1. Instruct vendors to drop all shipments in the labeled are of the storeroom.
2. Reconcile shipments to packing slips / invoices…verify item received against invoice to
ensure correct reconciliation. Initial invoice upon reconciliation. Controlled Drug items
require x 2 initials. Have a tech or TA confirm we received the controlled drug and initial
next to the line item. Controlled drugs must be stored in lockbox immediately.
a. Make sure what’s on the invoice/packing slip are in the box then initial the top
right corner of the invoice/packing slip.
b. Enter each item in AVImark by using the “+” sign, enter quantity and clicking
done. Initial to the left of each item after quanity is entered.
c. Adjust prices and expiration dates in AVImark. Initial to the right of each item
after change is made.
d. Cost decreases are entered, but the client cost remains the same.
e. Cost increases are entered and the client cost is increased by the Inventory
Manager. Cost increases need to be turned into the Director of Administration in
writing. On a full piece of paper, write or type the name of the product and the
AVImark code for the product and place in the DOA’s mailbox.
f. Once all complete, file the invoice/packing slip in the inventory received binder in
reverse chronological order (most current on top). Controlled drug invoices must
be filed in controlled drug binder.
3. Review out of stock and special request forms and fill then contact the client and
document in AVImark. Refer to procedure number 10007.
4. As retail items are removed from boxes they are to be priced with price gun on the top
right corner of product (there may be a rare exception, such as, framed art)and placed in
the reception retail area. Location: Main Display, Large Chest by Grooming Salon for
excess stock items.
5. Items are stocked utilizing First In, First Out Method. New product goes behind old
If an order is received after 4 PM it will be checked-in and stocked prior to noon the next day.
Quiz and Drill:
1. How do you document that the order is checked into AVImark?
2. What do you do with the invoices or packing slips? Which one? Where?
3. How are orders received when you are off work?
4. Who checks in orders when you are not here?
5. What if something comes in at 6 PM? Do we check it in right then?
6. Where do the orders that are received go? All of them?
7. How are you going to assure the staff knows who can check-in orders? When?
8. What do they do if a box comes in…it’s not checked in…and a client wants it? What if it’s
Saturday at 3:45 PM and it’s your off day?
9. How do you handle special orders or out of stock medication request forms?
10. What would you do if you find unpacked orders are scattered in the receiving room?
11. Show us how you check in an order. Demonstration with old invoice.
10006.1 – Retail Products
Results Statement: To assure great customer satisfaction and financial viability of the
hospital by offering a selection of safe, high quality retail pet products
that clients readily want and regularly purchase.
Primary Responsible Position: Inventory Manager
Why: Clients trust us and look for us to offer and recommend retail products
for their pets that are better than the average products found in pet
stores. We offer a niche of products that have been specially selected
by our doctors or executives.
How: Retail products and the associated vendors are handled just the same as
with other “items” in AVImark but with retail tax. They all have
markups, costs, prices, order points, order quantities, etc. The have
descriptions in AVImark that should be obvious. Order points and
quantities are determined the same as with all items (sales, shipping
Each retail item has an accurate price tag either in the upper right-hand
corner on the FRONT of the product, or on the hanging label/tag. This
helps receptionists to quickly find the item in AVImark.
It is very important the receptionists know exactly how to accurately
and efficiently add these items to a client’s invoice and check-out.
See below for lists of various vendors, retail products, markups, etc.
Vendor: Product : Markup %:
Harry Barker Dog Toys 100% rounded to nearest dollar
Harry Barker Toy Bins 100% rounded to nearest dollar
Harry Barker Waste Bags & Packs 100% rounded to nearest dollar
Harry Barker Shampoo, Fragrance 100% rounded to nearest dollar
Retail Item Examples as of April 2016:
Product: Cost: Price: Order Point Order Pk O. Qty On Hd.
HB Small cotton bone $4 $8 5 3 6 18
HB Cotton Alligator $7 $15 5 3 6 6
HB Bucket $7 $14 2 1 3 4
HB Toy Bin blue/tan $9 $18 2 3 3 4
HB Toy Bin Empire $10 $20 2 3 3 3
HB Boat Shoe/Slipper S $6 $12 4 3 3 12
HB Boat Shoe/Sipper L $7 $14 4 3 3 11
HB Rope Tug Small $3 $6 4 3 3 12
HB Rope Tug Medium $4 $8 4 3 3 10
HB Rope Tug Large $5 $10 4 3 3 1
HB Canvas Bone $6 $12 4 3 3 6
HB Rubber Tug Toy $8 $16 4 3 3 9
HB Tennis Balls $1 $1.50 15 10 20 105
HB Shampoo $7 $14 1 3 3 2
HB Refreshing Spray $5 $10 1 3 3 3
HB Leopard Dispenser $7.50 $15 1 3 3 4
HB Leopard Waste Bag $0.75 $1.50 5 18 18 18
Drill/Quiz for “Retail Products”:
1. Why do we have a full procedure for ordering and stocking retail products this way?
2. What would happen if we just put in one big item and had the receptionists enter the price off
of the price tag when a client wants to buy each product?
