If you’re running a small or medium-sized construction business, you know that keeping track of your stuff can be a real headache, yet inventory management is often overlooked by the industry as a whole. But what if we told you that good inventory management could be your secret weapon for success? Let’s dive into how it can transform your business and make your life a whole lot easier.
Inventory Management… for Construction?
First things first: inventory management in construction is all about knowing what you have, where it is, and how much it’s costing you. It’s like having a super-organized toolbox, but for your entire business. Inventory management not only allows your business to gain a handle on material usage, it can provide the “big picture” of where your business is going.
Job Costing and Time Tracking
Whether you’re working on an entire subdivision, or improving an entire product line, you want to know exactly how much you’re spending on materials and labor. With good inventory management, you can track every part, material, and minute your team spends on the job. This means your business could:
– Estimate project costs more accurately (no more underbidding!)
– See in real-time if you’re going over budget
– Figure out which jobs are making you money and which ones are eating into your profits
– Gain better insight into labor costs
To start implementing job costing and time tracking, make sure your Inventory Management System integrates these features, and has been used in the construction industry. Many solutions offer mobile apps, allowing your team to log hours and material usage right from the job site. Start small by tracking one project thoroughly, then expand as you get comfortable with the system.
Managing Multiple Job Sites
If you’re juggling projects across town (or even across the state), inventory management ensures that all parts and materials are properly accounted for. With full implementation, your business can:
– Keep an eye on all your job sites from one central system
– Move materials and equipment where they’re needed most
– Cut down on unnecessary transportation costs
– Assign users the ability to manage specific locations, or the whole operation
To implement multi-location management, look for dynamic inventory systems that allow real-time updates from different sites. Train your site managers on using the system and establish clear protocols for updating inventory levels. Consider using QR codes that can easily be created and scanned via easy Mobile Barcode App to log material and work.
Keep a Consistent Supply Chain
Think back to how many projects hit a delay due to a lack of materials or supplier stockout. With good inventory management, your entire operations will be able to:
– Streamline your ordering process
– Build better relationships with your suppliers
– Avoid those “oh no, we’re out of X” moments
– See what is on hand and where
To enhance your supply chain management, start by analyzing your current purchasing patterns. Identify your most frequently used items and critical suppliers. Look for inventory systems that offer automated reordering features. Gradually set up these features for your key items, adjusting thresholds as you learn what works best for your business.
SKU Tracking
If you want to take your construction business to the next level of tracking and control, SKU tracking is the means to make all your dollars count (and be accounted for). It could help you:
– Know exactly what you have and where it is
– Reduce waste and prevent theft
– Order the right amount of materials every time
– Ensure consistent material usage across similar projects
Implementing SKU tracking doesn’t have to be overwhelming. Start by cataloging your most expensive or frequently used items. Choose a system that allows for easy barcode scanning or QR code generation (linked above). But also make sure to train your team on the importance of accurate data entry and consider running regular inventory audits to ensure accuracy.
For businesses that want to get more control faster, bring in an Inventory Expert to fast track your onboarding and get your crews up to speed. These types of implementations provide in-person training just like a Fishbowl Onsite Training.
Staying Compliant: Because Rules Matter
Audits, inspections, and project reviews are nothing new to contractors, but inventory management provides an additional layer of control and compliance to keep your projects running with less interruptions. Setting up compliant inventory management systems can allow your business to:
– Keep up with safety standards
– Manage environmental regulations
– Make audits a breeze (well, less of a nightmare anyway)
– Maintain a digital “papertrail” of materials and labor
To improve regulatory compliance through inventory management, start by identifying the key regulations that affect your business. Look for software that includes compliance features specific to construction. Set up regular compliance checks within your system and assign team members to oversee different aspects of regulatory adherence.
Reports and Data Analytics
One of the most important yet overlooked aspects of creating and maintaining an inventory control system within your organization is the data that it provides, allowing decision makers to have reliable data for whatever decisions may lie ahead. Reporting provides insights such as:
– Real-time insights into your inventory
– Predictions about future material needs
– Easy-to-understand performance metrics
– Custom Fishbowl Reports for different people in your company
To harness the power of data analytics, start by defining the key metrics that matter most to your business. Look for inventory systems with built-in reporting and analytics features. Begin with basic reports like inventory turnover and job cost analysis, then gradually explore more advanced predictive analytics as you become more comfortable with the data.
Takeaway
When you’re busy swinging hammers and managing crews, inventory management might seem like just another task on your never-ending to-do list. But the long term payoff will yield dividends to your business’s future success. Good inventory management could potentially help you save money, work more efficiently, and grow your business.
Remember, implementing new technology doesn’t happen overnight. Start small, choose one area to focus on, and gradually expand as you and your team become more comfortable with the new systems. Before you know it, you might be wondering how you ever managed without it!
