Streamlining Dental Procurement Through Technology

Streamlining Dental Procurement Through Technology 

When the supply order places itself


Dental Supply Guy was founded in Henderson, Nevada, to solve a persistent inefficiency in dental practice operations. Supply management consumed significant administrative resources while pricing transparency remained elusive across the vendor landscape.

Rather than launch another marketplace or buying group, the founders developed a technology platform to automate procurement entirely. The company built its business model around two core elements that differentiate it in the dental supply market: a financial guarantee tied to total spending, and software that automates the ordering process based on treatment schedules.


The four-month guarantee
Dental Supply Guy’s pricing model includes an unusual commitment: If a practice’s overall dental supply costs as a percentage of production aren’t lower after four months, Dental Supply Guy writes a check for the difference.

The four-month window addresses a reality of dental supply pricing. Costs fluctuate month to month. An item might hit loss-leader lows one month and spike the next. Individual products may be discounted while others carry higher margins, a pattern the company’s founders describe as moving savings around rather than creating them.

The accounting firm PorterKinney reports the average cost of dental supplies is 7.3% of production, with highly profitable practices achieving less than 7%. Dental Supply Guy aims to reduce supply costs to 3.5%, providing measurable evidence on the practice’s profit and loss statement.


Automation beyond ordering platforms
Most supply management software still requires someone to log in, compare options, select products, and click “order.” Dental Supply Guy’s platform takes a different approach.

After an initial setup period, the software monitors treatment schedules and orders proactively. It compares prices from more than 450 vendors carrying more than 450,000 products, tracking pricing and availability across the supply chain.

The system uses data on how much each clinician consumes per procedure code: bonding agent per composite filling, gloves per patient, anesthetic per procedure. Once configured with this usage information, it places orders based on upcoming appointments added to routine inventory amounts.

This approach addresses common supply chain problems: back orders during staff vacations, running low when emergency patients arrive, and costly overnight shipping. For dental service organizations, the model reduces administrative overhead. For smaller practices, it provides access to enterprise-level pricing without manual price comparison.


Two levels of implementation
Practices can implement the platform at different levels depending on their priorities.

Basic setup takes approximately 10 minutes and requires DEA numbers, NPI numbers, dental license numbers, contact and shipping information, and current supply vendors. This provides immediate access to the pricing platform.

Full automation and the guarantee require a more detailed setup of roughly 10 hours. Staff document usage rates across procedure codes for each clinician. Once complete, the practice stops tracking inventory manually.


Maintaining choice and relationships
The platform supports different practice preferences. If a practice wants to maintain a relationship with a specific sales representative or distributor, the system can be configured to source exclusively from that vendor while still providing automation benefits.

The platform’s database includes both consumables and major equipment for practices expanding services or trying new products. Adding new items, whether a different bonding system or complete equipment purchases, works within the existing framework.


Quality standards
When the software identifies lower-cost alternatives, it applies specific criteria. Dental Supply Guy only recommends products that have earned the American Dental Association Seal of Acceptance or have been independently tested and evaluated by Clinical Research Associates.

The platform presents alternatives with their certifications rather than making automatic substitutions. Practices decide between their current brand and certified options at lower price points.


The business model
The company operates without subscription fees, earning revenue through standard distributor markups.

Dental Supply Guy has also established a referral compensation structure for practice team members who introduce the service, acknowledging that procurement decisions often involve multiple stakeholders.

The economics are straightforward: A practice producing $1 million annually and spending 7% on supplies allocates $70,000 to procurement. Reducing that to 5% saves $20,000 annually. For practices at or above 7%, the four-month guarantee offers a risk-free test of whether automation delivers those savings while freeing staff from supply management. The numbers on the profit and loss statement tell the story.

Evaluating supply costs?
Learn how Dental Supply Guy evaluates cost savings with a four-month guarantee at dentalsupplyguy.com or call 702-903-7601.

This content is sponsored by Dental Supply Guy.
For more information, visit dentalsupplyguy.com.
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