3. How will this procedure make things easier for YOU?
10006.2 – Returns
Any product (supply or item) that needs to be returned to the vendor is done quickly and without
creating clutter ANYWHERE. Credit is given back to LVH and we have written proof of this credit.
Resources Needed: “To be Returned” shelves, “Returns” form.
Primary Responsible Position: Inventory Manager
1. Place the product to be returned on the shelves labeled “To Be Returned” in the associate’s
office. DO NOT PLACE THE PRODUCT ANYWHERE ELSE! THIS CREATES CLUTTER!
2. Fill out the “Returns” Form
3. Order the CORRECT product.
4. Make a copy of the form and put in the D of A’s message box.
5. File the original form in the inventory binder.
6. Prepare the product for the return (MWI to pick up, Fedex box, etc.)
a. MWI returns ready for pickup are in the phone room under the dry erase board in the
b. FedEx, UPS and other packages are also kept in this same spot AFTER it is packaged and
ready for pickup.
7. Assure the product has been picked up or shipped.
8. Assure the credit is on our account. Attach WRITTEN proof to the form.
9. Complete the “Returns” form. File in the inventory manager binder.
10. Turn in a copy of the completed “Returns” to the D of A message box.
Drill/Quiz (open book):
1. Why do we have this procedure? How does it help YOU?
2. What would happen without this procedure?
3. Go through a drill of this procedure using the form and demo pieces. Explain to the trainer
where your putting things.
4. Procedure is a pass when trainee has demonstrated this can be done independently and
10007 - Special Orders
Result Statement: All special orders are ordered and available to the client when the
product arrives. This ensures the clients and pets receive high quality
Primary Accountable Position: Inventory Manager
Participating Positions: Doctor, Department Heads, Execs
Note of Interest: In many cases, it will save everyone time, including the client, to NOT
order through us. Call in the product to a local pharmacy (compounding
pharmacy) or our online pharmacy. In these cases, we don’t have to
order, price, or receive anything. The client will get it themselves or get
it delivered to their home.
If you do the above, you can skip all these steps below.
How to Place Special Orders:
When a client makes a special request for food or other items:
Get a Special Request Form located in “Forms - Misc” on “staff
shares” under “Procedures Manual (date)” on all computers.
Complete steps 1-5 on the form
1. Informs client that our inventory manager will call them
back client to verify the price and expected date of delivery.
2. Places the form on the Special Order board (located to the
right of Dr Julius’s office)
1. Check the board and place special orders DAILY (on the days
he/she works, even in another role), with the exception of
food. Food orders will be placed on Tuesdays.
2. Get full payment by phone before ordering.
3. Post this payment to the account as a pre-payment/credit
to their account for the full amount.
4. Notify client of the expected time of food order as they will
be longer. Call the client or tell them in person TODAY!!
In some cases, a doctor, manager, or exec may need to order this
product if the patient needs it earlier and the inventory manager is
not working. They still follow these same steps.
Inventory manger places the order:
1. Complete steps 6 – 8 on the form
2. Re-post on the Special Order board
1. Complete step 9 on the form, note in client’s account in
2. Tape Special Order Form to Product
Remove Special Order form from product when client has picked
up. (Every needed documentation is already in the patient’s file by
using the above steps.)
How to Price it and Enter in AVImark:
In most cases, non-compounded items will need to have a NEW item
put into AVImark with proper cost and price and order qty of zero.
For compounded drugs, Roadrunner Pharmacy for example, enter a
treatment on the patient record of “8056 Misc Fee”. Change the name
to the correct name and size/strength. Change the price to the accurate
client price (generally 2.5 X cost).
What if client doesn’t pick up:
1. Between 7-10 days after initial call (telling the client that
the we have the product in stock) the 2 call will be made
a. Receptionist will contact owner
b. Annotate and post client communication in
2. Between 10-13 days owner after initial call the 3 call will
be made (Step 11)
a. Receptionist will contact owner
b. Annotate and post client communication in
3. After 21 days:
a. Receptionist will notify Inventory Manager of
products not picked up
b. Inventory Manager will:
1. Return to Stock – items that we already
regularly stock (has and “order qty”)
2. Return to Vendor – items that are not
regularly stocked (has “order qty” of ZERO
Drill for “Special Orders”:
1. Where are the Special Order forms kept?
2. Demonstrate how to print the form.
3. Where does the Special Order form go for the Inventory Manager to be able to see that there’s
a requested item?
