The Best Time To Prepare For The Future Is Now

Alison Farber

As DSOs begin to pivot from focusing on rapid growth to long-term profitability, their investment strategies must become more diverse, with greater emphasis placed on sustained ROI.

Over recent years, DSOs have looked to accomplish their growth goals primarily by buying up privately owned practices. However, more often than not, that hyper-focus on acquisition does not deliver strong profit margins.

Growing a company’s overall revenue is important for maintaining financial health, but just increasing income does not guarantee profitability. For dental businesses that want to increase profits while continuing to expand, there is more than one way to get there.

Innovation Comes In Many Forms

Innovation is all the rage in business these days. There are “innovation teams,” “innovation leaders,” and the phrase “return on innovation” is even appearing in corporate boardrooms.

But what, exactly, is innovation?

One of the more interesting definitions is as follows: “Innovation provides the ability to leverage invention in a way that pays a tangible return.” As competition heats up in the dental industry, and consolidation trends continue, those organizations that are more willing to try new ideas will be more likely to win.

Improving the efficiency with which your company operates is not normally considered a groundbreaking approach. However, for fast-moving DSOs that are adding new locations and new people on a regular basis, it can be difficult to make sure everyone is following standard operating procedures. Companies that are bringing in new employees and adding new systems and processes can easily lose the ability to see and control what’s going on across all locations. For the leaders of these organizations, streamlining how you manage the basics is a critical and, yes, innovative strategy.

Adding new systems before things get out of control will prevent small mistakes that can lead to big and costly problems. As DSOs continue to add practices and grow in size, problems naturally multiply. If executives are forced to devote too much time to putting out operational fires, they may miss valuable opportunities to increase revenue and labor productivity.

As DSOs continue to grow, those that put clear processes in place and give their employees simple tools will hold a significant competitive advantage. Simply put, what was once a relatively simple fix when managing only a few locations is now nearly impossible to tackle simply due to the sheer size of the business.

By embracing technology and gaining better control over business processes now, organizations can better defend against the common challenges of staffing issues, red tape, and declining insurance reimbursement rates that negatively impact profits— and it’s all far easier than most realize.

What Are The Benefits Of Cloud Computing?

For most companies in the 21st century, cloud-based software is a great option for any online subscription business model because it is easier and faster to get up and running. It is better for organizations of all sizes because it allows them to run via any standard browser, 24/7, from any device, and it doesn’t require any installation, equipment updates, or traditional licensing management. It’s extremely cost-effective, requiring no upfront hardware costs and flexible payment methods.

Most solutions are designed to scale easily to accommodate changing needs that accompany growth. Data storage and analytics that allow access to reporting and intelligence tools are commonly included, and security is high, with most providers investing heavily in security technology and expertise.

Cloud-based, dental-specific SaaS (Software as a Solution) platforms, such as e-procurement solutions, offer all of these advantages. Pay-as-you-go subscription models offer dental organizations the ability to quickly and easily expand their capabilities.

By providing quick and easy access to the amount of computing power they need when they need it–no forethought, technical resources, skills, or significant financial commitments required–these solutions allow businesses to lay down a technology foundation for their business operations that can easily adapt in the future, as operational issues and opportunities arise.

Additionally, cloud-based SaaS providers are typically easy to learn how to use and allow for information sharing and data gathering to be consistent and scalable across the entire practice.

How To Increase Efficiency And Profit: A Story From Procurement

Using this author’s own experience as a perspective: financial officers and procurement executives of multilocation practices cannot be everywhere at once. However, armed with a simple, accurate, and comprehensive view of their organization’s procurement process, leaders will be empowered to:

• Make better-informed business decisions based on nearly realtime data

• Quickly identify trends and spending patterns at both the enterprise and location level

• Improve budget control and forecasting with spending analytics

• Boost formulary compliance

• Identify improvement opportunities related to acceptable product alternatives, inventory levels, and product usage.

• Monitor KPIs and gain insights into individual supplier performance

• Report on the financial impact of cost savings strategies

• Iteratively adapt and improve on procurement strategies to ensure long-term financial benefit

Imagine what opportunities would arise by having a holistic view across all business operations in your practice.

Doing More With Less—How The Right Software Solution Can Save You Money

For multi-location practices, both the challenges and the opportunities grow significantly larger as the organization expands. However, these challenges can be met, and the opportunities can be exploited using precise analytics and accurate reporting.

If you don’t have a ton of experience working with enterprise software, let’s look at a specific example:

The goal of procurement is to buy the right things, in the right quantities, at the right time, for the best possible price. Although, in theory, it may sound easy, without the right technology, it’s difficult to do so efficiently because of the large number of different products the average dental practice must keep in stock.

