While not often discussed in the construction industry, inventory management is something that can significantly improve your job site’s efficiency. By providing a clear picture of construction companies’ supply chains, inventory management software can optimize efficiency and boost productivity.
Let’s take a closer look at how.
Benefits of Inventory Management Software in Construction
o maximize job site productivity, you need to work efficiently to keep costs down and stay on schedule. Otherwise, you risk shouldering jobsite expenses and furthering payment delays. Contrarily, if you complete your projects ahead of schedule and within (or even under) your budget, you can enjoy higher profit margins overall.
So, what has this got to do with inventory management?
In job sites, projects can often experience delays due to missing materials. If it’s a piece that’s absolutely crucial to the structure’s integrity, then you can’t skip or replace it. This often happens when the earlier order wasn’t enough or if materials were misplaced.
This is where inventory management comes in. If your construction business still relies on manual, paper-based tracking, then maybe it’s time to upgrade to inventory management software.
Not only can you automate processes and get more accurate estimates of how much you need to reorder, but you can also see your inventory in real time. You don’t have to waste time going back and forth looking for missing materials, because you’ll know exactly where they are when you need them.
The benefits of using inventory management software to boost job site efficiency are as follows:
Overall Jobsite Optimization
Aside from keeping track of construction inventory and equipment, inventory management software can also help you optimize other operations. For example, you may find that purchasing materials from just one vendor (as opposed to several different ones) cuts your waiting and delivery time in half and results in lower costs.
Or maybe tallying up your equipment through inventory management can show you that you actually have a ton of excess inventory, in which case you can sell the surplus to boost your cash flow instead.
Briefly put, using inventory management software can help you get a bird’s eye view of your entire inventory and see areas for optimization to help make your workflows much smoother and quicker.
Accurate demand forecasting through inventory management software can help you prevent stockouts and mitigate risks before they happen. With proper forecasting, you can replenish stocks on time and have just enough to get crucial tasks done.
This can be very helpful, especially if you often lose opportunities or precious time due to incorrect demand forecasting or insufficient stock replenishment. With inventory management software, you can enjoy complete transparency and remain in the know at crucial times, allowing you to say yes to more job opportunities, because you know you’re prepared.
This is another key advantage of using an inventory system. Inventory management tools can often be used to ensure compliance with OSHA standards, state-specific requirements, environmental regulations, and more.
Inventory software provides inventory traceability, giving you peace of mind and assurance that the parts used on a specific job are accurate and compliant.
Proper inventory management can be a secret weapon for contractors looking to optimize job site efficiency and take on more projects with confidence. Not only will you avoid inventory-related hiccups, but you will also enjoy better compliance, smoother workflows, and increased revenues.
If you are interested in learning how Fishbowl’s flexible inventory management solution can help your business now, you can book a demo.