4. When does the Inventory Manager check the Special Order board for orders? How often?
5. After the inventory manager finds the special order form what do they do? If they call the client
what do they do?
6. Do we get payment now or later? When? How? Do we put the charge in as a pre-payment or
with the item as if they already go it?
7. Why is it important all sections of the form are completed?
8. Why/when would a special order be return?
9. Why do we have special order procedure?
10. Demonstrate printing form, pretending we have a special order through all steps.
11. What happens if we don’t do this procedure completely?
Special Order Products:
Baytril Otic – We have to order 6 at a time. Can we use something else? $$
Chondroflex per chew – 120 ct or 240 ct only
Clomipramine 25 mg
Deramaxx 100 mg – 30 ct bottle
Deramaxx 100 mg – 90 ct bottle
Deramaxx 75 mg – 90 ct bottle
Dermazole 16 oz.
Digoxin Elixir 0.05 mg/ml
Frontline Cats and Kittens
Gentomycin Ophth. Ointment
Napahazoine Eye Ointment
Potassium Bromide Chewable Tablets or Oral Solution
Rimadyl 100 mg – 180 ct bottle
Rimadyl 100 mg – 60 ct bottle
Rimadyl 25 mg – 180 ct bottle
Rimadyl 25 mg – 60 ct bottle
Rimadyl 75 mg – 180 ct bottle
Skunk Off Spray
Spironolactone 25 mg tabs
VIP Fly Repellant Ointment
10008 - Storeroom Organization Policy
Result Statement: All items in the storeroom has a properly labeled space and is kept in
that space AT ALL TIMES. “Everything has a place where it lives.”
All orders will be checked in on the invoice that is with the order, signed
and placed in the inbox
The food will be stocked on the appropriate spot on the shelves with the
correct label with arrow above or underneath the food depending on the
ALL inventory to be stocked will be placed on the “TO BE STOCKED”
labeled area of the storeroom on the floor.
All empty MWI blue boxes will stacked on the floor right in front of the
ladder, so the driver will pick them up. This area is labeled as “EMPTY
All boxes will be broken down and taken to the dumpster immediately
after they have been opened and unpacked.
Every item in the hospital has an area for it to be kept. The area must be
labeled for the item even if it yet to be checked in.
In order to fit all back stock pet food on the shelves many times two
types of food will be on one shelf. Both labels will be there.
EVERYTHING IS LABLED. NOTHING IS OUT OF PLACE. EVER.
1. Why do we want to have the storeroom meticulously organized?
2. Where do received orders go before they are checked in?
3. Where do the following items go AFTER they are checked in:
a. Paper Towels
b. Pet Food
d. CET Chews
4. After the blue MWI plastic boxes are emptied where do they go?
5. After cardboard boxes are emptied where do they go? When?
6. How are going to assure this area stays in place on days/times you are not working?
7. What will you do if we suddenly stop ordering one kind of off and 10 bags/week of
10009 - Vendors
Primitives by Kathy: www.primitivesbykathy.com
UN: legacyveterinary PW: animal321!
For our BOX SIGNS. We have various sizes and prices we keep in stock.
Basically we order the best sellers for dogs and cats and sizes/prices
that sell best. The client price is DOUBLE OUR COST. It is important to
make sure the product has a price tag on the back and labeled with the
“size” in AVImark.
Harry Barker: www.harrrybarker.com
Phone: 1-800-444-2779, Fax: 843-763-2030
Customer Number: 162457 (As of April 2016)
Email login: [email protected] PW: pinderella123
Phil Winter: Pet Report Cards and Travel Sheets
Phil Winter's Marketing Communications
3245 University Ave. Suite 1-525
San Diego, CA 92104
For Puppy/Kitten Packs and Rimadyl Trials:
Call/email Brett Hallman directly: 214-886-1334 or
Meagher Graphics: For Hospital bags, hats, jackets:
Robyn Stanford at [email protected]
Harry Barker: Retail Pet Supplies:
800-244-7779 or 843-766-8686
Amazon.com Bathroom paper towel rolls
AAA Termite and Pest Control: 972-359-7733
Diamond Lawn Service: 972-417-3831
Vet2Pet App: http://vet2pet.com/manage-my-app/ to order more marketing
materials for the app. They are free to us!
Viva Concepts Referral Cards, Hospital Brochures
Ryan Tabib [email protected]
Jeff Sims [email protected]