A bonus for good buys

At our practice, we have an inventory team that handles ordering and tracking of drugs, lab supplies, food, and so on. But we still struggle with inventory accuracy. Would establishing an incentive program for the inventory team help?

Yes, incentives can help—if you reward the right behavior and results, says Ronald Althaus, who's spent more than 25 years in operations of manufacturing and distribution firms. "If your underlying problem is accuracy, offer rewards for team members who handle inventory when they buy the correct quantity at the right time," he says. "With accurate inventory tracking, you'll have what you need when you need it, and you'll have better budget control, too."

—Compiled by Donovan Atkinson, Editorial Intern, and Spring Suptic, Assistant Editor