The DME industry is changing at an alarming rate, and if you’re not ahead of the game, you could fall behind. If you’re finding that you’re having trouble managing your business, having trouble identifying your profit centers, and suspect you are wasting time and money, consider switching to an ERP software system.
Here are five signs you need an ERP System:
How many different software programs does your business run on? If you’re like most DME businesses, you have different software systems running accounting, sales, inventory, billing, delivery and compliance documentation. These different systems mean that you’re adding minutes – sometimes hours – to every single order. When margins were healthy, that was fine, but now that margins are tight, every minute counts. Worse, your software systems probably don’t talk to each other, so you’re adding even more minutes with double entry. Time is money, and multiple software systems are a time suck.
To run a business in a competitive, tight-margin market like DME, you need complete and instant access to critical business information. What is your average sales margin? What are your most profitable products? What are your accounts receivable? How many claims remain under-worked every month? You need this information at your fingertips to remain competitive in this market, and you can’t access this information unless you have a single ERP platform that spans billing, sales, inventory, accounting and delivery.
Often the biggest sign that you need ERP software is that your accounting department is lagging. When employees rely on paper-based delivery documentation and spend hours every week manually entering them into different inventory and billing systems, you need to consider how much time is being wasted on tasks that could easily be taken over with ERP software. Along the same lines, if financial reports are delayed and take hours of preparation, an ERP solution will make a significant impact. With all financials in a single database, your billing, accounting and inventory staff don’t have to spend time cross-posting information and reconciling data manually. This will free up your accounting staff, making them more productive.
DME businesses are complex, but at their core is inventory. Without the right products in the right warehouse, in the right trucks, and with the right customers, you simply can’t run your business. Separate sales, inventory and billing data systems make it virtually impossible to know your inventory status in real-time. This leads to breakdowns in communication when customers are promised items that are out of stock, or delivery drivers are sent out with incorrect items. With an ERP system, staff in every department has real-time access to inventory data. Products can be seamlessly counted, loaded, sold, rented and ordered from a single database. Even better, you can quickly see the margins for every item.
Every software system that your business uses requires someone who understands it and can train employees how to use it. As your business grows across multiple software systems, you need a larger support staff to bug-fix, train on and administer all those software systems. Patchwork software systems require a team of administrators and trainers, and yet they still underperform. ERP systems require less oversight, because it is a single company providing your software business-wide, and you can quickly and easily deploy training, support and new features company-wide.
To learn more about Bonafide’s cloud-based ERP is the best solution for growing DME businesses, contact us to schedule a demo.
Did you know that your trucks could be running much more efficiently – and they could even become mobile profit centers for your business?
The key is to rethink your trucks not as just delivery vehicles, but as mobile stores. With the right software in place, your drivers can have everything they need to be more efficient, eliminate costly return trips to the warehouse, and immediately obtain delivery confirmation, which speeds up the reimbursement process.
You can only do this with Bonafide’s software. Why?
Inventory: Bonafide offers the best inventory control software available for the DME business. Our software ensures your trucks are fully stocked with everything they need for their delivery route. A fully-stocked truck means you can adjust your drivers’ route in real-time, without sending drivers back and forth to the warehouse in between drop-offs.
Documentation: How many times do your drivers fail to get the correct documentation, and then have to return to the customer? Only Bonafide offers smart-phone enabled technology that guides your drivers through the documentation process error-free.
Billing: Are you forced to wait several days between delivery and billing due to the paper trail that your drivers have to maintain? Only Bonafide offers digital delivery documentation, which is immediately sent to your billing department, error-free and in real-time, reducing errors and speeding time-to-payment.
The businesses that will survive the current industry consolidation in DME are adopting Bonafide’s technology to make it happen. Do you want to talk about how you can get started?
As all of us have noticed, the DME industry is undergoing massive change. Last week at Medtrade, which is a very public reflection of the health and vibrance of the industry, we saw the consolidation of the industry first-hand. The show floor has dwindled down to a very small audience of DME providers, and you can feel the change in the air.
As a software provider in the DME industry, we can see first-hand the disaster that lower reimbursement rates have wreaked on small business providers. We have taken note that the providers that are surviving today are adopting new systems and business infrastructure. These changes are undoubtedly very uncomfortable, and require massive changes in the way they do business, but they are also critical to survival.
There are a few providers who are quickly embracing Bonafide’s software to help them gain important business systems, insight and management tools. These are the providers that are thriving. Their margins are healthy because they have close control over their inventory, delivery systems and billing systems. They maintain lean overhead, get reimbursed faster, and at maximum rates. These providers are taking market share from other providers based on their ability to control margins with powerful software from Bonafide.
As we see it from the inside, change is a welcome godsend if embraced, death if not. Please, give me a call and let’s talk about how Bonafide can help your business be not just a survivor but a thriver in today’s compressed market. I would like to see you on the other side of this consolidation process, and I know we can help make that happen for you.
We have all heard it a thousand times – the DME business model is changing. We know that you know by now that in order to stay afloat, you have to change the way you do business.
We have seen a number of forward-thinking providers who are not just surviving but thriving in the new DME market. Here are three things that I’m seeing them do to make the market work for them:
Margins: DME companies that are thriving are hyper-focused on managing their margins. They make sure that from order to reimbursement, they are maximizing their margins at every step.
Control: Inventory control has never been as important as it is today. The growth-based companies are investing in inventory tracking systems like ours, which allow them to monitor every item they carry. With careful controls in place, they can eliminate costly overhead while delivering on time and within price margins.
Software: Software has come a long way in the last five years, and yet many providers are under-utilizing the software available to them. Now is the time to make sure that you really understand and use what your software providers are offering your business. At a minimum, you should be able to access myriad reports to help you run your business.
The DME market is changing, but remember that DME is a “must-have” industry, so it will not go away. The providers who thrive in the new conditions will be able to maximize the three elements above and more.
Wondering how you can thrive in 2017? Give us a call!