A procurement process that relies on a combination of emails, spreadsheets, phone calls, and whiteboards can be difficult and complicated. It also makes keeping track of everything nearly impossible and increases the likelihood of making mistakes. These issues can quickly get out of control if they occur across several different locations.

To take full advantage of what today’s technology has to offer, dental practices should choose software that’s quick to adapt and yet powerful enough to meet their changing needs as they grow.

Leading e-procurement software solutions will allow you to achieve hard cost savings, by finding you the best prices, and soft savings, by helping you and your staff get more done in less time and follow processes that give you more “bang for your buck.”

E-procurement solutions with tools that make it easy to track how much you are spending, on what products, and over specific periods of time, can help you make smarter decisions on what you purchase, from whom, and how frequently.

Finally, with access to the proper information, you can develop a purchasing strategy that helps your organization achieve its overall business goals. Using the power of “collective purchasing,” you will be able to negotiate more favorable pricing and service terms from suppliers.

Dental organizations are slowly realizing just how big an impact inefficient processes can have on their bottom line. By using procurement software, they can quickly revise these processes to save how much they spend on supplies while making it easier for their employees to be more productive.

Shopping For The Right SaaS Partner

Selecting the right Software-as-a-Service (SaaS) partner is like charting a course through unfamiliar waters. Success lies not only in choosing the right destination but also in the ship you use to get there. When making your choice, several important factors should be carefully considered in order to ensure a successful trip.

Expertise and Experience: The success of any partnership is dependent on the expertise and experience of the chosen partner. Evaluating their track record and depth of knowledge in your industry can offer valuable insights into their ability to navigate challenges and deliver effective solutions that cater to your unique needs. Don’t be afraid to ask challenging questions and ask for references when evaluating potential partners.

Communication and Collaboration: A successful SaaS partnership should be a collaboration. Open lines of communication and a shared vision are essential for success. A partner who values transparency, actively seeks input, and is committed to working closely with your team can pave the way for a more productive and fruitful collaboration. Ask candidates how they plan to ensure transparency and proactivity in their ongoing communications with you.

Flexibility and Adaptability: In a fast-changing business landscape, adaptability is key. Choose a partner that offers flexibility in their approach and solutions. A partner willing to tailor their offerings to match your evolving requirements demonstrates a commitment to your long-term success. Provide potential partners with sample requests of areas where you might require customization and ask for examples of how they have demonstrated adaptability with other customers.

Technical Expertise: The technical expertise of your chosen SaaS partner significantly impacts the effectiveness of the solution. A partner with extensive experience and category expertise not only ensures seamless implementation but will also be ready to solve technical challenges that may appear down the road. If your organization doesn’t have deep technical expertise, ask the vendor you are considering to develop a list of the types of technical expertise you should expect them to bring to the relationship.

Onboarding: The onboarding process sets the tone for the entire partnership. A well-structured onboarding experience will provide a smoother transition for your team, ensuring they are comfortable using the new system starting on day one. Look for a partner that provides comprehensive training and resources to ensure a successful launch. Similar to a job interview, ask them to provide examples of previous onboarding engagements where they faced a challenge that they were able to successfully

Support and Maintenance: A true partnership extends beyond the initial implementation phase. Consistent support and ongoing maintenance are essential to address issues, update features, and adapt the solution as your needs evolve. Prioritize a partner that provides reliable support, contributing to the long-term sustainability of your SaaS investment. Request a list of ongoing support activities that they expect to provide after the implementation phase has been completed.

Cultural Compatibility: The convergence of values and work culture cannot be overlooked. If a partner’s values align with those of your organization, it is much more likely to be a harmonious and productive working relationship. Compatibility on this level can lead to better collaboration and shared goals. As you are going through the process of evaluating potential partners, make an effort to meet members of their customer service and product teams, as well as their sales reps.

In the rapidly evolving landscape of technology, a SaaS partnership is not merely a transaction; it’s an investment in your organization’s growth and success. By carefully considering factors such as expertise, communication, flexibility, technical proficiency, onboarding, support, and cultural alignment, you can make an informed decision that lays the groundwork for long-term prosperity.

The Key Takeaway:

Embracing operational expertise helps to improve financial results and provides the scalability that all rapidly growing businesses require. By taking the time to choose the right technologies, DSO leaders can increase the value of their business, improve profitability, become better prepared to handle issues, and provide their employees with more collaborative and productive workplaces.

Alison is the VP of Sales at Method Procurement Technologies. Her extensive background in eProcurement, software, and dental leadership supports DSOs in driving efficiencies and same-store growth. A true change agent, Alison has spent the past decade delivering explosive growth to software start-ups across sales, marketing, and operations, driving companies from MVP to IPO. Beyond her professional accomplishments, Alison is a mother of two, a podcaster, and an enthusiast for paddle sports.